How to Deal With Insurance Estimates

Auto insurance is required in most states and protects you against financial loss.

Auto insurance is required in most states and protects you against financial loss.

What is the purpose of auto insurance? In case of an accident or theft, auto insurance will protect you against financial loss. You pay your insurance company a premium on a regular basis and in return, they pay for your losses during unexpected circumstances. Now the biggest question is, what if your insurance coverage can’t cover everything the auto body shop is charging you? We’ll explore this specific yet important question in the next section. Keep reading.

Problem: Your insurance can’t cover the cost of repairs

Let’s say your car figured in an unexpected collision and has been badly damaged. Naturally, you will need to repair it. You will immediately contact your insurance company to see how the policy will cover your car and the damage it sustained. You get an insurance estimate and head to an auto body shop to obtain a quote for the repair. Now, here’s the thing: The estimate given to you by your insurance company is lower than the cost provided to you by the auto body shop. How will you proceed?

Action: What you should do next

It’s quite daunting to deal with an insurance estimate that’s lower than the total cost of repairs as provided by the auto body shop you went to. Now that we’ve established the main problem, here’s how you can deal with it:

  • Negotiate with the technician: The first thing you can do is to negotiate with the technician from the auto body shop. You can explain how most insurance companies go about covering auto repairs. Show him the insurance estimate that you got from your insurance company. Now, if he still stands firm, you can have your insurance company talk to the technician. Chances are they might have recommended this particular shop because it is on their preferred list.

  • Look for another shop: If the first option isn’t successful, you can look for another auto body shop. You aren’t obligated to use the shop your insurance company recommended to you. You can shop around by visiting local auto body shops or going online to see who can provide quality service that’s lower than the insurance estimate.

  • Pay for the excess charges: Finally, if you’ve resorted to the first two options to no avail, you have no other choice but to pay for the excess charges. It’s possible that after you’ve negotiated and tried to look for another shop, the total repair cost will still exceed what your insurer is willing to cover. So at the end of the day, it will be your responsibility to pay for the rest. But you will still be covered based on the insurance estimate provided by your insurance company.

Final Resolution: What you need to know

There are a few essential things that you should be aware of. First, you should come to terms with your auto insurance company’s policy. There must be a reason why it can only pay up to a certain extent. But you have to be sure that your insurance company complies with the terms and agreements.

Second, there’s a standard market price being followed by an auto body shop when it comes to repairing costs. If the total cost provided to you is reasonable, then you are good to go. If the body shop is charging you an unreasonable amount of money, then you have grounds for a legal dispute.

It’s important that you know as much as you can about the process to protect yourself from unfair treatment. M3 Collision Group has experienced professionals in auto collision repair, who have up-to-date training and qualifications. Stop by and let us restore your car to its former look in no time!

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