QuestionThe insurance asked the local inspector to exam the vehicle damages and then the inspector gave me the estimate and my insurance has sent me the check after DEC based on the inspector’s estimate. When I went to the body shop, I was given the estimate higher then the inspector did. I contacted the inspector. He wanted me to leave the car in the body shop and let the body shop contacted him. He said, only the body shop begins to fix my car, then he can tell my insurance send me additional check. I argued whether the car needing to be fixed is my decision. I can leave the damages there or have the car fixed. But, your estimate is lower than the actual repair costs. So the insurance needs to send me the adequate amount. The issue is whose estimate is more accurate, yours or the body shop’s. It has nothing to do with the car eventually fixed or not. My question is whether I must have the car fixed, then the insurance can pay me the amount based on the body shop instead of the inspector’s estimate.
AnswerHi Ray,
As I understand your question, this is a claim against your own insurance company.
Under the legal wording of your policy, your insurance company has an obligation to repair your car. There is no mention in the policy of them making a cash settlement for damages.
Most insurance companies are willing to work with you toward a cash settlement if you mention up front that this is your desire.
A cash settlement will require the insurance company to remove comprehensive and collision from your car until it has been repaired and inspected by your insurance company.
There are parts manuals and flat rate repair manuals that the body shops and the insurance companies have agreed to abide by.
A body shop will only get about 1 out of 5 jobs for all the estimates that they write in a given day. Due to the amount of time involved to use the manuals for a line by line on an estimate (which could take a hour or more), the body shop will only refer to the manual for a few items and the rest is an 'educated guess' (which takes about 10-15 minutes), because they know that if they get the job, the adjuster will do a line by line estimate from the parts and flat rate manuals. Many times the body shop estimate is to high or to low, but they know it will be corrected and they will be paid a fair price for their work. Many things happen behind the scene that you don't see. The adjuster may stop by the shop every other day to inspect the progress of the work and many times there is 'hidden' damage that is not exposed until the tear-down begins. At that time the adjuster will agree to pay more to the shop for the extra work. Most adjusters and body shops have an excellent 'behind the scene' working relationship and a common goal of properly repairing the vehicle and properly compensating the repair shop, irregardless of the initial estimates.
Overall, you can expect the estimate by the adjuster to be the most accurate because he used the proper manuels to arrive at his estimate instead of and 'educated guess'. This does not mean that his estimate is 100% accurate because there can always be hidden damage that doesn't show until the tear-down.
Make a perfectly clear statement to your insurance company of your desire to cash settle for your damages and they will probably make a more thorough estimate of the damage.
I seriously doubt that the body shop will be willing to take the time to do a line by line estimate from the manuals, since you are making it clear that they won't get the job.
I hope that you find this information to be helpful.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area
