Vehicle recalls cut down on fire losses, study shows
Recalls dramatically reduce losses from fire-related defects in vehicles that have not crashed, according to a new study by the Highway Loss Data Institute (HLDI).
The study looked at losses from noncrash fires for vehicles up to 8 years old with issues such as electrical problems or fuel system defects. In the years before a recall, the claim frequency for vehicles with fire-related defects was 23 percent higher than for other vehicles. After the recall, claim frequency was only 12 percent higher.
As one would hope, recalls mitigate the effect of fire-related defects, said HLDI Vice President Matt Moore. However, even after recalls are issued, these vehicles continue to have higher claim rates. The higher numbers could be caused by owners not following up on recalls.Download Bulletin PDF