XtraKrispy

I'm not sure if this is the right place to post but I have a question in regard to insurance claims.

My wife got rear ended a couple of weeks ago by a lady that wasn't paying attention. The damage was minor to the rear bumper of her car. We filed a police report.

The lady's insurance company asked my wife to drive to a specific repair shop to get an estimate for the repairs. She received a quote for just under $400. She then proceeded to go to two other shops in our area and received quotes for $530 and $580 but we didn't tell the insurance company.

The insurance company didn't say much but told her that a check was coming in the mail. When we received the check is was for only $225. When i called to ask them what this was for they said the claim was adjusted for betterment. They claim that the car had previous "damage" --I'm assuming this the scratches from parallel parking in the city. Does this right? Are we getting screwed? If I want to get her bumper repaired it is going to cost me over $300 and the insurance company is getting away with only paying $225 unless I go to their "repair shop".

Any thoughts? Help!

geekybiker

Well insurance typically covers parts of like kind and quality. Meaning that if you have a used bumper with chips etc, they are only required to provide a used bumper.

However don't cash that check. You can fight with them over the cost. Remember it's their job to reduce payments.

Also look into "diminished value" Since they are clearly at fault, you can go after them for the reduced value of your car. Cars that have been in an accident are worth less generally.

Either way, dont accept a payment for less than the actual cost to repair.

geekybiker

Oh yah one more thing.

You're not restricted by the terms of their policy BTW. They are liable for whatever financial damages they caused. Restrictions are generally limited to the insured themselves.

Bearcat94

Don't know about you, but here (NC) you can take your car to the shop of your choice for quote and/or repair. If the insurer insists on you using "their" shop, they are in violation of State law.

XtraKrispy

I asked them if I was required to use "their" shop because I thought it was not required. They responded by saying that we don't have to use their shop but they do have shop (s) in the area that will repair the vehicle for that amount. I think they are just trying to minimize their loss.

I haven't cashed the check but I'm not sure how to negotiate with them. I told them that I have other quotes that are much higher than their quote to fix it and they didn't care. Basically she said that since it wasn't a "new" bumper and there were some scratches on it they are not reponsible for the total amount. I think this is BS.

Bearcat94

^^ Sounds like BS to me too.

What does your insurance company say? Your adjuster and/or agent should be able to give you some information and advice.

Desert_TL

This is 100% BS. Betterment can only legally apply to parts that are regularly replaced as part of a car's normal maintainence. For example, tires sometimes are subject to betterment because those wear out at regular intervals and therefore the exact amount of usage (x% of 30,000 miles, for example), can be calculated. However, bumpers are not "regularly replaced" as part of a car's normal maintainence. I did a quick search and came up with several web pages that cite court cases where insurance companies were found liable for paying for all of the damage, not just the "betterment" amount. Although, it seems like betterment laws are highly state-dependent so you should google "insurance betterment YOURSTATE" to see what kind of precidence or state-wide policies exist regarding betterment payments.

If you find verbage or policies for your state that prohibit betterment adjustments on things like bumpers, call the insurance company back and tell them you know what they're doing is illegal and you're prepared to litigate and seek full damages for the bumper plus attorney's fees. If that doesn't get their attention, carry out your threat.

Will Y.

If you have a small claims or justice court in IL, just let the insurer know that you are suing its insured for the full value of the bumper cover replacement. Send the insurance company a copy of a completed, but unfiled, small claims complaint-- you'll probably hear from the insurer pretty quickly.

XtraKrispy

I did a search on Google and found this in Illinois.

May I Choose My Own Repair Shop?
Yes. You are not required to use your company's suggested repair shop. However, if your repair shop charges more than the company's suggested shop, you may have to pay the difference.

Can My Insurance Company Deduct for "Betterment"?
Yes. If your vehicle is being repaired with newer parts, your company doesn't have to pay for the "betterment." For example, if your vehicle's muffler is five years old, your insurance company would have to replace it with a five-year old muffler. If a five-year old muffler can't be found, the repair shop could use a new muffler, but you'd have to pay the difference.

Can My Insurance Company Deduct for Things Like Unrepaired Damage or Rust?
Yes. Your insurance company may deduct an unlimited amount from the value if your vehicle has old, unrepaired collision damages. They may also deduct an additional amount up to $500.00 for wear and tear, missing parts and rust. Your company must itemize and specify the dollar amounts of those deductions.

I think the insurance company is trying to say they are replacing the part and that since previous "damage" was incurred (from the scratches) I am responsible for part of repairs. Looks like I'm screwed.

jay0k

You will not only want to get the full value of repair $500-$600. But you should also get a rental car paid for as it will probably take a couple days. Diminished value is a must as well since you will now have a "Rear impact" show up on the title (e.g. CarFax). How much diminished value? I'm not sure. You might contact your own insurance company and tell them you are having trouble and what you should expect (but don't let them pay for anything as your rates might go up). If you are nervous about contacting your own insurance for advice hopefully you know an attorney that gives free advice (heh, good luck).

It's not your fault that someone hit your car and you shouldn't have to pay a dime to have it repaired. Illinois is a pretty bad state in my opinion for conservative folks who believe in personal accountability.

geekybiker

http://www.idfpr.com/DOI/autoinsuran...r_co_claim.asp

The illinois department of insurance page on filing a claim with their insurance.


Anyhow, how can the insurance lady be confident that their other shops will repair for $225 when they havent seen the car. An almost %50 reduction off the cheapest estimate seems excessive for anything but a bumper that was already chewed up badly.

What sort of damage was done to her bumper? I cant imagine what sort of repair a body shop would manage for that little cash. Maybe hoping to buy a junkyard bumper and mount it with out blending the paint?

At the very least the appear to be required to provided an itemized list for any deductions.

darksom1

The depreciation or betterment clause is not restricted to routine maintenance items or normal wear items. Say your bumper had rust spots on it. You can't expect the insurance company to replace your bumper totally for an indentation from an accident now can you? So they may offer to have it repaired at a shop that can fix it with a like-valued replacement. Say an older bumper from a junkyard. Now they may be low-balling you on the price, but if they have a company that will fix it for that, then use them.

If you want to use your company to make it like new (when it wasn't before) then you have to pay the difference. But I don't think you should accept the first offer right off the bat. I would threaten them with some legal correspondence, and then see what they say. Plus, call the company they want to use. They mostly guarantee their work for the life of the car if you use them. Do a google and BBB on the company beforehand if you choose to go that route. But it is not unethical to fix it for a cheaper price, if it had prior damage.

It really would help if you had some BEFORE and AFTER pics of your car. If it is an extreme exaggeration on their part as far as the prior damage, then you may have a court case!

XtraKrispy

Thanks for all of your advice. I'm nervous about contacting my insurance company because last time I was rear ended was about 7 years ago by an uninsured motorist. Even though I didn't get any money from my insurance company I did get a "mark" on my insurance claiming I had a claim because they estimated the damage. The damage was just about the amount of my deductible so I didn't ask for a check.

When I called the lady's insurance company she said that she is not responsible for the previous damage and that they are going to replace the bumper. She informed me that we needed to split the cost. I then asked her that if the car is not brand new do they always use "betterment" to adjust for the age of the vehicle--her response was "yes". I told her that I didn't feel that was fair and asked if the next step should be having my lawyer contact them. Her response was "If you would like. We will tell your lawyer the same thing." I hate insurance companies.

I just ended up emailing a lawyer friend of mine for advice. We'll see what he says.

XtraKrispy

[/QUOTE]Anyhow, how can the insurance lady be confident that their other shops will repair for $225 when they havent seen the car. An almost %50 reduction off the cheapest estimate seems excessive for anything but a bumper that was already chewed up badly.

What sort of damage was done to her bumper? I cant imagine what sort of repair a body shop would manage for that little cash. Maybe hoping to buy a junkyard bumper and mount it with out blending the paint?

At the very least the appear to be required to provided an itemized list for any deductions.[/QUOTE]

The quote is actually for $400--I would have to pay the extra $175 out of my pocket to get the repairs done. The repair shop won't do it for only $225. I don't think I'd go to the cheapest place anyway. I just want closer to the actual repair amount if not a little more to pay for a rental car while we wait for the car to be fixed.

XtraKrispy

The quote is for $400--apparently I'm required to pay the extra $175. The repair shop won't do it for $225. I'm just hoping to get closer to the estimate amount maybe just a little more to rent a car while it gets fixed.

XtraKrispy

BTW -- Just in case anyone was wondering or cares...My TL is OK The car that was involved in the accident is my wife's car which is our daily driver--Maxima.

darksom1

I understand sometimes that it's about the "priniciple". But it would cost you more than $175 and a rental on retainer for a lawyer to represent you. Plus, you already expressed an interest to keep this away from your insurance company. $175 and your problems go away...I think you know where I am going with this...but it's your call. Money, but not enough for a headache the size not paying it, will eventually bring. You leaned on them, they can also lean on you. They have lawyers. It's $175, so do yourself a favor and end the headache. They get paid to do this.

MOGuy636

Tell them your wife is now complaining of neck pain following the collision. See what kind of response that gets!

The damage to your car was thru no fault of your wife. I wouldn't settle for anything less than full replacement.

:angryfire

jedblanks

They are trying to work you over.
One good turn deserves another.