I am a rookie when it comes to insurance. Had some hail damage and the adjuster inspected it and created an estimate. Then he offered to send me the cash via a debit transaction. I didn't sign anything but he did send me the estimate amount. Now, I have an estimate scheduled with a body shop next week and am realizing it'll likely be much higher than the insurance estimate. The adjuster said they would pay the shop a supplement in that event but I'm not sure I'll do the repair and would prefer the cash myself (plus I have a PDR buddy who will give me a deal). Can I use the shop estimate to adjust the adjusters estimate? What are the rules here? I just want the insurance to pay me the fair value for the repair.
Hail Damage - Erie
- Thread starter ltdpilot
- Start date
- 2,263
You can try but your carrier would most likely only deal with the body shop for any supplement. Have the shop submit their estimate and see if your carrier accepts it and will pay you because you "won't schedule repairs right away"
- Thread starter
- #3
Thanks, I will be travelling frequently for work and I will be out of town for quite some time over the next few months. So this would make it very difficult to schedule to work as my wife isn't in a position to handle it. So maybe that would help?
Is it possible to file the supplement myself after I get the estimate from the shop?
- 2,624
Here's how it works.
"Here's the money to repair your car. If it costs more the shop will submit a supplement. We will pay the supplement to the shop when the repairs are completed. No, you aren't going to pocket any additional money by not doing repairs."
Besides, if the car's not repaired, it's likely that the company will no longer provide damage coverage.
Insurance companies are not in the business of losing money to finaglers. You are not their first rodeo.
"Here's the money to repair your car. If it costs more the shop will submit a supplement. We will pay the supplement to the shop when the repairs are completed. No, you aren't going to pocket any additional money by not doing repairs."
Besides, if the car's not repaired, it's likely that the company will no longer provide damage coverage.
Insurance companies are not in the business of losing money to finaglers. You are not their first rodeo.
- Thread starter
- #5
I'm sure I'm not, but aren't they legally required to provide the full value of the repair regardless of whether the vehicle is repaired?
- Thread starter
- #6
Al3x Lee
Guru
- 952
Are you going to pass those savings on to your insurance company? I'd suspect not.
What would you consider the full value of the repair? It sounds to me like you have a way of getting a discounted repair, and you're trying to have the insurance company pay for a higher estimate so you can pocket the difference. This brings into question, what is a 'fair' value.
You can decide not to have the repairs done and take the cash settlement, which is commonly referred to as "cash in lieu of repairs" or "repair cost indemnification." If you choose this route, you may be subject to certain conditions, such as obtaining multiple estimates if you don't believe the claims adjuster's estimate is accurate or fair.
- 2,624
Right now the full value of the repair is what the adjuster estimated and paid you for.
If your buddy is going to give you "a deal" then take the car and the money to your buddy and see if he will work on it for that amount or less.
Otherwise, if the repairs cost more when the repairs are re-evaluated the insurance company will pay the balance after the tear-down.
If you don't want to do the repairs, you are welcome to pocket the money you have already received but, come renewal, your insurance is likely to be non-renewed for underwriting reasons (operating a damaged vehicle).
You aren't going to profit from the claim.
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