The Rise in Totaled Cars: What's Driving the Surge?
Sticker shock from your recent car insurance bill? Demography Unplugged simplifies the 'why' while also explaining why today's kids don't value cars the way we did.
The thing about differences in generational values is that it’s the air we breathe, which we pretty much don’t pay a lot of attention to. So it’s easy to miss that others breathe different air, especially if—like me—you’re a member of the used-to-be-huge PIP generation. (Previously Important Persons, AKA Boomers. The generation that went from being one of three people alive in 2020 to now one in five. Yes…ouch. )
My mind makes weird connections, so bear with me for a minute on this post from Demography Unplugged1 that, directly and indirectly, has great info on the cause of three contemporary issues I’ve spotted; you may have, too:
The rise in cars being totaled. In particular, if you have a son that is a Millennial (age ~25-41) or Gen Z (roughly <25), you’ve may have experienced this one.
Why Millennials and Gen Zs lack Boomer Car Reverence.
A recent notice from your car insurer about your rate increase.
I have one Millennial son who very rarely drives (<2000 miles/year) and would never own a car if he lived in an area with decent public transportation. Cost is why, particularly the costs of insurance, emissions, and maintenance. The other son totals old cars and buys other old cars just about as casually as I go from one room to another. Then there’s my beloved Gen Z nephew who also evidences a laissez-faire view (in my mind) of cars. Only he doesn’t total them: he trades out almost brand new cars every year or two. I don’t think he’s ever owned a car for three years. And in his case, we’re talking about very expensive production competition racing cars, which really blows my mind.
What they all share is that none of them has the same ‘Very Big Deal Car Purchase and Ownership’ mentality that I do. Like many Boomers viewing the values and life choices of Millennials and Gen Z, it would be easy to call them careless, irresponsible, or [fill in the blank].
Enter this illuminating Demography Unplugged post, which peels back the data to show how how we’ve turned a major investment into a throw-away—yes, like many other previously ‘lifetime’ items now piled up in dumps. My parents kept and recovered the same sofa and chairs for 50+ years. Which made me roll my eyes…but now I’m reluctantly tossing that big ticket leather couch after just eight years. That’s generational value shifts in action.
Back to the reasons why Demography Unplugged says cars are now more often totaled in case you run into a paywall:
Expensive software that is very costly to repair.
Supply chain disruptions during COVID that caused long (reimbursed) rental rates, ultimately resulted in insurers finding it cheaper to total cars than repair them.
Cars lasting a lot longer; older is cheaper to total.
And, of course, that’s raising insurance costs for all of us.
So, my kids—and maybe yours—are simply responding to today’s realities…the air they breathe. Like so many other generational changes, this didn’t happen overnight, and it’s not crazy. In fact, if any generation is crazy to hang on to facts that no longer exist… Well, I’ll let you finish that one. ;)
I love data, and Demography Unplugged data shines a spotlight on so many of life’s simple mysteries. If you’re terminally curious like I am, take a look: Demography Unplugged. It’s also the home of Neil Howe, of Strauss & Howe, who ‘wrote the book(s)’ on generational theory. Howe started out in history and demography, and over 40 years of his career is now a an economic forecaster. If you start with generational theory, it’s actually pretty easy to find a context for where the world is now and where we’re headed…for better or for worse. Hint: we’ve been here before.