Number of vehicles rated total losses decreases in tough economy

Posted by Benji Riggins on March 22, 2010 under Insurance News | Be the First to Comment

The recent economic downturn has led to a decrease in the number of vehicles rated total losses after a crash, according to the latest Industry Trends Report.

Produced by Mitchell International, a provider of collision data processing systems used by insurers and body shops, the report also found an overall reduction in crash damage appraisal values, collision losses and third-party property damage.

In addition, the use of after-market and remanufactured parts rose, as did costs for repair materials and labor.

According to Greg Horn, Mitchell vice president of industry relations, due to slow vehicle sales, the average age of passenger cars has risen to 10 years.

He also noted a dramatic rise in the number of uninsured motorists, up as much as 25 percent in certain states.