Minor accidents 'more likely to cause write-offs'
Date: 22/04/2008 12:00:00
Drivers involved in minor collisions are more likely to see their vehicles written off than before, it has been claimed.
According to a new report from used car values specialist CAP, rapid depreciation and more advanced technological features mean that cars are becoming increasingly uneconomical to fix after apparently non-serious accidents.
This is causing problems for both drivers and car insurance providers, who must cope with higher repair bills and a growing number of total loss claim settlements, the organisation said.
Mark Norman of CAP told the annual Refinish Industry Survey Conference that a three-year-old Ford Focus 1.6 LX is today worth the same as a three-year-old 1600 LX Escort was over a decade ago.
"Even though all the technological features such as ABS, full electric windows, remote central locking, air conditioning, airbags and generally superior engineering and quality make it a far superior car, the used car buyer is paying less in today's market than for the car it replaced," he said.
According to the Association of British Insurers, £18.7 million a day was paid out in private car insurance claims in 2006.