Vehicle-makers' expanding use of new systems and materials will burden property casualty-insurers with added costs for repairs, while reducing accident frequency, a new report predicts.

The information was contained in the Industry Trends report produced by San Diego-based Mitchell International, a solution provider for the collision claims and repair industries.

In addition to the coming trends for auto collision and repair, the report said that according to the company's data in the first quarter, the average appraisal value from repairable vehicle appraisals was $51 less than the comparable period last year at $2,474.

The report said a breakdown of first quarter appraisals found average paint and materials made up nearly 9.78 percent of the total for a small 0.46 point increase over 2007.

Greg Horn, Mitchell International vice president of Industry relations, wrote in the report that there is an increasing use of aluminum in vehicles, which has risen by 319 pounds or 24 percent over the past five years.

According to Mr. Horn, for insurers, the move to full aluminum constructed vehicles means they will have to train staff appraisers and management on the appropriate repair procedures, educate them on which aluminum vehicles have authorized repair centers and make sure the vehicle owner gets a quality repair at a fair price.

His report said the coming wave of safety equipment such as Electronic Stability Control, Blind Spot Warning Systems, Intelligent Cruise Control and rearview cameras will mean fewer accidents and fewer repairs to vehicles.

However, "the cost of replacing this state-of-the-art equipment can be astounding and could result in increasing total losses rather than repairs."

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