Expert: Bennie719 - 10/26/2007

Question
Hi Bennie,  I am following your advice to Chuck and having my insurance company deal with my rear end collision that was not my fault.  My insurance company gave me an estimate and check that is way lower than a previous estimate I had gotten.  However, the adjuster said that my insurance company will pay for all of the repairs less my deductible and said I will get that back when they settle with the other company.  Why such a low estimate from my insurance company and if the repair is triple the amount that I got, can I be reasonably assured that I will not have to pay more than the deductible?

Answer
Hi Larry,
Something just doesn't sound right here.  The obligation of your insurance company is to repair your car, not give you a check and kick you out door.  Did you sign a release of all claims t the time they gave you the check?  Is the check made out to you only or to you and the body shop.
On the back of the check is there fine print that states 'by signing this check, you are releasing the company of all claims'?  If this statement appears on the check, do not endorse it, but send me a follow-up.
Generally, your company authorizes you to put the car in a specific shop which they will keep in contact with by phone and visits to the shop to oversee and discuss how the work is proceeding and view and approve any addition costs.
If the check is made out to both you and the repair shop, then the possibility exist that this is their standard way of doing business with that shop and they are just providing initial 'seed' money to enable him to purchase the necessary parts.
Before endorsing the check, go talk to the body shop and see if, based on his previous experience, this is the customary way they do business and that he is satisfied that they will cover all expenses above the size of the check.
I trust this answer has been of help, please write again if I can be of more service.
Your feedback for my answer will be greatly appreciated.
Sincerely,
Bennie
San Francisco Bay Area 10-25-07 8:12 PM PST