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Supply Chain issues with auto and property claims

Supply Chain Issues with Auto and Property Claims

A lack of parts, materials and labor to repair cars and buildings is hampering the ability repair many vehicles.

The outbreak has thrown a number of challenges at the insurance claims community, such as handling claims when most staff are working from home and assessing damage when there are restrictions on movement and travel.

‘Significant’ disruption

There is a large problem getting parts to finalize repairs and many clients are left without their vehicle for many weeks in some cases months.  Some auto manufacturers have parts backordered, but no delivery dates set.  GM, Land Rover, Acura, Honda and others have been challenged to get the supplies to repair shops due to shorten work hours and lack of staffing in manufacturing plants.

For property repairs, supplies to plumbing, electrical and flooring can leave clients in limbo for several months.  Contractors are in such high demand it is a struggle for many consumers to find quality contractors willing to take on any new projects.

So, we would like to manage your expectations if you do have a claim.  Be patient and try to work with your repair shop or contractor before work begins.  If they have all the supplies/or parts you can be in a better position to get the work completed.

If you are in need of a rental car during the repair, keep in mind that most insurance policies only cover rental car for 30 days and repairs are often exceeding that timeline.  If the car is totaled, your rental car coverage ends within a few short days of the total loss notice.  Buying a car to replace your totaled vehicle can also cause a great deal of stress due to the limited supply.

While we cannot change what is happening with supply chain, we do want you to be aware and understand the potential impact.