Auto warranty and driving patterns

Simon Anastasiadis, Boyd Anderson and Stefanka Chukova

Reliability Engineering and System Safety, 2013, vol. 116, issue C, 126-134

Abstract: Automobile warranty coverage is typically limited by age as well as mileage. However, the age is known for all sold vehicles at all times, but mileage is only observed for a vehicle with a claim and only at the time of the claim. We study the relationship between the expected number/cost of warranty claims and the driving patterns. Within a nonparametric framework, we account for the rate of mileage accumulation and propose a measure for the variability of this rate over a vehicle's observable life. We illustrate the ideas with real warranty data and comment on the relationship between the expected number/cost of warranty claims and the driving patterns using results adjusted/unadjusted for withdrawals from the warranty coverage due to mileage accumulation.

Keywords: Two-dimensional warranty; Censored data; Cumulative mean value function; Driving pattern (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0951832012002621
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:reensy:v:116:y:2013:i:c:p:126-134

DOI: 10.1016/j.ress.2012.12.006

Access Statistics for this article

Reliability Engineering and System Safety is currently edited by Carlos Guedes Soares

More articles in Reliability Engineering and System Safety from Elsevier
Bibliographic data for series maintained by Catherine Liu ().