Car insurance problems

[nixium]

Disclaimer: I agree that the pathetic scenario I am about to relate could have been completely avoided if I had used even the slightest modicum of common sense. That being said, I would certainly appreciate any advice/help given the facts of the current situation.

Also, if this is classified as a garage thread, I request the mods to move it. IMO, this is more like i'm-being-taken-for-a-ride-because-of-my-stupidity thread, so I should think it belongs to off topic.

1. I skid on ice about a week back, and hit the sidewalk pretty hard. Impact on front left wheel and rear left wheel. No body damage. I took it to a chain Repair Store, which will, for the moment, remain unnamed. It's Sunday, so that's the only one open.

2. I call my insurance the next day with an estimate of the repairs ($1200) or so. For the moment, the insurer shall remain unnamed as well. The phone rep tells me they need to send an inspector out, and it will take 5 days.

3. The Repair Shop says they can return my car in one day. So I tell insurer - can I get it repaired first and then file a claim (paying out of pocket.) rep says OK and sets me up with an appointment.

4. Repair shop calls back, says they need to order parts. They postpone delivery by one day. They do the same thing the next day. I get fed up on day 3 and get the car towed to my Dealer, paying for a bunch of replaced parts. Repairs on my car not complete.

5. Call Insurer again, with change of plans. Insurer appoints me to a local rep.

6. Local rep says they can't support any repairs at my Dealer since Dealer does not negotiate prices with them. I say OK and get it towed again to the Insurance Recommended Shop. I send them a bill for previous repairs.

6. They look at entries on the previous bill, and say they don't see any of the parts listed on the vehicle as being changed. i.e., the old parts still remain (except for a front wheel.)

7. Local adjuster claims the initial rep could not have told me to get it repaired and claim later. She says to claim anything, you *always* have to go through an inspection. They will not cover any of the repair parts because

(a) they don't appear to have been changed (b) I need the original invoices for these parts from the Repair Shop.

8. Currently, Insurer is attempting to directly request invoices from the Repair Shop. Status unknown.


So, here are my problems.

> When I had that initial phone conversation with the adjuster, when I reported my accident, I was clearly told that I could do repairs and bring in the receipts, and was set up an appointment. However, the adjuster has made no notes to the effect. Is there any way I can request a voice recording of that conversation?

> The Insurance Recommended Shop is claiming the parts that were supposedly replaced by the Repair Shop have not really been replaced. They claim they have pics, and these parts have dirt on them and the original markings. Is this sufficient proof if I have to go to small claims court?

> What should I do in this situation?

Overall, this entire thing could be avoided if I'd been a bit smarter. This is turning out to be a very costly lesson in common sense, but I'm hoping the situation is not beyond repair.

 

[sactoking]

First off, what state are you in?

To answer your 3 questions:

1) It's possible. It depends on the company and their policies. Most companies will record conversations to their claims hotlines, but not to a field adjustor. They will also state that the recorded calls are for 'training purposes only' and may try to block the release.

2) I'm assuming you mean to sue the original shop for charging you for work not performed. Yes, you'd want the new shop to take pictures of the parts that were allegedly replaced. You'd also want the new shop to sign an affidavit attesting to the fact that, in their opinion, no work was performed. It might help to have the insurance adjustor do the same.

3) That's a bit too complex to answer. You see, Step 6 you mentioned may have been illegal. That's why I need to know where you live. In many jurisdictions, insurers are barred from preventing you from going to the shop of your choice. To say that they can't 'support repairs by the dealer since the dealer doesn't negotiate prices' and then have you end up at a Preferred shop is an awful lot like 'steering', which is illegal. What they should have said is 'You can get your car fixed at the dealer, but if they won't negotiate with us you may be liable for the extra expense'. Step 7 is also false. You do not need to get an insurer-sponsored inspection. You do need to get multiple estimates before work is done. This is because your insurer is not liable for the cost if you choose to go to the most expensive garage in town. They're only responsible for a 'reasonable' amount. Also, you do owe your insurer the right to evaluate damage so that they can note it for existing damage in the future, if you choose not to repair (it's called a NURD). One estimate is not sufficient for this.

 

[nixium]

Originally posted by: sactoking
First off, what state are you in?

To answer your 3 questions:

1) It's possible. It depends on the company and their policies. Most companies will record conversations to their claims hotlines, but not to a field adjustor. They will also state that the recorded calls are for 'training purposes only' and may try to block the release.

2) I'm assuming you mean to sue the original shop for charging you for work not performed. Yes, you'd want the new shop to take pictures of the parts that were allegedly replaced. You'd also want the new shop to sign an affidavit attesting to the fact that, in their opinion, no work was performed. It might help to have the insurance adjustor do the same.

3) That's a bit too complex to answer. You see, Step 6 you mentioned may have been illegal. That's why I need to know where you live. In many jurisdictions, insurers are barred from preventing you from going to the shop of your choice. To say that they can't 'support repairs by the dealer since the dealer doesn't negotiate prices' and then have you end up at a Preferred shop is an awful lot like 'steering', which is illegal. What they should have said is 'You can get your car fixed at the dealer, but if they won't negotiate with us you may be liable for the extra expense'. Step 7 is also false. You do not need to get an insurer-sponsored inspection. You do need to get multiple estimates before work is done. This is because your insurer is not liable for the cost if you choose to go to the most expensive garage in town. They're only responsible for a 'reasonable' amount. Also, you do owe your insurer the right to evaluate damage so that they can note it for existing damage in the future, if you choose not to repair (it's called a NURD). One estimate is not sufficient for this.

Thanks so much for your response! I'm in NJ.

Step 6: About the 'steering' - I checked the message from the insurer again, and she does say that they will not be liable for the extra expense. The reason I decided to get it taken to the insurer's shop was the dealer's quite was very high ($1800) for the remaining repairs, and the insurance shop was just a mile away. I wanted to avoid the headache.

As for #7 - thanks for the info. At this point, I would be OK with the 'reasonable' amount. But insurance is basically saying they can cover nothing because they didn't do the inspection. I'm going to try to check the state law to see what's going on with this.

I guess the main problem is, it appears I can't trust anyone at the moment. Not the Repair Shop, the Insurer, or anyone else involved, because they're all spinning the situation to their own benefit.

Also, is this time to bring in a lawyer? It appears if I don't handle this right, it can easily fall apart.

 

[sactoking]

Most lawyers won't handle the property damage portion of an auto accident. There's usually not much to argue and no money to be made.

You should be pursuing this under your collision coverage, yes? Honestly, I think your best option is to continue with the repairs at whatever shop you're at while your insurance pays for it, subject to the deductible. Document EVERYTHING you can about the parts not being replaced and sue the original shop when the repairs are done.

I doubt that the shop you're at is trying to hose you at this point. The insurance company isn't quite operating on the up-and-up, but you should get somewhat decent treatment. They can't screw you too badly or they open themselves up to a bad faith lawsuit which is VERY expensive for them if they lose. Yes, they want to fix your car an inexpensively as possible, but they're not going to intentionally give you an unsafe vehicle.

It sounds like you've been burned the most by the first shop. That's where I'd concentrate my efforts if I were you.