Am I committing Insurance Fraud? I hope not.?

Ok, so I was involved in a fender bender not too long ago. I have a $500 deductible. Someone I know told me to get a few different estimates from auto-body shops, then my insurance company will send me a check. Then, I should take my car to a friend of his to get the work done really cheap, and I should pocket the excess cash from the check my insurance company sent me.

Is this legal? Will they even send me a check or do they send the check to the auto-body shop?

Thanks for any help.

oklatom

It's legal enough. You get an estimate, let's say for $1,250, they deduct your $500 and send you a check for $750 which you give to his friend. What quality of repair do you think you will get? What guarantee will you have when it's finished?

Do you really think you will get a quality $1,250 repair for $750?

emt_me911

The others are right. However, be sure that the check will come to you in the first place. When I wrecked my truck last March, the check was sent directly to the body shop. However, not repairing the vehicle and pocketing the money was not an option if the money had gone to me.

It had sustained more than $7000 in damages.

EMT

Xiah N

My vehicle was hit back in 2000 by a drunk driver and my car was parked on the road. The insurance company gave me $1800 and the car only looked as if it had been scratch very minor scratch and my friend fixed the scratch for me and for free. So NO your not going to get into any trouble, the only way you could get into trouble is if you planned the accident with someone and the company found out.

briguy0103

Yes its legal. They will give you the market value of the repair, leaving you to decide whether you want to pay the market value price or not. The main thing you're sacrificing in this case is the backing of a corporation to guarantee the quality of the work. If the guy you are having do the job messes up, he may not be able to reimburse you or redo the work, whereas a shop would. (its an easy job, i'd have him do it rather than a shop for the lower price as well.)

entidtil

If it is your insurance company paying, the check will be made payable to you AND the body shop. If it is the other persons insurance company paying, the check will be made payable to just you and you can do anything you want with the check.

CwboyBill

This is perfectly legal. Your insurance company owes to indemnify you for your loss, NOT to repair your car. You can cut a deal for repairs, not repair it at all or use the money to buy crack -- it's yours to do as you wish.

Lisa G

I dont think it is fraud. They will only give you check after they take out the deductable. The insurance compnay will want to do an estimate themselves and you will only get what they say. So if your friend will do it for really cheap you may pocket the extra. I received the check in the mail. I know people who didnt even get their car fixed. The main thing is make sure your car is safe to drive. I experienced this a few years ago.

Kizzy

You can let them know you would like to 'cash out' on the repairs. After their part is done in doing this, doesn't matter what you do with the money.

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