Ask an Expert: What can I expect from an insurance company after a car crash?

by John and Theresa Kightlinger

A recent conversation with one of our readers very clearly illustrates the most common questions and answers between vehicle owners and quality-oriented independent repair facilities. We thought it would be beneficial for our community members to be prepared should the need ever arise to make a claim and have a need for auto-body repair.

Here is the conversation as it happened between the vehicle owner and the independent body shop:

Vehicle owner to body shop: We were hoping to bring our car into your shop for repair; however, I do want to update you with the fact that the insurance company sent me a check for the amount of $4,276.13, which is $2,000 less than your estimated cost of repair. I have filed it and will not cash it. I feel the sending of this check is very inappropriate and I am very concerned about this behavior on the part of my insurer. And I ask again– given this behavior on the part of my insurer – do I need to consider hiring an attorney?

Repairer: All your concerns are valid and you posed great questions. I wish this process were easier on everyone, unfortunately it’s not the case. We are aware of your insurer’s initial estimate. It is in no way inclusive of all that will be needed to repair your vehicle back to undetectable, pre-loss condition. The initial estimates rarely are. I don’t believe there is any reason to hire a lawyer quite yet. That being said, let’s chat about a few of your concerns and the options available.

Vehicle owner: I asked you if I would be held responsible for any amount that my insurance refuses to pay. It seems that once you have the car, and have it fully assessed, that you will again negotiate with my insurer. However – with a worst-case scenario that it refuses to pay – what then? Now my car is in pieces in your repair shop. How do I go on from there?”

Repairer: In order to get your insurer to adjust its initial estimate, the vehicle will have to be disassembled and all the damage shown to the insurer’s adjuster. We have no doubt it will increase its initial estimate, the question is: Will it cover all the necessary repair costs? The answer is there is no way to know until we are in the middle of it. We go through a great deal of research on each and every vehicle and print out the manufacturer’s procedures and position statements to review and provide to the insurance company along with our estimate/supplement. The reason we go through all of this is to convince the insurance company of the proper way to repair the vehicle and encourage it to pay what’s necessary.

So let’s say it doesn’t want to pay completely for the correct repairs we decide. If you want us to continue with the repairs, then yes, initially you will be responsible for the difference. Here is the reason. This is your vehicle and the contract to repair the vehicle is between you and us. The insurance company (whether yours or someone else’s) has a duty to indemnify you (“to make you whole”), the vehicle owner, as we have no contract directly with the insurer. As far as any potential difference goes, many times that difference will go down because we will continue to send supplements to the insurance company during the repairs with additional documentation and photos and it will generally continue to pay a little more each time reducing the initial difference.

There are some alternatives. You have us complete the proper and thorough repair and pay the difference. During the repair process, you hire a lawyer. In a situation where your damages were caused by another party, the lawyer sends the person that hit you a letter letting them know that you will be pursuing them directly for any out-of-pocket expense their insurance is not covering. Just because they have insurance does not let them off the hook for the loss to your property. The person receiving the letter will most likely call the insurance company to ask what’s going on. Many times the insurance company will reassess its position at that point because if it ends up with you suing the person directly for the difference, the insurance company has to pay for and provide the legal defense for its insured in court. It is less expensive for it to just pay to have the car repaired correctly instead of going through all the legal expense. If making a claim against your own insurer, the attorney’s letter may encourage it to reassess its position and provide full payment to avoid a lawsuit for breach of contract or other causes such as deceptive business practices, bad faith, etc.

Because of all the variables, it is very difficult to define how long the vehicle will be down for repairs. I can tell you this. It is in our best interest to get the vehicle back to you as quickly as possible because we generally front all the money for the complete repair and do not deposit a penny until you pick it up. Our payday is when your repair is completed. Keep in mind, during the repairs the insurance company should be providing you with a comparable rental vehicle

Here is another alternative. If making a claim against the at-fault party’s insurance company, and it refuses to do the right thing and pay the full amount for your vehicle to be properly repaired, you may then go to your insurance company with the request for it to take over the claim. This gives you a higher degree of leverage, as your insurance company is under contract to restore your property to pre-loss condition. (This is not the case with someone else’s insurance company). You will have to pay your deductible – but you also are entitled to access more options to ensure your repair gets done properly.

Here’s another alternative. The insurer will more than likely write the estimate using aftermarket or used parts. This is most likely written in your policy. This means that you will have to settle for substandard parts (or pay the difference) on your vehicle, bringing down the resale value and potentially creating safety concerns. Some of these parts may be all right to use, however, there are a lot that are not, and one won’t know until it’s too late! For instance, any substandard structural part that affects the safety of the vehicle (i.e. bumper bar, core-supports, used suspension parts and many more) should never be used. The slightest variation in support will affect the air bag timing. Additionally, using non-original parts can and will void warranties to other parts in the systems, such as a defective radiator can cause engine damage and the vehicle’s warranty for the radiator and engine would be void. There are other things that are overlooked on the insurer’s estimate (wash car, denib and polish, road test, seat belt inspection, scans, etc.). Whereas washing the car and doing the denib and polish does not affect the safety, it does affect the quality of the paint and the vehicle’s resale value. And it should go without saying that the road test, seat belt inspection, and scans are necessary safety procedures.

Here’s the final alternative: Let’s say we cannot come to an agreement with the insurance company. You can request your insurer to remove the vehicle from our shop and bring it to one of its shops that will have to repair it for what it wrote. The quality of the repairs will be a potential question, but you will not have to pay out of pocket for anything. Now, let’s say that the vehicle was repaired by your insurer’s shop and the repairs were found to be substandard. Because the repairs were completed at one of its contract shops, your insurance company has to guarantee the repairs performed. Interesting that insurance companies would rather take this long road and end up paying much more than if it just paid to repair it correctly the first time. But unfortunately for the consumer, it happens like this quite often.

Insurance companies have made the process of having your car repaired very complex. We do our very best to be by your side, on your side, every step of the way. I know I have given you a lot of information here, Please feel free to reach out with additional questions or further clarification. We don’t just restore damaged vehicles, we restore our customer’s peace of mind!”

John and Theresa Kightlinger own My Body Shop at 401 N. Clinton St., Stockbridge. The couple have lived in the area and raised their children here over the past 20 years. John has been in the auto body business since 1985, and Theresa began work at General Motors after high school. Between the two, they have been working on cars for more than 75 years.