Advanced Technology Now Forcing Insurance Companies To Declare Total Losses After Even Minor Accidents

Safety enhancements are, undoubtedly, a good thing. People are walking away from wrecks that would have been fatal a few decades earlier and crash avoidance systems can keep inattentive drivers out of trouble altogether. The downside is that these features have made vehicles more expensive to purchase and repair.

Bob Tschippert, the senior vice president of underwriter Risk Theory, says that advancements in technologies have made vehicle repairs so costly that insurance companies have begun declaring substantially more injured cars a total loss. “In the past, if you had a front-end collision, you had damage to the engine or the front end,” Tschippert explained. “But now, with the number of airbags that can run from $1,000 up to $4,000 and all the sensors up front, you’re seeing more totals.”

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MDarringer - 5/8/2017 7:03:00 PM

+1 Boost

This is very true and places like Copart are doing a tremendous business as a result. Remanufacturers buy up wrecks and sew them back together. I'm quite happy with remanufacturing old cars by using parts/donor cars, but there are people who are cobbling together late-model cars and allowing buyers to think that nothing's up. Many people do not learn they are driving a vehicle with a salvaged title until they've already purchased the vehicle.

TomM - 5/9/2017 6:50:34 AM

+3 Boost

There are a lot of Pitfalls in many cars that can really really cause problems with rebuilding. Many cars today use multi-plex circuitry that requires total replacement or use of expensive kits to fix instead of simply splicing of old wires. That - plus the fact that often you do not find a problem in One circuit until another one is fixed - can make this a never ending disaster. A day in a flood - even just running through a foot of water under an overpass - can cause unfixable (cost wise) damage. Eventually - they will eliminate wires for certain functions - making things less problematical - but today - let the buyer beware!

MorePower - 5/10/2017 6:48:24 PM

+1 Boost

Insurance company:

"Congratulations customer, I see your new car has eight airbags, qualifying you for a $500 annual discount. Unfortunately, we have to raise your rate by $800/yr in the case you are involved in an accident and we have to write-off the vehicle."