Dealing with car damage after an accident or other incident is stressful enough. Adding to the confusion is knowing where to turn for reliable repairs. A common question car owners face is: “Where do you repair car?” It might seem straightforward, but understanding your rights and options ensures you get quality service and avoid unnecessary complications with your insurance company. This guide, based on information from the Connecticut Insurance Department, clarifies your choices and empowers you to make informed decisions about your car repairs.
Your Right to Choose: Repairing Your Car Where You Feel Comfortable
The most crucial point to understand is that you have the freedom to choose where you repair your car. Whether your vehicle needs minor bodywork or major mechanical repairs, the decision of where to take it rests solely with you.
This means you are not obligated to use:
- A specific repair shop recommended by your insurance company.
- The shop where your car was initially towed after an accident.
- A dealership repair center exclusively.
You can select any licensed repair facility that you trust and feel comfortable with. This could be:
- Your preferred local mechanic: Someone you’ve worked with before and trust for their expertise and fair pricing.
- A specialized repair shop: For specific makes or types of vehicles, or for particular kinds of damage (e.g., a body shop specializing in collision repair).
- A dealership repair center: Often preferred for newer cars or for specific brand expertise.
Insurance Company Recommendations: Understanding Preferred Shops
Insurance companies often provide lists of “preferred” repair shops. While this might seem helpful, it’s essential to understand the nature of these recommendations.
Is it legal for insurance companies to provide these lists? Yes. However, remember that you are not required to choose a shop from this list.
Why do insurance companies have preferred shops? Insurers often have contractual agreements with these shops. These agreements typically allow the insurance company to have repairs done at a pre-negotiated rate, which can be lower than standard shop rates. This is beneficial for the insurance company in managing costs.
Potential Considerations with Preferred Shops: While preferred shops can streamline the claims process, it’s wise to do your own research. Ensure the shop has a good reputation for quality repairs and customer service, independent of the insurance recommendation. Your priority should be quality and your peace of mind.
Navigating Repair Costs and Insurance Payments
A frequent concern is whether a chosen repair shop will charge more than what the insurance company is willing to pay. Here’s how this typically works:
- Negotiation between shop and insurer: Ideally, your repair shop and your insurance company will agree on a repair price. This is the most common scenario.
- Potential price discrepancies: In some cases, the shop’s initial estimate might be higher than what the insurer is initially willing to cover.
What happens if they disagree on price?
- Request insurer re-evaluation: You can ask your insurance company to re-examine the repair shop’s estimate. Provide any documentation or justification the shop offers for their pricing.
- Potential out-of-pocket costs: If the insurer and shop cannot agree on a price, you might be responsible for paying the difference between the shop’s labor rate and the insurer’s approved amount. The Insurance Department does not regulate repair shop labor rates.
How to Minimize Out-of-Pocket Expenses:
- Seek written confirmation: Before repairs begin, ensure you have written confirmation from the insurance company that they have agreed on a price with your chosen repair shop. This prevents surprises later.
- Communicate proactively: Maintain open communication between your repair shop and insurance adjuster to address any pricing concerns early in the process.
Resolving Disputes: Utilizing Arbitration
Disagreements about the amount your insurance company is willing to pay can be frustrating. Fortunately, there are avenues for resolution without resorting to lawsuits immediately.
Arbitration Program: The Connecticut Insurance Department offers an arbitration program to help resolve disputes related to auto physical damage claims.
When is arbitration an option?
- Coverage and liability not in dispute: Arbitration is typically available when there’s no question about whether your insurance policy covers the damage or who is at fault.
- Dispute over damage amount: The disagreement must primarily be about the amount of damages the insurer is willing to pay.
How to access arbitration:
- File a complaint: First, file a complaint with the Insurance Department’s Consumer Affairs Division.
- Department intervention: The Consumer Affairs Division will attempt to resolve the dispute.
- Arbitration referral: If the Department cannot resolve the issue, they may refer you to the arbitration program.
Important Note: Arbitration is generally intended for claimants (policyholders), not repair shops acting on their own. However, repair shops can provide technical assistance or expert opinions during the arbitration process.
Understanding “Totaled” Vehicles
Sometimes, the damage to your car is so extensive that it’s declared a “total loss” or “totaled.”
What does “totaled” mean? It means the insurance company determines that the cost to repair your vehicle is equal to or greater than its actual cash value (ACV).
Example: If repairs are estimated at $1000, and your car’s ACV is $500, the insurer will likely declare it totaled.
What happens when your car is totaled?
- Settlement payment: The insurance company will typically pay you the ACV of your vehicle, plus applicable sales tax.
- Vehicle ownership: The insurance company usually takes ownership of the totaled vehicle.
Keeping a Totaled Vehicle:
You have the option to keep your totaled vehicle. However, be aware of the implications:
- Reduced settlement: The insurer will deduct the “salvage value” of the vehicle from your settlement amount. Salvage value is the estimated worth of the vehicle in its damaged state.
- “Salvage” title: The vehicle’s title will be stamped “salvage.”
- DMV re-inspection: The Department of Motor Vehicles (DMV) will require a re-inspection before the car can be legally driven again.
- Out-of-pocket repairs: You are responsible for all repair costs if you choose to fix and keep a totaled vehicle.
Vehicle Valuation:
To ensure fair value, insurance companies in Connecticut must use specific sources to determine your vehicle’s ACV, including the NADA Used Car Guide and another approved industry source. Always request a detailed breakdown of how the insurer calculated your vehicle’s value. You have the right to dispute this valuation through the Insurance Department if you disagree.
Rental Vehicles and Storage Fees
Rental Car Coverage:
- At-fault accidents: If another driver is at fault for the damage to your car, their insurance should cover your “loss of use,” which can include a comparable rental vehicle or compensation for transportation expenses while your car is being repaired. This coverage should be for a “reasonable period.”
- Your own policy: Check your own auto insurance policy. You may have “rental reimbursement coverage” which provides rental car benefits regardless of fault, depending on your policy terms.
Storage Fees:
- Owner responsibility: As the vehicle owner, you are generally responsible for storage fees charged by the repair shop or towing company.
- Insurance coverage: The at-fault driver’s insurance (or your own collision coverage, if applicable) may cover storage fees for a reasonable period. However, insurers often set a limit. Clarify this with the insurance adjuster to avoid unexpected charges.
Parts Used in Repairs: OEM vs. Aftermarket
Insurance companies may include the use of “aftermarket parts” in their repair estimates. Understanding the types of parts is important:
- OEM (Original Equipment Manufacturer) parts: These are parts made by your vehicle’s manufacturer.
- Aftermarket parts (Non-OEM): These are parts made by companies other than the original manufacturer. They are often less expensive.
- Recycled parts: These are used parts, which can be either OEM or aftermarket.
Your Rights Regarding Parts:
- Disclosure: By Connecticut law, if aftermarket parts are to be used for visible exterior sheet metal or plastic repairs, the repair estimate must clearly state this and include a specific notice.
- Choice: You have the option to request OEM parts. However, you may have to pay the difference in cost if OEM parts are more expensive than aftermarket alternatives and your policy allows for aftermarket parts.
Conclusion: Taking Control of Your Car Repair
Knowing your rights and options regarding car repairs empowers you to navigate the process with confidence. Remember, you choose where you repair your car. Communicate effectively with your insurance company and repair shop, and don’t hesitate to utilize the resources available through the Connecticut Insurance Department if disputes arise. By being informed, you can ensure your car is repaired to your satisfaction and you are treated fairly throughout the claims process.
