![]() While roads are safer than ever, more cars are totaled each year—a stat than can be linked to the economic recession, MSN Money reports. According to MSN, about 9 percent of cars appraised for repairs in 2000 were judged totaled. The report, which cites insurance claims analyst CCC Information Services, says that number jumped to 14 percent in 2010. The article generated quite a bit of feedback from viewers. Several weeks after its publication, 198 people commented. Some commenters were concerned the article didn’t tackle the issue of insurance companies deeming a car simply for profit. Here is feedback from Musicman912: “Too bad the guy that wrote this article is so misinformed. The reason so many vehicles are being totaled today is because of greed and poor ethics on the insurance company's part. The totaled cars are part of a complex economy themselves. Many of these totaled cars are being bought and shipped to mexico and even around the globe. Not even shipped. One of the top totaled car markets in Colorado is Klode salvage. Many cars that are supposedly totaled are driven to mexico and sold. (Salvage cars are bought in pairs, and one tows the other, so two can be transported at a time, on US roads) Many totaled cars are poorly patched together and end up for sale to unsuspecting buyers. These vehicles are not repaired correctly and are another accident waiting to happen. The insurance company is (sic) getting double the amount they used to for crashed cars at the auction.” Another commenter was concerned about the tracking of damaged cars and wondered whether publications were doing enough to detail these wrecked vehicles. “The biggest problem is that these cars are ending up back on the roads without damage titles,” wrote Mike Yarbrough. He went on: “ There are more and more salvage yards selling these cars with clear titles. Whether it is the customers (sic) responsibility or the insurance companies, these cars are not being branded SALVAGE!! We have been in the used car business since 1967 and we see more and more cars that have been fixed and put up for sale that have clear titles. Carfax and Autocheck do not report EVERY accident!!. Buyer beware when buying a used vehicle on the side of the road, more body shops are building these cars and selling them in parking lots.” Totaled to a car insurance company means simply that the repairs to the car don’t make financial sense. That decision, according to the article, depends on the car’s value, its age and repair costs. For instance, if the total for repairs -- plus rental, any storage fees and salvage value -- is more than the pre-crash value of the car, the insurance agent will probably take title to the car and write you a check, the article contends. If the estimate of repairs exceeds your state's threshold, he'll write you a check. About half the states set a threshold, ranging from Iowa's 50% of actual cash value to Texas' 100%. The trend during the recession years was that people started buying and insuring older cars. According to Automotive News, these are the new car sales over the past five years: 16 million in 2007; 13 million in 2008; 10 million in 2009; 11.6 million in 2010; and a projected 12.2 million sales in 2011. Last year, according to MSN, the price of used cars rose 12.7 percent because of the growing demand. As people either buy used cars or keep their current ones longer, the average age of cars on American roads has risen over two years, from 8.5 years old to 10.7, CCC Information Services told MSN. Another change leading to likelihood of totaled cars is the trend towards smaller vehicles to save money on fuel costs. Smaller vehicles, according to MSN, are totaled more easily when in an accident. Tag(4): autos, Cars totaled, Insurance, Leif's Auto Centers Post Date: 01-24-2012 |








