I have an insurance deductible question.

Posted: Thu May 01, 2008 08:20 pm Post Subject:

Yes. The insurance company pays for the actual cost of repairs, minus your deductible.

No ifs ands or buts.

If you present the estimate for $3500.00 then the insurance company will gladly pay $3000.00 instead of $3500.00.

Now, if you're into comitting fraud, you could tell the company that your going to the $4000.00 shop, then try to convince the shop to sign the check for $3500.00 from the insurance company over to you since you've decided to go to a different shop. Then get the car repaired at the $3500.00.

Of course I'm not suggesting you comit fraud, nor is it likely that plan would work out. But if you're that intent on avoiding your deductible it's the only way I can imagine.

Posted: Fri May 02, 2008 12:48 pm Post Subject:

Hi,

See, a 'deductible' is that amount which you have promised to pay as per the norms of your policy at the time when you signed up for it. Now, you may try to break-up from your promise, but the carrier wouldn't. I'm sure, fishman was just trying to put some sense through his post!
Worrying wouldn't solve the problem over here..
Baldheaded

Posted: Fri May 02, 2008 01:05 pm Post Subject:

guys, am new..would just like to know in this context..whether its possible for him to get a relaxation towards paying such an amount as a deductible if theres a choice for him to get things done through body shops referred by his carrier (rather than going for the one chosen by him)!

Posted: Fri May 02, 2008 03:57 pm Post Subject:

claspholder, I'm sure I understand your question.

If you are asking if using a bodyshop that the carrier chooses would make his deductible lower the answer is generally no.

Some companies may have some such gimmick as that but I've never heard of it.

Baldheaded put it very well in that the insured gets to choose his/her own deductible and a insurance policy is a contract by which both parties (the insurer and the insured) are bound.

darrinerbert2, you signed a contract stating you would cover the first $500 of the cost of any covered repairs to your vehicle. You're not going to get out of it by any legal means.

Posted: Fri May 02, 2008 05:12 pm Post Subject:

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darrinerbert2,

I believe most if not all Automobile property damage insurance policies are Cash Value.

When you bought your coverage the insurer offered you a Lower Premium in exchange for allowing them to take an *Deductible* amount off the top of what they value your claim to be.

In your case they offered to settle the claim for $4000.oo, and with the previously agreed upon Deductible amount of $500.oo, their payment to you was $3500.oo.

They are happy with that amount and If you're happy with that amount... Well, its a done deal. Its your Money to do what ever you desire with it. Buy a new HD TV, take a vacation, fix you car, etc.

Just my *Limited" Non-legalize version of How It Works.

FK

Posted: Fri May 02, 2008 09:10 pm Post Subject:

FK wrote:

In your case they offered to settle the claim for $4000.oo, and with the previously agreed upon Deductible amount of $500.oo, their payment to you was $3500.oo.

They are happy with that amount and If you're happy with that amount... Well, its a done deal. Its your Money to do what ever you desire with it. Buy a new HD TV, take a vacation, fix you car, etc.

Posted: Fri May 02, 2008 09:56 pm Post Subject:

Just so ya know, I am a huge proponent of anti-fraud efforts and for those who commit fraud, let the law whack 'em!! :evil:

However, I don't see this as fraudulent. The carrier acknowledged the proper damages, estimated the loss, paid a claim, and the insured is free to use those claim $$ as he sees fit, assuming there isn't a lien on the vehicle. There is no language within the insurance contract that would require the insured to actually fix the car. Again, if there's a lien, that's a different story, and it's still not address in the contract language.

Shady? Don't even think that. You'll just be driving around in an ugly car if you don't get the damages fixed.

Lori--> comments?

InsTeacher 8)

Posted: Sat May 03, 2008 02:23 am Post Subject:

I agree with FK and InsTeacher. Granted, some insurance companies place wording on their appraisals that state using the funds for other reasons is fraud but 1) I don't know that it applies to this situation 2) I don't know that it holds any weight and 3) I think it's simply required by the state.

The insurance company is paying for the repairs less the deductible. You might be able to find a shop to repair the vehicle for less. Should you return the difference? Perhaps. Someone else asked this question in the past and I stated that someone should try returning the difference to the carrier. Once the adjuster got done laughing, I'm sure the adjuster would even tell the person simply to keep the difference. It would also be difficult for the carrier to accept money back. I'm sure they have never had it happen before.

One further point... the carrier is responsible for paying what they feel is the cost to repair the vehicle (less the deductible). Perhaps the insured is going to repair it themselves. In that case, the insured pays themselves for their labor and expenses. Perhaps the insured won't have all the damages repaired and take a hit when they sell the vehicle. Perhaps they won't have it repaired at all. In these situations the carrier still needs to pay what the policy states they need to pay. As FK mentioned, once they do this it's a done deal.

My carrier tells me to write up the damages I see. I have no control over the repairs made to the vehicle. If the shop wants to cut corners or make different repaired, they is between them and the owner of the vehicle. I still need to pay what I feel is owed.

Posted: Sat May 03, 2008 11:18 am Post Subject:

I stated that someone should try returning the difference to the carrier. Once the adjuster got done laughing, I'm sure the adjuster would even tell the person simply to keep the difference. It would also be difficult for the carrier to accept money back. I'm sure they have never had it happen before

Posted: Sat May 03, 2008 01:07 pm Post Subject:

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Ummm Lori,

Below is the text from the OP's Post.

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?

IMO, Re: the orginal question by the OP...is it fraud to provide one estimate (higher one) to your insurance carrer, get paid from it then get your vehicle repaired at another (lower priced shop/estimate) in order to 'beat' your deductible..