Expert: Ron Cercone - 1/29/2009

Question
My insurer’s estimate lower than any repair store's estimate. My insurer sent me the check based on its estimate one year ago. They insisted on they would pay the difference to the repair store directly. I have not had my car repaired yet but I will have it repaired at any time. I have already changed the insurer because I did not satisfy my first insurer. Has my case been closed since the check was received and cashed? Is the car insurer still obligated to pay the actual repair cost? How much time do the insurer have obligation to pay the actual repair cost. Is there any time limit that I must have my car repaired; otherwise the insurer will have no obligation to pay the actual repair cost or the insurer obligation is forever? Should I inform the insurer of the case has not been closed yet?

Answer
A lot of questions here.

Is the insurers obligation forever? No

First, ask the insurer directly. Call the claim office and ask to have your claim reopened. If they say no, then ask why and to put it in writing. If they say no, fax your request to reopen in writing.

Second, most states laws say the insurer can't put a release on the back of a check where you sign, but some do it anyway. So if you kept a copy of the check, look at it. But don't give up if it did have a release on it.

Even though most policies say you have 12 months to sue us, most state laws override this and give you 3 years. You have as long to pursue your claim as you have time to sue your insurer. After that, you have no power on your side.

Most states say you can have your repairs at any body shop. And the insurer should at least try to reach an agreement with your shop. The insurer owes a "reasonable" repair cost. They don't have to pay a shop $500.00 per hour for labor. You are entitled to what you had before, so you don't have to accept aftermarket parts. If the insurer insists on their shops estimate, tell their shop the repairs better be perfect or you will sue them. That may get them to raise their estimate or back off completely.

Tell the shop they can do a "tear down" for inspection if they like, but you will not allow any supplement payments. Their estimate must be perfect before they start repairs. Adjusters will often tell their favorite shop to "low ball" an estimate, and if they get the job, the adjuster will pay them a supplement.

Any difference in payment should have your name and the shops name on the check.

It does not matter if you are not currently with the same insurer, the original insurer has to deal with you.

For 22 pages of detailed instructions, consider the UClaim consumer report entitled "DENIED AUTO AND MARINE PROPERTY INSURANCE CLAIMS ADVICE AND HELP Subtitle:  STANDARD VERSION (W/O APPENDIX)" at http://www.uclaim.com/products.asp .