Insurance Payout Exceeds Body Shop Estimate
I recently had a minor accident that damaged my front bumper, headlight, trim, and more. The insurance adjuster assessed the damage and approved a payout of $5,500 for repairs. However, the body shop I’m using is completing the work for just $3,000, which means I’ll be $2,500 ahead.
The insurance company has now requested a paid invoice for all repairs. Their letter states that I can either submit the paid invoice or indicate that I haven’t made any repairs. I’m uncertain about how to proceed. If I send the invoice showing $3,000, will they want the remaining balance back? On the other hand, if I claim no repairs were made, would that mean if I have another front-end accident, they’ll deduct the $5,500 from this claim since, in theory, the amount is still available? What should I do?
It’s great that you’re getting a good payout from the insurance! Here are some thoughts on your situation:
Submitting the Invoice: If you submit the invoice for $3k, the insurance company will likely ask for the remaining balance back, as they typically only cover the costs of repairs. You’ll end up with what you actually spent and may need to return the excess amount.
Saying No Repairs Made: If you choose to say that no repairs were made, you might be putting yourself at risk for potential issues down the line. If you get into another accident, they will likely find out that you did fix the car, and this could lead to accusations of fraud.
Best Course of Action: The safest route would be to be honest and submit the $3k invoice. You can use the extra funds to cover any related costs or even pocket a small profit, depending on how you approach repairs. Just know that the insurance company may reclaim the difference.
Before making a decision, consider consulting with the body shop or a legal expert about the implications of either choice. This way, you can ensure you’re going down the right path and protecting yourself for any future claims.