COLLISION REPAIR SURVEY FINDS OUT-OF-POCKET EXPENSES ARE BECOMING ROUTINE AS OEM PROCEDURES, REPAIR COMPLEXITY AND INSURANCE PRESSURES DRIVE MORE CUSTOMER PAY DISCUSSIONS
Customer pay transactions are now a routine part of collision repair operations across Canada, according to a recent Collision Repair magazine reader survey examining how often out-of-pocket costs arise during an insurance claim, when they occur and how customers respond.
The survey gathered responses from 33 collision repair professionals across Canada. Participants were asked 10 questions examining how frequently customer pay arises in their operations, when those conversations typically occur during the repair process, the average out-of-pocket amounts customers are paying and how consumers are responding to those costs.
The survey also explored factors influencing customer approval, the impact of customer pay on shop operations and whether respondents expect the trend to increase in the coming years. An additional open-ended comment section allowed respondents to provide further insight into the challenges and realities surrounding customer pay in today’s repair environment.
71% of respondents said they encounter customer pay over the policy deductible on a regular basis, while another 21% said it occurs occasionally. Only 7% reported that they do not see customer pay at all.
An Alberta shop owner said customer pay remains a relatively small share of overall business at their facility, despite appearing more frequently in estimates.
“Some customers want to see corners cut to keep costs down and when a shop doesn’t want to sacrifice quality for the sake of cost, it can create a bit of contention. At the end of the day, we just want to complete a safe and proper repair while maintaining profitability regardless of who is paying the bill.”
AkzoNobel senior services consultant Tim Ronak said much of the increase is tied to the growing complexity of modern vehicle repairs and the documentation now required to support them.
“Things are changing very quickly because of technology integration in a modern vehicle,” Ronak said. “It’s changing how repairers need to repair these cars.”
The survey found customer pay most commonly arises at the estimating stage. 80% of respondents said out-of-pocket costs are introduced during estimating, compared to 9% during teardown. Fewer respondents said customer pay typically emerges during supplement discussions or at delivery. Shops say early communication is key to managing those conversations.
“We always give the customer the quote at the estimating stage, or as early as possible. Setting expectations up front is key,” said a British Columbia estimator. “In some cases, additional customer pay arises during teardown or as supplements, but we try to minimize surprises by being transparent early on.”
Customer pay amounts vary widely. 33% of respondents said costs fluctuate too much to estimate. Among those who identified a typical range, 27% reported amounts between $500 and $1,000. Another 20% said customer pay frequently exceeds $1,000, while 20% cited a range of $250 to $500.
Higher repair costs are increasingly tied to OEM procedures, scanning and calibration requirements.
“Today’s repairs often involve following OEM procedures, additional steps and specialized tools and scans,” a British Columbia estimator said.
Ronak said estimators are increasingly being asked to document repair procedures in greater detail as OEM requirements evolve. “The days of guessing how much it’s going to cost to fix a car are essentially over,” he said. “If you can’t document all the steps that the OEM indicates are required to restore that vehicle to the same safety functionality it had before, then we have a problem.”
Despite the added costs, most customers appear willing to proceed with repairs once explanations are provided. 67% of respondents said customers are generally accepting of additional customer pay over their deductible either immediately or after an explanation. However, 27% said customers are frequently or almost always resistant.
Survey respondents identified customer trust as the most important factor in gaining approval for out-of-pocket costs. 53% said trust in the repair facility carries the greatest influence, ahead of insurer involvement or supporting documentation alone.
“The biggest factor is trust and clear communication,” one estimator said. “When customers feel informed and confident in the shop, they’re much more likely to approve.” Ronak said documentation is becoming increasingly important as insurers scrutinize repair procedures more closely.
“If you’re going to put a line item on a repair order, or therefore a repair invoice, you should have documentation for it,” he said. Rising insurance premiums are also influencing customer decisions, according to shops surveyed.
“Customers are always worried about the rate increase after an at-fault accident,” another British Columbia estimator said.
Looking ahead, 60% of respondents expect customer pay to become more common over the next two years, while 27% anticipate little change.
Shops and consultants alike point to increasing repair complexity, evolving OEM requirements and continued insurance pressure as key drivers behind that expectation.
