The collision repair industry is no stranger to change, but the shift we're seeing in consumer behavior is unlike anything we've experienced before. Today's customers are increasingly comfortable paying for repairs out-of-pocket, and they expect a digital-first experience throughout the entire process.

To thrive in this new landscape, you need to understand why this shift is happening and how to adapt your strategies to meet these evolving expectations.

The Out-of-Pocket Opportunity

So, why the shift? To start, insurance premiums are on the rise, with the average driver in the US now paying over to $2,600 per year, a 12% increase from 2024. Additionally, deductibles have increased by 47% since 2019. This means consumers are paying more out-of-pocket even when they do file a claim, making them more likely to consider alternative options for smaller repairs.

This trend is also reflected in CCC's Crash Course Q4 2024 report, which shows a decline in repairable claims under $2,000, dropping from 43% of the mix in 2019 to just 26% today. This indicates that consumers are becoming more selective about filing claims, opening the door for you to capture these out-of-pocket repairs.

The Digital Consumer

Let's face it: we live in a digital world. From ordering groceries to booking flights, consumers are accustomed to doing almost everything online. This preference for digital extends to the automotive industry as well.

Deloitte's 2025 Global Automotive Consumer Study highlights this trend, revealing that nearly half (49%) of US consumers prefer to limit in-person dealership visits. They want to research options, compare prices, and even make purchases from the comfort of their own homes - and that preference for digital extends to the post-purchase experience as well.

This isn't just about convenience; it's about transparency and control. Consumers want access to information readily available at their fingertips. They want to compare estimates, read reviews, and understand the repair process before even setting foot in a shop.

Bridging the Gap: Digital Tools for the Modern Shop

To connect with these customers and make sure to capture the increase in out-of-pocket claims customers want a digital first experience. Today's consumers are tech-savvy and expect a seamless online experience. They want to find information quickly, get estimates easily, and book appointments with minimal hassle.

Here's how a strong digital presence can help you capture these out-of-pocket customers:

• Increased visibility: A well-optimized website and online listings ensure your shop is easily found by those searching for local repair services.
• Transparency and trust: Build trust by providing clear online estimates and repair process details, showcasing positive reviews, and engaging with customers on social media.
• Convenience: Online booking and digital communication tools offer a hassle-free experience, appealing to busy consumers.
• Efficiency: Streamlined digital processes can reduce phone calls and paperwork, freeing up your team to focus.

The Future is Digital: Are You Ready to Lead the Way?

The collision repair industry has always been about craftsmanship, resilience, and adapting to the latest advancements in automotive technology. Now, a new era is dawning – one where digital tools and a customer-centric mindset are essential for success. This is especially true as we see more and more customers choosing to pay for repairs out-of-pocket. By embracing this digital transformation and catering to these new consumer preferences, we can unlock exciting growth opportunities, meet the evolving needs of today's tech-savvy consumers, and forge a path toward a more efficient, connected, and sustainable future for the entire industry.