Insurance and Auto Body Shops

[Azndude51]

I was involved in a car accident the other day and I need to get my car fixed. The accident was not my fault but my insurance adjuster is sending me a check after estimating the damages, they will deal with getting the money from the insurance of the guy that hit me.

Anyways, my dad is telling me to find a body shop and get an estimate, but not tell them that I have insurance. That way if the price is lower, I can pocket the difference since the check is coming to me. Is this common practice for people to do? I know some people will get their insurance checks then just won't fix their cars if the damage isn't bad. Is there a good way to go about doing what my dad is talking about? Is it even advisable to do this?

FYI, I'm carless and jobless (b/c of not having a car to drive) college student right now so I'm pretty desperate for any extra cash.

 

[sactoking]

Typically, if you're using your collision coverage (regardless of who's at fault) the insurer is legally obligated to pay the shop directly. They have a vested interest in making sure the damage is repaired, since they are paying for it. If it is not repaired, they have to file a NURD (Notice of Unrepaired Damage) so that they have record in case you try to claim that same damage at some point in the future and double dip.

You usually only have the option of pocketing the money when the third party carrier is paying you directly. At that point, they have a legal obligation to reimburse you. What you do with the money is your prerogative.

Regardless of who is at fault, I'd be careful of pocketing money from a Collision claim on your own policy. If your adjuster made a mistake, they could ask for the money back or proof of the repair and receipt. If the receipt is for less than what they paid, you will have to pay them back. The courts consistently uphold that the purpose of insurance is to "make you whole". If you profit from the claim that is technically insurance fraud.

 

[Azndude51]

Well the insurance adjuster just gave me his estimate and told me that I can take it to whatever shop that I want, though I was supposed to give them his estimate. I am supposed to be getting a check in the mail with my name on it. Apparently my dad has tried this before, successfully, but I don't trust a lot of the things he does.

 

[sactoking]

If all you got from the adjuster was the estimate, they expect you to take the estimate to a shop and get an appt for the body work scheduled. Then, you have to call the adjuster and let them know which shop you chose. When the check comes, it will be a joint check to you and the shop. You take it to the shop and endorse it and hand it over to them to pay for the work.

Sometimes, less-than-reputable shops will offer you a kickback. Don't accept it. Legally, that's insurance fraud.

If you want to skimp on repairs, your best bet is to close your claim and wait for the other insurer to handle it directly. The other guy's insurance will cut the check to you, it will NOT be a joint check. At that point, you can pick and choose the work you have done and pocket the difference. That is NOT fraud, since you are accepting cash in lieu of having your vehicle repaired.

 

[Soundmanred]

Nah, lots of insurance places just send you a check and expect you to get it fixed. They usually don't check if you did or not, and most of the time people don't bother, as they'd rather have the 2 grand and keep the dent in the bumper instead of getting it replaced.
Unless my car was pretty new, I'd probably do it as well. With my Cirrus, I'd take the money and run, but with my G6, I'd get it fixed.

 

[Azndude51]

Originally posted by: Soundmanred
Nah, lots of insurance places just send you a check and expect you to get it fixed. They usually don't check if you did or not, and most of the time people don't bother, as they'd rather have the 2 grand and keep the dent in the bumper instead of getting it replaced.
Unless my car was pretty new, I'd probably do it as well. With my Cirrus, I'd take the money and run, but with my G6, I'd get it fixed.

If you take a look at the pics in the thread I linked to in the OP, I don't really have a choice about getting it fixed or not.

 

[amdhunter]

Just use the money to get your car fixed properly. I hate people that try and ripoff the insurance companies, just to save a meaningless amount of money. Of all the people I know who have done that (and I know a lot...) NONE of them was ultimately happy with their car after the repairs. Maybe they would have been happier if the insurance company approved shops fixed it, instead of some fly-by-night shop to save a few bucks.

 

[Azndude51]

Originally posted by: amdhunter
Just use the money to get your car fixed properly. I hate people that try and ripoff the insurance companies, just to save a meaningless amount of money. Of all the people I know who have done that (and I know a lot...) NONE of them was ultimately happy with their car after the repairs. Maybe they would have been happier if the insurance company approved shops fixed it, instead of some fly-by-night shop to save a few bucks.

That is one of the reasons I am asking, part of me just wants the repairs done right as opposed to trying to save a few bucks. Plus if I take it to the insurance authorized body shop, the ins. will offer a lifetime warranty on the repairs.

 

[Soundmanred]

If I were to need my car repaired, I would definitely take it to an approved shop to have it done. The insurance I currently have pays the shop directly, so I might as well.

 

[alkemyst]

Originally posted by: Soundmanred
Nah, lots of insurance places just send you a check and expect you to get it fixed. They usually don't check if you did or not, and most of the time people don't bother, as they'd rather have the 2 grand and keep the dent in the bumper instead of getting it replaced.
Unless my car was pretty new, I'd probably do it as well. With my Cirrus, I'd take the money and run, but with my G6, I'd get it fixed.

QFT...I think many above are 'thinking' what happens.

There is no law requiring you to fix a vehicle, insurance is their to cover damages and more not just repairs.

Now you can't have a body shop submit one invoice to the company and have you pay another...however; they can estimate with all factory parts and then you can choose to repair a part or order non-factory.

The insurance company knows the prior damages, their estimater puts these in a file should you call again about them. Same reason many will photograph a older car added to a policy ESP if not purchased at a dealership.

 

[alkemyst]

Originally posted by: Soundmanred
If I were to need my car repaired, I would definitely take it to an approved shop to have it done. The insurance I currently have pays the shop directly, so I might as well.

Approved shops vs non-approved have two major differences. The main being hidden damage. With a non-approved shop getting hidden damage covered is extremely difficult. With the approved shop they will often just repair it right away knowing the carrier will cover it.

You aren't ripping off the insurance company at all going with whomever you'd like nor electing not to repair the damages.

The only time it's ripping them off is when the damage was planned or the estimates exaggerated.

 

[Lola]

I don't know about your specific insurance carrier, but the one I worked for always used its "good hands" 😉 to write the check to the insured and the auto body shop so something like what you are talking about won't happen. I am pretty sure they call that insurance fraud. I know some customers tried to get around the system and it *usually* never worked.
YMMV though.