Today’s Sophisticated Cars Are More Likely to be Totaled
The skyrocketing cost of parts for today’s technology-sophisticated vehicles make it more likely that they’ll be declared a total loss after an accident, and making them more tempting for thieves to grab and chop them.
“Not only are new vehicles becoming more expensive than ever – when last we looked, the average transaction price was in excess of $36,000 – the cost of parts and repairs following an accident is becoming so prohibitive that what might look repairable to the layperson might be considered a total loss to an insurance adjuster. According to the U.S. Bureau of Labor Statistics, prices for motor vehicle repairs were 61.07% higher in 2017 than they were in 2000.
“In particular, sophisticated safety features like forward collision mitigation and blind-spot warning systems that employ multiple sensors and/or cameras embedded in bumpers and fenders are driving up repair costs and, in turn, the number of cars being totaled after crashes.”
‘Any car, anytime, anywhere’: LeasePlan announces Strategic Update and strong Full Year 2017 results
LeasePlan Corporation N.V. reports strong Full Year 2017 Results, and announces a Strategic Update to deliver “any car, anytime, anywhere.”
Tex Gunning, LeasePlan CEO, says, “There is a clear megatrend from ownership to usership and subscription models taking place in both the new and high-quality used car markets. Increasingly, our customers – whether they are corporate, SMEs or private individuals – would prefer a ‘Car-as-a-Service’ with no strings attached in terms of car type or duration. They just want ‘any car, anytime, anywhere’.”
Crash Rates and Costs Increasing — Influencing Factors
By Art Liggio, President and CEO, Driving Dynamics
Scratching your head? Can’t figure out why your crash rates and cost severity are going up?
Shouldn’t vehicle safety technologies, which fleet operators are spending an arm and a leg on to fix these issues, produce different results?
An October 2016 report on crash rate frequency and severity provided by the Insurance Information Institutes (iii.org) gives us statistically good reasons to ponder these questions. Plus, preliminary 2017 data indicates similar results.
Obviously, there are a multitude of factors contributing to deteriorating results. Let’s take a look at some of the key drivers for rising cost severity.
Cities and States Are Starting to Profit from Ride-Hailing Business
More than a dozen cities and states have started to collect fees from the likes of Uber and Lyft and their passengers to raise funds to pay for a variety of services, not all of them transportation-related.
The fees range from as little as 15 cents a ride to $5, or sales taxes of 1 to 1.4 percent. Uber and Lyft claim they’re being singled out.
“As ride-hailing services become a dominant force across the country, they have increased congestion, threatened taxi industries and posed political and legal challenges for cities and states struggling to regulate the high-tech newcomers. But they are also proving to be an unexpected boon for municipalities that are increasingly latching onto their success — and being rewarded with millions in revenue to pay not only for transportation and infrastructure needs, but also a host of programs and services that have nothing to do with t”he ride-hailing apps.”
Iron Mountain Europe’s Safety Program Achieves Major Savings
In the 36 European countries in which the information storage company operates, over the past 10 years the company has seen accidents decrease by 87%, and a resulting decline in the cost of repairs, maintenance and insurance.
“One of the secrets of that success has been the adoption of driver behavior telemetry in 2011. Although one of the key contributors to the program, however, it wasn’t just a case of fitting the technology and hoping for the best. Iron Mountain recognized the power of this tool but knew it would need to be closely managed to be effective in the long run.
“Working closely with the drivers, the number of violations were reduced by over 80% in just six months – a resounding success yet, crucially, the on-time delivery service KPI of 99.97% has not been affected by the initiative and means drivers now realize they don’t have to speed to get the job done."
