The Christian Science Monitor has a story about the increasing cost of repairing cars after accidents. It seems that every new technology and electronic system that car companies are putting into cars is raising the cost of repair substantially. Airbags $1,000 a piece. Xenon headlights at $3,000 a piece.

From the article:

Before the advent of air bags, only 8 percent of damaged cars were totaled. Today, the figure is nearly 20 percent and rising. "As they continue to put more air bags in these vehicles, the figure is going to continue to escalate," says Mr. Bailey of Carstar. Not only do the number of air bags (two in front have been required since 1996) increase costs, today's new "smart" air bags, with sensors that control whether they deploy and how hard, cost more than older bags. Seat belts, too, have "once-and-done" pretensioners that have to be replaced - even on unoccupied seats - after an accident.

The implications for the insurance industry are huge. Rates for insuring premium cars are sure to escalate.

The article also talks about the scarcity of skilled technicians who can repair these high tech cars. High levels of skills, training and certification are required.

Just as old computers are refurbished for other areas of the world cars could be as well. In the future cars that are deemed totaled by US insurance companies because of the high cost of electronics repair may find their way to refurbishing companies who will cheaply repair the cosmetic, structural and sheet metal damage and put the car on developing country roads where safety standards are not as stringent as they are in the US.

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