Recent data shows that 10.8% of all auto claims handled during the summer period have an average loss severity of $500 or less.
10.8% of all claims were under $500
30.9% of all claims were under $1000
47.23% of all claims were under $1500
68.25% of all claims were under $2500
31.75% of all claims were in excess of $2500
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Data source: © 2008, AutoClaims Direct, DirectLink
June 1st – August 4th,2008
It’s time to check back in on a bill that could affect the auto claims industry…..
With Congress heading into election season not much is likely to happen with H.R. Bill 5638. Introduced back in March by Democrat Zoe Lofgren nothing has been heard of the bill since April when it was referred to Subcommittee. The major focus of the bill is to make it more difficult for U.S. auto manufacturers to obtain patents on exterior sheet metal and cosmetic features of their vehicles. The sponsors feel that such patents effectively shut down aftermarket competition from cheaper overseas imports as patent infringement would be argued. Barring patents and allowing unrestricted aftermarket competition with U.S auto manufacturers at a time when auto factory jobs are being cut does not send a good sign to workers. On the flip side, parts costs involved in auto body repair would rise if OEM parts were the only option, effectively increasing loss severity. Our belief is that with election season approaching, don’t expect much to happen with this for the rest of the year.
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Here’s a refresher:
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H.R.5638
Title: To amend title 35, United States Code, to create an exception from infringement for certain component parts used to repair another article of manufacture.
Declares that it is not a patent infringement to make, use, offer to sell, or sell within the United States or import into the United States any article of manufacture that is a part of another article of manufacture, if the sole purpose of the part is for the repair of the article of manufacture of which it is a part so as to restore its original appearance.