Horrible Claim Issue - Need Advice

[INSUREGEEK]

Seriously, NotEnough, this entire thing is BS to me.

I run a body shop. The only car that's been on my lot more than 30 days is a 2015 Honda Civic SI because the 'owner' let her insurance lapse. The finance co is in repo process now.

I've had trannys replaced and rebuilt on my own cars, and it takes a few weeks at most.

The body shop is going to subcontract the tranny repair, and mark that bill up 25-30%. THAT is (very likely) the issue.

If the car has no other body work needs, and we're calling the body shop daily with no answers, tell your friend to pay the tow bill to the nearest transmission shop and send their bill to insurance.

Huge pushover you say? DJT would say YUUUGGEEE.

Good Luck!

 

[NotEnough]

Seriously, NotEnough, this entire thing is BS to me.

I run a body shop. The only car that's been on my lot more than 30 days is a 2015 Honda Civic SI because the 'owner' let her insurance lapse. The finance co is in repo process now.

I've had trannys replaced and rebuilt on my own cars, and it takes a few weeks at most.

The body shop is going to subcontract the tranny repair, and mark that bill up 25-30%. THAT is (very likely) the issue.

If the car has no other body work needs, and we're calling the body shop daily with no answers, tell your friend to pay the tow bill to the nearest transmission shop and send their bill to insurance.

Huge pushover you say? DJT would say YUUUGGEEE.

Good Luck!

I agree! I thought he was kidding at first when he told me what happened after I asked him why I haven't seen photos of his car. I didn't think something could take more than a few months at most, until I saw his claim date of Early 2015 (March if I remember correctly).

 

[djs]

Hi Dan,

So I got some clarification from my friend. The insurance company recommended to go to their preferred shop otherwise they would have a 20% copay of the cost of repairs. Now the shop the car is at...its actually a body shop. The insurance company is saying the price of the transmission is too high forcing the body shop to find replacements. The insured, my friend, isn't getting that much information aside from that. I also think since it is a body shop and not a mechanic's shop, they probably aren't very good at situations like this as far as finding parts and charging the right labor.

The shop gave the insured their loaner car since that day but just earlier, the loaner car gave out. I have been insisting my friend to get things taken care of it but they just switched adjusters on him so its becoming a bigger mess.
....

I've never heard of someone saying use our shop or you pay 20%. Not even sure if that is legal. Now, some shops will charge extra, which the insurance company won't pay, but they should pay the same amount, regardless of who does the work. In CA, steering is illegal and something the DOI would be very interested in pursuing.

A new adjuster can't make things worse. What are they going to do, delay it more ???? Not likely.

If the tranny shop can't find a transmission for the price the insurance company is willing to pay (and has put a sincere effort into it), then the insurance company needs to pay a fair market value. I'm sure this comes up sometimes, but I've not seen it happen to often. I have seen more often the shop wanting to replace and insurance wanting to fix or OEM vs rebuilt vs used issues, but this doesn't make a lot of sense.

As InsureGeek said, its time to switch shops, well past time, if they are the hold up.

Dan

 

[NotEnough]

I've never heard of someone saying use our shop or you pay 20%. Not even sure if that is legal. Now, some shops will charge extra, which the insurance company won't pay, but they should pay the same amount, regardless of who does the work. In CA, steering is illegal and something the DOI would be very interested in pursuing.

A new adjuster can't make things worse. What are they going to do, delay it more ???? Not likely.

If the tranny shop can't find a transmission for the price the insurance company is willing to pay (and has put a sincere effort into it), then the insurance company needs to pay a fair market value. I'm sure this comes up sometimes, but I've not seen it happen to often. I have seen more often the shop wanting to replace and insurance wanting to fix or OEM vs rebuilt vs used issues, but this doesn't make a lot of sense.

As InsureGeek said, its time to switch shops, well past time, if they are the hold up.

Dan

First time I've heard of this 20% thing as well.. this is the paragraph from Western General's FAQ's

" How does the Preferred Provider Organization (PPO) endorsement work?
If your policy includes Comprehensive & Collision coverage with the PPO endorsement then you will be asked if you wish to have your vehicle repaired at a repair facility close to you that is within the Western General PPO Network. WG's PPO repair facilities utilize state-of-the-art equipment and parts and must maintain high standards that meet WG's guidelines. In addition, repairs made at a PPO shop are guaranteed for the entire lifetime that you own your vehicle. If you elect to have your vehicle repaired at a PPO shop, you will only be required to pay your deductible, plus any appropriate betterment /depreciation. If you elect to have your vehicle repaired outside the network of Western General PPO shops, then you will be required to pay a co-payment of 20% of the cost of repairs plus your deductible and any appropriate betterment/depreciation."


So if the shop is the hold up, could he just have the vehicle towed elsewhere? Would the shop be able to put on a lien on the vehicle for work already done?

 

[INSUREGEEK]

Your friend is gonna have to grow a pair and make something happen here.

If the body shop did work to the car, yes, they get paid for that before the car leaves their lot. Body shops typically don't do transmission work though. They will sub that out. And they don't wait 18 months to get paid for body work.

Here's how it works in Ohio:

Car comes in wrecked and has mechanical/suspension/transmission issues as a result.

We decide where to start. Sometimes it's best to get the mechanicals sorted first. Sometimes it's best to complete the body work first. If the car is not driveable WE have the car towed to mechanic or dealer for the stuff we don't do - like transmissions and alignments and engine cradles. If it is driveable we actually drive it to the 'other' shop for their piece of the repair, the drive it back to our shop for detailing and delivery back to the customer.

Car comes in wrecked but does not need body work? It goes straight to someone that does things like transmissions and suspensions.

I cannot imagine we'd ever start body work on a car that "needs" a transmission!! HOW does the body shop even know that for sure? Has the car been evaluated by a transmission shop??

This makes less and less sense the more and more I think about it.

I hope it works out. Soon!