Auto Insurance Claims: Navigating the Appraisal & Repair Process

You’ve had an accident and it has been agreed that the other driver is at fault. You have two choices for repairs:  1) allow the other carrier to pay for your damages, or 2) use your own collision coverage (if you carry it) and allow your carrier to recover monies, including your deductible, from the other company – these choices assume that you are not at fault.

Whichever you choose, you will want to monitor the claims process and keep abreast of the adjuster’s handling of your claim. This information applies primarily if you are a Claimant, recovering from another carrier; not to a Policyholder, who is using his collision coverage.  

Here are some things to keep in mind.

1. It is common practice to use ‘LKQ’ parts for your repairs.  These are of ‘Like kind and quality’ to the OEM, ‘original equipment manufacturers’ parts. There is some debate about the differences, but it has been demonstrated that the LKQ parts are precisely as safe and durable as the OEM parts. In fact, LKQ are often produced on the very same production line as the OEM parts. Accepting the LKQ keeps your vehicle just as safe and serviceable, and limits the costs, therefore limiting increases in everyone’s coverage.

2. You may disagree with the appraisal from the claimant’s carrier. You are certainly free to acquire your own appraisal, if you wish. You should show that appraisal to the appraiser/adjuster who is handling your damage. Bear in mind that the claimant carrier is not mandated to use your estimate. The appraiser will advise the body shop of the exact amount the carrier is agreeing to pay.

3. If your vehicle is safely driveable, don’t deliver it to the shop until all parts are secured and the shop’s schedule allows them to begin the work the same or next day. If you believe the other carrier’s adjuster has deemed your vehicle safe, but you are still concerned, be assured that the adjuster determined that information from an appraiser and likely, also from the body shop of your choice. Again, all costs incurred can affect next year’s premium for everyone. Don’t deliver your vehicle for repairs on a Thursday or Friday; deliver it when all parts are confirmed ready at the shop, and at the beginning of the week.  It is costly to have you driving a rental vehicle when your driveable vehicle sits in a shop on Saturday and Sunday.

4. The law in all states requires a carrier to restore a claimant to pre-loss condition. This could include, then, that the other party’s carrier must provide you with a BMW as a rental vehicle, if you own a BMW. However, bear in mind that, as stated above, all costs incurred for claims in general – all claims – will affect premiums in the following years. Even if the company incurring these costs is not YOUR carrier, you will also see increased premiums.  It would not be unreasonable to accept a similar vehicle with a lower rental rate.

Keep these things in mind, and remember that your Adjuster gains nothing by being blatantly unfair or unreasonable. Your claim will go much more smoothly and you’ll be back in your own vehicle more quickly.