As we head into the second half of 2016, the industry continues to see elevated total loss frequency. In fact, for collision and liability losses, the percent of vehicle appraisals flagged total loss for the 1st half of 2016 is the highest seen in the last six years. So why do we see a larger number of vehicles hitting total loss thresholds again? The answer lies in a combination of a change in the vehicle mix and used vehicle prices. Analysis of collision/liability losses from mid-year 2011 to mid-year 2016 reveals significant growth in vehicles aged 10-years and older, and vehicle values are beginning to soften as supply of used vehicles in the marketplace has grown.
To check out the rest of the series visit CCC’s YouTube channel.