They’re probably having a lot of these claims, and the repair costs are beginning to add up. Plus, in the current market, the payout from totaling the car may not even buy an adequate used replacement.
It’s a veiled threat so they don’t have to pay for the repairs.
I woild imagine this could,be ripe,for scam too by an owner. Remove the converter, claim it was stolen, and get new one and sell,it replace older one.