Understanding Auto Insurance Payouts for Hail Damage: A Personal Experience

Hello, fellow readers,

Today, I want to share my experience navigating the complexities of auto insurance payouts, particularly regarding hail damage repairs. As I reside in Alberta, Canada, I hope that my insights might help others facing similar challenges.

Last summer, my vehicle sustained significant hail damage, prompting me to file a claim with my insurance provider, Sonnet. While the process for one of my vehicles was relatively smooth, the situation for my second vehicle has been anything but straightforward.

Dealing with the representative assigned to my claim has turned out to be a frustrating experience. It took an extended period of constant communication to even arrange for an appraisal of the car. Despite my attempts to seek clarification on various points, I often found myself stuck with vague responses that failed to address my questions.

After considerable back-and-forth, I was finally urged to accept a payout for the repair costs, particularly as it would streamline my dealings with the insurance company. The auto body shop agreed that receiving a cash payout would provide me with more flexibility regarding the repairs.

Initially, the approved estimate for the repairs was nearly $15,000; however, after factoring in the deductible, my payout was adjusted to around $14,500. Recently, I received the formal offer, which totaled $13,700. To my surprise, this figure reflected a deduction for GST, which I hadn’t anticipated.

At this point, I’m left questioning whether this practice is typical within the insurance industry. Given that I will still be responsible for paying the GST to the repair shop, this unexpected reduction will ultimately cost me an additional $700 out of pocket.

If anyone has insights or similar experiences with auto insurance payouts related to hail damage, I would appreciate your feedback. Understanding the norms in this situation could provide some much-needed clarity.

Thank you for taking the time to read my story, and I look forward to your thoughts!