Technology’s Impact on the Auto Repair Process, Interview with Mitchell's Greg Horn

Modern cars, even the lowest-priced entry-level models, are technological marvels that combine space-age materials, sophisticated computing capabilities and awe-inspiring safety features -- many that function without driver input. But as our vehicles have become more complex, so too have the processes for repairing them.

Nobody can predict the future, but we can say with certainty that technological advances will continue to transform the way we handle collision repairs, from claims processing to estimating, parts pricing and customer service.

According to Greg Horn, Mitchell’s Vice President of Industry Relations, we’re already seeing the impact in several ways.

Give us a little insight into how evolving technology is impacting the property and casualty industry. What do these advances have to do with the future of repairs, costs, and customer service? 

Greg Horn: As cars get more sophisticated, the decision to repair or declare total loss becomes more challenging. We know, for instance, that the cost just to replace deployed airbags in cars valued below $10,000 is between $1,000 and $1,200. Now, consider a more expensive car, one with extremely complicated technology or exotic materials, and the repair costs can really escalate. That’s driving a trend toward more declarations of total loss. In 2000, about 9 percent of appraised vehicles were total losses. This year, it’s over 14 percent. Total losses take the repair shop out of the equation entirely, but data also show a corresponding, significant drop in customer satisfaction ratings when cars are totaled.

What about cars that are deemed repairable? What impact does the complexity of the vehicle and the repair process have then?

Greg Horn: Obviously, as cars become more complicated with more interactive systems, we’re going to need mechanics and technicians who are up to “the ask”. The cost of higher salaries and advanced training will be passed on to the consumer. I think we’ll also see an increase in the number of vehicles that must be handled by a factory-authorized dealership to maintain the warranty. Consider, for example, the Toyota Camry, which has a weight-calculator for the driver and passenger airbags. That has to be recalibrated after deployment, and only a Toyota dealership can do it.

Another, less obvious impact is driven by legislation. There’s always going to be a demand for lower-priced, entry-level cars. But, as government regulations increasingly require manufacturers to add safety technology, price points will go up. That’s going to frighten first-time and price-conscious drivers out of the new car market. We’re already seeing people drive used cars longer -- the average light vehicle on U.S. roads today is over 11 year old. People who stay in the new car market are financing longer -- the average new car loan is 68 months. Or they’re leasing. What’s the impact of that on auto repair? Well, manufacturers are increasingly insisting that repair shops use OEM parts to repair leased vehicles. And that, as we all know, increases the cost of repairs, which in turn affects customer satisfaction ratings.

What’s the answer? How can the claims handling and collision repair processes be more efficient to keep repair costs down and customer satisfaction high?

Greg Horn: Mitchell has been a pioneer in developing products and services that streamline claims handling, estimating and repairs. We’ve been really quick to capitalize on technological advances that advance the transformation, too. From a company that started with book publishing, we’ve evolved into a technology leader. We’ve really embraced cloud computing to facilitate efficient, accurate data transmission.

Solutions for Everyone in the Process

Insurers and their repair partners - Mitchell WorkCenter™ modules help claims move quickly from first notice of loss to settlement, simplifying the workflow for insurers and their repair partners.

Collision Repair Shops - RepairCenter™ helps shops manage every aspect of collision repair, end-to-end. The shop can use a variety of estimating, parts lookup and labor management tools to track and control the repair, automate scheduling and even communicate with the insurer, vendors and the customer.

Appraisers - The appraiser can use FastPhoto to document damage and automatically upload it to the correct RO or estimate.

Mechanics -  And the mechanics can use TechAdvisor to get the latest collision repair techniques and procedures.

It all combines to reduce errors, inform decision-making, improve communications and expedite the outcome, whether it’s to repair or total, with a net result of time and money saved.

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Discover how Mitchell Estimating can save you time and money, by automatically including removals and installations on your collision repair estimates. Watch this 1:20 minute demo of UltraMate.

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