At the end of 2010, the average new car price was $29,719, according to the Detroit Free Press. After five years, it's also estimated that the average car will lose 60 percent of its value. That means in five years, a car that was priced at $29,719 with normal depreciation will be worth significantly less at approximately $11,887.
Right away, experienced claims adjusters can see where I'm going with this. A vehicle that sustains a front collision that results in the deployment of both airbags and breaks the windshield can easily result in a total loss for a vehicle worth just $11,887.
A recent trend in car buying may spell an increase in total-loss rates. Many buyers are flocking toward more fuel-efficient cars, and many of those cars are priced significantly under that low, low price of just $11,887. In fact, many of the top-selling cars average under $20,000 and are compact in design—meaning that they will total out far easier.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
