Why does there seem to be so many salvaged cars?

[NewCow]

I feel like I see a fair amount of salvaged cars being scrapped and sold by parts, like this one for example. Why is that? Is it because repair costs are relatively high and insurance companies are more likely to declare it totaled or something?

One of my fears is getting into some type of minor accident and high repair costs leading to my insurance company totaling my car, and not being able to find a replacement S at comparable cost ($50k CPO) and definitely not the same color (I have the discontinued green).

 

[Todd Burch]

In short, yes, repair costs are high and it is definitely more likely for insurance companies to total a car that otherwise would be salvageable.

Don't ask me how I know...

 

[brantse]

I added a rider to my insurance policy, through USAA, that provides a cash payout of 20% of the vehicle's value in the case of a total loss. I figured that for this exact reason, this add on was well worth it's low cost and would certainly make finding a replacement MS much easier.

 

[chargeshare]

I added a rider to my insurance policy, through USAA, that provides a cash payout of 20% of the vehicle's value in the case of a total loss. I figured that for this exact reason, this add on was well worth it's low cost and would certainly make finding a replacement MS much easier.

I have never heard of this before, good to know!

 

[mechapreneur]

Repair costs on unibody vehicles are high because you cannot unbolt a panel, straighten the frame and bolt a new panel on. They are more complicated to repair and thus more costly. Getting it totaled out is probably better than living with one that's been half-assed repaired and has problems you cannot fix. You should get reimbursed from your insurance company for the amount it costs to buy a comparable car (same model, features, miles, age).

 

[theslimshadyist]

It's because people keep engaging AP and the car goes berserk!

 

[davidc18]

I just checked and we have the same rider on our MS with USAA.

 

[artsci]

I hate to raise the question (no doubt flak will ensue) but could it also be that average Model S owner driving skills are not up to the performance capabilities of the car? We had that problem in the S2000 community. Many drivers just could not handle the car at the extremes of its performance.

 

[dlv1984]

I got gap insurance from my bank when I was arranging financing, it only cost a 1-time $350 charge and it covers any difference between what I owe and what the insurance company pays out in the event of a total loss.

 

[brianman]

I added a rider to my insurance policy, through USAA, that provides a cash payout of 20% of the vehicle's value in the case of a total loss. I figured that for this exact reason, this add on was well worth it's low cost and would certainly make finding a replacement MS much easier.

I wish I knew to get a "new car replacement" policy when I got my Sig. I didn't research it until a few months after purchase, and thus didn't qualify.

For my P85D, I scouted before taking delivery and found the following:
New Car Replacement Coverage - Auto Insurance | Travelers Insurance

If you total your new car in the first five years, this coverage pays to replace it with a brand new car of the same make and model.

IIRC, there is a cap ($120k, I think) but check the formal paperwork to be sure.

What's interesting with Tesla is that the closest match for "same make and model" is already at least a P90D - probably with a whole mess of minor upgrades relative to my Dec 2014 P85D. If catastrophe happens in 2017 or 2018, who knows what wonderful gadgets will be in the comparable Model S by then.

 

[labfm]

I do find these threads mildly amusing. What does "so many" mean?

100 salvaged cars out of the 50K sold in the US (0.2%)?
500 salvaged cars out of the 50K sold in the US (1%)
Maybe it's 1000s out of the 100K sold globally? (<0.1%)

Where do you think the number is? I personally haven't seen or even heard of 100 salvaged model S's but hey, I have no idea how bad it really is

Lastly though, how does this number compare to the "average" % of salvaged cars for other manufacturers?