Auto Insurance Claims: auto claims, auto claims, auto shop

Question
Lexus 2008 wheel was scatched and tire was torn a tiny bit. The ins. will pay for replacment which is around $900. I asked for an allowance instead and they claim I could receive $300 only. If I were to take my care and get my own estimate, would the ins. pay out the amount to me or the auto shop? I live in northern ca. and have AAA if this helps.

Answer
Hello,

I can only speak in general terms without knowing all the specifics to your policy and claim.

Here is how it works--If the insurance has to pay for replacement, they will pay the shop $900.00 allowing for mark up and labor. If they are to give you the cash, they will only pay a discounted amount because obviously with you stating the wheel is scratched and the tire torn a little bit, sounds like you will live with it.
In order to be fair, they most likely feel you do not deserve $900 to live with it. Only $300.

In essence, they are not going to make you better off for $600. Alln they need to do is make you whole.

Going to a different body shop will not make any difference now unless you know someone that will claim the wheel and tire was changed and will split the money with you. Do not attempt to do this because this would be fraud.

Take the $300 and be happy. Could be if you had a different insurance company, you could have got $0.