Auto Insurance Claims: What To Tell Your Repair Shop

After a car accident, you may be wondering what to do next. If you've filed an insurance claim and are looking to get your car repaired, it's important to know your rights and options. You might be thinking about whether to choose a repair shop from your insurance company's preferred list or pick your own. This paragraph will discuss what you should tell the repair shop about your auto insurance claim and guide you through the process of getting your car fixed.

You can choose the repair shop

When you file a car insurance claim, you can generally choose where to get your car repaired. An auto insurance company cannot force you to pick one car repair shop over another, even if they recommend it. However, your insurer might put some restrictions on your car repairs.

Your auto insurance company cannot force you to choose one repair shop over another to fix damage covered by your policy. However, your insurer can require you to obtain more than one repair estimate if they think the estimate you got is too high. They will compare all of your repair estimates with the estimate developed by the insurance adjuster assigned to investigate your claim. You don't have to accept the adjuster's estimate unless you're satisfied that it would cover the repair costs. You may even be able to negotiate a higher estimate.

• Read online reviews.
• Seek recommendations from friends and relatives.
• Compare repair costs quoted by several shops.
• Pick a shop whose automotive professionals are certified by the National Institute for Automotive Service Excellence.
• Ensure the shop has up-to-date service equipment and repair data.
• Make sure all the specifics about the repair work, including the repair estimate, are in writing.
• Inquire about warranties that will guarantee the quality of the shop's work.
• Look for a shop that is affiliated with or certified by well-known and trusted automotive industry organizations.
• Check for autotech certifications.
• Verify with local agencies, such as the Better Business Bureau or the Chamber of Commerce.
• Ensure the facility offers transportation.
• Check how the shop deals with consumer complaints.
• Look at the appearance of the shop—a clean, well-organized shop reflects attention to detail and professionalism.
• Consider the amenities offered, such as comfortable waiting areas, clean restrooms, and shuttle service.

You may not need to use the claim check for repairs

Additionally, if you have an existing loan on your car, the check must go directly towards auto body repairs. If you lease or finance a car, your lessor or lienholder will likely have a say in how you use the claims payout. In some cases, the claim check may be made out to both you and the finance company, and you'll need their approval before cashing it. They may require you to use the check for repairs and provide documentation to prove it.

It's also worth noting that some insurance companies send the claims check directly to the auto repair shop, especially if you choose one of their preferred or Direct Referral Program repair shops. In this case, you won't receive the check and will only be responsible for paying your deductible to the mechanic. Going with a preferred auto repair shop can have benefits, such as increased speed and efficiency of the repair work, as well as a guarantee on the repairs.

The insurer might send the check directly to the repair shop

When it comes to auto insurance claims, the process can vary depending on the insurance company and state regulations. In some cases, the insurer might send the claim check directly to the repair shop, bypassing the policyholder entirely. This typically happens when the insurance company encourages the use of their preferred or Direct Referral Program auto body repair shops.

Here's how it usually works:

Choosing a Preferred Repair Shop

If you decide to use one of the repair shops recommended by your insurance company, they will likely pay the shop directly. This means you won't receive a physical claim check; instead, you'll only be responsible for paying your deductible directly to the mechanic. This can streamline the process and reduce the hassle of dealing with payments.

Benefits of Preferred Repair Shops

Using a preferred auto repair shop can offer several advantages. Firstly, your insurance company and the shop will often cover any additional work that may be needed without extra cost to you. This can increase the speed and efficiency of the repairs. Additionally, you won't need to act as a mediator between the shop and your insurer, as they will handle the payment process directly.

State Laws and Variations

It's worth noting that insurance laws can vary from state to state in the United States, so it's important to check your specific state's regulations. For example, in Massachusetts, insurance companies are generally required to make the check payable to the policyholder unless they request otherwise.

Other Factors to Consider

Whether you lease or finance your vehicle can also impact the process. If you have a lease or loan, your insurance company may require that they are named on your policy, and they may need to sign off on how the claim payout is used. In these cases, the insurance company may issue a check with both your name and the lienholder's name on it, requiring their approval before cashing it.

In summary, while the insurer might send the check directly to the repair shop in some cases, you still maintain the right to choose your own repair shop. However, using a preferred shop can simplify the payment process and provide additional benefits, such as coverage for any extra work needed.

You may need permission from your lienholder before cashing the check

When you receive a car insurance claim check, you may need permission from your lienholder before cashing it. A lienholder is a party with a legal interest in your car. When you finance a car, a lien is created, and the lender holds the car's title and is considered the vehicle's legal owner until the loan is paid in full. The lien protects the lender, allowing them to repossess the car if the borrower stops making payments.

If you have a lease or loan on your car, you likely have certain insurance requirements, and it is common for your insurance company to be named on your insurance policy. As a result, the claim check issued to you may have both your name and the name of your loan company on it. In this case, you will need the finance company to sign off on the insurance check before cashing it. The level of oversight your loan company will want through the claims process can vary, and ultimately, it is up to them how much control they take.

In some cases, a representative from the loan company will simply verify that the accident occurred, sign the check, and send you on your way. Alternatively, your loan officer may require you to sign the check over to the company, and they will pay the repair company on your behalf.

It is important to note that, regardless of whether the loan company's name appears on the check, you are required by the terms of your lease or loan to keep your car in good condition. Therefore, it is advisable to repair your car according to the terms of your lease to avoid penalties or repossession.

You can fix your own car with insurance money

Fixing your own car with insurance money is possible, but it depends on several factors. Firstly, it is essential to review your insurance policy and state laws, as some policies require repairs to be made by a professional, and certain states have specific regulations about DIY car repairs. If your policy and local laws permit DIY repairs, the next step is to assess the damage and your expertise. For major accidents, it is recommended to involve a professional to ensure quality work and maintain the integrity of your vehicle.

If you decide to fix your car yourself, it is crucial to understand the risks and implications. Firstly, your insurance company may deny certain types of coverage if they are not comfortable with the repairs being done by a non-professional. Secondly, if you start repairs before filing a claim, you may not be entitled to additional money if the repair costs exceed your initial estimate. Therefore, it is generally advisable to file a claim and receive the payout before initiating repairs.

When it comes to keeping any leftover money from an insurance claim, this depends on the ownership status of your vehicle and the provisions in your insurance policy. If you own your car outright and the insurance reimbursement exceeds the repair costs, you are typically allowed to keep the difference. However, if your vehicle is under a loan or lease agreement, the insurance payout may go directly to the repair facility or lienholder, and any surplus funds may revert to the insurer or reduce your loan balance.

In summary, while it is possible to fix your own car with insurance money, it is important to carefully consider the factors mentioned above and seek guidance from your insurance provider to ensure compliance with your policy and local laws.

Frequently asked questions