Insurance company refusing to make check to repair shop

[e28makaveli]

My 2017 Hyundai SantaFe XL was recently involved in an accident. We were not at fault and as a result, do not have to payfor our damages. Thank goodness.

However, since this car was financed, the insurance company has issues a check to myself and the lien holder or the bank. I do not yet have the check as it is till in the mail. However, I did consult with my bank and they indicated that the check will be applied towards the loan on the vehicle and clearly this is not what I want. I need to get my car fixed and regardless of how often I stressed this point, the loan department was adamant the money will be applied towards my balance.

So I have called back the insurance company and instead requested they cancel the check, allow me to take the car to a repair shop of my choice, get the car fixed and they then pay the repair shop directly. They are hesitant and will not get back to me. I plan on returning the check to them with the repair shop estimate and possibly hire a lawyer to get this sorted out. And advice for me?

Thanks in advance.

 

[fed up]

Usually the check is made out to the repair shop unless the vehicle is totaled. When you got the estimate for the repairs was the same shop involved in the repair process? If your insurance company did not write the check for the repair and the other party's policy is paying for the repair it seems like they made a mistake and should cut a new check for the repair to the shop doing the work.

 

[e28makaveli]

The vehicle has not yet been repaired It is still in the impound lot. The damages are far less that today's market value of the vehicle. They are issuing a check to the me and the bank for the damages incurred and it is the other party's policy paying for the damages.

I have read through some articles which references Financial Responsibility Clause. From what I have understood so far, this should not apply here as it is not my insurance policy covering for the damages. In this case, they should be writing a check directly to me, the car owner or to me repair shop of choice.

But I may be wrong.

 

[fed up]

Now it makes sense. Take the car to a repair shop and the shop can contact the carrier. The check you have is a two party check because you have a lien. This is to ensure you get the car fixed. The repair shop will get paid either by taking the check you have or by the insurance company cutting a new check

 

[djs]

First thing is first. You need to get the car out of the impound lot, they get expensive quickly and insurance usually won't pay after a reasonable time to get it out. This is always one of the biggest complaints, people think they can leave them there for a week or 2, then insurance declines the bill after the first 2 days.

The insurance company has an obligation to protect the lienholder, hence the 2 party check. This is normal. At this point, the bank just assumes the car is not being repaired, which is why they say it goes to the balance. That is normal.

Get the car to the repair shop, take the current check with you. The insurance company will swap that check for one made out to the repair shop once repairs are done. Happens every day.

Why do they bother to write the first check? Simply put, just because they have to submit paperwork to the government saying they resolved the claim in x number of days. This allows them to meet their numbers.

None of the process changes because the other insurance company is paying. The only real difference is you don't have to pay your deductible and you should have a rental car as long as you are not dragging your feet on getting your car fixed. Unfortunately, if the car is in the impound lot and you have a check already, you are dragging your feet just a bit.

All of this assumes they are not evaluating the car as a total, but if they have written a check already, I assume not.

Dan

 

[e28makaveli]

Thanks Dan. This all makes sense now.

I have instructed my significant other to act promptly in ensuring the car is removed from the impound lot and to be taken to a Hyundai affiliated collision center for estimate and repairs.

There are two pending issues with the claim:

1. Diminished Value
2. Loss of use

The first item has not been addressed and the adjuster is not responding to this question. What do I do?

The second item is being resolved with a check for $500 which does not cover the loss of use as this accident happened almost 2 weeks ago and we have simply been waiting on them to send to us paper work. I would rather the insurance company issue to us a rental while we get our car fixed. How do I go about approaching this?

Thanks again.

Klaus

 

[djs]

In general, the repair shop should do the repairs back to the state the car was in prior to the accident. This means that in most cases, there is no diminished value, its as good as it was. If its significant damage, then yes, you might be entitled to some diminished value. In most cases, if you think you should be entitled to diminished value, you probably needed a better repair facility, again, excluding significant damage that was done (i.e., frame damage). If they are replacing sheet metal, then the replacement part is as good as the used part you had on your car, no diminished value. My guess is the adjuster said something to this affect, but you are looking for a different answer.

Loss of use: $500 should cover about 25 days of a rental car. What are you looking for? Insurance companies dont rent cars, they write checks. In this case, they should write one to the rental car place. You make it sound like they did. What more do you want?

Unfortunately, they won't cover a rental car while your car is in the impound lot unless they were keeping it there. You have an obligation to minimize the costs here. These means getting your car in a shop.

While you can choose whatever shop you want, there is nothing special about a Hyundai affiliated repair facility. Take it to the shopp you want to. Personally, I like to go to the carriers preferred shop, but I understand the value to the process when the claims adjuster is in the shop every day and can look at what is needed without the delay of getting there. They also tend to have better repair guarantees, but again, you should be able to use whatever shop you want (as long as they charge normal market rates).

Dan

 

[e28makaveli]

Thanks again for the comprehensive response.