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Distinct Trends in Auto Claims Severity, Frequency

Many anticipate future reductions in auto claims frequency due to crash avoidance systems and self-driving cars, but what is happening now?

By Susanna Gotsch | Updated on February 01, 2014

The disruption in the pattern of between 16 and 17 million new vehicle sales that coincided with the recession created a break in the historic sales cycle that essentially led to greater disparity within the vehicle fleet. With fewer new cars sold, the average age of vehicles increased, leading to a historically older vehicle population. At the same time, new vehicle sales have ramped up, leading to a modest surge in new vehicles on the road.

The breakout of repairable vehicle appraisal data by the age of the loss vehicle underscores the shift that has occurred in the last several years to a markedly older mix. Nearly 42 percent of all repairable appraisals were for vehicles aged seven years and older in CY 2013—the highest ever recorded in the last 15 years—and more than 15 percentage points higher than in 2005.1  

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