Expert: Richard Hixenbaugh - 10/25/2009

Question
Hi There,

I was involved in an accident, and fortunately Allstate (the other drivers insurance co) has claimed 100 percent liability. Upon receiving this information from my insurance company, I took the car to a shop and they called allstate, got the estimate, and proceeded to work on my car. Clearly, the original estimate was far below the actual damage. However, 2 days before I took my car in Allstate apparently cut me a check for the amount of their adjusters estimate.

My question is this: should I be concerned that they will not cover the actual cost of repairs? what should I do with this check? Keep it an assume I will be responsible for this amount to the shop...not cash it as a way of indicating that I do not accept this offer?

Thanks!

Answer
Hi Michaella,

You do not need to be concerned. The initial check you received is for the initial estimate. If there is additional damage found the insurance company will pay the additional amount. You will have to pay the amount of the check you received to the body shop.

I hope this helps
Richard Hixenbaugh