Posted by Benji Riggins on September 8, 2010 under Safety | 
Victims of identity theft are most often targeted via burglary, stolen wallets and pilfered identifications, according to a new survey on identity fraud.
In some 76 percent of all cases of identity fraud reported by Travelers customers, burglary, stolen wallets and stolen identifications top the list of the most common known causes, according to a study of Travelers’ 2009 claims data.
The findings mirror last year’s report on Travelers’ 2008 claims data which indicated that the majority of identity fraud cases reported by customers were from burglaries and stolen wallets. The data reveals how thieves still prefer more low-tech means of identity fraud over online-related thefts and data breaches that typically receive significant media attention.
“This study suggests once again that more traditional means of identity fraud are prevalent today and continue to pose significant risks to consumers,” said Joe Reynolds, Identity Fraud Product Manager for Travelers. “Knowing this, it is critical that consumers take steps to protect themselves and their property.”
Travelers identified the following as the top known causes of identity fraud for its customers:
76 percent – burglary and theft of wallet/purse/personal identification/computer
9 percent – online or data breach
9 percent – forgery
6 percent – change of address/postal fraud
The study also found that 74 percent of the time criminals use the stolen personal information to open new credit card accounts or use the existing credit cards to make charges. Of that 74 percent, 26 percent of identity thieves access existing credit/debit cards, 21 percent open new cards and make charges in the victim’s name, and 18 percent access and withdraw funds from existing checking, savings and online retail accounts.
A study by Javelin Strategy & Research showed that the number of identity fraud victims jumped by 12 percent to 11.1 million adults in 2009, the biggest increase since the survey began in 2003.
“Identity fraud is a crime that can happen to anyone, anywhere, and so it’s particularly important for people to exercise diligence in protecting their personal information,” noted Reynolds.
Read more: http://www.insurancejournal.com/news/national/2010/08/24/112692.htm#ixzz0xdXYSKke
Posted by Benji Riggins on September 3, 2010 under Claims |
Property/casualty insurance companies are reporting that the number of claims requiring more scrutiny than normal rose again in the first half of this year compared to 2009.
The National Insurance Crime Bureau’s first half 2010 questionable claims (QC) report examines six referral reason categories of claims— property, casualty, commercial, workers’ compensation, vehicle and miscellaneous.
Overall there was a 14 percent increase in QCs in four of the six categories in 2010 when compared to the first half of 2009. These are claims that NICB member insurance companies refer to NICB for closer review and investigation based on one or more indicators of possible fraud. A single claim may contain up to seven referral reasons.
Of note were the 107 percent increase in questionable hail damage claims and 527 percent increase in questionable auto glass claims so far this year when compared to the first half of 2009.
“Hail loss claims and QCs are generally concentrated in the central section of the U.S. However, seven of the top 10 states with the highest hail loss QC-to-claim ratio are not in the central section. This suggests that fraudulent hail losses can occur in any part of the country,” the report notes.
“While there have been modest declines within a few categories of referrals, the 14 percent increase in the overall number of questionable claims for 2010 raises concerns,” said Joe Wehrle, NICB’s president and chief executive officer.
Wehrle said NICB, its member insurers and law enforcement have pursued suspected unscrupulous roofing companies that take advantage of storms to fake or deliberately cause damage to roofs in an effort to get insurers to pay for a replacement roof that wasn’t damaged by a storm. They have also been putting pressure on staged accident rings in various regions including Tampa, where this has become a major problem.
“We’re seeing concern from our members about criminal rings that are deliberately damaging vehicle windshields in order to file an insurance claim, and in some cases are not doing satisfactory repairs or replacements,” Wehrle said.
NICB is supported by nearly 1,100 property and casualty insurance companies and self-insured organizations.
Source: National Insurance Crime Bureau
Read more: http://www.insurancejournal.com/news/national/2010/08/02/112084.htm#ixzz0vTYP12p7
Posted by Benji Riggins on September 1, 2010 under Interesting Info |
It’s tough being a thief. So much booty to carry around, so many cops to evade. Needless to say, trying to pick the right vehicle for the job while keeping in mind it’s resale value on the black market is almost as challenging as stealing one.
The Highway Loss Data Institute of the Insurance Institute for Highway Safety has released it’s annual list of cars and trucks with the highest claim rates per 1,000 units for theft, covering vehicles that are 1 to 3 years old. If you own one of these, you may want to invest in a good alarm, or let your dog sleep in it.
#5 Chevrolet Avalanche
Chevy’s real-life transformer – the cabin can be opened up to extend the pickup bed inside – may not be the company’s best seller, with only 16,000 sold in 2009, but it’s popular among the sticky fingers crowd with 7.4 per thousand getting ripped-off.
Source: Chevrolet
#4 Dodge Charger
If you were a criminal is there anything else you would drive? The Charger was designed to look menacing, and claims are made on 7.4 per 1,000 of them, while models with the high-performance HEMI V8 engine rank 7th on this list with 7.1 per 1,000. No surprise, it makes a great getaway car. Unfortunately, law enforcement has figured this out, which is why Dodge also makes a police version.
Source: Dodge
#3 Chevrolet Silverado
Just take a look around, the Silverado is one of the most common vehicles on the road. Theft claims are made on 8 out of every 1,000 of the crew cab models. That’s a lot of crime.
Source: Chevrolet
#2 Ford F250 Crew Cab 4X4
You’ve almost got to give someone credit for trying to steal a monster like the heavy duty Ford F250, unfortunately, a lot of people are successful doing it.
Source: Ford
#1 Cadillac Escalade
The Cadillac Escalade almost single-handedly defined the world bling, as applied to automobiles, so it’s no surprise its at the top of this list. Claims are made on no less than 10 of these for every 1,000 on the road, with an average payout of $11,934. And that’s with standard engine immobilizers. According to the HDLI’s Senior Vice President, Kim Hazelbaker,”thieves can still put them on flatbeds and haul them away.”
Makes you wonder how many of those are stolen each year.
Source: Cadillac
Posted by Benji Riggins on August 30, 2010 under Insurance Requirements |
As the U.S. housing market struggles to rebound, many homeowners are stuck with hard-to-sell properties longer than expected. Some frustrated home sellers who must relocate for a new job opportunity, want to downsize or simply want to buy a new place have left homes empty. Vacant or unoccupied homes can leave the homeowner exposed to loss and liability that may not be covered by their insurance, according to the National Association of Insurance Commissioners (NAIC).
The Pending Home Sales Index, released by the National Association of Realtors, dropped 2.6 percent to 75.7 based on contracts signed in June from 77.7 in May, and is 18.6 percent below June 2009 – another sign of the stagnant housing market.
“In many cases, people who have been trying to sell their homes for awhile have moved forward with their plans regardless, leaving a vacant home on the market,” said NAIC President and West Virginia Insurance Commissioner Jane L. Cline. “Having an unoccupied home can create several insurance implications that typically are not covered under a standard homeowners policy.”
The Added Risks of Vacant Homes
Homeowners policies are meant to insure homes that are occupied, so they generally include exclusions for neglect or property abandonment on a home left vacant or unoccupied for a specified number of consecutive days.
In insurance terms, a vacant home is one the resident has moved out of and taken his/her belongings with him/her. An unoccupied home is one where the resident is not staying at the home, but the furniture and other belongings remain.
Because vacant and unoccupied homes pose a higher risk for damage than occupied homes, insurance companies insure these properties differently and usually at a higher price. These risks include:
Break-ins: When a home has been unoccupied for awhile, it can show signs that nobody is around – unkempt lawn, full mailbox, no lights on – that can tip off burglars to an easy target.
No emergency response: Without anyone home to call 911 or respond to emergencies, a manageable problem – such as a small electrical fire –can turn into a much larger, more costly disaster.
Property liability: There is no one present to prevent others from entering the property or to supervise activity, which could increase the likeliness of an accident on the premises or property damage when the owner is not there.
Keeping Vacant Home Properly Insured
The definition of vacancy and unoccupancy can vary from policy to policy. Some insurers may not pay claims if a home is vacant for 60 days or more. Some policies might automatically shift to a different amount of coverage (e.g. liability insurance only) after a specific number of days unoccupied.
Many homeowners policies have a “vacancy clause” that can be triggered if the homeowner is gone for an extended period of time. If this happens, the homeowner could violate the terms of their contract and some or all of their coverage may not apply in the event of a loss.
Cline and the NAIC are advising homeowners to speak with their insurance agent or company before they decide to leave a home unoccupied for a period of time.
“Be honest about your situation, because while an extra policy might cost more, it could save you money down the road should there be an accident or damage to the home,” the advisory from NAIC tells homeowners.
Many insurance companies offer an endorsement that will provide coverage for a dwelling that is unoccupied for an extended period of time. Vacancy policies can also be purchased for different term lengths to cover a few months to a year, depending on the need.
The cost of vacancy coverage depends on the company and state in which the property is located, but costs usually are higher than a typical homeowners policy due to the overall increase in risk.
Read more: http://www.insurancejournal.com/news/national/2010/08/09/112285.htm#ixzz0wDohssrq
Posted by Benji Riggins on August 26, 2010 under Insurance News |
Many Americans admit to having a knowledge gap when it comes to what their home insurance actually covers, according to a new survey.
Nearly one third (31 percent) of Americans don’t know how much their most valuable assets — their homes — are insured for, and an additional 46 percent don’t know how much coverage they have for their homes’ contents, such as furniture and clothing, say the results of a survey by Zogby International for MetLife Auto & Home. Additionally, many homeowners aren’t aware of coverage overlaps that may exist, which could result in opportunities to save money.
The first of a two-part “Insurance Literacy” survey, tested consumer knowledge of insurance basics, including homeowners, condo, and renter’s insurance.
Common misconceptions that could lead to coverage gaps were:
– Thirty percent of homeowners believe their insurance coverage is based on the current market value of their home. Actually, the available coverage limit for homeowners insurance is based on the cost to rebuild the home, a mistake that could lead to confusion for homeowners trying to evaluate whether they have the right amount of insurance.
– More than two thirds (71 percent) of those surveyed believe insurance pays for the full cost to rebuild their property in the event of a major loss, such as a fire or other natural disaster. But nearly all insurance companies “cap” the amount paid to rebuild the dwelling following a total loss, unless additional coverage is purchased. Furthermore, the coverage is subject to a deductible, and certain causes of loss, such as water damage caused by the natural disasters of flooding, are excluded completely.
– Almost three-quarters (73 percent) believe insurance will pay the full cost to replace personal belongings in the event of a loss. However, depreciation is usually factored in, unless optional replacement coverage is selected, and the coverage, regardless of the chosen settlement method, is subject to a deductible.
– Sixty percent believe insurance will pay for the full cost of replacing valuables, such as jewelry and collectibles. Most insurance policies contain a payment cap for replacing valuables, although additional coverage can be purchased, and the coverage is subject to a deductible.
– For a major loss, nearly two-thirds (64 percent) of those surveyed expect their insurance to cover any building code mandated upgrades that are necessary. Without an endorsement/rider, most home insurance does not cover required upgrades located in an undamaged portion of the home.
“More than two-thirds of consumers surveyed also said they’d rather pay a higher premium than be told that a loss isn’t covered,” said Bill Moore, president of MetLife Auto & Home. “To ensure this doesn’t happen, consumers can find the best value by learning more about their policies and selecting the coverage that best meets their needs, rather than simply shopping for the lowest premium.”
On a positive note, with purse strings tight, opportunities exist for consumers to become more aware of what their current policies do cover in the event of a loss, to avoid insurance overlaps and unnecessary out-of-pocket expenses. For example:
– Electronically downloaded and stored entertainment, such as music, ring tones, etc., can be expensive to replace without easy access to free re-downloads. However, more than 90 percent of homeowners didn’t know that insurance can extend coverage to electronic data.
– Almost half (47 percent) didn’t realize there’s no need to secure additional coverage to insure the personal property of college-age children living on campus. This is covered under the standard homeowners contract, subject to its terms and conditions.
– Many homeowners would be surprised to learn that damage to appliances and wiring from a power surge would be covered by their insurance policy. More than half (59 percent) didn’t think it would — limiting out-of-pocket expenses to a deductible.
Natural Disasters
Many homeowners exhibit confusion about insurance coverage for natural disasters and unforeseen occurrences. The majority of homeowners understand that flood damage is written on a separate policy from their standard insurance policies. However, many consumers are still misinformed — or unsure — about the coverage available for other types of events.
In some cases, homeowners are aware of the potential for a loss, but don’t realize what coverage they have against a particular hazard. Among other things:
– Although 83 percent believe foundation damage from earth movement is very serious or somewhat serious, only 37 percent know they aren’t covered for this under the standard homeowners policy.
– More than a quarter (28 percent) incorrectly believe they’d be covered for an earthquake or volcanic eruption, and the same amount aren’t sure one way or the other. Most standard policies exclude this peril.
– For water damage from a sewer or sump-pump back up, 67 percent of homeowners believe this would be covered. Without the appropriate rider, most policies don’t cover this.
The Zogby/MetLife Auto & Home homeowners insurance survey sample consisted of interviews with 1,196 adults who have homeowners, condo, or renter’s insurance, and who are living in a household with a telephone. The interviewing was conducted May 26, to June 9, 2010.
Source: MetLife Inc.
Read more: http://www.insurancejournal.com/news/national/2010/08/24/112704.htm#ixzz0xdWnKiaD
Posted by Benji Riggins on August 24, 2010 under Insurance News |
Many affluent consumers lack adequate insurance coverage for their jewelry because they haven’t considered the impact of the decade-long rise in the prices of gold, platinum, and silver.
That’s according to insurer ACE Private Risk Services.
“If you scheduled a 24-karat gold bracelet on your insurance policy for $3,000 ten years ago, it could be worth over $12,000 now, since the price of gold has quadrupled over that period,” said Robert Courtemanche, chief executive officer, ACE Private Risk Services. “Multiply that one piece many times for high net worth consumers, who often have extensive jewelry collections, and you could be talking about an insurance gap approaching or exceeding six figures if they haven’t updated coverage.”
The issues are addressed in a white paper from ACE Private Risk Services titled, “Does Your Valuables Coverage Meet the Gold Standard?”
The white paper contends many affluent consumers have not realized how much their jewelry and precious metals items have appreciated, so they haven’t adjusted their insurance coverage to reflect these higher values.
“Historically, we have seen clients underinsured by 40 to 60 percent across all categories of valuable articles, including jewelry,” said Gerald Escobar, principal of Asset Archives, a global appraisal firm based in Atlanta, Ga.
Similarly, an insurance organization survey of those owning a valuables collection – such as gold jewelry, fine art, or antiques – found that 47 percent did not have special insurance coverage for their collections.
“Affluent consumers should also consider the semi-precious jewelry they haven’t scheduled,” added Courtemanche. “These items may have appreciated to the point where their aggregate value exceeds the coverage limits for jewelry in their homeowners policies.” In such cases, blanket coverage offered by valuables policies geared to affluent clients may be the best solution. Blanket coverage allows a collection of similar items of moderate value to be covered as a whole, eliminating the tedium of scheduling each item individually.
The insurer recommends three steps that affluent consumers can take to protect their jewelry and other precious metals items:
Update inventory. A current inventory is not only critical when losses occur, or when a major move is planned, it is imperative if it’s been several years since gold necklaces, watches, and other precious metal items have been appraised.
Review and adjust existing policy. Compare the values in an updated inventory with the coverage limits in the existing homeowners and valuables policies. Homeowners policies have special limits on the amounts they will pay for jewelry and other collectible items. Purchasing additional protection through a valuables policy on an individual (scheduled) or blanket basis is often necessary.
Repeat steps 1 and 2 as part of an annual insurance review. The best and easiest way to keep valuables well protected, is to partner with an insurance agent for a once-a-year review of all insurance needs.
The white paper also discusses different kinds of valuables insurance coverages, as well as tips for managing the cost of coverage for jewelry.
Read more: http://www.insurancejournal.com/news/national/2010/08/11/112333.htm#ixzz0wKgD3wnj
Posted by Benji Riggins on August 18, 2010 under Claims |
Dog bite claims cost the insurance industry $412 million in 2009, an increase of 6.4 percent from 2008.
Dog bites account for more than one-third of all homeowners insurance liability claims paid out in 2009, says the Insurance Information Institute (I.I.I.).
An analysis of homeowners insurance data by the I.I.I. found that the average cost of dog bite claims was $24,840 in 2009, up slightly from $24,461 in 2008.
Over the six-year period since 2003, the cost of these claims has risen nearly 30 percent. Additionally, the number of claims increased by 4.8 percent to 16,586 in 2009 from 15,823 in 2008.
“The rise in dog bite claims over the last seven years (2003-2009) can be attributed to increased medical costs as well as the size of settlements, judgments and jury awards given to plaintiffs, which have risen well above the rate of inflation in recent years,” said Loretta Worters, vice president at the I.I.I.
With more than 50 percent of bites occurring on the dog owner’s property, the issue is a major source of concern for insurers.
More than 4.7 million people in the United States are bitten by dogs annually, and nearly 900,000 of those, half of them children, require medical care, according to the Centers for Disease Control and Prevention (CDC). Of those injured, 386,000 require treatment in an emergency department and about 16 die.
The rate of dog bite related injuries is highest for children aged five to nine years old; the rate decreases thereafter. Almost two-thirds of these injuries among children ages four years and younger are to the head or neck region. Injury rates in children are significantly higher for boys than for girls.
Dog Owner Liability
There are three kinds of law that impose liability on owners:
1. Dog-bite statute: The dog owner is automatically liable for any injury or property damage the dog causes, even without provocation.
2. “One-bite” rule: In some states, the owner is not held liable for the first bite the dog inflicts. Once an animal has demonstrated vicious behavior, such as biting or otherwise displaying a “vicious propensity,” the owner can be held liable. Some states have moved away from the one-bite rule and hold owners responsible for any injury, regardless of whether the animal has previously bitten someone.
3. Negligence laws: The dog owner is liable if the injury occurred because he or she was unreasonably careless (negligent) in controlling the dog.
In most states, dog owners are not liable for losses incurred by trespassers who are injured by a dog. A dog owner who is legally responsible for an injury to a person or property may be responsible for reimbursing the injured person for medical bills, lost wages, pain and suffering and property damage.
Source: I.I.I.
Read more: http://www.insurancejournal.com/news/national/2010/08/18/112569.htm#ixzz0wzM9uvSO
Posted by Benji Riggins on August 16, 2010 under Insurance News |
Temperatures getting a little uncomfortable? Your artwork and antiques are probably feeling the humidity as much as you are.
Paintings and works of art on paper expand and contract in response to changes in temperature and humidity, say experts with Chubb Group of Insurance Cos. That can cause surface distortions, flaking paint, growth of mold, staining or decay.
It’s not only the summer months that pose a threat to cherished pieces, either. Furniture and gilded frames can dry and shrink during the winter, while wood absorbs moisture when it’s humid. If the gesso primer layer beneath your frame isn’t thick enough to flex with the expansion and contraction of the wood, then it will flake and detach.
Chubb gives these tips to protect art from deterioration:
Keep the temperature and humidity in your home as constant as possible, around 60 to 80 degrees and 55 to 65 percent relative humidity. Use an air conditioner in the summer and a humidifier throughout the winter.
Keep art out of direct sunlight. Ultraviolet light will cause severe and often irreversible damage to art, especially paper, textiles and photographs. Shut off all lights when the room is not being used and keep curtains or shades drawn.
Never hang artwork or a valuable object over a fireplace. Heat, smoke and ash can easily ruin them.
Do not store fine art in basements or attics. These areas are prone to dramatic temperature changes, flooding and leaks. If possible, create an art closet with horizontal racks and a locked door. Wrap and store framed artwork face to back, in a vertical position.
Frame all art, especially paper, textiles and photographs, with museum-quality materials, and hire a recommended art hanger. Shatter-resistant fronts can shield damaging UV rays and other exposures, while corrugated polypropylene backings protect against water-absorption. A professional art hanger, meanwhile, is more likely to use the proper hardware and structural supports than a general contractor.
Install water alert sensors in areas of your home susceptible to water damage. These areas include above ceiling trays, underneath washers and dryers and radiators.
Read more: http://www.insurancejournal.com/news/national/2010/08/10/112277.htm#ixzz0wJdGYnLu
Posted by Benji Riggins on August 11, 2010 under Insurance News |
U.S. government scientists today reduced their forecast for the 2010 Atlantic-Caribbean hurricane season but still foresee a very active year of eight to 12 hurricanes.
The National Oceanic and Atmospheric Administration (NOAA) said it now anticipates 14 to 20 tropical storms, with eight to 12 expected to strengthen into hurricanes.
Four to six of these storms are expected to become “major” hurricanes, which are defined as Category 3 or higher and can have winds of more than 110 mph.
In their previous forecast, NOAA had forecasted 14 to 23 tropical storms, with eight to 14 developing into hurricanes, and three to seven escalating into major hurricanes.
The revision comes as a result of a lower-than-expected number of storms during June and July.
So far, the 2010 season has seen just three tropical storms, with only one reaching hurricane strength.
According to Gerry Bell, the lead hurricane seasonal forecaster with NOAA’s Climate Prediction Season, “We’re still predicting a very active hurricane season, and it’s very important that people understand that.”
Posted by Benji Riggins on August 9, 2010 under Claims |
NU Online News Service, Aug. 2, 3:36 p.m. EDT
Hybrid vehicles overall have higher collision claim frequencies and a 6.5 percent, or $182, higher average claim severity than gas-powered vehicles, according to a Mitchell International Inc. study.
The study, featured in Mitchell’s quarterly publication Industry Trends Report (ITR), also notes that hybrid drivers are significantly more likely to receive traffic tickets than drivers of gas-powered vehicles.
Regarding claim frequency and the higher number of traffic tickets, Greg Horn, vice president of Industry Relations, Mitchell International, reported in ITR that one reason may be where hybrid drivers live. Most live in urban settings, ITR noted, where tickets and accidents are more frequent.
Additionally, he said the profile of hybrid drivers has changed in recent years. As recently as 2008, hybrid purchasers were mostly concerned with their carbon footrint and impact on the environment. “While their politics may have been liberal, their driving habits were conservative, making them a very good risk to insure,” Mr. Horn said in his story.
Since then, hybrids have caught on with drivers interested in cutting fuel expenses. “This shift changed the hybrid driver profile and brought with it a change in the risk profile,” he said.
Mr. Horn, citing rating integrity solutions provider Quality Planning, said Toyota Prius owners received .38 tickets per 100,000 miles driven compared to .23 tickets per 100,000 miles for non-hybrid drivers. He noted that is a 65 percent difference.
Regarding claim severity, Mr. Horn said the higher hybrid numbers even showed when comparing the same car models. The Honda Civic hybrid model, for example, has a 6.9 percent higher severity than the gas-powered model. The Ford Escape hybrid had a 9 percent higher severity than the non-hybrid.
Mr. Horn said the higher severity is partly because of higher mechanical labor charges for hybrids. More mechanical operations, he said, are sublet back to dealerships for completion.
Alternate parts use is also lower for hybrids, Mr. Horn said. Interestingly, he noted, this is seen even for like car models. He said loyalty accounts for this. Hybrid owners, he said, are “one of the most loyal groups” and are more inclined to bring their vehicles to the dealership for repairs.
NU Online News Service, Aug. 2, 3:36 p.m. EDT
Hybrid vehicles overall have higher collision claim frequencies and a 6.5 percent, or $182, higher average claim severity than gas-powered vehicles, according to a Mitchell International Inc. study.
The study, featured in Mitchell’s quarterly publication Industry Trends Report (ITR), also notes that hybrid drivers are significantly more likely to receive traffic tickets than drivers of gas-powered vehicles.
Regarding claim frequency and the higher number of traffic tickets, Greg Horn, vice president of Industry Relations, Mitchell International, reported in ITR that one reason may be where hybrid drivers live. Most live in urban settings, ITR noted, where tickets and accidents are more frequent.
Additionally, he said the profile of hybrid drivers has changed in recent years. As recently as 2008, hybrid purchasers were mostly concerned with their carbon footrint and impact on the environment. “While their politics may have been liberal, their driving habits were conservative, making them a very good risk to insure,” Mr. Horn said in his story.
Since then, hybrids have caught on with drivers interested in cutting fuel expenses. “This shift changed the hybrid driver profile and brought with it a change in the risk profile,” he said.
Mr. Horn, citing rating integrity solutions provider Quality Planning, said Toyota Prius owners received .38 tickets per 100,000 miles driven compared to .23 tickets per 100,000 miles for non-hybrid drivers. He noted that is a 65 percent difference.
Regarding claim severity, Mr. Horn said the higher hybrid numbers even showed when comparing the same car models. The Honda Civic hybrid model, for example, has a 6.9 percent higher severity than the gas-powered model. The Ford Escape hybrid had a 9 percent higher severity than the non-hybrid.
Mr. Horn said the higher severity is partly because of higher mechanical labor charges for hybrids. More mechanical operations, he said, are sublet back to dealerships for completion.
Alternate parts use is also lower for hybrids, Mr. Horn said. Interestingly, he noted, this is seen even for like car models. He said loyalty accounts for this. Hybrid owners, he said, are “one of the most loyal groups” and are more inclined to bring their vehicles to the dealership for repairs.
