Mitchell Report: Average Length of Rental Continues Upward Trend
May 7, 2014—Mitchell released on Tuesday its Industry Trends Report for the second quarter of 2014, and the information service provider says that industry average length of rental (LOR) has continued its upward trend.
It was one of the many details included in the quarterly report, as Mitchell’s analytics team broke down data spanning across a number of industry issues, including insurer market share, various key performance indicators, and the impact of storms on collision losses.
Often used as a gauge for cycle time, LOR was at 11.6 days across the U.S. in the first quarter of 2014, the highest Q1 number in the last five years. For Q1 2013, LOR was 11.0 days. Factors such as weather, the economy average age of vehicles and various other delays can be contributed to the trend, Mitchell said.
In the report, Mitchell also showed that three of the country’s four largest insurance carriers have gained significant market share in the automotive sector over the course of the last decade.
State Farm has the largest share at 18.52 percent in 2013, followed by GEICO (10.26 percent), Allstate (9.95 percent) and Progressive (8.47 percent). GEICO has just a 4.7 percent share in 2000, and Progressive was at just 4.7 percent.
Mitchell’s full report can be found online.