Hi everybody, my car recently got totaled because of vandalism (faulty fuel). My insurance company agreed to salvage the car after first trying to fix it for $5500, but then the dealership service uncovered further problems with the engine and decided it needed to be replaced. The insurance company sent me the $4500 and I paid $1000 of my deductible.
After the insurance company heard about the engine replacement which costed more than what the car is worth, they decided to total it. They decided to give me $12,000 for it. $10,900 for the car’s value and $1,100 for the sales tax. I accepted this and was happy.
I then got a message from my insurance company that they sent a check for $7500 in the mail. I was confused because they said they would reimburse me $12,000 for the salvaged car. It turns out they deducted the amount that was sent to me before to attempt to repair the car. The funny thing is they never mentioned me this deduction until they sent the money. The attempted repair was also approved by THEM! I didn’t even know about it for 2 days!!!! Do you think they will reimburse me for the full amount? They even sent a mechanic to check if the $5500 repair was needed and he said yea! I did nothing wrong!
Insurance Provider Refusing to Pay Full Settlement.
byu/Kolonya55 inInsurance
Posted by Kolonya55
3 Comments
I’m confused. Do you have the $4500 that was originally for the repair?
Clarification that may help you understand why this has occurred.
Insurance companies do not approve repairs.
You do.
Insurance companies approve payment for damages submitted to them.
Did the shop do $ 5,500 of work? I expect not entirely. So there may be money paid that can apply to the difference. That said the insurer should pay the charges for what work was done. So no, sounds like your insurance is confused. The insured does not eat the “sunk cost”. The insurer does.