Over 150.000 insurance professionals and consumers come to the Insurance Forum every month. Click here to register for FREE

Go Back   Insurance Forum > Insurance Agents and Brokers Forum > Auto Insurance Forum

Reply to State Farm Only Pays Body Shop Directly?     
Old 06-23-2012, 10:54 AM   #1
New Member
 
Join Date: Jun 2012
Posts:1
State: kthelen is an Insurance Agent from Minnesota
State Farm Only Pays Body Shop Directly? State Farm Only Pays Body Shop Directly?
Hello all!

A friend recently got into a fender-bender. She has full coverage with State Farm. An adjuster came out and determined the cost of repairs (a reasonable amount). But when it came time to talk about payment, the adjuster claimed a check would only be issued to her body shop of choice, and not to her directly.

I have a fairly well equipped private shop, where I restore projects and repair vehicles for my own purposes (it is not a commercial body or repair shop).

I've been through this before a couple of times in the past, with family and friends in similar situations. I would look at the adjuster's estimate, call and argue if anything was overlooked, etc. Then the insurance company would pay the policyholder directly, and I could proceed to perform the work on the policyholder's behalf.

Without extolling the virtues of using an established commercial shop or otherwise knocking this (both she and I are well aware of the pros/cons), can anyone answer me these two questions:

1) Is it normal for State Farm to refuse issuing a check to the policyholder - and if so, does she have any easy recourse (i.e., not involving suing anyone)?

2) Failing that, what qualifications are required for State Farm to consider one's bodywork operation worthy of issuing payment to?

Thanks in advance for any help you can provide....


--kt
------------------------------------
  Reply With Quote to State Farm Only Pays Body Shop Directly?
eZLynx Banner New 2
Old 06-23-2012, 11:17 AM   #2
djs
Guru
 
Join Date: Mar 2007
Posts:5,829
State: djs is an Insurance Agent from California
djs is a member of 5000 posts Super VIP club
State Farm Only Pays Body Shop Directly? Re: State Farm Only Pays Body Shop Directly?
Can't help with question 2, but the first one is pretty easy.

The reason State Farm won't issue the check directly to the policy holder is that there is a lienholder on the vehicle. The lienholder requires that the repairs be done. It might surprise you to learn (probably not) that if checks are made out to the policy holder, they will frequently cash the check and plan on doing the repairs later, which may or may not ever happen.

So, they either do 2 party checks (lienholder and policy holder) or make the check out to the body shop.

The policy holder usually has the right to determine what body shop they use.

The only way I know of around this is to get a two party check (policy holder and lienholder), do the work, then have the lienholder sign off on the check. No guarantees they will though.

Dan
------------------------------------
  Reply With Quote to State Farm Only Pays Body Shop Directly?
Old 06-23-2012, 09:58 PM   #3
New Member
 
Join Date: Jan 2011
Posts:15
State: DawnPatrol is an Insurance Agent from Undisclosed Location
State Farm Only Pays Body Shop Directly? Re: State Farm Only Pays Body Shop Directly?
So Cal SF Agent here...
DJ is absolutely correct on #1 if there is a lien...

If the body shop is a preferred repair vendor with SF the check is made out to the shop.

If the client is not getting the vehicle repaired at a preferred shop, AND there is no lien they CAN have the check made out to themselves.

And if that non-preferred shop does a bad job SF will not guarantee the work, the client has to battle the non-preferred shop themselves
------------------------------------
  Reply With Quote to State Farm Only Pays Body Shop Directly?
Old 06-25-2012, 11:46 PM   #4
Super Genius
 
Join Date: Aug 2011
Posts:139
State: FullAuto is an Insurance Agent from Oklahoma
State Farm Only Pays Body Shop Directly? Re: State Farm Only Pays Body Shop Directly?
The check can be made out to the lien holder and the named insured as a two party check if the NI wants to use a shop that doesn't qualify to be paid directly or NI wants to do the repair themselves. They have a threshold up to which they'll pay the NI directly. It may vary by region but it's $2500 net here.

For question #2, a tax ID number can do depending on the claim rep. To survey with State Farm about rates, there is a list of criteria mainly equipment based, but just to do a repair, you'd be surprised what passes for a shop. There are plenty of old men in barns behind their houses that are "shops".
------------------------------------
  Reply With Quote to State Farm Only Pays Body Shop Directly?

Register Now for FREE!
To sign up for your FREE INSTANT account, please complete the form.

Username:
    Password:   Confirm Password:     E-Mail:   Confirm E-Mail:     
   
Question of the day:   What color are tomatoes? I agree to forum rules 


Reply to State Farm Only Pays Body Shop Directly? 

  Insurance Agent Forum > Insurance Forum > Insurance Agents and Brokers Forum > Auto Insurance Forum




Similar Threads with State Farm Only Pays Body Shop Directly?
Thread Thread Starter Forum Replies Last Post
Becoming a State Farm Agent shawn17ths Getting Started Selling Insurance 1017 08-15-2014 12:09 AM
State Farm Life Insurance Newby Life Insurance Forum 27 06-20-2014 04:53 PM
State Farm Job Opportunity newagent2010 General Insurance Agent Discussions 27 02-05-2014 06:53 PM
State Farm vs All State vs Nationwide vs Metlife Angio333 P&C Insurance Forum 34 06-21-2013 12:16 AM
Questions for State Farm Agents On House Liability scott17201 P&C Insurance Forum 11 05-25-2012 02:58 PM
BAP State Farm Coverage Question Air Jer P&C Insurance Forum 3 11-17-2010 09:03 PM
State Farm Offer Turbodiesel Auto Insurance Forum 124 03-14-2009 03:41 AM
Question about State Farm Winter_123 General Insurance Agent Discussions 4 08-31-2008 12:36 PM



All times are GMT -5. The time now is 06:59 AM.

Forum enabled with vBulletin®
Copyright ©2000 - 2014, vBulletin Solutions, Inc.


Join the Forum - It's FREE

Share This Page



Weekly Poll

When it comes to technology, my practice is:
 

Modal Click