How can you tell if an insurance adjuster is lying? Answer: Look and see if his/her lips are moving! Yeh, Yeh, Yeh… I know it  is a corny joke that may overstate the problem to some degree. But the facts are that many consumers are lied to by insurance personnel as they attempt to get paid for their losses. Often bold-face lies are told by adjusters with an intent to deceive policyholders and claimants. Other times adjusters are guilty of passing untruths out of ignorance.

On this page, I have compiled nine of the most frequent lies you might expect to hear as you try to collect on a claim for auto damage. I have also provided the truth along-side the lie so you will have accurate information. If you need further assistance please  contact us 

Lie #1    You have to Get Your Car Repaired

Truth:  It’s your car and no one can make you do something with it that you don’t want to do.  If you choose not to repair  damage that is covered by insurance, the insurer still owes you for the full value of the repairs that would be required to put your vehicle into its preloss condition.  However, your insurance company does not have to continue to insure the car for its full retail value in the future when your car is not worth retail due to damages that remain unrepaired.  In fact, if you play hardball, they may decline to insure it altogether forcing you to shop for other insurance coverage at a time when your driving record may be marked by an accident.

Lie #2    You Have to Go to the Insurer’s Preferred Shop

Truth:  If you choose to have your car repaired, you can take it to the shop of your choice.  However, if you encounter problems with the shop you selected, the insurance company will be quoting the old lyric, “I told you so,” and will be little help in procuring your satisfaction. If, on the other hand, you go to a shop selected by the insurer and get deceived, or don’t get the level of repair you are entitled to, you will be in a much better position to negotiate with the insurer especially if there is threat of a bad faith lawsuit against them.

Lie #3    You have to turn the claim in to your own company if we disagree

Truth:  If you are the victim of someone else’s negligence and their insurer is trying to get you to settle for less than you are entitled to, you might consider sending a letter of demand to the person that caused the damage.  The fact that the negligent party bought lousy insurance coverage does not relieve them of the responsibility and  obligation they have to indemnify you of the damage they caused.  If the third-party insurance company doesn’t want to make full restitution to you on their policyholders behalf, you are under no obligation to deal with them. Either deal directly with the negligent party and/or pay your deductible and file a claim with your insurer.

Lie #4    Repairs will restore your vehicle to its preloss condition

Truth:  There are many factors that prevent a car or truck  from being restored to its preloss condition.  But the same would be true for anything that is damaged and reconstructed.  Think about a valuable vase that gets broken.  Though  it could be glued back together, even to the point that the damage is unrecognizable, it could never be as good because there is a potential for failure after the accident and repair that didn’t previously exist. Moreover, it is economically impractical  to test every component and part on a car to guarantee that it’s performance and durability are unaltered.  In addition, many of the tests that would be required are of a destructive nature making them unfeasible to perform. What if the jar affected sealed electronics or bearings causing premature failure?  What if the metal is fatigued from being beaten, stretched, hammered, and welded on causing it to fold easier in a subsequent accident and causing late deployment of airbags? What if…

Lie #5    You Don’t need a lawyer

Truth:  Most of the time, consumers trying to deal with insurers on their own are not taken seriously.  Let’s face it, where there is no threat of danger, there is no motive for action.  As an example, you can tell me to “beware of the dog” until you are blue in face, but until you take the chain off or open the gate to the pen, I probably wouldn’t run. In fact, I might not run even then if you have a terrier or a poodle.  If however,  you are saying “sic-um” to a pit bull, I’ll have a much different attitude.   Insurers are no different.  They pick and choose their fights.  If they think you can mount a good defense against them, they will usually pay you everything you are owed.  If they think you can’t afford a lawyer or a proper defense, they will most often take you to the mat.  As in the analogy of the dog, when you unleash a lawyer that commands insurer’s respect, you will get action.  But even then, don’t expect it quickly.  Often, deals are made on the courthouse steps just prior to a trial.  The months and sometimes years leading up to that point can be very frustrating. 

Lie #6    Your car will be just as valuable after the accident and repairs as before

Truth:  Most people are alike in that given the choice between  two cars identical in every way with the exception being that one has been involved in an accident and the other has not, most would prefer the car with no damage history.  This is true even if repairs to the car not chosen are of such good quality that you can’t tell it apart from the undamaged one.  With the number of certification programs growing and damage disclosure a legal requirement in most states, the only way wrecked cars sell is if the price is cut low enough to offset the risk potential buyers take with the purchase of damaged goods. The loss in market value a car suffers after being wrecked and repaired is known as diminished value (DV).

Lie #7    We don’t pay Diminished Value (DV) 

Truth:  In third-party claims, insurance companies are obligated to pay diminished value to claimants who prove the amount of their loss. Proving the loss is not difficult.  But it will, however, require that you have a post-repair inspection performed on your repaired vehicle - unless, of course, you want to take the insurer’s word for the amount owed.  Since one of the biggest factors  lessening the value of  repaired cars and trucks is poor quality workmanship, it is impossible to determine the amount of DV without a detailed and thorough examination of the property following completion of the repairs by the body shop.

It is usually more difficult to collect DV on first-party claims than on third-party claims. The reason for this is that many consumers, unbeknownst to them, purchase insurance policies that have DV exclusions written in them.  By virtue of being bound to this contract that they purchased, these consumers will be forced to forgo this portion of their claim.   But even in these cases, consumers that have purchased a post-repair inspection will often have proof that the repairs have failed to restore the vehicle to its pre-loss condition.  Faced with this proof and the obligation to indemnify the policyholder, insurers are often forced to make a monetary concession - though rarely will they call it a DV payment.

Lie #8    You have to go back to the same  dishonest and / or slothful shop for rerepairs

Truth:  If you didn’t have to get your car repaired in the first place, why would you be required to go back a second, third or forth time to get it right?  You don’t have to and you shouldn’t.  You are under no  more obligation to go back to an auto collision shop that butchered your car than you are to go back to a barber shop or beauty parlor that butchered your haircut.  Some courts have even taken the position that if you go back after knowing the limited capabilities of the shop or knowing that they might be less than honest, then you deserve whatever you get the second time.  You know the old saying, “Get me once, shame on you, Get me the second time, shame on ME!”

Lie #9    Our direct repair shops (DRP’s) are the best places to get your car repaired

Truth:  DRP’s are not chosen for their ability to perform high quality work.  Rather, insurers choose these shops to work with based on the amount of concessions and discounts they are willing to give them in exchange for a referral.  In effect, these shops see the insurer as their customer instead of the vehicle owner.  Given the choice, most will favor the insurer in order to keep referrals coming in the door instead of being completely honest with the consumer.  There are many ways DRP shops favor insurers. As an example, many of the agreements and contacts that shops sign so they can participate in these programs mandate that they overlook certain damages that would not be blatantly obvious to an untrained eye.  It would not be uncommon for them to try to talk you into accepting an appearance allowance that represents an amount less than the actual cost of repairs to forgo repair of some damaged panels or parts. This would often be presented to you in such a way as to convince you they are doing you a favor.  Reality is, whether or not you get your car repaired, you are entitled to full value for the cost of repairs that restore your property to its preloss condition.

content & design 2002-2008 David Williams and SafeCollisionRepairs.com

About Safe Collision Repairs

For more than ten years, David Williams of Wheelersburg, Ohio's Safe Collision Repairs has worked with consumers and attorneys in the tri-states of Ohio, Kentucky and West Virginia to expose unsafe auto repairs and maximize recovery on auto insurance claims. Some of the company's services include Post-Repair Inspections, Prepurchase Inspections, Auto Damage Assessments, Lemon Law Investigations, Expert Court Testimony and Diminished Value Calculations using an advanced version of Network Information Communication's WreckCheck program.

Inquiries can be directed to: Safe Collision Repairs David A. Williams Post Office Box 70 Wheelersburg, Ohio 45694 (740) 456-1111 (740) 355-4056

Disclaimer

The content expressed on this website and in the article above represents the opinions of David A. Williams. Williams is neither an attorney nor public insurance adjuster, but is an expert, consultant, and writer specializing in the field of automotive collision repair and valuations. The information provided herein is not intended to be a substitute for legal or insurance advice. Because collision repair is a continually evolving science, any text, materials or links found herein are provided without claim or guarantee to their accuracy or completeness.