Physical damage collision insurance claim severity dropped again in 2008 to an average $3,004 from $3,139 in 2007 and $3,194 in 2006, the Insurance Information Institute (III) reported recently. Severity increased for bodily injury, property damage and comprehensive claims from 2007 to 2008, however.

Since 1999, overall claim frequency decreased by 6.8 percent for physical damage collision coverage and by 8.2 percent for comprehensive coverage. Frequency, however, has been on the increase since 2006 (4.87 claims per 100 insured cars in 2006 to 5.34 claims in 2008).

Severity is now 27.7 percent higher for collision coverage and 38.8 percent higher for comprehensive coverage compared to 1999, III reported. However, out of the four auto insurance categories reported on by the III (bodily injury, liability, comprehensive and collision), collision severity is the only one to decrease steadily since 2006.

Click HERE to see more of the III’s auto insurance statistics.