Can Car Insurance Co. charge a percentage for not using their collision center?

I was rear ended by a drunk driver while i was sitting in my car parked at a curb.
My car was to be taken to a collision center that is contracted through my insurance.
I chose to use an independent collision center so I could get a fair and unbiased assessment of the damage.
The contracted collision center said that if I was to take my car to another collsion center I would be responsible for 20% of the repairs, if the car is not deemed a total loss. So if the repairs are $10,000, I would have to pay $2,000.

Are insurance companies and their contracted collsion centers allowed to basically bully and blackmail their own insurers like this?
Also, if I would have to pay this if the car is repairable, would the other drivers insurance cover this 20%? Thanks

Barrie H

There are lots of places where you can get a free insurance quote. http://www.goodinternetdeals.com/Auto-Insurance.html It only takes 5 minutes to do.

Peter G

I would like to suggest to try to get as much information as you could before making up your mind,here http://www.AutoInsuranceFree.info/free-auto-insurance.htm is a very resourceful one.

sydkan

I've not heard of this before.

If you choose to use their body shop it is usually a much better deal for all involved. Some insurance companies will get a small discount, usually 5%. But you get something much more, first you get a guarantee from the insurance company. Second if you're not happy with the repairs then you have someone that will work with you and that body shop. Third if you are in a rental vehicle then they have a little more control of the rental situation.

If you choose to use your own shop then they are not responsible for any shop delays, they will still send out an adjuster to look at your vehicle, if the shop takes too long they will not extend your rental, and if you're not happy with your repairs then you are SOL and they will not get involved with this.

They owe for reasonable repairs. which would be the going rate in the area. The only thing you should be responsible for is your deductible and if depreciation applies maybe that too. Different states have different rules. but that would be it. If your shop charges $45 a labor hour and the going rate in the area is $40 then your insurance company does not owe for the difference. Again the amount is REASONABLE

Kizzy

Not in less it's written into the contractual language of your policy. You should have a choice of where your vehicle is repaired and if it's not in your policy, I would consider this as them receiving a kickback from the body shop. You can bet the other carrier is not going to pay for this.

Read your policy in regards to collision, if it's not stated in there I would definitely contact the Dept. Of Insurance in your area and report it. If it is, you agreed to their contract and need to abide by the rules of it.

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