Auto Repairs After an Insurance Claim and How They Affect Your Car Insurance

Ron Trumbo Insurance Editor

Hopefully, if you're reading this, you weren't in an accident. If you were, make sure that you have satisfied all your immediate responsibilities as a driver and a policyholder, including reporting the accident.

When your car is damaged by collision, vandalism, theft, or fire, you will need to decide where to take it for repairs. Some insurance companies maintain lists of "preferred" auto body repair shops, which the insurance company might recommend the consumer use. Remember, you have the choice of whether or not to use an insurance company’s preferred shop.

Insurance regulations contain specific requirements that insurance companies must follow when they direct a consumer to a company recommended repair shop.

Some insurance companies maintain lists of "preferred" auto body repair shops, which the insurance company might recommend the consumer use. Remember, you have the choice of whether or not to use an insurance company’s preferred shop.

In California for example, the insurer cannot require that an car be repaired at a specific repair shop, or direct, suggest, or recommend that an automobile be repaired at a specific repair shop, unless such referral is expressly requested by you.

California also regulates that an insurer cannot require you to travel an unreasonable distance either to inspect a replacement automobile, to conduct an inspection of the vehicle, to obtain a repair estimate or to have the automobile repaired at a specific repair shop.

Keep in Mind the Quality of Repairs

A repair shop is generally not required by law to guarantee its repair work, but many shops do guarantee some of the repairs. You should check with the repair shop to determine exactly what the shop will and will not guarantee. If a repair shop does guarantee the repairs, it must be in writing. If your car is repaired in a shop recommended by the insurance company, the insurance company must warrant that the repairs are done in a quality manner. Therefore, if the recommended repair shop refuses to correct a repair problem, you should contact your insurance company for assistance. If the insurance company does not resolve the repair problem, you can probably contact your state's department of insurance.

What to Expect with Repair Costs

Generally, insurance companies must provide you with a copy of an estimate to repair the vehicle. In cases where the body shop estimate or the actual repair costs exceed the amount the insurance company is willing to pay, you may be required to pay the difference. If you feel the difference is the responsibility of the insurance company, you should try to resolve this dispute with the insurance company. Again, if your insurance company does not resolve the problem, you should contact your state's department of insurance for help.

What's the Deal with After-Market Parts?

An auto repair may include replacement of damaged parts with after-market parts. After-market parts are not made by the original manufacturer. They may be equal, better, or worse in quality than original equipment manufacturer parts. Different states place different insurance regulations on the specific requirements on insurance companies when recommending that a consumer have the damaged vehicle repaired using after-market parts.

You should carefully check your repair invoice to ensure that the auto body shop has identified each auto part replaced as being used, reconditioned, rebuilt, an original equipment manufacturer part, or an after-market part. If the repair estimate or invoice does not identify the type of part used, you may want to contact your state's department of auto repair, or department of insurance.

Online resources for auto repair: AutoMD, RepairPal, NPR's Car Talk