According to a new report, more and more cars are being declared total losses after accidents. This trend is not related to worsening driving quality, but to deep-seated changes in vehicle design and consumer behavior.
Structural Growth of Total Losses
According to the final annual Crash Course report, almost every fourth car involved in an accident is declared a total loss, and this indicator continues to grow. Research by CCC, which tracks collision repair and insurance claim data, shows that the total loss frequency has increased by 0.7 percentage points. The reason for this is not poor driving skills or shortcomings of autonomous systems.
The annual growth for the third quarter alone is almost 1%. If this pace continues, 2025 could end with the highest percentage of total losses in the history of observations. It is important to note that over 72% of total loss assessments now concern vehicles aged seven years and older. The aging of the US vehicle fleet is a key factor, but not the only one.
New Technologies and New Problems
Cars equipped with ADAS systems and increasingly integrated electronics make repairs more complex and expensive. What used to be a simple bumper replacement after a minor impact today often requires replacing radars, lidars, and sonar sensors embedded in that same bumper. This sharply increases the cost.
Similar technologies can be contained in the windshield along with rain sensors and other systems. Tariffs and supply chain disruptions add unpredictability to spare parts pricing, while a decrease in the number of minor insurance claims mechanically increases the share of total losses.
Even cars that are not declared total losses contribute to rising insurance premiums, as repairs often cost more than before. As of the third quarter of 2025, the average total repair cost increased from $4,700 to $4,768. Medical insurance claim costs are also rising: more frequent injury-related payouts and more expensive treatment are manifesting earlier in the claims review process.
Nearly 88% of estimates in direct repair programs now include diagnostic scanning. About 36% also require calibration. These actions are vital for the functioning of ADAS systems. Such factors extend repair times, increase rental car costs for owners, and create additional strain on insurers’ financial models.
Impact on All Market Participants
At this stage, not only ordinary consumers are facing the consequences of this complexity. Dealerships, insurance companies, and repair shops are grappling with the consequences of more expensive repairs driven by high technology.
Judging by everything, none of these parties is particularly happy with the direction the situation is moving. Every car declared a total loss triggers a search for a replacement within a limited budget, often under the pressure of rising insurance premiums, forcing a focus on the affordable used car market.
These trends create a vicious cycle: rising repair costs and the share of total losses lead to increased insurance premiums, which, in turn, reduces the affordability of new cars and forces drivers to operate older ones longer, which again increases the risk of their total loss in an accident. The question of the affordability and reliability of complex electronic systems in mass-market cars also remains open, especially considering the rapid pace of obsolescence of such technologies.