Expert: Bennie719 - 3/6/2008

Question
QUESTION: I recently got rear-ended.  It was not my fault, and the at-fault driver's insurance company has called and I have gotten an estimate of the repairs from their approved repair shop.  If I get a check from them for the amount and take it to another repair shop and it's cheaper that what my check has been written for can I keep that money?

ANSWER: Hi Brian,
As long as the check is made in your name only, you can do anything you please with the money.  You don't even have to have the car repaired.
If there is no loan on the car, the check should be made in your name only.
If your car is still being financed, they may make the check in both your name and the bank's name or write it in your name and the name of the body shop.
I hope this information is of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area


---------- FOLLOW-UP ----------

QUESTION: So when I got a quote from the approved repair shop, and asked the adjuster for the check, he siad that the check would be for several hundred dollars lower than than what the quote was due to "Auditing".  What are my options now?

Thanks so much for your help.

Answer
Hi Brian,
That's the reason that the document that you receive from the body shop is called an "estimate".
The shops realize that they will only get the job for about 1/3 - 1/4 of the estimates that they write, so instead of going into their office and checking the parts manuals for each and every item that has to be replaced and then checking the flat-rate manual for the amount of time they are allowed to repair or replace each area of damage, which would usually take up to 45 minutes, they write an 'estimate' or approximate cost of repair from memory, possibly only checking the manuals for one or two items and the total time spent drops to about 10-15 minutes.
They know that if you choose their shop, then the claims adjuster
will go over their estimate line by line and 'adjust' the prices to the exact amounts spelled out in the parts manual and the flat rate repair manual.  This is perfectly acceptable by the shop as it saves them many hours per day from having to write 100% accurate estimates on jobs that they know they will not get.
Your adjuster has already talked to the shop and they are willing to do the repairs for the 'adjusted' price.
This is a common every day occurrence within the insurance industry and a major part of the insurance adjusters job.
I hope this information is of help.
Bennie