Auto Insurance Claims: $5.50 for front bumper damage, state insurance commissioners, claim processor

Question
Hi Sir,

The front bumper of my car was scratched by another car, issued by State Farm, while I was waiting for a parking stall. State Farm inspected the damage and estimated that the total cost of repair cost is $520.35. However, they wrote me a letter states that  "we have enclosed a separate estimate for the cost to repair certain unrelated damage that existed on your vehicle prior to this loss. Repairing such prior damage would necessarily involve duplicate procedures and operations. We have therefore decucted costs associated withe the repair of this prior damage from the final repair estimate sustained in this loss". To say it in short, they deducted $514.85 for the prior damage and sent me a check for $5.50. I wasn't happy with the result so I called State Farm. What was even outragious is that a claim processor of State Farm told me that I would own them money if counting all time and effort they spent handling this claim.

As you know, $5.50 is probably not even enough to buy a can of touchup. Do you think there is anything I could do?

Thanks,
H.B.

Answer
Hi H.B.,

The insurance company does have the right to make a deduction for overlapping pre-existing damage. Although I think the amount they are deducting is too much.

Unfortunately, amout the only thing you can do is to argue the point with them.  If they are not cooperative, you can file a complaint with your state insurance commissioners office. If that does not help, your only recourse would be to file a small claims lawsuit against the at fault party.

I hope this helped
Richard Hixenbaugh