What experts call a perfect storm have led to a 42% higher chance than 5 years ago that your new car will be considered a radiation after an accident
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- A new study shows that 27% of cars in accidents are now considered total losses.
- This number represents a bump of 42% against only five years ago.
- Insurance companies quickly put cars due to the increase in repair and technology costs.
Today’s cars are more complex than ever, and no, it is not only because you can finally get Wi-Fi in your car (although it also helps). The real reason? The relentless thrust of the automotive industry for safety technology. The drawback? This makes cars that we like more difficult to repair, and in some cases the total has totaled a wing.
Read: After a point, larger vehicles are not safer, but they could hurt others
According to a new study of AxiosUsing data from Lexisnexis Risk Solutions, a number of factors make it more likely that your car is considered to be radiation if you are in a wreck. Let’s take a look at COGs leading to higher insurance premiums than ever.
More car technology is equivalent to more radiation
According to Lexisnexis, 27% of the cars involved in accidents are now considered to be totalized, a significant leap of only 19% in 2018. And it was not a punctual year: the percentage increased regularly each year since, suggesting that this trend did not slow down so early.
When the pandemic struck, the replacement parts have become more expensive. It took a long time to get them too. Then, in addition to all this, the cost of loan cars also increased. All of this has brought higher costs for insurance companies. But that is only part of the puzzle.
Safety technology or expenditure trap?
As Axios said, “planting a car is like crushing a computer these days”. It is a fairly spotted analogy, especially when you consider that replacing a bumper now often means replacing a bumper possibly packed with radar, Lidar and ultrasonic sensors. These are not the kind of games you will find in an old Honda Civic. While a wings striker on a 93 corolla may need only a few hours of work and an exchange of basic part, today’s vehicles – loaded with sophisticated technology – are a whole different animal.
Read: Guess how much it costs to repair this R1T Rivian
Here is the kicker. Let’s say that you enter a fitting of minor mudguards where components like those mentioned above are not damaged but rather pushed in its place or left a little bit of way. The insurance company must always pay so that these components work properly, that it means recalibrate or replace them. So much for the “cheap correction” of past days.
What it means for your wallet
In the end, all this contributes to the increase in insurance premiums. Axios reports a jump of 15% of full coverage insurance rates in 2024 and expects an additional 5% increase this year.
There is no doubt that cars are more capable and safer than they have ever been. At the same time, the systems that therefore cost them much more premium consumers. Thus, in terms of security, this certainly has a price when purchasing or renting a new car equipped with the latest technologies.
