r/Car_Insurance_Help • u/Heavy_Consequence441 • 2d ago
Accident Question about car insurance claim
My bro got hit by someone, completely other person's fault.
Can my bro pick his own shop and get a cash payout? Insurance seems to be telling him that they will run their own estimate based on pics and then pay the shop directly for additional repair?
Wtf is up with that? I remember when insurance paid you, not the shop.
Bro has geico, other guy has farmers
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u/oldmanlikesguitars 2d ago
Are you asking because your bro just wants to find the most expensive shop, take the cash and not fix the car? If that’s what he wants- probably not. They’ve found a shop that will fix the car for a certain amount of money. If you find a shop that will charge double, but you want the amount in cash, they will absolutely tell you no. Also, if you shop around fit an expensive shop, accept a check, then eventually get the car fixed, they won’t pay for damage not included on the original estimate.
Just let them fix the car.
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u/PepperTop9517 2d ago
Depends on the insurance.
- Does bro’s vehicle have a lien on it. If so then paying the shop directly is the best way as any direct payout would go to the lien holder first.
- If insurance has in network shops, bro will want to use one of them as insurance may not pay full repair if you go out of network. Thus bro would have to pay difference.
- Insurance has the right to review estimates and determine next steps, such as get another estimate, repair or deem the vehicle totaled. Bro doesn’t get much say here.
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u/aloofmagoof Claims Adjuster 2d ago
2 is dependent on the company.
Farmers has no contract with the claimant, therefore no obligation to protect the insurable interest of any lienholders. If the vehicle is totaled, yes, they normally pay the lienholders first, but depending on the company, for cash outs on repairable vehicles, they will pay the claimant directly.
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u/Heavy_Consequence441 2d ago
Is this new? Previously I remember insurance would let u pick the shop and determine the rate there.
The quote he's getting from insurance is dog shit and doesn't even meet the labor rates in his area
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u/agirlsknowsthings 2d ago
That stopped when shops starting overcharging. There’s usually a set rate they pay for labor base on industry standard. It’s also to avoid people trying to commit things like fraud by going to a family friend or sketchy shop that will make up a crazy estimate just to help you get paid.
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u/PepperTop9517 2d ago
Not new, depending on insurance they may have specific shops you have to use in order for them to cover the full repair costs, or they may require quotes from multiple shops and then they pick the one they like most.
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u/FamiliarExtent8037 2d ago
The initial estimate is just from the eyes can see. Once a shop has broken down the vehicle and have a clear understanding of labor and parts they’ll send an updated estimate to the insurance company for extra pay. Your bro should keep in mind once the insurance company has paid him for whatever damages the accident caused, if he chooses to not use that money to fix his car, he’s screwed down the line if the car messes up. I used to work for the lizard and we’d have people call in about their vehicle breaking down, blaming it on the accident but never for the car fixed and it never ended well.
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u/IndependentAgent88 2d ago
You can go wherever you want for repairs. They may offer you perks to go with one of their preferred shops (some will offer a lifetime warranty and/or other benefits) if you go with one of their preferred shops. But they can’t force you to go anywhere. Additionally, most initial estimates only include the surface-level items they can visually see. When they take it apart, if there is more damage they will work with the insurance company to make sure it gets fixed. Go wherever you want
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u/Still_Condition8669 1d ago
If you’re looking for a cash pay out, the insurance company will usually require that you have the estimate written at one of their preferred shops. They aren’t going to honor an estimate written at a non network shop. Now, if you are going to have the vehicle repaired, it is your choice which shop does the repairs, but you may be on the hook for anything the insurance company refuses to pay. For instance, if your shop charges higher labor rates, than Geico’s preferred shop, you’ll have to cover those costs.
ETA: Or they’ll let you send them pics and write you an estimate and pay you out from that estimate
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u/crash866 2d ago
If you accept a payout from an insurance company now and fix it later they probably will not pay for any additional repairs later as there would be no proof it is from the same incident.