Total Loss Avoidance
The average Total Cost of Repair (TCOR) is rising year-on-year, increasing the number of uneconomic or borderline accident repairs. When a vehicle is written-off by the motor insurer the vehicle manufacturer, franchise dealer, paint company and repair shop all lose the revenue opportunity. And often a loyal after-market customer is lost.
In just five-years, the TCOR difference between the newest and oldest cars has grown from 46% to 69% in the US with write-offs now accounting for c20% of motor insurance claims; whilst in the UK the TCOR has risen by c30% in just five-years, by way of example.
Introducing AVOIDD: a quick, accurate, branded, multi-market business tool that increases the number of branded collision repairs in the approved repair network, and subsequently improves OEM parts, paint and labour revenue/margin by capturing the repair of vehicles that would otherwise be written-off by the motor insurer. Typically, AVOIDD manages to avoid 75% of borderline write-offs.
AVOIDD compares the present market vehicle valuation with the TCOR estimate to calculate the adjustment needed to the price of EOM parts, paint and labour in order to make the repair economically viable to the motor insurer, whilst also maximising the Gross Margin for the vehicle repairer, franchise dealer, paint company and collision repair shop.
Full control on pricing is retained by the manufacturer and a dedicated TLA specialist works with the manufacturer for final approval. AVOIDD incorporates Artificial Intelligence to estimate the best pricing offer.
AVOIDD can be restricted to the approved repair network or, alternatively, include the independent motor trade.
The vehicle manufacturer requires no budget.
AVOIDD is used by our leading automotive clients with remarkable success and user satisfaction.