Post by TRIPWIRE on Dec 6, 2004 11:24:23 GMT -5
December 6, 2004
The Automotive Industry
Written by David M. Hickerson
Originally Posted at tripwire.hickersonfamily.net/2004_1206.html
I've been thinking a bit about the automobile industry lately... insurance companies included. Kinda interesting I think how over the past twenty or so years cars have become immencly more complicated and expencive to operate / repair and at the same time insurance companies have generally increased their premiums to keep suit with all the new gagetry.
Lets start with airbags. Yeah, I know a lot of people swear by these things, and I have no problem with them from a safety standpoint (although I have heard of injuries being sustained by shorter people or those with less mass than average). My problem with these airbag devices is their cost to replace in an accident. Look at it this way: You wreck your 28,000$ 2003 Honda Accord that has side curtain airbags in addition to the driver and front passenger ones. Assuming the computer "thinks" this accident was pretty bad, each of these airbags could blow and at around 1,000 bucks each you're probably talking at least 4-5,000$ in damage replacing the them, the steering wheel, and the body panels from which these airbags were deployed. Of course, if it was indeed a bad wreck I'm sure you won't mind that because they saved your life, but in the event that these things went off when there really wasn't a good reason... well that is a lot of money wasted don't ya think?
Again, I want to stress the fact that I have no issue with airbags in respect to their safety qualities, I just think they are way too expencive to replace when they are deployed in situations where they are not needed... and I'm still annoyed that my airbag didn't deploy at all in an accident I had some years back in a 93 Corsica even tho I hit a stopped truck while moving at 55 mph). I'd rather not have the airbag at all than to pay to have it and it not work! Anyway, I digress.
Lets take that same Accord and add about 600$ to replace the headlights (my estimate with labor included) and another 500$ - 1000$ fixing / repainting the bumper and any body panels (I'm being optimistic here). You've just taken that 28,000$ car and trashed about 6,600$ of it because of our hypothetical minor collision.
I'm not kidding about the headlights... go do a little research of the cost of replacing hallogen headlights and you'll quickly find many that are in the 150$ range and then some go as far as 400$ a piece before labor is added! Now take an older vehicle, say something like my 78 Caprice... I can purchase brand new headlights for 15-25$ a piece. These headlights are generally just as good as most hallogen lights (although I'll admit some hallogens are better), the only reason automakers switched to the more expencive ones is because they "look nicer"... of course I'm kinda partial to my old style lights. I have a serious problem with the fact that form is more important than function in today's automobiles, and this displeasure will probably lead me to purchase more older vehicles rather than sinking money into new ones in the future.
Actually another good point I ought to make... depreciation of new vehicles... I mean, you go out and spend 28,000$ on the above mentioned Accord and the next day you couldn't trade it for more than 22,000$, the depreciation is rediculous. Give that car a year and you'd be lucky to trade it for 19,500$. Take a cheaper car like our 2003 Ion... it was about 18,000$ brand new and is now has a trade in value just barely above 9,000$. Why should I dump all that money into a car that is gonna lose half it's value or more that quickly? Sorry, I'll stick to cars that have already taken that massive depreciation hit.
Then of course we have the insurance companies... Several states have what is called "no fault" insurance... which basically means you are gonna get ripped from both ends of the situation if you have an accident. You're driving thru an intersection and someone runs a red light and slams you. It is obviously their fault, but your insurance rates will rise just because you were in an accident. They couldn't care less who was considered to be at fault. Of course the person who hit you will also see a rate hike (provided they have insurance at all)... so basically the insurance companies are just racketeering both ends of the situation. I think this is deplorable, and I find it saddening that in those states it is perfectly legal. Of course even in states like Ohio where fault does matter we still get screwed because of the insane cost to repair todays vehicles... like I mentioned above: the crazy cost to replace airbags, modern headlights, modern body panel material... just keeps making it more expencive to insure your car. Even if you don't own one of these expencivy cars, you will still pay some into the company just to help pay for all those people who do (thats what insurance is all about, pooling the money so other people don't have to bear the entire cost).
Anyhow, I just wanted to rant a bit about what I percive to be a bad situation... I enjoy driving too much to stop just because I don't like how certain things work but at the same time the way I drive and what I drive in the future will be significantly impacted by what I've mentioned here.
Reference:
www.cbc.ca/consumers/market/files/cars/rebuilt_airbags/whatcanido.html
www.nbc5.com/money/3900701/detail.html
www.ibiblio.org/rdu/DRLs/argumnts.htm
www.airbagonoff.com/airbag%20safety.htm
csmonitor.com/2004/0419/p13s02-wmgn.html
The Automotive Industry
Written by David M. Hickerson
Originally Posted at tripwire.hickersonfamily.net/2004_1206.html
I've been thinking a bit about the automobile industry lately... insurance companies included. Kinda interesting I think how over the past twenty or so years cars have become immencly more complicated and expencive to operate / repair and at the same time insurance companies have generally increased their premiums to keep suit with all the new gagetry.
Lets start with airbags. Yeah, I know a lot of people swear by these things, and I have no problem with them from a safety standpoint (although I have heard of injuries being sustained by shorter people or those with less mass than average). My problem with these airbag devices is their cost to replace in an accident. Look at it this way: You wreck your 28,000$ 2003 Honda Accord that has side curtain airbags in addition to the driver and front passenger ones. Assuming the computer "thinks" this accident was pretty bad, each of these airbags could blow and at around 1,000 bucks each you're probably talking at least 4-5,000$ in damage replacing the them, the steering wheel, and the body panels from which these airbags were deployed. Of course, if it was indeed a bad wreck I'm sure you won't mind that because they saved your life, but in the event that these things went off when there really wasn't a good reason... well that is a lot of money wasted don't ya think?
Again, I want to stress the fact that I have no issue with airbags in respect to their safety qualities, I just think they are way too expencive to replace when they are deployed in situations where they are not needed... and I'm still annoyed that my airbag didn't deploy at all in an accident I had some years back in a 93 Corsica even tho I hit a stopped truck while moving at 55 mph). I'd rather not have the airbag at all than to pay to have it and it not work! Anyway, I digress.
Lets take that same Accord and add about 600$ to replace the headlights (my estimate with labor included) and another 500$ - 1000$ fixing / repainting the bumper and any body panels (I'm being optimistic here). You've just taken that 28,000$ car and trashed about 6,600$ of it because of our hypothetical minor collision.
I'm not kidding about the headlights... go do a little research of the cost of replacing hallogen headlights and you'll quickly find many that are in the 150$ range and then some go as far as 400$ a piece before labor is added! Now take an older vehicle, say something like my 78 Caprice... I can purchase brand new headlights for 15-25$ a piece. These headlights are generally just as good as most hallogen lights (although I'll admit some hallogens are better), the only reason automakers switched to the more expencive ones is because they "look nicer"... of course I'm kinda partial to my old style lights. I have a serious problem with the fact that form is more important than function in today's automobiles, and this displeasure will probably lead me to purchase more older vehicles rather than sinking money into new ones in the future.
Actually another good point I ought to make... depreciation of new vehicles... I mean, you go out and spend 28,000$ on the above mentioned Accord and the next day you couldn't trade it for more than 22,000$, the depreciation is rediculous. Give that car a year and you'd be lucky to trade it for 19,500$. Take a cheaper car like our 2003 Ion... it was about 18,000$ brand new and is now has a trade in value just barely above 9,000$. Why should I dump all that money into a car that is gonna lose half it's value or more that quickly? Sorry, I'll stick to cars that have already taken that massive depreciation hit.
Then of course we have the insurance companies... Several states have what is called "no fault" insurance... which basically means you are gonna get ripped from both ends of the situation if you have an accident. You're driving thru an intersection and someone runs a red light and slams you. It is obviously their fault, but your insurance rates will rise just because you were in an accident. They couldn't care less who was considered to be at fault. Of course the person who hit you will also see a rate hike (provided they have insurance at all)... so basically the insurance companies are just racketeering both ends of the situation. I think this is deplorable, and I find it saddening that in those states it is perfectly legal. Of course even in states like Ohio where fault does matter we still get screwed because of the insane cost to repair todays vehicles... like I mentioned above: the crazy cost to replace airbags, modern headlights, modern body panel material... just keeps making it more expencive to insure your car. Even if you don't own one of these expencivy cars, you will still pay some into the company just to help pay for all those people who do (thats what insurance is all about, pooling the money so other people don't have to bear the entire cost).
Anyhow, I just wanted to rant a bit about what I percive to be a bad situation... I enjoy driving too much to stop just because I don't like how certain things work but at the same time the way I drive and what I drive in the future will be significantly impacted by what I've mentioned here.
Reference:
www.cbc.ca/consumers/market/files/cars/rebuilt_airbags/whatcanido.html
www.nbc5.com/money/3900701/detail.html
www.ibiblio.org/rdu/DRLs/argumnts.htm
www.airbagonoff.com/airbag%20safety.htm
csmonitor.com/2004/0419/p13s02-wmgn.html