Insurance Hitting with the 80-20 Rule

[kyleswife2015]

Hello all,

My wife was hit by an uninsured driver at fault, (ran a stop sign and T-boned) our luxury EV. There is only 1 repair shop in the area to take it as it’s a specialty at the moment. Any other shop will void the warranty on the vehicle thus not returning it to its pre collision value.

We have 100% comp and collision and a low deductible of 1,000 so we pay premium-premiums… haha

The insurance had 3 different in person inspections (actually went down on a supplement) and now is saying because that shop isn’t in network we have to fit the bill of 14,000. Mind you the repair was like 46,000 total. Any advice would be appreciated! Thank you.

 

[asotoskori]

@kyleswife2015 I have no idea what you mean by "100% comp and collision."

Also they likely cannot void your warrenty solely based on the shop - It's part of the Magnuson-Moss Warranty Act.

If the problem is that the shop you chose is charging for things the insurance company does not agree to or charging higher labor prices? If that is the case, the insurance company only will pay for what they agree is reasonable- the rest would be between you and the shop to work out.

 

[kyleswife2015]

@asotoskori Full comprehensive and collision protection. According to the manufacturer any repair from a non-certified body shop voids the warranty on repaired parts and systems.

 

[wrestlos]

@kyleswife2015 Sounds like the shop probably charges higher hourly rates and possibly used oem parts, which insurance does not cover so you'd be billed the difference.

Not much you can do, the warranty staying intact isn't a concern for the insurance company and the ins co has their own guaranteed rates with the shops in their network.

 

[kyleswife2015]

@wrestlos Car parts are direct from manufacturer, and matched both estimates sans 100 bucks for a tire. Major discrepancy is labor hours. According to them 1.5 the amount they would bill at other local shops but would not show or reference their data.

 

[kyleswife2015]

Weird part was they sent an initial payment before they had the parts list, like they just estimated labor and said they would supplement later, thus locking me into the shop and their storage fees. There are no other makers of these parts than the original manufacturer. Parts were 15,000 out of the 46,000 bill.

 

[jazzino]

@kyleswife2015 That isn’t locking you in. Your shop is overcharging it seems. Is it a dealership?

 

[kyleswife2015]

@jazzino They may be overcharging, I mean it’s what shops do. Everyone wants their piece of the pie. Additionally this agency has been flagged for doing this with many Luxury vehicles.

https://www.repairerdrivennews.com/...-lawsuit-over-luxury-vehicle-repair-coverage/

 

[jazzino]

@kyleswife2015 No not all. Your adjuster talks to the shop and let’s them know the hours in the nearby area.

 

[bioleap]

@kyleswife2015 Do you know how many lawsuits are filed against companies? There was a class action against Subway because their foot longs were only 11 inches.

Come back in 2-10 years after that case has run it’s appeals and if the ultimate court finds in favor of the plaintiffs.

 

[kyleswife2015]

@bioleap What’s the alternative? Bend over and take a 12K loss with their failure to uphold contract? Haha

 

[bioleap]

@kyleswife2015 Have you read that “contract”? Good luck having a legally sufficient breach.

 

[raphacam]

@kyleswife2015 What does "100% comp and collision" even mean? Either you have comp and collision or you don't. The no percentage of it. You can take your car to any shop you want but insurance will only pay the prevailing rates. If the shop you choose charges more than most other shops would charge for the same work, then you'll have to pay the difference.

 

[kyleswife2015]

@raphacam Manufacturer doesn’t do in house body work. Similar to Tesla. I know the shop is making a premium on the deal, but they can’t offer me alternatives.

 

[kyleswife2015]

@raphacam It is comprehensive and collision, yes. My argument is it’s an EV and this particular model is limited in who can and has worked on it. Maybe they are overcharging, but the insurance won’t even sit down to negotiate with the shop or me.

 

[truthnotfiction]

@kyleswife2015

Maybe they are overcharging, but the insurance won’t even sit down to negotiate with the shop or me.

I bet they are negotiating - they're just not telling you about it

Is this your insurance company?