Cost of repairs set to increase
The Collision Repair Association (CRA) is warning that vehicle repairs may take longer and be more expensive because of the coronavirus pandemic.
It claims a limit on freight options because of the Covid-19 outbreak and the introduction of new sanitisation standards risks delaying work and driving up costs.
As a result, CRA is calling on insurers to pass on some of the millions of dollars saved on insurance pay-outs during the lockdown to cover the increased cost of repairs.
CRA spokesman Neil Pritchard says parts suppliers that normally air freight items from regional suppliers in Australia, Asia and Europe are currently restricted to bringing parts in by sea, which may take up to 12 weeks.
Pritchard, pictured, explains government standards for car repairs under level three will also see a vehicle sanitised every time a new staff member enters the vehicle. He claims this means a vehicle may be sanitised up to six times during repair work and courtesy cars will need similar treatment.
“Modern vehicles, in particular, have a number of different layers to the repair – even following a minor collision,” Pritchard says.
“In addition to cosmetic paintwork on the exterior panels and internal structural repairs the car will often need a wheel alignment and, if any of the sensors are damaged, these will need recalibration at a dealership – both of which will see the vehicle transported off site and require sanitisation before and after these parts of the repairs are completed.”
Pritchard wants the insurance industry to help meet the cost of additional cleaning materials, labour and personal protective equipment (PPE) expenses.
“The insurance industry has saved an estimated $100 million during the level four lockdown and will continue to make savings as fewer people venture out of their homes in the months to come,” he says.
“Under the current insurance model, the increased workplace hygiene costs will not be met by the consumer as collision repairs are paid by the insurer under contracts with the repairer.
“We are now asking insurers to support the thousands of Kiwis employed in the collision repair industry by helping to cover the increased cost of work under Covid-19.”
