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Average gross collision loss appraisal decreased in 2008 Q1


May 1, 2008   by Canadian Underwriter


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The average gross appraisal value of a Canadian collision loss in 2008 Q1 was Cdn$3,078, a decrease of Cdn$139 over 2007 Q1, based on data contained in the 2008 Q2 Mitchell Industry Trends Report.
Mitchell stats show the average body labour rates in Canada have increased by 4.82% (or up to 8.3%) over the same period last year.
Refinishing work counts for 34.8% of labour costs, the Mitchell report found. In contrast, removing or replacing auto body parts accounts for 24.6% of labour dollars, whereas repairs count for 40.6%.
Labour costs in Alberta and B.C. are highest among Canada’s provinces (excluding the Yukon and Northwest territories), and are continuing to rise. In Alberta, the average body labour rates jumped 8.2% (from $55.06 in 2007 Q1 to $63.25 in 2008 Q1), and in B.C. the increase was 7.42% (from $56.72 in 2007 Q1 to $64.14 in 2008 Q1).
In Ontario, labour costs went up by 2.6% over the past year.
The Mitchell Industry Trends Report indicates that while the costs for parts accounted for 4% less of the average appraisal in Canada during the last quarter, the costs for labour and paint materials have become more of factor. Average paint material costs, for example, have gone up from $7.71 in 2006 Q1 to $8.79 in 2008 Q1.


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