Argentine vehicle owners are facing a growing challenge as a new report from the Superintendencia de Seguros de la Nación (SSN) reveals a meaningful increase in the number of cars being declared total losses. Driven by soaring repair costs-specifically inflated parts and labor-the trend is impacting both insurers and consumers, wiht total loss claims rising sharply over the past three years. The SSN data shows 41,013 vehicles where written off in the 2024/2025 period alone, a figure that’s raising concerns about the affordability of auto insurance across the country.
A growing number of vehicles are being written off as total losses, and the cost of those losses is rising sharply, according to a new report from Argentina’s Superintendencia de Seguros de la Nación (SSN). The trend reflects soaring repair costs driven by inflated parts and labor expenses, making it economically unfeasible to fix many damaged cars.
The SSN report revealed 41,013 vehicles were declared total losses during the 2024/2025 period, exceeding the 39,555 recorded in the prior period and the 34,459 from 2022/2023. Within a national fleet of over 9.6 million vehicles, the increase in total loss claims is significantly impacting the automotive insurance portfolio.
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The average cost of these total loss claims has more than doubled in the last year, reaching $12,186,394 during the 2024/2025 period, according to the SSN. This is a significant increase from the $5,691,007 average reported in 2023/2024. Over the past five years, the value has increased nearly twentyfold, with the most substantial jump occurring in the most recent year.
Marcos Farello, an insurance broker with Sancor, described the situation as “commonplace” for the industry, noting that the trend has accelerated significantly over the past year. The rising costs are putting pressure on insurers and raising questions about the affordability of auto insurance for consumers.
“It’s happening,” Farello said. “Especially with imported vehicles: today, even a minor collision that deploys the airbags can result in repair costs exceeding the vehicle’s value when you factor in reprogramming and the cost of original airbags.”
Farello also clarified that most policies define a vehicle as a total loss when repair costs reach 80% of its value. “If repairing the car costs 80% or more of its value, it’s considered a total loss. It’s not that companies want this – they lose a lot of money because the recovery value of the parts is very low,” he stated.
The situation varies depending on the make and model of the vehicle, according to the specialist. “It all depends on the car. A brand new 208 won’t reach total loss quickly, unless the airbags deploy. But a 2010 BMW, even with a minor impact, can be worth a fortune to repair and will be declared a total loss. That’s what’s happening here in Mendoza,” he explained.
Daniel Sisso, president of the Asociación de Productores Asesores de Seguros de Cuyo (APAS), reinforced this point from a contractual perspective and the mindset of insurers when making a decision. “Even if the accident isn’t severe, replacing the airbags involves costs exceeding the vehicle’s market value. Therefore, this situation arises when repair costs surpass the car’s value,” he clarified.
A Problem Expected to Grow
The SSN report made it clear that total losses represent the fastest-growing category, outpacing increases in theft, fire, or partial damage claims. Insurers are facing increasingly high indemnities, while many vehicle owners are surprised to learn that a minor collision can lead to their vehicle being written off.
“Insurers want to avoid a ‘headache,’ so they prefer, when costs are similar, to write off the vehicle rather than repair it. We are in a country where airbags are very expensive, and that’s where the main conflict lies,” concluded Agustín Magni, a broker with Triunfo Seguros.
With imported parts, rising labor costs, and vehicles whose value doesn’t keep pace with the inflation of their parts, experts predict the trend will continue to increase unless costs in the automotive market stabilize.
