If you are in a crash and your car is damaged, do not expect the insurance company to pay “full value” for: the vehicle, the remainder of your loan, or for your inconvenience in getting the repairs done. Our FREE REPORT helps those with car-crash cases get fair compensation from the insurance companies. Send for your copy today.
Under Virginia law, the at-fault driver (or their insurance company) is responsible for the LESSER of the fair replacement value or repair. Auto body shops are not all the same; knowing what happens “behind the scenes” could save you time, money, and headaches.
Kiplingers Personal Finance reports that…
1. Before you decide to have your car repaired at a particular shop, check the local Better Business Bureau and government consumer affairs offices for complaints or other problems. Some mechanics blame missed deadlines on delays in parts delivery. However, the unfortunate truth is that some shops take on more business than they can handle in a timely fashion. You may also want to know if they have the parts you need in stock or what their delivery time will be.
2. Generic or salvage parts are sometimes used to make repairs. Original equipment manufacturer (OEM) parts are designed to match precisely. They may also be safer. Car insurance companies prefer that repair shops use generic or salvage replacement parts because they are cheaper. If a crash is your fault, your insurance contract may say that aftermarket parts can be used. Or, your policy may state that if you use OEM parts, you are responsible to pay the difference in price. But if someone else is at fault in crashing into you, tell the repair shop to use OEM parts.
3. While your car is in the shop, you will still need to get around. Renting a car for three weeks can cost $1,000 or more. Some people have rental-car insurance. This is optional (not required under Virginia law) and can cost several dollars a month. However, even with this type of insurance, your daily reimbursement rate may be limited to the cost of a compact car. If you or your family needs a minivan while your own vehicle is in the shop, make sure you have minivan-size coverage.
4. If the collision is your fault, and you have the usual $500 deductible, you will have to pay it, as repair shops charge $982 for replacing a 1998 Buick LaSabre fender and $1,350 for a 2006 Mercedes E-Class front bumper, according to Consumers Checkbook. In the second example, you would pay your $500 deductible, and your insurance company would pay the next $850. You may want to talk to your insurance agent about your deductible.
5. There are “behind the scenes” contracts in the auto repair business that “cap” what the people who fix your car can charge the insurance company that refers you to them. Just like managed-care companies that have contracts with networks of doctors for a set fee for services, car insurance companies have contracts with certain shops to repair vehicles at a prenegotiated rate. This cost-cutting can result in less-than-satisfactory repairs. The insurance companies have gotten these shops in their network to give them so many discounts in order to get the volume of business, that they do the bare minimum to stay alive. For a list of independent repair shops that meet certain quality criteria, check out
www.assuredperformancecare.com.
6. Car insurance companies will also offer warranties on the parts for as long as you own the car in order to get you to go to the shops in their “network.” But it is the shop’s warranty that counts. Nearly all shops will guarantee (warranty) their work. Parts makers guarantee their parts. So what is the real value of the car insurance company warranty?
7. Just like it helps to have a doctor who speaks your language and is in the right specialty, your car needs the same care. Replacement parts for late-model European vehicles need specially trained mechanics. The shop where your car is taken should be certified by the manufacturer to do the work on your kind of car, truck, or minivan. This means that the shop has specialized equipment and training. Car insurance companies may not recommend these certified shops, as their rates may be higher, but they should be willing to pay the tab.
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