Actually, insurance companies are already _very_ aggressively steering their customers into "lower-cost" shops, leading them to believe they should accept subpar repairs in order to keep costs down and profits up. In many cases they use non-OEM parts to keep repair costs down.
I think the real reason they total a car at 60-70% is because the cost is just an estimate. They don't want to keep sending an estimator out to approve more $$ in repairs, costing everyone time and money, and ultimately spending more than it would cost to just buy out the customer -- who, in many cases, might just like a big check to buy what they want, rather than weeks fixing their 'old' car.
Insurance companies also like to drag their heels to punish you for standing up for yourself and selecting a high-quality bodyshop. In the case of a minor front-end accident for a car in my household, they trickled the money out in bits and pieces. Every time the shop countered the insurance company's estimate, the insurance company would take 2 days to send an adjustor out, trickle out a few more dollars, wash, rinse, repeat. It's why I keep rental car coverage for our vehicles even when we don't need it -- to hold the insurance company's feet to the fire, so they feel the financial pain, too, when they hold your car hostage for a month.
>> It's why I keep rental car coverage for our vehicles even when we don't need it -- to hold the insurance company's feet to the fire, so they feel the financial pain, too, when they hold your car hostage for a month.
Most rental car coverage only lasts 30 days maximum (sometimes it’s even less). It’s unlikely that carrying rental car coverage does anything in practice when netted against the increase in your premiums and in light of the limited coverage plus the discounted rental rates insurance companies get from rental car companies. I would imagine your car insurance provider is ecstatic that you pay an extra $X amount a year to “stick it to them.”
I think the real reason they total a car at 60-70% is because the cost is just an estimate. They don't want to keep sending an estimator out to approve more $$ in repairs, costing everyone time and money, and ultimately spending more than it would cost to just buy out the customer -- who, in many cases, might just like a big check to buy what they want, rather than weeks fixing their 'old' car.
Insurance companies also like to drag their heels to punish you for standing up for yourself and selecting a high-quality bodyshop. In the case of a minor front-end accident for a car in my household, they trickled the money out in bits and pieces. Every time the shop countered the insurance company's estimate, the insurance company would take 2 days to send an adjustor out, trickle out a few more dollars, wash, rinse, repeat. It's why I keep rental car coverage for our vehicles even when we don't need it -- to hold the insurance company's feet to the fire, so they feel the financial pain, too, when they hold your car hostage for a month.