Recalls make your car safer, and here's proof

Vehicle recalls are, at times, an inevitable part of the car ownership experience. But how do they affect insurance losses before and after a recall notice? A new study by the Highway Loss Data Institute shows they make a demonstrable difference, underscoring the importance of heeding recall notices.

Over the 2007-2012 time period, the study looked at the difference in losses from noncrash fire damage before and after a known defect is announced in a recall notice in vehicles up to eight years old. As expected, as vehicles age, the risk of noncrash fires increase in vehicles with a recall and those without.

The insurance claim frequency for vehicles with fire-related defects was 23 percent higher than other vehicles. But during the year after a recall the claims dropped to only 12-percent higher, showing that the recall work made a difference.

The study shows the importance of recall notices to inform drivers. But even with the reduction in claims, it also highlights the fact that not all people followed through on having their vehicle fixed after they were notified of a defect. These findings underscore the need for car owners to be vigilant on car repair and maintenance and to take vehicle recalls seriously.

If you are not sure if there has been a recall on your vehicle, check our car recalls database. All recall work is done free of charge at a dealership, and by definition, recall-related upgrades make your car safer.

—Liza Barth