WASHINGTON - A new forward collision warning system could reduce low-speed wrecks 25 percent, according to a study released today by the Insurance Industry for Highway Safety.

The group found that owners of Volvo XC60, which has an advanced forward collision warning system, filed property damage claims 27 percent less often than owners of other midsize luxury SUVs, reported The Detroit News.

The Volvo system, called City Safety, reacts to other vehicles within 18 feet of the front bumper in both day and night driving. If the speed difference between vehicles is less than nine mph, the system acts to prevent the crash. Between nine mph and 19 mph, it works to reduce the consequence of the crash.

Volvo's system doesn't alert the driver before it engages, and it brakes at the last instant if the driver doesn't react in time. Other forward collision warning systems used to prevent high-speed crashes often give a warning before applying the brakes or preparing the vehicle's restraints and air bags for a crash.

"This is our first real-world look at an advanced crash avoidance technology, and the findings are encouraging," said IIHS President Adrian Lund. "City Safety is helping XC60 drivers avoid the kinds of front-to-rear low-speed crashes that frequently happens on congested roads."

The technology was unveiled in late 2009 on the 2010 XC60, and is standard on the 2011-12 S60 and 2012 S80 and XC70 wagon. The XC60 is Volvo's best-selling SUV. Sales of the XC60 were up 40 percent this year in the United States to 7,474 through June.

James Hope, a Volvo North America spokesman, said the results pleased the company.

City Safety is "an effective system that could inexpensively be put into the car and potentially save thousands of dollars in repair costs," he said. "The IIHS findings are validation for us, which is great news."

The study's authors acknowledged that Volvo owners and their driving styles may account for part of the difference. But the results show a big difference.

"These are very large effects," Lund said. "The pattern of results strongly indicates that City Safety is preventing low-speed crashes and reducing insurance costs."

Many fender-benders can cost up to $1,500 to repair, IIHS said.

The National Highway Traffic Safety Administration has been studying new advanced technologies designed to help drivers who fail to avoid crashes.

NHTSA Administrator David Strickland said the agency is conducting research on forward collision systems and is "deeply interested in the potential for crash avoidance technology to significantly improve safety for drivers, passengers and our communities."

He praised the Volvo City Safety system "and the many other systems that operate at higher speeds and hold the promise of preventing deaths and injuries as well as preventing property damage."

NHTSA has encouraged the use of forward collision warning systems and other advanced technologies such as lane departure warnings.