Supplemental Auto Insurance: What You Need To Know

If you've been in a car accident, you may need to file a supplemental auto insurance claim. This is because the initial estimate for repairs, provided by an insurance adjuster, can sometimes miss hidden damage. This can be due to certain parts of the vehicle still being intact and preventing a full assessment of the damage. In other cases, the time it takes to fix a vehicle can be underestimated. When this happens, a supplement is necessary to cover the cost of repairing the additional damage. The process for requesting a supplement depends on whether you are working with an auto insurance company or a repair shop that is working directly with the insurance company.

The insurance supplement process

The repair shop will perform a teardown of your vehicle to expose any hidden damage that needs to be supplemented to the insurance company. The repair shop will then submit the supplement to the insurance company, documenting any additional parts or repairs needed. The repair shop cannot continue with repairs until the supplement is approved. The insurance company will then review the supplement, which can take between 2 and 7 days. Depending on the supplement amount, the insurance company may send an adjuster to reinspect the vehicle.

Once the supplement is approved, the repair shop will be notified and can order any necessary parts. Dealerships do not stock all parts, so this may take a few days. When all the parts are at the repair shop, repairs can continue.

Supplements are necessary when the initial estimates do not include the cost of repairing additional damage that wasn't originally noted. This can occur when there is hidden damage that adjusters or body shop technicians cannot see. For example, damage to the vehicle's frame may not be found until components of the vehicle are removed. Supplements are also required when it is discovered that it will take longer to fix a vehicle than expected.

When to request a supplement

An insurance supplement is an additional request for funds beyond the original estimate provided by the insurance company. This is typically required when there is hidden damage to your vehicle that was not included in the initial estimate. Here are some scenarios where requesting a supplement is appropriate:

• Hidden Structural Damage: If your vehicle has sustained hidden structural damage that wasn't visible during the initial inspection, you may need a supplement. For example, damage to the vehicle's frame may not be discovered until components are removed for repair.
• Extended Repair Time: If it is determined that it will take significantly longer to fix your vehicle than initially expected, a supplement may be necessary to cover the additional labour costs.
• Additional Repairs Found: During the repair process, it is common for mechanics to discover additional damages or issues that need to be addressed. These may include hidden dents, scratches, or mechanical problems.
• Incomplete Initial Estimate: In some cases, the initial estimate provided by the insurance adjuster may not cover the full extent of the repairs needed to restore your vehicle to its pre-accident condition. If the repair shop identifies additional necessary repairs or parts, they will need to request a supplement.
• Medical Expenses: If you incur medical expenses related to injuries from a car accident that were not included in the initial claim, you can request a supplement to cover these costs. This may include expenses that arise after the initial treatment, such as ongoing physical therapy or additional tests.
• Rental Vehicle Extension: If you require a rental vehicle for a more extended period due to delays in repairing your vehicle, you may need to request a supplement to cover the additional rental costs.

It is important to note that the process of requesting a supplement may vary depending on whether you are working directly with the insurance company or if the repair shop is handling the communication. If you are working directly with the insurer, you will need to obtain an updated estimate and submit it to the insurance company for approval. The repair shop will typically handle this process if they are the ones coordinating with the insurance provider.

How to request a supplement

Requesting an insurance supplement can be a confusing process, but it is a standard procedure. If you are working with an auto repair shop, they will usually handle the insurance supplement request on your behalf. However, if you are working directly with your insurance company, here is a step-by-step guide on how to request a supplement:

• Obtain an Updated Estimate: If you believe there is hidden damage or additional repairs needed that were not included in the original estimate, contact a reputable auto repair shop. They will perform a thorough inspection of your vehicle and provide an updated estimate documenting any additional parts or repairs required.
• Submit the Supplement to Your Insurance Company: Gather all the necessary documentation, including the updated estimate and any relevant photos or reports. Submit this information to your insurance company, clearly explaining the reason for the supplement request.
• Insurance Review Process: Once the insurance company receives the supplement, they will review it. This review process can take anywhere from a couple of days to a week or more, depending on their workload.
• Reinspection of the Vehicle: Depending on the supplement amount and the insurance company's policies, they may send an adjuster to reinspect your vehicle and verify the additional damage or repairs mentioned in the supplement.
• Approval and Parts Ordering: If the supplement is approved, your insurance company will notify you and the repair shop. At this point, the repair shop can proceed with ordering any necessary parts and continuing the repair work.

It is important to note that the insurance company may not always approve the supplement in full. In such cases, it is recommended to seek assistance from a lawyer or a public adjuster to navigate the negotiation process and ensure a fair settlement.

What happens when a supplement is denied

An auto insurance supplement is required when there is hidden damage to a vehicle that wasn't included in the original repair estimate. This could be because the damage is not visible until components of the vehicle are removed, or because the repair will take longer than expected.

If an insurance supplement is denied, the vehicle owner may have to pay for repairs out of pocket. This can be a frustrating and costly situation, and it may be a good idea to seek legal advice. Here is a breakdown of what happens when an insurance supplement is denied:

Understanding the Denial

Firstly, it is important to understand why the supplement was denied. Insurance companies may deny a supplement if they believe the damage was pre-existing or not covered by the policy. In some cases, they may claim that the requested repairs are not necessary. It is important to carefully review the insurance policy and understand the coverage and exclusions.

Communicating with the Repair Shop

If the supplement is denied, the next step is to communicate with the repair shop. The repair shop will typically stop the repair process until the issue is resolved. It is important to keep in touch with the repair shop to understand their policies and procedures in such situations.

Reviewing the Insurance Policy

After understanding the reason for the denial, it is essential to review the insurance policy thoroughly. The policy will outline the coverage, exclusions, and any relevant clauses that may impact the situation. It is also important to understand the regulations in the specific state, as they may vary.

Exploring Alternatives

If the insurance company maintains its denial, it may be necessary to explore alternative options. This could include seeking repairs at a different shop, obtaining a second opinion, or even considering legal options if there is a strong case for coverage. In some cases, it may be possible to negotiate with the insurance company or seek assistance from a professional, such as a public adjuster or legal advisor.

Preventative Measures for the Future

While it may not help with the current situation, it is important to take preventative measures to avoid similar issues in the future. This includes obtaining written approvals for all repairs, ensuring proper authorizations are in place, and maintaining open communication between the vehicle owner, repair shop, and insurance company.

Impact on Costs and Repairs

Finally, it is important to understand the financial implications of a denied supplement. The vehicle owner may be responsible for the additional costs associated with the repairs. In some cases, the repair shop may offer payment plans or alternative solutions to help mitigate the financial burden.

The difference between total loss and other claims

When your car is damaged in an accident, you may need to file a claim with your insurance company. If your car is a total loss, this means that the cost to repair it is more than the car's value, and it may be considered "totalled". This can be the case if the insurance company decides it can't be repaired safely, or if it meets other requirements specified by your state.

A total loss claim is when an insured property is destroyed or damaged beyond the point of recovery or repair. If the cost to repair your car is greater than the cost to total the vehicle, it will be deemed a total loss. This means that the cost of repairs approaches or exceeds the vehicle's market value.

In some states, a total loss threshold (TLT) is used to determine when a car is considered a total loss. This is when the cost of repairs exceeds a certain percentage of the car's value. For example, in New York, the threshold is 75%. In Oklahoma, it is 60%. If the cost of repairs exceeds this threshold, the car is considered a total loss.

If your car is declared a total loss, you will need to submit a claim to your insurance company. You will need to take your vehicle to an insurer-approved body shop for inspection and provide your vehicle documents, including the title and sales receipt. You will then need to accept or reject the insurance settlement. If you are still making payments on the vehicle, the settlement money will go to the lienholder, and you may need to continue making payments until the settlement is complete.

If you disagree with the insurance company's assessment, you can try to resolve the matter with them directly. If you can't come to an agreement, you can contact the consumer services personnel at your state insurance department. If the amount of money involved is substantial, you may need to hire a private attorney or public adjuster to help press your case.

Frequently asked questions