In a random study of 1000 processed auto claims, it was determined that 27.4% of all total losses indicate the damaged vehicle was taken to a tow yard facility. From the date of loss to the final removal of the salvage took on average, 15 days. The average storage bill ended up being nearly $600 dollars.
These numbers can provide some basic insight into total loss handling.
1. 27.4% of all vehicles deemed a total loss are at a tow yard facility once an auto damage appraisal is requested.
2. Each total loss at a tow yard is adding on average, $600.00 per file in expenses to the insurer. Those processing thousands of claims per year face millions of dollars in expenses that could be reduced through proactive file handling.
3. It takes nearly 4 days for an insurance adjuster from the date of loss to set up a claim and dispatch to an appraiser for an inspection. Some of these delays are due to weekends or failure of the vehicle owner to report the loss in a timely manner. These delays cannot be avoided, but the additional 11 days of average time to salvage removal are prime opportunities for great savings.
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This focused study brings to the forefront that if insurers and auto damage appraisers can work together to quickly identify and respond swiftly to vehicles located in tow/storage facilities, considerable costs can be reduced in loss expenditures.
Data source: © 2008, AutoClaims Direct, DirectLink