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Why insurers are writing off repairable Mercedes

People have seen car insurance premiums jump as parts and labour shortages hit. AMA Group is among smash repairers trying to navigate the market.

Liam WalshReporter

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Insurers have written off cars that would normally be fixed because the waiting time for parts or repairs is so long, the cost becomes too expensive, smash repair giant AMA Group said.

The phenomenon provides additional detail about why insurers have been complaining of a heavy inflation spike in the input components of car insurance. It also goes to a battle between insurers to maintain margins and repairers such as AMA, which have sought better prices for fixing cars.

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Liam Walsh writes on investigations and companies with The Australian Financial Review. He has won multiple media awards, worked in Japan and is now based in Brisbane. Email Liam at liam.walsh@afr.com.au

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    Original URL: https://www.afr.com/companies/transport/why-insurers-are-writing-off-repairable-mercedes-20230220-p5clxe