Advancements in Tech Makes More Wrecked Vehicles Too Expensive to Repair

Matt Posky
by Matt Posky

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.”

Speaking with Automotive News, Tschippert said the issue was being exacerbated by the increased number of drivers on American roads. Federal Highway Administration data suggests a 2.4 percent increase in the number of miles driven by Americans in the last year — resulting in a record 3.22 trillion odometer clicks between February 2016 and 2017. And more drivers covering more ground means more accidents.

Even though the criteria for deciding when a car is a total loss — and how it can be repaired — varies between insurance companies and states, all have seen an increase in vehicles that fit the bill over the last few years.

That’s great news if you’re hoping to pick up a salvage title or spare parts on a late model unit. In March, Insurance Auto Auctions Inc. announced it would be expanding on some of its largest auctions in at least seven states. However, it isn’t so wonderful if you were hoping to get your insured automobile back after what you had assumed was a relatively minor incident. The odds of it surviving being plugged into an insurance company’s total loss formula are worse than ever.

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Jeff S Jeff S on May 10, 2017

    Denver Mike and Lou_BC agree. If you get into an accident by tailgating someone or late braking it is your fault and you waste your time by spending it with police reports and insurance claims. If you see someone tailgating do not speed up if you are going the speed limit--either get over to the right lane if it is a multi-lane road or slow down. If I see a traffic light change I will take my foot off the accelerator and prepare to coast then stop. There are times that you have to emergency brake but it is better to anticipate ahead of time when possible.

  • Barionw7 Barionw7 on May 11, 2017

    this just happened to me. I bought 2010 Chrysler town & country loaded with options and only 77,000 for $10,990 last month. Carguru had it as being $2200 below market value. I got into a minor accident, less than 30 mph, only the front drivers side damaged. I have had harder hits in bumper cars. I even told adjuster that it didn't even need an alignment job, it still drove straight. I was presented with an estimate of nearly $8000 and they want to total it. It is hard to find a decent used minivan and I got spoiled with the options on this one. I feel they inflated the estimate, there is over $1200 for my rear bumper and side quarter panel which were not involved in the accident. Also, he put down I needed a new radiator, air condenser, and horn although he never even popped the hood. My radiator is not leaking, a/c and the horn are working fine. There are a bunch of +$25 on the estimate that I do not understand. They have a used headlight listed as $175 + $25, but I can buy a brand new one at Auto Zone for $140. Instead of listing a hood assembly kit, they listed the hood and every hinge and latch separately. I have no idea what they are doing to my antenna that requires 1 hour of labor, its is on the passenger side and was not damaged. I had also told the adjuster that I may be able to get most all the parts from a certain salvage year because I had 2 2005 dodge caravans that I want to get rid of and they were interested in making a deal. He stated that that salvage yard was not listed in the estimate, probably because their used parts are from high mileage vehicles. I understand that maybe a concern with engine parts, but I am pretty sure a hood from a van with 200,000 miles on it functions the same as a hood from a van with 20,000 miles on it. I am trying to negotiate the claim and I have gotten two of my own estimates, which if you use my estimates, I would be just below the salvage threshold, so they would have to pay for the repair and not get the benefit of reselling the salvage vehicle. Also, since the claim would be lesser in dollars, my premiums would not increase as much as if taking the total loss claim. So repairing my van would cost them more than salvaging it. They can get a high dollar value still for the salvage and someone would get a good deal and I am stuck looking for another minivan, I hate car shopping and it took 2 months to find this one.

  • MaintenanceCosts People who don't use the parking brake when they walk away from the car deserve to have the car roll into a river.
  • 3-On-The-Tree I’m sure they are good vehicles but you can’t base that on who is buying them. Land Rovers, Bentley’ are bought by Robin Leaches’s “The Rich and Famous” but they have terrible reliability.
  • SCE to AUX The fix sounds like a bandaid. Kia's not going to address the defective shaft assemblies because it's hard and expensive - not cool.
  • Analoggrotto I am sick and tired of every little Hyundai Kia Genesis flaw being blown out of proportion. Why doesn't TTAC talk about the Tundra iForce Max problems, Toyota V35A engine problems or the Lexus 500H Hybrid problems? Here's why: education. Most of America is illiterate, as are the people who bash Hyundai Kia Genesis. Surveys conducted by credible sources have observed a high concentration of Hyundai Kia Genesis models at elite ivy league universities, you know those places where students earn degrees which earn more than $100K per year? Get with the program TTAC.
  • Analoggrotto NoooooooO!
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