insurance will pay for your parts!

[kami240sx]

So this lady backed into my car parked while I was in Japan which means I get a new bumper, hood, and headlight, kinda sad but it'll be kinda nice to get a new bumper

I got this letter in the mail that says"BY LAW, YOU HAVE THE RIGHT TO SELECT WHERE YOUR MOTOR VEHICLE IS REPAIRED AND THE PARTS USED FOR REPAIRS. HOWEVER, AN INSURANCE COMPANY IS NOT REQUIRED TO PAY MORE THAN A REASONABLE AMOUNT FOR SUCH REPAIRS AND PARTS."

So does this mean I can ask the repair center to buy me a carbon fiber hood and paint it and everything?

[Phax]

It really all depends on what your insurance policy says. Some companies want you to document your modifications, and they won't replace anything unless you have it documented before hand.

I have State Farm, and so long as I have receipts for my parts, they'll reimburse me in the event of theft / accident.

[Dattebayo]

"...AN INSURANCE COMPANY IS NOT REQUIRED TO PAY MORE THAN A REASONABLE AMOUNT FOR SUCH REPAIRS AND PARTS."

I think this clause says it all... meaning no.

[corn322]

unless you get a reasonably priced CF hood.

[hannibal]

I would get an estimate from a regular body shop using OEM parts. THis establishes a 'reasonable' cost of repairs. As long as you can get your aftermarket parts for less than this estimate, I think you should be good to go.

Phax, If your aftermarket parts are covered, then they must charge you a higher premium. Did you have to show receipts for your mods or declare their value when you signed your policy?

[BaliLover]

Pretty much what Iwanna said. I've worked in a body shop since I was 15 and we see this all the time. Customer gets in a wreck, brings their car to the highest priced shops in town to get estimates. The insurance company takes the lowest estimate, which is still higher than a small shop would charge, and writes a check. The customer then goes to a lower priced shop and either gets extra work done, or pockets some cash. The check has to be in the customers name though, or it becomes insurance fraud. The thing that most people don't know, is that if your car is paid off, the insurance company can't refuse to give you the check. You could take the money and turn your car into a planter and theres nothing they can do as long as you don't try to claim damage again. What I usually see people do is say "I want the check now, but I don't know where I'm going to get it finished because I'm moving/going out of town/trading the car in. Thats the other thing. You can tell them you are selling/trading the car in, and you're not going to fix it, but instead are going to give the money to the dealership to make up for the damage.

The main point is, they have to issue you a check if you request it and are fully paid off on the car. Its your right, but they don't want to tell people this.

[C-Kwik]

There are several things to consider. It sounds like you are a 3rd party to this claim(you are going through the other party's carrier). You are not bound by the language in the policy. You are entitled to be indemnified. The only limitations are those bound by law. The payment is based on the reasonable cost to repair or replace the damaged property. And indemnification is basically putting you back in the same place you were before the loss. Realistically, you can do anything you want to the car. But it doesn't mean the insurance company will pay for it. They will pay the costs to repair it to the way it was before. If you upgrade the parts, you have to pay the difference. The statement about allowing you to choose the parts(new aftermarket, used, or new OEM) your car is repaired with indicates that it is not up to the insurance company to decide what gets put on their car. But the statement is also not clear as to whether or not the insurance company is required to pay it.

And as a 3rd party, chances are the insurance company will send you the check unless you request otherwise. Even if you still owen on the car. Insurance companies are not responsible for protecting a lienholder on a 3rd party claim. On a 1st party claim(the insured) they are responsible for this and the lienholder can go after the carrier if the insurance company does not protect the interest of the lienholder and the registered owner of the car decides to pocket the money and then defaults on the loan.

It's not necessarily fraud on the part of the body shop if the work they complete is for the amount of the check. It is if the shop decides to not complete work that they say they were going to do or they mislead a carrier or customer. If the owner decides to complete other types of repairs, or cuts corners then that is on him. It is technically not fraud since the quality has been sacrificed. Now if the customer is able to get the exact same work done for less and then keeps the money, it is technically fraud(if they don't send the remaining funds back) but it's rather hard to convict.

As far as insurance companies not telling you that you can have the check if you have no lienholder on the car on a 1st party claim, I don't see that as the case. I've never withheld that info. But it's not something most people ask about. More often than not, the car is at a shop so we just make the check to the shop and the customer. Shops like when we do this if we can since it protects them from the customer pulling one over on them. And I have seen that happen. But if there is no lienholder, I had no problem making payments to my insureds directly.

[Phax]

Phax, If your aftermarket parts are covered, then they must charge you a higher premium. Did you have to show receipts for your mods or declare their value when you signed your policy?

I pay $116 a month with State Farm. I did not have to show them receipts or declare the value. I asked them about that, and they told me not to worry. On the otherhand, Allstate made me declare all of my parts in advance.

I'd suggest State Farm to anyone. When my old 510 got wrecked, I just provided them with receipts for the parts and labor. They ended up giving me $4500 for the car, and they let me buy it back for Blue Book value which was something like $200.