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What I want to know are these about California law on car insurance?
(1) In the case of collision repair, does the insured have a right to just ask to be paid out for the estimate amount minus deductible as estimated by the insurance company adjuster and then go fix the car somewhere else like a mechanic shop or sell it is or send the car to junkyard?
(2) In the case of comprehensive repair particularly in the case of theft where the car's ignition switch had been pulled out in addition to other damages, does the insured have a right to just ask to be paid out for the estimate amount minus deductible as estimated by the insurance company adjuster and then go fix the car somewhere like a mechanic shop or sell it as is or send the car to junkyard?
(3) In the case of comprehensive repair particularly in the case of theft where the car's ignition switch had been pulled out in addition to other damages, does the insured have a right to just ask to be paid out for the estimate amount minus deductible as estimated by the insurance company adjuster and LET THE INSURANCE COMPANY DO WHATEVER THEY WANT WITH THE CAR?
When I have had minor fender bender accidents that caused damage to my vehicle I was always given a choice of either having it repaired at a shop the insurance company recommends or they can cut you a check for the amount of the damages and you can go get it repaired wherever you want, if you even choose to repair it at all. I had this happen on a couple of different cars and the damage was so minor that I simply pocketed the check the insurance company gave me and lived with the dent.
Depends if their is a lien on the vehicle. The company I work with at least with 1st party, if the amount is over 3k(in any state but MS), we have to issue a two party check, to either you and your lien holder, or you and a shop. If you plan on using one of our direct repair facilities, we can pay them directly. I could not tell you the rules for 3rd party, because I do not deal with those claims. But yes, under the law in ANY state you can use ANY repair facility for the repairs.
And it also depends on the insurance companies policies... If their policy is to pay for the repairs directly they will not cut you a check....
And as ME007 said, if their is a lien they will not cut you a check to just yourself... They either cut a 2 party check or you have to take it to be repaired and they pay the car repair shop....
And it also depends on the insurance companies policies... If their policy is to pay for the repairs directly they will not cut you a check....
And as ME007 said, if their is a lien they will not cut you a check to just yourself... They either cut a 2 party check or you have to take it to be repaired and they pay the car repair shop....
Their is no lien on the car that was stolen.
About "if their policy is to pay for the repairs directly they will not cut you a check....". does anyone here know Geico's policy?
A while back when my car (not this car) was in a collision accident, if I didn't take it to their approved location, they would only cut me a check for their estimate. So I was cornered to take it to their choice place where incompetent work was performed.
Long story on the damage caused by their choice of repair shop and about my complaining to Bureau of Automotive Repair and Dept of Insurance. The shop didn't take responsibility; Geico wouldn't enforce the shop that put the wrong upper tank cap on my car.
I was too busy after neither BAR failed to help me and didn't make Kneisel pay for some compensation *just because that model car had a problem with head gasket issue*. Dept of Insurance also let Geico get away with it. I had a major industrial licensing exam and so didn't write to Better Business Bureau that I needed to focus on..
After the exam,. I contacted the manufacture and they would pay for $1000 but I must repair at dealership that would charge me over $3000 including engine tear down. So I just got it repaired somewhere else for less than half that price for the same work after getting money.
If I have time, I would take the shop to small claim and get compensated and complain about Geico to BBB. I am working on it.
So in order to prevent further damage to my car, I took possession of a car my sister bought which has gotten stolen.
I think that because of last experience, this time, Geico is letting me take this car to my choice of collision center but they still played BIG games with me and wasted SO MUCH of my time such that right now, I don't want to deal with this car anymore especially now that MY other car had just got fixed. Beside, I don't have money for the deductibles either. So, I want to just get a check from Geico, put this car in non-op status and deal with it later. I have a place I can store the car.
Does anyone know whether Geico would cut me a check?
After this week, I will be off from work. I am thinking to complain to BBB about the way Geico team wasted my time, playing games. Long story to write it here. If they cut me a check, I would let it go.
What I want to know are these about California law on car insurance?
(1) In the case of collision repair, does the insured have a right to just ask to be paid out for the estimate amount minus deductible as estimated by the insurance company adjuster and then go fix the car somewhere else like a mechanic shop or sell it is or send the car to junkyard?
Yes. It's called a cash-out settlement. Depending on the amount and lienholder status, the check could be made out to both the named insured and the lienholder.
You have the right to choose whoever you want to complete the repairs related to your loss. If the shop you have chosen charges more than then prevailing market rate for parts and labor the amount above the market rate would come out of your pocket.
Also, if you choose a facility that is not approved (meaning they have no relationship with your insurance company), and additional (supplemental) damage is found, it could delay the repair because the insurance company might have to send someone to see the damage in order to authorize payment.
If the vehicle is not economical to repair (this means the costs of repair exceeds what the vehicle is worth), then the insurance company will offer your an amount to "total" the car. In this case the insurance company will write a check to your lienholder, minus your deductible to pay off the car. If the payment is not enough to settle the lien, then you will have to contact your lienholder for settlement options. If the amount is greater than what you owe, you will receive the remaining amount in your name only.
Keep in mind that even though your car has been "totaled"...there still is salvage value to the car. In most cases you have the option to "OWNER RETAIN" your totaled car. This means the insurance company will total out your car, and you will buy it back from them at the salvage value.
EXAMPLE....single car loss into a tree...estimate to repair is $14,000
2005 Ford Explorer worth $10,000
NO LIEN HOLDER***
sales tax/reg/license is $600
total is $10,600 to total car - your $500 deductible $10,100 is payable. You would sign over the title to the insurance company the would then take possession of the car and issue a draft for the amount due.
Salvage value is $2500. If you choose to keep your car you would get the car and $7,600.
***if you have a lien holder, the answer to this example is much different.
(2) In the case of comprehensive repair particularly in the case of theft where the car's ignition switch had been pulled out in addition to other damages, does the insured have a right to just ask to be paid out for the estimate amount minus deductible as estimated by the insurance company adjuster and then go fix the car somewhere like a mechanic shop or sell it as is or send the car to junkyard?
Yes.
(3) In the case of comprehensive repair particularly in the case of theft where the car's ignition switch had been pulled out in addition to other damages, does the insured have a right to just ask to be paid out for the estimate amount minus deductible as estimated by the insurance company adjuster and LET THE INSURANCE COMPANY DO WHATEVER THEY WANT WITH THE CAR?
The insurance company will only take possession of the car if it is deemed a total loss. See example above.
Keep in mind that if you "cash out" and don't repair and have a similar loss...they are not going to cover the loss again.
For example...let's say you run your car into a pole (no damage to the pole). The only damage is the front bumper cover. The estimate to repair is $700. You have a $500 deductible. They pay you the $700 minus your $500 deductible so the check you get is $200 net.
If you don't repair your bumper...the value of your bumper is $0, because you have paid to replace it and you did not get it replaced.
Now you're driving and slide into a mail box...causing damage to the front bumper...again. If you did not repair the bumper previously, you would not be paid again for the damage.
Clear as mud?
Last edited by midwestlaxer; 12-15-2013 at 03:24 PM..
At least here the repair has to be done per specs of repair using proper materials and to specs.In fact a repair shop can be sued for not meeting the repair standards also. Plus insurance company can refuse coverage or refuse later repairs because of not properly repair other time.
Keep in mind that if you "cash out" and don't repair and have a similar loss...they are not going to cover the loss again.
For example...let's say you run your car into a pole (no damage to the pole). The only damage is the front bumper cover. The estimate to repair is $700. You have a $500 deductible. They pay you the $700 minus your $500 deductible so the check you get is $200 net.
If you don't repair your bumper...the value of your bumper is $0, because you have paid to replace it and you did not get it replaced.
Now you're driving and slide into a mail box...causing damage to the front bumper...again. If you did not repair the bumper previously, you would not be paid again for the damage.
Clear as mud?
Yes, VERY clear.
I have a question on "total" and "salvaging".
Say ... the insurance company decides to "total" the car. Must I accept "the car at salvage value + get the cash value they offer" or do I have a right to just ask for the "total" cash value as determined by the insurance company and not accept the car at salvage value?
Frankly, since I got *my primary car* fixed, I don't really need this car anymore. But I do need to recover the value of that car which I must give to my sister since it was with her money that the stolen car was bought and then put in my name.
Say ... the insurance company decides to "total" the car. Must I accept "the car at salvage value + get the cash value they offer" or do I have a right to just ask for the "total" cash value as determined by the insurance company and not accept the car at salvage value?
Frankly, since I got *my primary car* fixed, I don't really need this car anymore. But I do need to recover the value of that car which I must give to my sister since it was with her money that the stolen car was bought and then put in my name.
well....salvage is a component...but, you don't need to worry about salvage value unless you were wanting to keep the car.
I'm going to use rough numbers here.
Let's go back to that 2005 Ford Explorer.
Market value is $10,000.
Salvage value is $2,500.
This means if the insurance company pays you the $10k (plus taxes/registration/plates/etc), then takes possession of your car (you sign the title to them), and then they turned around and sold it as salvage for $2,500...the insurance company only paid $7,500 out on the claim.
The market value for your vehicle is derived from a 3rd party vendor that scans the market for vehicles like yours. If they total your car, ask to see this report. It should list the year/make/model and seller information. Sometimes, a vehicle like yours might not be available on the market. It's worth your time and effort that the comparable vehicles they are using are truly similiar to yours. It's also worth your time to make sure that these similiar cars are available too. Take your report and call the dealers that are listed. This is a little additional work on your part, but...in the end it's worth it, because if a car that is similiar to yours is not available for the amount they have offered to settle, then they have not lived up to the contract (insurance policy).
Good luck.
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