auto repairs

It’s no secret that the COVID-19 pandemic has created havoc throughout the global supply chain. The ongoing pandemic, coupled with the resulting labor shortage, has caused significant problems with the supply chain for car parts. While cars were once relatively simple machines, in 2022 they are complex entities with an increasing number of computerized components, all of which must be shipped to repair shops, frequently from overseas. In particular, global shortages of microchips are wreaking havoc, as many chip factories that manufacture the components shut down early in the COVID pandemic and still have not caught up with order fulfillment.

Manufacturing problems aren’t the only reason for parts shortages, however. Shortages of dockworkers and truck drivers have also exacerbated the delays for vehicle parts. On the auto shop floor, shortages of repair technicians and interruptions in daily business due to illness and quarantine are also causing problems. 

In some cases, drivers are having to wait for months without their cars while they wait for vehicle repair delayed by a lack of parts. Repair shops are having to pass on the unhappy news to customers that those necessary parts are backordered, and they don’t have a clear picture of when the parts will arrive in stock. So vehicle owners are playing a waiting game.

Havoc with Rental Reimbursement

The news is particularly bad for consumers who are driving rental cars while they await repairs on their vehicles. Insurance companies are also facing a grim situation as they must inform policyholders that they can’t cover rentals indefinitely – for months, in some cases – while repairs are stalled in the auto shop. In order to protect their bottom lines, many insurance companies have a maximum on their rental policies, which customers can go through quickly if their repairs are delayed. 

If your vehicle is damaged in an accident, brace yourself to expect a longer wait than usual for repairs. Depending on the type of repair needed, the wait could be significant.

Costs Have Escalated During the Pandemic

Car rental rates have increased significantly during the global pandemic as car rental companies sold off vehicles they weren’t renting at the beginning of the pandemic. Rental fleet inventories have not yet recovered to pre-pandemic levels as a result of new vehicle shortages and price increases. In addition, rental car companies are being subjected to the same repair delays as the rest of us.

If you have rental reimbursement coverage for your auto policy, be sure to check the limits. Most companies will build in a per day and aggregate total limit for this coverage. While those limits may have been sufficient to pay for temporary transportation while you waited for vehicle repairs in years past, they may not be sufficient to cover all your costs right now. Insurance companies are unable to pay for limitless rentals while repair delays drag on, so you may need to make alternative arrangements while you await your repair. 

Communicate with Your Repair Shop

If you find your repairs delayed and you’re concerned your rental reimbursement will end before your vehicle is ready, be sure to communicate this information to the repair shop. In some cases, the body shop may be able to flag orders as critical for more rapid prioritization, up to and including air freight where permitted, to reduce lead times.