by Guest » Wed Jan 20, 2010 09:22 pm
Sorry this is long, but I'm concerned about this.
I was in an accident last week and banged up the front end of my car. Single person, slid on black ice – no one else was involved. There was no air-bag deployment, either.
Called the insurance company and they directed me to their preferred shop that was pretty close to my house. They run the estimate and determine that the cost is over 75 percent of what the vehicle is worth and they are going to call it a total loss and give me money for the car – which is not enough to cover the loan.
So, I tell them I want more opinions on repairs and they say fine. Took it to another shop and this guy estimated the repairs about $1,300 less than the first garage. I’m taking it to another place tonight for a third estimate which I’m confident will also be low.
Spoke with the claims person this morning and she basically said, “Doesn’t matter where you go, we’re calling it a total loss.”
How is that legal? If I had not been bamboozled into going to their ‘preferred shop,’ my estimate would have been lower and they would have paid for the repair. I know in NYS I have the right to take my vehicle wherever I want, so how can the legally balk at a lower estimate?
A senior claims adjuster actually told me if the repair estimate was significantly lower they might consider it, but I don’t know if he said that to get me to go away. I’m thinking nearly 20 percent off the first estimate is pretty significant, no?
Anyway, I’m not sure if I should bother checking with the NYS department of insurance to see if the insurance company can do this, but I’m slowly thinking I’m screwed and they can.
BTW – I have two sets of paperwork from the insurance company that shows how on the 13th my vehicle was estimated at $XXX, but somehow two days later my vehicle was estimated at an even higher value. Why wouldn’t they pay the lesser repair bill and save paying out nearly $4,000 more?
I’d love to hear any thoughts. Thanks!
I was in an accident last week and banged up the front end of my car. Single person, slid on black ice – no one else was involved. There was no air-bag deployment, either.
Called the insurance company and they directed me to their preferred shop that was pretty close to my house. They run the estimate and determine that the cost is over 75 percent of what the vehicle is worth and they are going to call it a total loss and give me money for the car – which is not enough to cover the loan.
So, I tell them I want more opinions on repairs and they say fine. Took it to another shop and this guy estimated the repairs about $1,300 less than the first garage. I’m taking it to another place tonight for a third estimate which I’m confident will also be low.
Spoke with the claims person this morning and she basically said, “Doesn’t matter where you go, we’re calling it a total loss.”
How is that legal? If I had not been bamboozled into going to their ‘preferred shop,’ my estimate would have been lower and they would have paid for the repair. I know in NYS I have the right to take my vehicle wherever I want, so how can the legally balk at a lower estimate?
A senior claims adjuster actually told me if the repair estimate was significantly lower they might consider it, but I don’t know if he said that to get me to go away. I’m thinking nearly 20 percent off the first estimate is pretty significant, no?
Anyway, I’m not sure if I should bother checking with the NYS department of insurance to see if the insurance company can do this, but I’m slowly thinking I’m screwed and they can.
BTW – I have two sets of paperwork from the insurance company that shows how on the 13th my vehicle was estimated at $XXX, but somehow two days later my vehicle was estimated at an even higher value. Why wouldn’t they pay the lesser repair bill and save paying out nearly $4,000 more?
I’d love to hear any thoughts. Thanks!
Posted: Wed Jan 20, 2010 09:45 pm Post Subject:
which is not enough to cover the loan.
Thats too bad, sorry. Do you not have GAP insurance?
How is that legal?
Until it's deemed repairable, it will remain a total loss.
If I had not been bamboozled into going to their ‘preferred shop,’ my estimate would have been lower and they would have paid for the repair.
Possibly. However, the repair normally is more expensive (most of the time) at a shop not on the insurers preferred list. These shops are on a contractural agreement with the insurer, commonly known as a DRP shop (direct repair program). The agreement, is that the shop will agree to repair the vehicle at a discount, versus a non-DRP shop will not have to abide by the insurers rules and is not required to give discounts.
A senior claims adjuster actually told me if the repair estimate was significantly lower they might consider it, but I don’t know if he said that to get me to go away. I’m thinking nearly 20 percent off the first estimate is pretty significant, no?
No he didn't tell you that to make you go away. And no, an estimate is just that, an estimate. The true cost of the repair cannot be determined until the vehicle is repaired and a final bill is calculated. It's possible that these other shops "lowballed" the estimate in an effort to earn your business. What could end up happening is that you may recieve a subpar repair. The other side of that may possibly be that the DRP shop, may have over written the estimate (highly unlikely) in effort to make your car go away, but I have seen this on occasion.
I’m not sure if I should bother checking with the NYS department of insurance to see if the insurance company can do this
Probably will be a waste of time, and yes they can if the repair exceeds 75% of the ACV (actual cash value)
If you are doubting the carrier's ruling, find a shop who will work for you and not the insurer to help you determine if the vehicle is infact a total or not.
Posted: Thu Jan 21, 2010 01:18 am Post Subject: Thanks
I appreciate the insight. I thought I made it clear that I have taken the vehicle to two shops and both have determined the vehicle is not a total loss. They have gone line by line with the estimates and shown how the costs are significantly lower hence why I'm confused.
Does that make sense?
My carrier does not provide GAP insurance - I'm checking with my loan folks right now.
Again, thanks.
Posted: Thu Jan 21, 2010 01:47 am Post Subject:
I am glad to hear that. As I said, sometimes (and it's rare) the preferred shop has overwritten the estimate whether indirectly or directly, resulting in a total vehicle "on paper". I do reinspections for this very reason. If these shops are reputable, and they can repair the vehicle correctly, your carrier has no choice but to honor your decision to go with the shop of your choice. In my case, many insurers welcome the information and may have a "talk'n" to their preferred shop. Remember, it's your money.
Your loan company, not your auto carrier offers GAP.
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