In 2023, an unprecedented 27% of vehicles involved in collisions were deemed total losses, according to LexisNexis data. This increase is linked to the growing complexity of modern vehicles, particularly due to advanced electronics and driver assistance systems that require recalibration following accidents. The pandemic has exacerbated the issue through rising replacement parts costs and the extended time needed for repairs. As a result of these factors, insurers are increasingly opting to replace rather than repair vehicles, leading to higher auto insurance premiums for consumers.
Crashing a car today is akin to crashing a computer, resulting in more vehicles being totaled and higher insurance premiums for all.
The percentage of vehicles deemed total losses reached a record 27% in 2023 due to the complexity and costs associated with modern car electronics.
Advanced driver assistance systems require recalibration after an accident, complicating repair processes and often leading to total loss decisions by insurers.
The average cost of auto insurance rose by 15% in 2024 and is predicted to rise again due to increased replacement costs.
#automotive-insurance #vehicle-total-loss #electronics-in-cars #insurance-premiums #advanced-driver-assistance-systems
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