Accident & Insurance Company

[paulri]

Someone backed into my Sienna, their ins company is Allstate. Called this week, and they already have sent me to one of their approved body shops to get an estimate. The front bumper has been raised a bit on the driver side; I won’t know about damage to frame until it gets inspected next week. I did a quick look on Kelly for a BB value and the avg trade in for my car, given mileage & zip code, is $1978, and third party resale is $3926.

My question: Assuming that the car won’t be totalled, if the cost to repair is below the blue book value, they would pay the body shop the money to repair my damage. Let’s say it is $3000, which is below the third party value. Do I have the option of just asking them to give me a check for the money, and then not having the body shop do the work? Or is that a tell, that the claim is fraudulent, and would they fight me on this and lower their offer?

I realize that the wisdom of taking that approach depends on what damage has been done to the frame of the car. I am expecting to drive the Sienna for at least 10 more years, and probably longer than that, so I would be leery of owning a car long term with structural damage. I’m just wondering what my options are.

 

[andrew_j]

Typically if initial repair estimate is 75% of market value(purchase) they write you a check and total it.

 

[JMJNet]

If it is easy, you can always go under the front bumper and see the extent of the damage.

 

[paulri]

I was told when my Honda Civic was stolen & totaled, that bumper work is very expensive, so I can easily see it being totaled in that case. In which case my question really wouldn't matter. Well, we'll see what the estimate is when it gets inspected.

Typically if initial repair estimate is 75% of market value(purchase) they write you a check and total it.

 

[doitmyself]

Every state's insurance policies are different, so advice here may not apply. You have the upper hand since this was not your fault. The other insurance company will attempt to get out of this as cheap as possible, attempting to take advantage of you(i.e, their shop using cheaper repairs). Many states have laws saying you can go to any shop you prefer. Educate yourself and stand up for "making you whole". Be assertive - if you have difficulties, call my wife.....she's a bulldog and makes these people shiver, lol.

 

[JHZR2]

Don’t use their approved body shop. They cut job quality and use Chinese/inferior parts to set the prices in favor of the at fault insurance company. Additionally, the insurers have a scam that they set the labor rates at their “proprietary” agreed upon sub-market rates in order to get work steered their way. It’s steering (which is illegal in many places) with a plausible deniability that they’re steering, allowing them to do it.

Find another shop that is actually independent but does collision repairs, and get their 2c.

 

[SC Maintenance]

Check your state laws, and be prepared to fight. It will most likely be totaled I would guess, simply because parts and body shop back ups and since its not your fault there likely obligated to provide you with a free rental car for your loss of use. They will try to settle as quickly as possible due to that as well which is part of the leverage you will have.

Or they will try to get their body shop to do it on the cheap with used and chinese parts. However I doubt it because they can spend money getting it apart only to find more damage. Then they have sunk costs.

Also, the value you should be looking at is dealer sale price (not trade or private party) - there obligated to make you whole. Almost nothing is Above "good" at that age, even if you think it is.

Good luck!

 

[mk378]

In answer to the original question, yes you can always keep the money and opt not to repair. That is not fraudulent since the other guy did damage your car and you deserve to be compensated.

 

[Leo99]

Typically if initial repair estimate is 75% of market value(purchase) they write you a check and total it.

It was explained to me that each insurance company has its own percentage when they declare a total loss. 75% is a good number. Could be a little lower or higher at Allstate.

I was rear ended years ago when I was financially insecure and took the check and used some JB weld to try and repair my exhaust system which was damaged by the collision. If their insured is not fighting the claim, there is no reason for them to suspect fraud.

 

[demarpaint]

As mentioned NEVER use their "approved body shops." Know retail value of your car within 20 miles of your area in the event they try and total your car, this way you'll know the real value, not the Fugazi math formula value they use. As others mentioned insurance companies look to take the cheapest route out. An educated motorist is their worst nightmare, educate yourself. A good body shop knows the math the different insurance companies use, find one you trust. If the car is a total the body shop loses out too, and they'll usually negotiate with the adjuster and try and cut a deal.

 

[Marcozi]

It was explained to me that each insurance company has its own percentage when they declare a total loss. 75% is a good number. Could be a little lower or higher at Allstate.

I was rear ended years ago when I was financially insecure and took the check and used some JB weld to try and repair my exhaust system which was damaged by the collision. If their insured is not fighting the claim, there is no reason for them to suspect fraud.

Here in Virginia it's 75% as it's state law.

 

[dishdude]

Yes, they will write you a check for the damage if you don't want to get it repaired, they actually prefer this since they don't need to pay for a rental or any supplements for hidden damage once the repair is started.

 

[paulo57509]

Since your insurance company has been notified by a third party, you need to consider:

Going out for estimates, reporting the cost to the insurance company opens up the risk of them totaling your car. Once totaled, it opens up a whole different can of worms if you plan to keep the car. I don't how how accepting or declining a payout affects the rest of the salvage process - the insurance company already knows the circumstances and will notify the DMV as such.

According to CA law, once labeled as a total loss and notification to the DMV, you have 30 days to do the following:

• In order to register and insure the vehicle you need to obtain a salvage title, a certified technician is required to perform a safety check and sign the relevant DMV form. This is not the brake and light bulb form. I have no idea what the state's definition of a certified technician is. I have been told the CHP can do this inspection.
• I believe there are other relevant DMV forms that need to be filled out. One is a form stating that you're keeping a total loss vehicle and intend to return it operational condition.
• Once you have your ducks in order, the DMV will issue a salvage title and you can shop for insurance.

Once you're in the getting a salvage title process, I have found the DMV website to be marginally helpful. I would make an appointment, wait in the queue and get face to face help.

I found that my insurance company (thru Costco) was super helpful with the process.

Of course, if the insurance company is willing to pay for repairs, no salvage title will be required.

 

[GMBoy]

Never use their "approved shop" for all the reasons stated in previous replies. Go to the shop you feel will do the best work - heck just take it to the dealership where you will have a better chance of OEM parts. That's your choice. However if it is just bumper damage anybody can replace and spray a bumper. The damage underneath, if any, is easy to fix as well.

 

[Luftmasse]

They base it off by the trade in value.

 

[OilUzer]

You can get the money. I have Allstate and they are very good. Not necessarily the cheapest.

Also if the car is "totaled", you can buy it back at a very deep discount and drive it if it's legal. For example if it had too much body damage to fix ... I've never done that but have a fried who has.

 

[64bawagon]

I got hosed by Allstate on a claim similar to this years ago. Their "approved" shop was the dealer I had bought it from. A year later I had to have the new bumper cover stripped and repainted since they hadnt used any flex additive in the paint. They were cheapest for a reason. Never again.

 

[The Critic]

Yes, they will write you a check for the damage if you don't want to get it repaired, they actually prefer this since they don't need to pay for a rental or any supplements for hidden damage once the repair is started.

Except….the initial estimate will always be artificially low since the estimate will be performed remotely via visual inspection. You will not be paid appropriately unless you allow the body shop to do some disassembly - which at that point, will likely result in an estimate high enough to be a total loss.

It is a situation of dammed if you do, dammed if you don’t.

 

[Skippy722]

When my sister rear ended a someone in the parking lot of our high school it damaged the bumper, grille, headlights, power steering cooler, ac condenser, and radiator (hit a Ford explorer with a hitch).

They wanted to total it, my parents just wanted it fixed mechanically, shop went to bat for my parents by using new parts for the cooling and ac system and dropping their labor rate a bit to appease insurance, but “repairing” the bumper with self tapping screws and using the cheapest most godawful headlights I’ve ever had the displeasure of driving at night with. Wasn’t pretty, but it worked.

They won’t care if you take a check and run with it, in their minds they’ll have made you “whole” and no longer their problem.

 

[Lubener]

It doesn't take much damage these days to easily reach a couple thousand in body repairs. If it is totalled which is a good chance, see if you can buy it back if you want to keep it.