Let's face it, most states' total-loss regulations were written when cars were less complex and it was easier to accurately estimate damages. Isn't it time we looked at changing that? Recently the Nevada Collision Industry Association did just that—and I believe it will benefit the vehicle owner, insurer and the repairer. Simply put, the regulation "backs out" the cost of the electronic components when calculating the total-loss equation, aiming to put more cars back in the repair shop and ultimately in the vehicle owner's garage. An interesting side benefit (and a major reason I believe the bill passed) is that repairing cars is good for a state's economy. Early calculations indicate that the annual impact of sales taxes in Nevada paid on these higher-dollar-amount estimates that end up being repaired will be in excess of $800,000. Not to mention that the workforce implication of selling more parts and repairing more cars is likely to be equally as beneficial.

This is a well-crafted piece of legislation that does not take away the total-loss decision process from the insurer, but truly aims at repairing those cars that come close to the threshold primarily because of expensive electronics. Because it benefits all parties in the repair process, I encourage insurance and collision-repair lobbyists to look at Nevada NRS 487.790 to see if similar changes could be made to benefit your state.    

Statements and opinions expressed in this blog are solely those of the author. They are not offered as and do not constitute legal advice or opinion of Mitchell Internationa Inc.