The average cost of vehicle collision repairs for the second quarter declined by 3 percent compared with the same 2003 period.
Data and solutions provider Mitchell International Inc., San Diego, said the decrease was due to recession-related factors and reflects “the aging vehicle fleet and lower actual cash value that the current economic conditions have caused.”
The final repair cost, not including deductibles (average gross collision appraisal value) in the second quarter was $2,729, or 3 percent less than last year, but with the development factor it comes up with a gross collision appraisal value of $2,802—identical to the same quarter in 2008, Mitchell reported.
Mitchell’s report found that at $11,995, the average actual cash value of vehicles appraised for collision losses during second-quarter 2009 reflects the aging vehicle fleet and lower ACV that the current economic conditions have caused.
For comprehensive losses, such as storm damage or theft of a radio or airbag, the average gross appraisal was $2,320—a $118 decrease compared with $2,438 in second-quarter 2008. Applying the development factor for this data set produces an adjusted value of $2,374—a decrease of $64 from the same quarter in 2008, Mitchell said.
Mitchell said the initial industry average gross third-party property damage appraisal for damage caused by an insured driver was $2,156—compared to $2,222 in 2008—a $66 decrease.
Adding the “development factor” for this coverage type results in an adjusted appraisal value of $2,194—an overall $28 decrease or 1 percent from the same period in 2008.
In 2009, the second quarter average property damage appraised vehicle actual cash value was $10,741—“one of the lowest ACVs we’ve seen on third-party vehicles in years—again showing the aging of the average vehicle on the road in the U.S. today,” the report said.