Canadian collision repair shops experienced rising customer-paid repair values in August 2026, with average customer-pay repairs reaching $1,803 while insurer-paid orders remained under pressure at $5,294, indicating a shift toward consumers absorbing repair costs due to higher insurance deductibles and premiums.
- Average insurer-paid repair order sales rose $73 month-over-month to $5,294 in August, remaining $83 below the six-month average
- Customer-paid repair values jumped $177 from July to $1,803, exceeding the six-month benchmark by $111
- Production efficiency remained stable with average cycle time at 13.4 days and touch time at 2.5 hours
- Work-in-progress inventory ratio increased 3.8% to 11.3:1, indicating slight capacity buildup across the industry
- Rising out-of-pocket spending reflects consumer behavior shift driven by higher insurance costs and deductibles, requiring shops to adapt operations and manage customer expectations directly
Canadian collision repairers saw customer-pay repair values rise in August while insurer-paid repair orders gained modest ground month-over-month despite remaining below six-month benchmarks, according to the latest Pulse of the Industry report from Collision Repair magazine and AutoHouse Technologies.
The monthly report, produced in partnership with Vancouver-based AutoHouse Technologies, draws on operational data from more than 60,000 repair orders across Canada.
Average insurer-paid repair order sales rose $73 month-over-month to $5,294 in August, though the figure remains $83 below the prior six-month average. Meanwhile, customer-paid repair values posted a sharp increase, rising $177 from July to $1,803—an increase of $111 above its six-month benchmark.
Mike Gilliland, president and founder of AutoHouse Technologies, said operational throughput held steady across the month while financial metrics diverged.
“Average insured RO sale remains under pressure, while August saw a notable increase in customer pay repair value,” Gilliland said. “Production efficiency remained relatively stable, with cycle time and touch time holding at July levels.”
"While insured repair values showed a minor bump in August, the real story is in customer-pay revenue," said Collision Repair publisher Darryl Simmons: " Drivers taking on bigger repair bills out of pocket marks a distinct shift in how work enters the shop."
Production metrics held flat across the industry in August. Average cycle time—the number of calendar days required to move a vehicle from arrival to delivery—remained unchanged against the prior three-month average at 13.4 days. Average touch time, which measures the hours produced per repair each day, also held steady at 2.5 hours.
Top 10% performing shops recorded a cycle time of 5.7 days, down 1.8% against their prior three-month average, with a touch time of 4.6 hours, down 1.4%.
Industry capacity metrics showed a slight build-up in inventory, with the work-in-progress (WIP) ratio rising 3.8% against the three-month average to 11.3:1, representing 11.3 days of daily repair output currently on-site in production.
Gilliland noted that higher out-of-pocket spending by vehicle owners signals changing consumer behavior driven by broader insurance pressures.
“The rise in customer pay is worth watching,” Gilliland said. “Higher insurance costs and deductibles may be encouraging some consumers to absorb the repair cost rather than submit a claim. Combined with continued pressure on insured repair values, it points to a changing repair mix where every available repair, and how efficiently it moves through the shop, matters more than ever before.”
"When consumers choose to pay out of pocket rather than file claims, shop operations have to adapt. Managing customer expectations directly and keeping throughput efficient will be essential as the repair mix continues to evolve," added Simmons.
Pulse of the Industry data is normalized, with unusually large variations screened out to prevent individual jobs from distorting the broader results. Financial figures are reported before tax.
View the full Pulse of the Industry report to explore how Canadian collision repair performance is evolving.
