Repairers struggle as summer business drops

September 07, 2011
Repairers struggle as summer business drops
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Nobody likes to admit to it, but accident repairers all over Ireland have been struggling to keep their heads above water over the summer months, as repair volumes have dipped even further from already low levels in the spring.


After quiet moths in April and May, not helped by unseasonably dry weather and a spate of bank holidays, the summer months have proved no better, with many repairers saying the market is the quietest that they can remember. In particular insurances work appears to have dropped by around one third on normal summer volumes, with one repairer commenting, “It’s as though insurance companies have turned a tap off.”

Competition for the insurance work that remains available has thus become even more competitive, while filling in the gaps with minor repairs is also proving difficult, as household disposable incomes continue to sink.

We are looking at a combination of factors coming together that are currently depressing the accident repair market. Less economic activity and less employment mean fewer cars on the road on a daily basis, which obviously means fewer accidents. Added to this, increased fuel costs mean much leisure related driving has now been cut back on, again reducing repair work. The other major factor is that high excesses, fear of losing no claims bonuses and more third party only insurance, means that much minor repair work is now going unrepaired, as customers simply can’t afford to pay for it.   

The hope is that higher traffic volume brought on by the return of schools in September, will provide a boost to the market. In the meantime, repairs are having to get much more active in promoting their services, look at up-selling and diversifying.

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