Mitchell International, Inc. has released the third quarter 2010 edition of its Industry Trends Report (ITR) — the company’s quarterly publication that highlights industry-related trends, news items and statistics.
This edition’s Quarterly Feature, "Are Hybrids as Green When it Comes to Their Claims Costs?" by Mitchell’s Vice President of Industry Relations Greg Horn reveals surprising new information about the claim costs of hybrid vehicles, which in recent years have become a much more common sight on the nation’s highways and are appearing in collision repair shops more frequently.
"Mitchell’s in-depth, multi-year data shows that hybrids have a 6.5 percent or $182 higher average claim severity than their gas-powered counterparts," said Horn. "From a claims severity and frequency perspective, hybrid vehicles represent a more costly overall risk to insure than their gas only powered cousins."
Horn added, "Powering these higher hybrid claims costs is a significant change in the hybrid driver profile — from the eco-conscious consumer to a new base of buyers interested in cutting fuel expenses associated with long commutes. The result is an entirely new risk profile for hybrid vehicle drivers, who will likely see their insurance rates continue to increase."
The Mitchell study also revealed that hybrid vehicle claims utilize 91.9 percent OEM parts dollars compared to 86.8 percent for gas only counterparts.
Data points from a study by integrity solutions provider Quality Planning round out the profile of hybrid owners, showing that Toyota Prius owners receive 65 percent more traffic tickets than gas-powered vehicles per 100,000 miles.
Other points of interest in the current issue of Mitchell’s ITR include:
• Q2-2010 data reflect an average gross initial collision appraisal value of $2,782 — $5 less than this same period last year. Applying the indicated development factor suggests a final Q2-2010 average gross collision appraisal value of $2,937. At $13,201, the average Actual Cash Value (ACV) of vehicles appraised for collision losses during Q2-2010 reflects an increase in value despite the increase in age of those vehicles.
• In Q2-2010, the initial average gross appraisal value for Comprehensive coverage estimates processed through Mitchell servers was $2,569 — a $193 increase from Q2-2009. Applying the prescribed development factor for this data set produces a final anticipated average severity of $2,628.
More information:
Complete content is available in the latest Industry Trends Report, which may be downloaded in PDF format by visiting www.mitchell.com.
