Is your auto insurance payout lower than you thought it’d be? Unfortunately, this is an extremely common problem. But on the bright side, it’s also a problem that’s often easy to fix!

Key Takeaways

  • Since initial payout is often based on a superficial assessment of your car’s damages, it may not be enough to cover repairs.
  • File a supplement claim to ask your insurance company for additional funds! Often, your body shop can file it for you.
  • If your insurance company is unwilling to pay what a body shop is asking, payout may be lower than the shop’s estimate. If the body shop is charging substantially more than the local market rate, it may be time to look for a different shop. On the other hand, if the shop’s estimate is perfectly reasonable, you should file an appeal with your insurance company.
  • File an appeal if you believe your insurance company is wrong to deny your claim, lowball your payout, or reject supplement payments!

Why did my insurance pay less than I expected?

This is actually a pretty common scenario, especially since an insurance company’s initial payment is often based on the damage the insurance adjustor could see. When collision center technicians delve deeper into your vehicle, additional problems can rear their ugly heads.

Cue the supplement payment! (More on supplement payments below.) To request additional funds, approach your insurance company with documentation detailing newly discovered damages and estimated repair costs. An experienced body shop can also contact your insurance company to request a supplement check or, if necessary, negotiate a new payout.

What’s a supplement claim?

Supplement payments are extremely common! Your insurance company is obligated to repair your vehicle according to the terms of your policy. But their original damage assessment may miss a few things. The same thing is true of a body shop — even experienced technicians can overlook damages that later come to light.

To remedy this situation, request a supplement payment. Your insurance company will review any additional damages and their estimated repair costs. Most auto insurance companies allow you to request a supplement claim by filling out an online form. Better still, they often allow body shops to request supplement payments on your behalf, leaving you with one less thing to worry about.

Why would insurance pay less than my repair estimate?

Here’s a slightly different scenario: You’ve gotten an estimate from the body shop and submitted it to your insurance company. Yet they still don’t pay what you expected. What happened?

Once again, there are many reasons why an insurance claim for collision repair may be denied. Before repairs can begin, both the body shop and the insurance company must agree on how much those repairs will cost.

If, for example, a collision center charges more than the local market rate and refuses to negotiate with your insurer, you may be liable for the leftover costs. However, if your insurance company is trying to lowball you on a perfectly reasonable estimate, it's time to file an appeal. Do a little research on local market rates (i.e., how much other shops are charging for the same services) and present this information as part of your appeal.

Luckily, the world is full of business-savvy body shops (like Bob Weaver) who are willing to negotiate with insurance companies on your behalf. Instead than getting stuck with extra bills, take your vehicle to one of them!

What if my claim was rejected?

There are a lot of reasons why insurance won’t pay for collision repair — including an expired policy or lack of coverage. Your insurer will send you a letter explaining why your claim was denied. But it’s important to note that you may still have options!

If you believe the insurance company was wrong to reject your claim, act quickly to file an appeal with your insurer. Gather evidence to support your appeal — which may include police reports, eyewitness statements, medical bills, or photographs — and make copies to attach to your appeal. (You’ll want to keep the original documents.) In your appeal letter, explain why you don’t agree with the rejection and how each piece of evidence supports your claim.

While strictly optional, consider hiring an attorney experienced in insurance law. They can review the details of your claim and draft an appeal letter on your behalf. A strong case involving a big claim is often worth the upfront costs of a lawyer!