Demand for auto body repair, measured by number of claims made by insured vehicle owners for auto body repair services in the market have been declining over the past four years. Because of the large number of auto body repair shops competing in the market, even if a number of auto body repair shops were to cease to exist as a direct result of the directing of insured vehicle owners by insurance companies, there would be sufficient competition remaining in the marketplace to prevent price increases. Individual insurance companies hold sufficient buying power to prevent suppliers from increasing prices above competitive levels. Barriers to entry are sufficiently low in the auto body repair market that there is no likelihood of a sustained price increase in repair costs above competitive price levels. It is a means of cost control and cost savings.
Consumers have the final choice in selecting a repair facility.
This choice is protected by provincial regulation.