Resolving Problems with the Auto Insurance Adjuster - Part I

From Insurance for Dummies by Jack Hungelmann

 You’ve just been involved in a collision and you have collision coverage on your auto policy. You report the claim either to your agent or directly to the insurer. A claims adjuster contacts you. If your car is drivable, you may be asked to get one or two estimates. Or, the adjuster may inspect the car herself and write her own estimate.

Here are a few of the common problems you may encounter and what you can do about them.

• You don’t like the shop that the insurer recommends. Most insurance companies have relationships with body shops they have found to be easy to work with, who are reasonable in their estimates and in negotiating repair costs. In most states, though, you have the right to pick the shop of your choice, and you can insist that your insurance company work with that shop. Some shops are known to be price gougers. It benefits us all if you avoid those shops — keeping repair costs reasonable keeps premiums down.
• The adjuster demands that you get two or three estimates. Requesting one estimate is reasonable. Get it from your preferred body shop. If it’s not inconvenient, getting a second estimate helps keep shops honest. If you prefer not to get a second estimate, you may have the right to refuse and request that the insurance company send an appraiser to work out a repair price with your shop, especially if your car is not drivable. As for a third estimate, refuse. Totally unreasonable.
• Your preferred shop won’t honor the adjuster’s estimate. This situation occurs often, unfortunately. When adjusters are busy, they will write an estimate and hand or mail you a check for that amount. At first, you may be happy to have such prompt service. Then you bring your car in, and the body shop refuses to repair it for the amount the adjuster gave you. The body shop often points out damage that the adjuster missed. Don’t worry. You simply call the adjuster, and she works out a new repair price with your shop and issues you a second check.
• The body shop wants additional money from you before it will release the car. The shop may do this for one of two reasons. First, the adjuster may have approved additional damage, but the second claim check has not arrived. If so, the solution is to sign a form (available in every body shop) authorizing your insurer to bypass you and pay the shop directly for the additional cost. Then most shops will release your car without further problems. If the shop still won’t release your car, the best bet is to charge the additional amount to your credit card.

TIP - Never accept an estimate and payment before the body shop of your choice agrees to do the repairs for that amount.