6/19/2014 - Auto insurance claims less frequent after recalls than before
It goes without saying that recalls - particularly those that are related to vehicle safety - are extremely important. Motorists have to be informed about potential issues that can affect their overall well-being when behind the wheel, as failure to do so could result in a serious accident.
As a recent analysis demonstrates, auto insurance claim frequency tends to be higher before recalls than afterward.
According to the Highway Loss Data Institute, between 2007 and 2012, claim frequency for vehicles with fire-related defects was 23% more common compared to other vehicles. However, after recalls, claim frequency was only 12% higher.
Matt Moore, HLDI vice president, noted that the study demonstrates how safety recalls ultimately do what they're supposed to.
"As one would hope, recalls mitigate the effect of fire-related defects," said Moore. "However, even after recalls are issued, these vehicles continue to have higher claim rates. This may be a result of people not following up after receiving a recall notice."
He added that recalls aren't ordered at a whim; they're done when there's a legitimate risk to motorists safety. Thus, when a recall notice is received, getting the repairs done as soon as possible is critical.
Typically, motorists will receive a notice in the mail from their vehicle's dealership should there be a safety defect. However, the National Highway Traffic Safety Administration also maintains a website with up-to-date details on the latest recalls among automakers.
If you have questions about recalls and how they're dealt with from an insurance standpoint, there's a Selective agent near you who can help.