Do advanced driving systems really mean more cars get totalled?

Stories abound about how costly components for advanced driving systems (blind spot sensors, lane-keeping technology, etc.) are leading to more vehicles being totalled.

Canadian P&C professionals commenting on high claims costs routinely cite ‘the $10,000 bumper’ or ‘the $3,000 side mirror’ as hallmarks of why personal auto insured losses are out of control.

But an appraiser tells Canadian Underwriter the reality is more nuanced.

“The [issue] I find is that, at the shop level, we can’t always clear or recalibrate the codes for the [sensors] so [certain cars] have to be sent out to a dealer,” says Mark Fernandez, national director of operations at Accurate Auto Appraisal. “And that’s prolonging the repair time, because it’s going to be another day, or two days, for this calibration.”

For example, when a bumper is damaged, sometimes there’s problem with a sensor on the side of the bumper that wasn’t impacted during the accident. The sensor itself checks out as fine, but if that sensor is linked to one that’s damaged on the opposite side of the vehicle, it often can’t be recalibrated and will need to be replaced.

Related: Are long, pandemic-era car repair timelines making a comeback?

Fernandez gives the example of a luxury car that was hit on its left corner. “Everything cleared on the scans [in our shop]. But the customer took the car out, then brought it back and said, ‘The dash lit up like a Christmas tree.’”

That car had to go to a dealership, because the diagnostic machines at Fernandez’s shop didn’t have manufacturer-specific features needed to troubleshoot the problem. He notes many luxury vehicle makers provide significantly more detailed information to their own repair centres than they do to independent providers.

“It turned out we had to change an undamaged sensor because ‘that’s what the codes state’ for a repair to that vehicle,” he says. “It was nowhere near the impact area, but it could still be affected. The vibration [from the accident] could send it out.

“Until all body shops have a fully-trained calibration technician, we’re at the mercy of the dealership. [Most] shops will have people who know [a lot], but can’t know every vehicle. Some require a different computer that only the dealer has.”

Body shop talk

Beyond diagnostics, some routine repairs, like resurfacing damaged areas or painting a bumper to match the bodywork, can cause issues with components like parking sensors.

“There are sensors behind the bumper cover, which can lead to a whole issue because some OEM [original equipment manufacturer] specifications say, ‘no repair material over it,’ [so] you can only paint or clearcoat.”

That means if the bumper is scratched or gouged, the repair shop is unable to use body fillers and instead must replace the whole bumper. “It can be $7,000 for just the plastic cover. When you add in all the clips and sensors and radars, just the bumper can become expensive,” he says.

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Related: How a few dollars worth of parts can total a vehicle

Also, the price tag varies based on the make and model. Fernandez says bumper sensors are “relatively inexpensive,” but there is a range – from $100 for some lower-cost car models to $2,500 for high-end luxury vehicles.

All that translates into a sliding scale when it comes to deciding whether a vehicle should be totalled. A more entry level vehicle (which these days can range from $30,000 and up) can have a repair involving parts like bumper sensors performed for around $4,000 and remain financially viable for an insurer and client.

And although it’s true bumpers (complete with sensors) can sometimes cost upwards of $10,000 to replace, those examples apply to luxury vehicles carrying six-figure price tags. So that repair is affordable (and not a total loss) when the high value of the car is taken into consideration, Fernandez tells CU.

It’s all relative. But, he adds, vehicle age is also a factor. Once a car passes the 10-year mark, repairs requiring costlier components can exceed the book value of the car.

Phil Porado

Phil, an award-winning journalist with over 30 years of experience in financial topics, has been managing editor of Canadian Underwriter for more than three years.