Why Do Bodyshops Accept Lower Estimates from Insurance Company?

I would never act as an escrow either. The friendly stranger wanting to write a check NEVER EVER works. The other party owes you....you owe me. There can always be, and often is, hidden damage. There is an almost zero chance I can tell you 100% that my estimate is the final bill. Plus, when you tell that other party that you'll need a rental while your car is in the shop they will hit floor! Cars are metal and plastic and Styrofoam all shoved together. If a chunk out your foam bumper absorber is cracked off, I have to replace it. It might cost another $100 for that foam part. No one cares or wants to know, but that's the reality. Your friendly stranger isn't going to want to break out another Benjamin for it.

Believe it or not, I do have people that get 3-4 estimates and turn in the highest to their insurance and collect a check. The law in OH is you only have to get 1 estimate - if the insurance wants more, they can send out their own appraiser. Then they go to the shop that gave them the lowest estimate hoping to actually profit on the claim. It makes me ill because I am a licensed agent too. It's better if I don't know what they're doing, but that whole hidden damage/rental car thing almost always presents a problem.

In the end, I don't care how I get paid, just that I do get paid. Our shop doesn't cheat anybody. There are times though that the estimate really becomes just a budget for repairs. If I can do it for what I know I can get paid, and you agree with the repair I laid out, I will do it. If the repair costs less you'll owe me a beer for being lucky and saving you money.

PS - alignments are tricky. Be aware that some shops will charge for it because you mentioned a tap in the wheel, but never even bother to get it checked if it seems the car drives straight on a test ride. Just ask for the before and after alignment printouts. It's more fun than making me save all of the old parts, lol!
 
PS - alignments are tricky. Be aware that some shops will charge for it because you mentioned a tap in the wheel, but never even bother to get it checked if it seems the car drives straight on a test ride. Just ask for the before and after alignment printouts. It's more fun than making me save all of the old parts, lol!
Thanks. This is helpful info.
 
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