Why Is My Insurance Repair Estimate Too Low

By Max Anthony •  Updated: 04/04/21 •  6 min read

A car accident can be a distressing and challenging experience to go through. So, it’s no surprise that your heart sinks when you’re told that your insurance repair estimate is too low and that the insurance company won’t pay for all of what’s needed on top of their estimate.

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However, some ways could help you get back up quickly from this financial burden- such as getting an independent appraisal or filing suit against the insurer who lowballed on repairs after being in contact with them about how much is necessary.

Here are some important steeps for you to get what you deserve when it comes time to dealing with low insurance repair estimates.

Why Is My Insurance Repair Estimate Too Low?

Insurance Repair Estimate Too Low

Know Your Vehicle Value

The car insurance company wants to pay the minimum amount available for your car. But if you know it’s worth it, then they’ll have less room to talk than ever! After the risk has been reported and investigated by the claimant, there are two options available: Initial benefits and third party benefits.

You must know the TRUE value of your vehicle so you can negotiate a decent settlement for either first-party or third-party claims.

When discussing with an insurer, it’s best to get several estimates from various sources to have some bargaining power and ensure they are paying close enough attention.

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After being involved in an accident, one must decide whether their claim falls under “first party” benefits (claims pertaining only to damages done by oneself) or “third party” benefits (involving another driver).

The tone should be informative because there will be no incentive on behalf of the car insurance company if negotiations go smoothly without any legal proceedings necessary; however, this doesn’t mean accidents don’t happen too.

The Kelley Blue Book and Edmunds can help you find the right estimate for your car. You have the right to reject any number that gives you a fix if it does not match what Kelley or Edmunds have given you with estimates of the value of your car.

Start Negotiating With The Insurance Company

Negotiating your low insurance repair estimate with your insurance company before you head to court can be beneficial for both parties. Many times, car companies are willing to do this and come up with a good settlement agreement that avoids going through the costs of litigation.

You should ask them what they’re able to offer in terms of an estimate if their initial one is too low compared against estimations from mechanics.

Negotiation may save time, money, and any stress it would take on either party’s part by heading straight into trial without talking first.

Negotiating with a car insurance company is never easy, but it can be done. To start negotiations on the right foot and to have any hope of getting what you want or need from your claim adjuster, many steps should be taken to increase the probability of success.

First, make sure that you know exactly how much money will do for repairs before going into talks as well as knowing how much is too high or low an offer when negotiating settlement amounts (both minimum and maximum).

Second- think about all possible next moves during this process so that no one gets caught off guard by sudden changes while trying not to appear eager; always stay polite yet firm throughout conversations without giving up anything extra than necessary until agreements are reached upon.

Why Do Insurance Companies Lowball?

Insurance Repair Estimate Too Low

Insurance companies are in the business of making money, not giving it away. They use a variety of tactics to keep their premiums low. These include: 

Understand Your Car Damage Estimate

The insurance company estimates the cost of car damage by looking at several factors, including the make and model of your vehicle. The age and condition of your car are also considered when estimating how much it will cost to repair or replace it after an accident, as well as what kind of repairs you need (e.g., dent removal).

Insurance companies may also consider whether you have collision coverage in addition to comprehensive coverage.

Therefore, after your car insurance agent inspected your vehicle, the repairman will take pictures of the areas of the car and the damage and write a rating based on what needs to be repaired.

Your company’s computer program can help by finding the best price match for you. Body shops also use this software so it is important to find out if they are in-network before sending them any additional information about yourself or driving into their store location because different companies have different prices for parts.”

After taking photos of all damaged areas, auto claim specialists work with computers using estimator software which helps determine how much each part should cost – similar programs used by body shops provide unified pricing across brands when estimating repair costs.

How Long Should an Average Accident Repair Take?

The average wait time for an insurance company to fix your car is five days. You can get a rental car from the insurance company while they do their work.

If you have comprehensive coverage, you will be able to replace your vehicle with another one of equal value (minus deductible) if it cannot be repaired.

Tips To Choose A Body Shop For Your Damaged Car

Before you visit a body shop to handle your repair, call the insurance company and ask for information about their network of local shops.

If they are not on that list, then do some research online or contact other customers who have had work done at this location before going through with it. Otherwise , you will end getting low insurance repair estimate.

Choosing the best body shop that is under your car insurance company can be difficult, but not to worry. Check out some helpful tips on getting your vehicle fixed:

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Max Anthony

Max is a gizmo-savvy guy, who has a tendency to get pulled into the nitty gritty details of technology and cars. He attended UT Austin, where he studied Information Science. He’s married and has three kids, one dog and a GMC truck and a Porsche 911. With a large family, he still finds time to share tips and tricks on cars, trucks and more.