QuestionI arrived at my car yesterday and found a note saying I hit the car in front of
me. I noticed a scrape on my car and it did appear I hit their car without
noticing. They filed a police report but I got in touch with them and the
officer and agreed to handle it out of insurance. They said they got an
estimate saying it was 633 dollars damage which seems very excessive for a
scrape. I'm not sure if they already replaced the bumper or not. What are my
options at this point especially if I feel their estimate is too high?
AnswerHi Mark,
I would do three things in your case. First of all, contact your state insurance commissioner http://www.settlementcentral.com/links.php and find out what the rules are for designating an accident as “at-fault” for purposes of raising insurance rates.
Dr. Settlement knows insurance tactics, and this one is slick: use your insurance without fear once you confirm that the money they are asking for is lower than the threshold of payment that will merit a rate increase. if your commissioner is at all consumer orientated, he will have limited the insurance companies from willy-nilly calling all accidents as at-fault, and hence authorizing a rate increase. Washington state has Mike Kreidler—best insurance commissioner in America, and he set the limit at $750.
Hence, if you were in Washington, and if your company has to pay out only $749, they CANNOT INCREASE YOUR RATES, since, by definition of the insurance commissioner, that sum is $1 less than the “at-fault” threshold. In most states some similar threshold has been established. Hopefully your state has a good commissioner with a helpful website. Compare your state commissioner’s site to that of Washington’s Kreidler to see how a true consumer orientated commissioner helps the public. http://www.insurance.wa.gov/
Next, if your state commissioner is not so sharp, then you can also find out discover the policy of your own company for defining at-fault so as to justify a rate increase.
Third, take the estimate and discuss it with another body shop owner to see if it is correct. Usually the party whose vehicle was damaged gets to make the choice of body shops, but if this one is way out of line, then you DO HAVE the right to pay only a fair amount. DO NOT GIVE HIM THE NAME OF YOUR INSURANCE COMPANY.
If you would get an estimate that is lower, send it with your check for that amount to the guy, certified mail. If he wants to have full value, tell him that is all you will pay. He can sue you in small claims court. But so what?
The judge does not have to go along with his figure if it is way out of line. ESPECIALLY IF YOU PRODUCE THE PHOTO OF MINIMAL DAMAGE ON YOUR CAR. She will see that you made a good faith offer to settle, and you will not be punished. She is just as likely to go along with your expert.
I trust that my time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the FEEDBACK FORM on this site and leave some feedback for me.
Best Wishes,
Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com
