The enfeebled economy did not exacerbate claims severity for auto insurers a new study finds. The 2010 edition of its Industry Trends Report by San Diego-based Mitchell International Inc. countered the notion that bad economic times presage rising claims severity.
Greg Horn, Mitchell's VP of industry relations, credits the counterintuitive findings partially to the fact that the recession has forced an aging of the vehicle fleet. With the average age of a typical vehicle now at an unprecedented high of nearly 10 years, drivers are more likely to under-insure or forego insurance altogether. The drivers of these vehicles are much less likely to file a claim in the event of a collision, Horn notes.
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