Resolving Problems with the Auto Insurance Adjuster - Part II

From Insurance for Dummies by Jack Hungelmann

A second possibility is that the shop may be trying to pull a fast one. All reputable shops know that any supplemental repairs must be approved by the adjuster. If they surprise you when you arrive with demands for more money, they did the repairs without an okay. The body shop is hoping that you’ll be so desperate to get your car released that you will either pay the difference yourself or protest so loudly to your insurance company that it will pay just to appease you. If the shop did not get an approval, the shop is the bad guy. Don’t pay them. Sign an authorization for your insurance company to pay additional amounts, if any, to the body shop. The shop then has to do what it should have done and attempt to work things out with your adjuster. But then it’s the shop’s problem, not yours.

The insurer won’t pay for new parts. You have a nice, clean, low-mileage, eight-year old car. It’s banged up. The adjuster’s estimate is for used parts, but you want new parts. The insurance company is within its rights to replace your used parts with used parts. You have the right to make sure that the parts are in good condition, and you can refuse to allow them to be used if they aren’t. You also have the right to demand new parts, although you’ll have to pay the difference between the cost of new parts and the cost of used parts. The insurance company is within its rights when it only pays for used parts because it only has to replace what you had — and your parts certainly had some wear and tear on them by the time you were in the accident.

Getting cash when you won’t be making the repairs. You need to know that the insurance company, not you, gets to choose whether to repair, replace, or pay cash. That being said, most insurers still let you choose cash if you prefer. Companies differ on the amount of cash they pay. Some pay you the full repair cost; others pay what they call an appearance allowance to compensate you for the loss in value of your damaged car. If you’re not happy with the amount of an appearance allowance, go to a dealer. Show the used-car manager your car. Ask him to write on his letterhead both the preaccident and postaccident values of your car. You are entitled to receive the difference between these two values if you decide not to repair the car.