At the end of 2010, the average new car price was $29,719, according to the Detroit Free Press. After five years, it’s also estimated that the average car will lose 60 percent of its value. That means in five years, a car that was priced at $29,719 with normal depreciation will be worth significantly less at approximately $11,887.
Right away, experienced claims adjusters can see where I’m going with this. A vehicle that sustains a front collision that results in the deployment of both airbags and breaks the windshield can easily result in a total loss for a vehicle worth just $11,887.