For the year 2008, fixed property losses, ( losses resulting from a vehicle impacting a fixed object such as a home, fence, building, wall, etc.) has maintained a consistent 1.53% loss ratio.  This means for every 100 vehicle losses processed, 1.53 property losses are generated, or 15.3 per 1000 accidents.

Our study has also shown that the average severity of a fixed property loss is currently $3511.94. Contractor “bids” on the other hand averaged $5326.11. This is a excellent example on why it is vitally important for claims professionals to have a field appraiser conduct a damage inspection as property bids are often inflated. The most common problem with contractor bids is the “lumping” of costs. A contractor will often give fixed lump sum prices without providing a breakdown of labor and materials. A professional property damage appraiser provides a detailed line by line accounting for every cost and can ultimately save thousands of dollars per file.

Data source:  © 2008, AutoClaims Direct, DirectLink

The Highway Loss Data Institute released a report regarding theft-claim frequency. Hummers and Escalades led the way of stolen SUV’s. Click here for the full article and report.

AIG to change name of auto insurance unit back to 21st Century in January….. Click here for more.

Anyone involved in auto claims adjusting has a general sense of what times of the year are busier. We pulled, parsed and analyzed data from over five years of processed files and noticed a trend that was consistent year in and year out. November is the busiest of all. While there is no definitive reason for this, we hypothesize it may be due to such factors as the increased travel during the thanksgiving holiday season, the first rains and snows which make the roads slick, more deer vs. vehicle collisions ( this time of the year is peak season), and the time change making for dark commute hours. 

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We discovered 5 key dates serve as the anchor points for different cycles throughout a typical year.

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February 15th: Early spike in volume possibly generated from claims not filed during the holiday season as owners were more focused on shopping. This uptick in volume is quickly followed by a drop after this point.

April 1st: This is the slowest point of the year. Many vehicle owners are possibly preparing to pay taxes or await refunds therefore postponing any vehicle repairs.

May 15th: From March to May there is a slight upward trend of claims which now stays steady and level through mid August with no real spikes except for a slight drop near mid August. This is summer time and many people go on vacations or may not be as motivated to have their vehicles repaired and out of commission during the summer months.

August 15th: Many parents with children are getting ready for back to school, summer travel is ending and claims that have been put off are now filed. Claims volume  begins a fairly rapid rise through Fall leading to a peak in November. 

November 15th: This time of the year is the peak of claims volume. With the time change, first rains, icy roads, and peak holiday road travel, these factors are the likely reason that contributes to high claims volume. Immediately after Thanksgiving, claims volume drops significantly until February.

Data source:  © 2008, AutoClaims Direct, DirectLink