Insurance Settlement Exceeds Body Shop Quote
I was recently in a minor accident that damaged my front bumper, headlight, and trim. The insurance adjuster evaluated the damage and has approved $5,500 for repairs. However, the body shop currently working on my car is charging only $3,000 for the repairs. This leaves me with a surplus of $2,500.
Now, I’ve received a letter from the insurance company asking for a paid invoice for all repairs. They clarified that I can either send them the invoice or state that I haven’t made any repairs.
I’m uncertain about how to proceed. If I send them the invoice reflecting $3,000, will they request the $2,500 difference back? On the other hand, if I claim I haven’t made any repairs and then get into another accident, would they reduce my payout by $5,500 since it would appear I still have that amount available? What should I do?
Congratulations on getting more from your insurance than the actual repair costs! Here’s what you might consider doing:
If you submit the paid invoice for $3k, the insurance company will likely either ask for the remaining $2.5k back or adjust your payout accordingly. Generally, they expect to pay for the actual costs incurred, so reporting the actual invoice amount is usually the best practice.
If you state that you didn’t make any repairs, it could complicate things down the line. Future claims could become problematic if they deduce that you still have that $5.5k allocation for repairs and reduce your claim accordingly.
In most cases, honesty is the best policy with insurance companies. You might consider keeping the extra funds if you have a legitimate reason to use them for further repairs or adjustments, but it’s essential to ensure that you remain transparent to avoid any potential issues with your claims history in the future.
Ultimately, it might also be a good idea to consult with your insurance company directly or a professional for advice specific to your situation.