HLDI study of noncrash fire claims shows importance of recalls

How seriously should a vehicle owner take a recall notice? A new study by the Highway Loss Data Institute (HLDI) shows that at least one type of recall corresponds to higher insurance losses, but the risk goes down after vehicle owners are notified about the need for repairs. HLDI analysts studied losses from noncrash fires from 2007 to 2012 for vehicles up to 8 years old. They compared the rate of noncrash fire claims for vehicles with a known fire-related defect for which a recall was issued with the rate of claims for vehicles without such defects. Defects that can cause fires include such things as electrical problems or fuel system defects.