What if insurance won’t pay the repair shop’s quoted price?
Auto insurance companies and repair shops rarely agree on costs. If your auto insurance company won't pay the repair shop's quoted price, the company will usually renegotiate with the mechanic.
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
UPDATED: May 30, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: May 30, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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Sometimes, a mechanic and an insurance company will dispute the cost of repairing a vehicle. An insurance company might claim that the repairs should cost $1500, for example, despite the fact a repair shop is quoting you for $2500.
What happens when an insurance company won’t pay the repair shop’s quoted price? How can you get your insurance company to accept the repair shop’s quoted price? Today, we’re explaining everything you need to know about disputed insurance damage estimates and car insurance. The cost of car repair and insurance can sometimes be intertwined. (For more information, read our “What happens if I don’t agree with the amount the insurance company is offering me for repairs to my vehicle?“).
Auto Insurance Companies and Car Repair Shops Frequently Disagree
First, let’s establish something: it’s not rare for car insurance companies and car repair shops to disagree about the cost of repairs.
A car insurance company aims to pay the minimum amount they are legally obligated to cover for your claim. This often results in the insurance repair estimate being too low, as the company will push for the cheapest possible repairs that still meet the terms of your contract.
In many cases, this leads to a dispute. The car insurance company claims the repairs should cost a certain amount of money, while the auto body shop asserts that the repairs should cost more, with the insurance estimate lower than body shop proposal.
This is not unusual. Discrepancies can also arise with the body shop charging more than estimated, complicating the resolution process between the insurance company and the repair facility. In fact, some insurance industry experts claim it occurs on most insurance claims. Car insurance companies and body shops frequently disagree about the cost of repairs.
Read more: Can I choose where to get my vehicle repaired after an accident?
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Why do car insurance companies and repair shops disagree over cost?
Car insurance companies, auto body and repair shops frequently disagree over price auto insurance repair estimates estimates. The reason is simple: repairing a car can be a complicated process. Some damage to the vehicle may have occurred prior to the insured incident. The insurance company is not legally required to repair this damage, but it may be impossible to repair the vehicle adequately without repairing previous damage.
Some of the reasons for disagreement include:
Whether a Part Can Be Fixed or Needs Replacement: The insurance company might claim that some parts of your vehicle can be fixed. The repair shop, meanwhile, might insist that the part should be replaced. This is a common source of disputes.
Type of Replacement Part: Some insurance companies will refuse to pay for parts from the original manufacturer. Instead, they will encourage the repair shop to use a cheaper, aftermarket version of the same part.
Duration of Repairs: A repair shop might claim that it will take 4 hours to fix a dent on your car’s body. The insurance company, meanwhile, might disagree and claim that it should only take 2 hours. This leads to a dispute over the number of labor hours the insurance company needs to pay.
Labor Rate: The insurance company might have a defined per-hour cost for car repairs. Some repair shops exceed that expected cost, leading to a mismatched estimate.
Other Errors or Disagreements: Sometimes, the repair shop has made a mistake and is repairing something it does not need to repair. In other cases, the insurance company is refusing to cover something it is legally required to cover. Mistakes and omissions can lead to price disputes.
Read more: What should I do if my auto insurance claim is denied?
What happens after a disagreement between the insurance company and a repair shop?
When a car insurance company and a repair shop disagree on a quoted price, they begin the negotiation process.
The car insurance company is legally required to cover the cost of repairing your vehicle to its pre-loss condition – according to the terms of your insurance contract. They will negotiate with the repair shop to ensure they are getting a fair deal. They will ensure that the car is being repaired to its pre-loss condition using standard parts. They will ensure that the mechanic isn’t inflating costs or fixing damage that occurred prior to the covered incident.
Typically, disagreements are solved quickly. The insurance company and repair shop go back and forth. Sometimes, the policyholder is involved in the process. In other cases, you have nothing to do with this process.
What happens if your insurance company refuses to pay the estimated price?
In rare cases, the negotiation process between your insurance company and the car repair shop will fail, and your insurance company will refuse to pay the estimated price.
If the insurance company refuses to pay the estimated price at your chosen repair shop, then they will typically identify other local repair shops that will perform the repairs at their estimated price.
In this situation, you have two options:
- Pay extra for the original repair shop you chose and pay the difference out of pocket
- Choose a cheaper repair shop suggested by your insurance company
There’s also a third option: you can take your insurance company to arbitration. Insurance contracts have an arbitration clause that allows you to dispute the insurance company’s estimate. If the insurance company is refusing to cover the estimated cost of repairing your vehicle and is refusing to budge, then you may wish to begin the arbitration process.
Ultimately, it’s not unusual for insurance companies and car repair shops to disagree on a price. When disputes occur, the insurance company and repair shop negotiate to reach an agreement. If an agreement cannot be reached, then you may wish to take your car to a different repair shop, pay the original shop’s difference out of pocket, or begin the arbitration process with your insurance company.
Navigating Insurance Disputes: What If Repairs Exceed Estimates?
In this section, we explore some of the top players in the insurance industry, each offering unique products and services to meet your needs. From GEICO to State Farm, AAA, and Allstate, these companies are known for their reliability, customer service, and extensive networks of repair shops. Learn more about their offerings and find the right insurance provider for you.
- GEICO Insurance: Looking for reliable car insurance? Look no further than GEICO. With competitive rates and excellent customer service, GEICO is your go-to choice for all your insurance needs. Whether you’re in need of GEICO car insurance or GEICO roadside assistance, you can count on GEICO to be there when you need them. Visit GEICO.com or call the GEICO phone number or GEICO claims phone number today to get a quote and experience the difference.
- State Farm: When it comes to auto repair estimates, State Farm is a name you can trust. With a network of State Farm auto repair estimates, State Farm select service body shops and State Farm approved repair shops, State Farm makes it easy to get your vehicle back on the road quickly and safely. Contact State Farm phone number or State Farm claim number today to learn more about their services and how they can help you.
- AAA Insurance: Need auto repair insurance? Look no further than AAA car insurance. With a network of AAA approved collision repair shops and AAA certified body shops, AAA makes it easy to find quality repairs at an affordable price. Whether you’re in need of a AAA auto insurance quote or roadside assistance, you can trust AAA to be there when you need them most.
- Allstate: When it comes to insurance claims, Allstate has you covered. With a variety of coverage options and a network of Allstate approved auto repair shops and Allstate approved body shops, Allstate makes it easy to get the protection you need at a price you can afford. Contact Allstate today to learn more about their services and how they can help you protect what matters most.
Don’t let insurance disputes leave you stranded. With the right knowledge and resources, you can confidently navigate through disagreements and ensure that your vehicle receives the necessary repairs. Explore the services offered by these reputable companies to find the support you need in resolving insurance-related challenges.
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Frequently Asked Questions
Why might insurance refuse to pay the repair shop’s quoted price?
Can insurance refuse to pay for car repairs? There could be several reasons why an insurance company is refusing to pay for repairs. These reasons may include policy limitations, discrepancies in the repair estimate, issues with the repair shop’s credentials or reputation, or the insurance company’s own internal pricing guidelines.
What should I do if the insurance company won’t pay the repair shop’s quoted price?
If you find yourself in a situation where the insurance company is unwilling to pay the repair shop’s quoted price, here are a few steps you can take:
- Review your insurance policy: Familiarize yourself with the terms and conditions of your policy to understand any limitations or exclusions that may apply. This will help you determine if the insurance company’s decision is justified or if you have grounds for further action.
- Get a second opinion: Consider obtaining a second opinion from another reputable repair shop to confirm the legitimacy of the initial quote. Having an alternative estimate may strengthen your case when discussing the issue with your insurance company.
- Negotiate with the insurance company: Contact your insurance company and provide any additional information, such as a second estimate or evidence of the repair shop’s credibility, to support your claim. Engage in open and respectful communication to try to reach a resolution.
- File a complaint or appeal: If negotiations with the insurance company are unsuccessful, you may consider filing a complaint with your state’s insurance department or pursuing an appeal through the insurance company’s internal dispute resolution process. These avenues provide a formal way to seek a fair resolution.
- Consult an attorney: In more complex cases or situations where your claim has been consistently denied, it may be beneficial to seek legal advice from an attorney specializing in insurance matters. They can guide you through the process and advocate on your behalf if necessary.
Can I pay the difference between the insurance payout and the repair shop’s quoted price?
In some cases, you may choose to pay the difference between the insurance payout and the repair shop’s quoted price out of pocket. However, before making this decision, it’s important to consider a few factors:
- Policy limitations: Review your insurance policy to determine if there are any provisions that restrict your ability to pay additional costs beyond the insurer’s payout. Some policies may have clauses that explicitly prohibit or limit this practice.
- Financial implications: Assess your financial situation and determine if you can comfortably afford to cover the difference. Keep in mind that repairs can be expensive, and unexpected expenses can arise during the repair process.
- Worthwhile investment: Consider the value of the repairs compared to the cost. If the difference is substantial, it might be worth exploring alternative repair options or obtaining additional estimates to ensure you’re making an informed decision.
Can I switch to a different repair shop if the insurance won’t pay the quoted price?
Yes, you generally have the option to switch to a different repair shop if the insurance company refuses to pay the quoted price. However, there are a few things to consider:
- Policy requirements: Review your insurance policy to determine if it contains any provisions or requirements regarding the selection of repair shops. Some policies may have a preferred network of repair shops or specify certain criteria for reimbursement.
- Communication with the insurance company: It’s important to inform your insurance company about your decision to switch repair shops and the reasons behind it. This ensures transparency and allows them to adjust their assessment accordingly.
- Obtain a new estimate: Request a new repair estimate from the alternative shop to ensure you have a clear understanding of the costs involved. This will help you determine if the switch is financially feasible and if the insurance company’s assessment was reasonable.
- Keep documentation: Maintain thorough documentation of all communications, estimates, and receipts related to the repair process. This will help support your case and facilitate any potential future discussions with the insurance company.
Can I take legal action if the insurance company refuses to pay a repair shop’s quoted price?
Taking legal action should be considered as a last resort if all other avenues for resolving the dispute have been exhausted. Here are a few points to consider:
- Review your rights: Understand your rights and obligations as outlined in your insurance policy and any applicable laws or regulations. This will help you determine if the insurance company’s refusal is in violation of these rights.
- Consult with an attorney: If you believe your insurance company is acting in bad faith or unfairly denying your claim, it may be beneficial to consult with an attorney specializing in insurance law. They can provide guidance on the best course of action based on the specifics of your situation.
- Gather evidence: Collect all relevant documentation, including the repair shop’s quote, the insurance company’s assessments and explanations for denial, correspondence, policy documents, and any other evidence that supports your claim. This evidence will be crucial in building a strong case.
- File a complaint: Before pursuing legal action, consider filing a complaint with your state’s insurance department or regulatory agency. They may be able to mediate the dispute or provide guidance on further steps to take.
- Lawsuit considerations: If you decide to proceed with a lawsuit, your attorney will guide you through the process. Keep in mind that lawsuits can be time-consuming, costly, and uncertain. It’s important to weigh the potential benefits against the associated risks.
How can I prevent issues with insurance payment for repairs?
While it’s not always possible to prevent every issue, there are steps you can take to minimize potential problems with insurance payments for repairs:
- Understand your policy: Thoroughly review your insurance policy to understand its terms, limitations, and coverage details. This will help you make informed decisions and set appropriate expectations.
- Choose reputable repair shops: Select reputable and certified repair shops that have a track record of quality work and fair pricing. This can help minimize disputes related to repair costs and ensure the repairs are done properly.
- Communicate with the insurance company: Maintain open and timely communication with your insurance company throughout the claims process. Notify them promptly about any damages and provide all necessary documentation to support your claim.
- Obtain multiple estimates: What if repair cost more than insurance estimate? Consider obtaining multiple repair estimates from different shops to ensure you have a reasonable understanding of the repair costs. This can help validate the quoted price and provide you with options to avoid car repair cost more than insurance estimate.
- Document the damage: Take clear photos or videos of the damage before repairs are made. This documentation can serve as evidence and help support your claim if there are any discrepancies in the assessment.
- Keep records: Maintain organized records of all relevant documents, such as estimates, invoices, correspondence with the insurance company, and receipts. These records will be valuable in case of any disputes or future claims.
What if insurance check is less than repairs?
What if car insurance check is less than repairs? If the insurance check is less than the repair estimate from the auto body shop, you should contact your insurance company to discuss the discrepancy. Provide them with a detailed breakdown of the repair costs from the body shop and ask for a review.
Compare over 200 auto insurance companies at once!
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.