In random sampling of 25,000 estimates in 2008, this charts breaks down repair vs. replacement of parts labor when a part is either repaired or replaced. 66.35% of labor time is spent replacing parts.

Data source:  © 2008, AutoClaims Direct, DirectLink

The word on the street these days is that Direct Repair shops are having a rough go of it. Due to a tough economy, well publicized financial troubles of major insurers and the difficulty of DRP shops to retain a profit, many have shuttered their doors. With many of these DRP’s being smaller shops which insurers relied upon for DRP networks, will insurers may be forced to abandon much of the DRP model? Time will tell if this truly happens.