Auto Mechanic|Car Repair|Auto Body Shop|Auto Repair

You've just been involved in a collision, and you have collision coverage on your auto policy. Collision coverage pays to fully repair your car or replace it if it's a total loss (minus your deductible, of course), regardless of who's at fault. If you're the primary cause of an accident and your car is damaged, there are only two places to get the money for repairs - collision coverage or your kid's piggy bank. You report the claim either to your agent or directly to the insurer. A claims adjuster contacts you. If your car is drivable, you may be asked to get one or two estimates, or the adjuster may inspect the car herself and write her own estimate.

Here are a few of the common problems you may encounter during this process and what you can do to solve them:

• You don't like the shop that the insurer recommends. Most insurance companies have relationships with body shops that they've found to be easy to work with, as well as reasonable in their estimates and in negotiating repair costs. In most states, though, you have the right to pick the shop of your choice, and you can insist that your insurance company work with that shop. Some shops are known to be price gougers. It benefits everyone if you avoid those shops - keeping repair costs reasonable keeps premiums down.
• The adjuster demands that you get two or three estimates. Requesting one estimate is reasonable - get it from your preferred body shop. If it's not inconvenient, getting a second estimate helps keep shops honest. If you prefer not to get a second estimate, you may have the right to refuse and request that the insurance company send an appraiser to work out a repair price with your shop, especially if your car is not drivable. As for a third estimate, refuse - it's totally unreasonable of the adjuster to ask that of you.
• Your preferred shop won't honor the adjuster's estimate. Unfortunately, this situation occurs often. When an adjuster is busy, he'll write an estimate and hand or mail you a check for that amount. At first, you may be happy to have such prompt service. Then you bring your car in, and the body shop refuses to repair it for the amount the adjuster gave you. The body shop often points out damage that the adjuster missed. Don't worry - just call the adjuster and ask him to work out a new repair price with your shop and issue you a second check. Never accept an estimate and payment before your preferred body shop agrees to do the repairs for that amount.
• The body shop wants additional money from you before it will release the car. The shop may do this for one of two reasons:
  • The adjuster may have approved additional damage, but the second claim check has not arrived. If so, the solution is to sign a form (available in every body shop) authorizing your insurer to bypass you and pay the shop directly for the additional cost. Then most shops will release your car without further problems. If the shop still won't release your car, the best bet is to charge the additional amount to your credit card.
  • A second possibility is that the shop may be trying to pull a fast one. All reputable shops know that any supplemental repairs must be approved by the adjuster. If the shop surprises you with demands for more money when you arrive, it did the repairs without an authorization. The shop is hoping that you'll be so desperate to get your car released that you'll either pay the difference yourself or protest so loudly to your insurance company that it will pay just to appease you. If the shop did not get an approval, the shop is the bad guy. Don't pay them. Sign an authorization for your insurance company to pay additional amounts, if any, to the body shop. The shop then has to do what it should have done and try to work things out with your adjuster. But then it's the shop's problem, not yours.
• The insurer won't pay for new parts. You have a nice, clean, lowmileage, 8-year old car. It's banged up. The adjuster's estimate is for used parts, but you want new parts. The insurance company is within its rights to replace your used parts with used parts. You have the right to make sure that the parts are in good condition, and you can refuse to allow them to be used if they aren't. You also have the right to demand new parts, although you'll have to pay the difference between the cost of new parts and the cost of used parts. Think of it this way: The insurance company is within its rights when it only pays for used parts because it only has to replace what you had - and your parts certainly had some wear and tear on them by the time you were in the accident.
• Getting cash when you won't be making the repairs. The insurance company, not you, gets to choose whether to repair, replace, or pay cash. That said, most insurers still let you choose cash if you prefer. Companies differ on the amount of cash they pay - some pay you the full repair cost; others pay what they call an appearance allowance to compensate you for the loss in value of your damaged car. If you're not happy with the amount of an appearance allowance, go to a dealer. Show the used-car manager your car. Ask him to write on his letterhead both the preaccident and postaccident values of your car. You're entitled to receive the difference between these two values if you decide not to repair the car (assuming that value is less than the repair costs).