Mitchell International today released new information on hybrid repair costs in the third quarter 2010 edition of its Industry Trends Report (ITR), the company's quarterly publication that highlights industry-related trends, news items and statistics.
This edition's Quarterly Feature, "Are Hybrids as Green When it Comes to Their Claims Costs?" by
Mitchell's vice president of industry relations, Greg Horn, reveals startling new information about the
claim costs of hybrid vehicles, which in recent years have become a much more common sight on the
nation's highways and are appearing in collision repair shops more frequently.
"Mitchell's in-depth, multi-year data shows that hybrids have a 6.5 percent or $182 higher average claim
severity than their gas-powered counterparts," Horn said. "From a claims severity and frequency
perspective, hybrid vehicles represent a more costly overall risk to insure than their gas only powered
cousins."
Horn added, "Powering these higher hybrid claims costs is a significant change in the hybrid driver
profile —from the eco-conscious consumer to a new base of buyers interested in cutting fuel expenses
associated with long commutes. The result is an entirely new risk profile for hybrid vehicle drivers, who
will likely see their insurance rates continue to increase."
The Mitchell study also revealed that hybrid vehicle claims utilize 91.9 percent OEM parts dollars compared to
86.8 percent for gas only counterparts Data points from a study by integrity solutions provider Quality Planning
round out the profile of hybrid owners, showing that Toyota Prius owners receive 65 percent more traffic tickets
than gas-powered vehicles per 100,000 miles.
Other valuable points of interest in the current issue of Mitchell's ITR include:
• Q2-2010 data reflect an average gross initial Collision appraisal value of $2,782—$5 less than this
same period last year. Applying the indicated development factor suggests a final Q2-2010 average gross collision
appraisal value of $2,937. At $13,201, the average Actual Cash Value (ACV) of vehicles appraised for Collision
losses during Q2-2010 reflects an increase in value despite the increase in age of those vehicles.
• In Q2-2010, the initial average gross appraisal value for Comprehensive coverage estimates processed
through Mitchell servers was $2,569—a $193 increase from Q2-2009. Applying the prescribed
development factor for this data set produces a final anticipated average severity of $2,628.
Complete content is available in the latest Industry Trends Report, which may be downloaded in
PDF format by visiting www.mitchell.com. First published in April 2001, Mitchell's Trends Report has
grown in both content and circulation, now reaching more than 23,000 collision and casualty industry
professionals.
