by darrinerbert2 » Thu May 01, 2008 04:35 pm
What if your deductible is 500. You have hail damage and the insurance adjuster estimates the damages at 4000, which means they will pay 3500 to get it fixed. Now lets say you found a body shop that will fix it for 3500. Do you still have to pay the deductible even though the insurance company already declared they would pay 3500 towards the repairs from the insurance adjusters evaluation?
Posted: Sun May 04, 2008 11:11 am Post Subject:
How did you convert accepting the "insurance adjuster estimate" into "provide one estimate (higher one) to your insurance carrier"??
:D :D :lol: :roll: :roll: :roll: Oh Fred...that's so funny, I guess I caught your slow cognative bug...oh my gosh! I totally missed it was an adjuster est...and well read it the way I wrote my answer (submitting shop estimates)....thanks for catching it..in THIS case..I (personally) see absolutely NO issue whatsoever with the owner taking the adjuster estimate of 4k, and if a shop repairs it for 3500...then so be it...oh man, I'm so shaking my head at myself.....brother.....aad, aada...sorry folks! :roll:Posted: Mon May 05, 2008 03:34 pm Post Subject:
FK, Lori and Tcope I just want to admit that I learned something here. I'm under the impression from what checks I've seen that my companies all write checks to the bodyshop in the majority of cases. I really thought that was the common practice.
I was not aware that many companies just wrote a check to the insured based on the companies appraisal then walk away. I'll try to be more careful, I really don't want to be giving wrong info here. I'll try to leave claim questions to the adjusters.
But now I have a question, Tcope, you mentioned the scenario where the insured wants to do repairs themselves. Doesn't this affect the estimate, because the estimate includes professional labor rates?
Posted: Mon May 05, 2008 05:47 pm Post Subject:
FK, you may be correct in that most checks will be to the shop and insured. If the vehicle has a lien, the insurance company is required to protect that lien holder. This means either the lien holder's name or the body shop's name should be on the check in addition to the insured. If you have a lot of insureds with financed vehicles, most checks would have a shops name on them.
The insurance company owes for the cost of repairs. Standard/local repairs rates should be used to determine this amount. If the insured repairs is himself/herself, he/she is still entitled to the same compensation as the _loss_ remains the same. You could also look at it as the the insured should be paid for their time just like any other body shop person making the repairs. No more, no less. If the insureds repairs are less then "professional" the damages being paid for still remain the same.
Posted: Tue May 06, 2008 10:15 am Post Subject:
No foul Fishman....as tcope stated...probably 90% of the time a first party draft will either have the ins and lein holder or ins and shop (3rd party can always be paid directly to them we don't have to protect the leinholder on 3rd party claims except of course in a total loss).....but there are cases when the ins owns the vehicle free and clear.....
RE: the insured doing their own repairs....I agree with tcope with the exception that if they are an actual shop or business that repairs vehicle they may get a W2 on the repair...depends how the adjuster makes out the draft....
Posted: Tue May 06, 2008 02:30 pm Post Subject:
RE: the insured doing their own repairs....I agree with tcope with the exception that if they are an actual shop or business that repairs vehicle they may get a W2 on the repair
Isn't a W2 an employer/employee form for reporting an employee's wages??
Under what condition would an independent auto repair business become an employee of an insurance co.??
How would an insurer determine the percentages of payment that are wages, or parts/materials, or overhead expenses, etc.??
Why would that circumstance be treated any differently than any other payment for repairs??
FK
Posted: Tue May 06, 2008 02:36 pm Post Subject:
Any payment made by an insurance company for services is required to be reported to the IRS. This is tracked by the companies Tax ID or the person's Social Security Number. It's used as a means for the IRS to collect the correct taxes from companies, based on their income. It's the same way with private individuals... your employer reports your earnings to the IRS on a W2.
Posted: Tue May 06, 2008 02:41 pm Post Subject:
[quote:e20138c9de="tcope"]Any payment made by an insurance company for services is required to be reported to the IRS. This is tracked by the companies Tax ID or the person's Social Security Number. It's used as a means for the IRS to collect the correct taxes from companies, based on their income. It's the same way with private individuals... your employer reports your earnings to the IRS on a W2.[/quote:e20138c9de]
Whoa...does that mean that the settlement check that I got from the insurance company for my accident will count as income for me this year? If so, that's bunk.
Posted: Tue May 06, 2008 02:45 pm Post Subject:
Nope... only payment for _services_ are tracked as they are income. A settlement check is not considered income.
Posted: Tue May 06, 2008 03:01 pm Post Subject:
tcope,
To a business, An insurance check (or any other money for that matter) is not necessarily *Income*, its a part of *Gross Sales*.
Many a business has received Gross Sales of hundred's of thousands of Dollars and still operated at a Loss at the end of the year.
If that happens too often it will likely result in Bankruptcy.
FK
Posted: Tue May 06, 2008 03:07 pm Post Subject:
[quote:0b8b79bbd3="FK"]To a business, An insurance check (or any other money for that matter) is not necessarily *Income*, its a part of *Gross Sales*.
[/quote:0b8b79bbd3]
It's still income, it just might not be profit.
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