Insurance Payout Exceeds Body Shop Estimate
I recently had a minor accident that affected my front bumper, headlight, and trim. After the insurance adjuster assessed the damage, they offered me $5,500 for repairs. However, the body shop working on my car is only charging $3,000. This gives me a profit of $2,500.
I received a letter from the insurance asking for a paid invoice for all repairs. They stated that I can either provide them with the paid invoice or claim that I haven’t made any repairs at all. I’m unsure about the best course of action. If I submit the invoice for $3,000, will they expect me to return the remaining amount? On the other hand, if I say I didn’t make any repairs, will that impact my claim in the event of another accident? Will they deduct the $5,500 from my next claim since, theoretically, I still have that amount for repairs? I could use some advice!
Congratulations on getting a good insurance payout! In this situation, you have a couple of options, but there are important considerations for each.
Submitting the Paid Invoice:
If you choose to provide the body shop’s invoice for $3k, it’s likely the insurance company will want the difference refunded. Companies typically don’t pay out more than what the actual repair costs are. So, in this scenario, you might end up with only $2.5k after refunding the difference.
Claiming No Repairs Were Made:
If you claim that you didn’t make any repairs, you would keep the full $5.5k. However, as you mentioned, if you do get into another accident, the insurance company may find out about these previous “unrepaired” damages during their appraisal and deduct the initial amount from future claims, as the damage would still be seen as pre-existing.
Ultimately, it’s best to be honest with your insurance company. If the repairs have been made for $3k, submitting that invoice and accepting the $2.5k is the most straightforward and transparent approach. Make sure to clarify your situation with your body shop and your insurance agent—they might have guidance specific to your policy and local regulations.