For more information contact: Christina Gosack 651-296-5524
Under prior law, the cost of repairing or replacing the airbag (commonly anywhere from $3000 to $5000) would often push the damage to 70 percent of the vehicle’s retail value. At 70 percent, the insurance companies usually declare the vehicle a total loss and issue a check to the owner for the vehicle. However, because the airbag was included in that assessment, the check often was not enough to pay off the vehicle or buy another one. Under a new law, which went into effect August 1, the cost of repairing or replacing the airbag will no longer be included in the estimate of repairs to a damaged vehicle.