Stand Up To Insurers

YOUR RIGHTS, THEIR TACTICS, HOW WE CAN HELP

When your vehicle is damaged in an accident, the last thing you need is an insurance company shortchanging you on the repair costs. Unfortunately, this is a common scenario many vehicle owners face. Insurance companies have perfected the art of minimizing payouts, but you have the power to stand up to them, and our shop is here to support you every step of the way.

Understanding Insurer Tactics

Insurance companies are for-profit entities. Their primary goal is to maximize profits, and one way they achieve this is by reducing claim payouts. Here are some common tactics they use:

1. Underpaying on Claims: Insurers often pay less than the full cost of repairs. This is known as “short pay.” They may argue that certain repairs are unnecessary or that cheaper parts can be used.
2. Preferring Aftermarket Parts: Many insurers push for the use of cheaper aftermarket parts instead of Original Equipment Manufacturer (OEM) parts, which can compromise the safety and integrity of your vehicle.
3. Delay Tactics: By dragging out the claims process, insurers hope claimants will accept lower settlements out of frustration or financial necessity.
4. Challenging Repair Estimates: Insurers may question the repair shop’s estimates, insisting that their own lower estimates should be sufficient.

        These tactics help insurers save money. In 2022 alone, the U.S. insurance industry reported over $1.3 trillion in net premiums written, with substantial profits driven by careful management of claim payouts​ (Claims Journal)​. Meanwhile, insurers spend billions on advertising to maintain a positive public image. In 2019, the top ten insurance companies in the U.S. spent over $6 billion on advertising alone​ (Bad Vehicle)​.

Your Rights and Legal Support

In Louisiana, state regulations support the use of OEM parts and adherence to manufacturer repair guidelines. This means that when you file a claim, your insurer should cover the full cost of repairs using OEM parts, ensuring your vehicle is restored to its pre-accident condition. The Louisiana Insurance Code mandates that insurers cannot compel you to accept less than the amount necessary to repair your vehicle according to OEM specifications​ (Collision Claim Associates, Inc.)​.

Despite these protections, many insurers continue to resist paying full claims. However, there are successful precedents where customers and body shops have stood up to insurers and won in court. Here are some examples:

1. Parker’s Classic Auto Works vs. Nationwide Mutual Insurance:
   • Details: Parker’s Classic Auto Works sued Nationwide for underpaying repair claims. The lawsuit involved more than 70 customers and covered repairs between 2009 and 2014.
   • Outcome: The Vermont Supreme Court ruled in favor of Parker’s, stating that insurers must pay the full amount needed to restore vehicles to their pre-accident condition​ (VTDigger)​​ (Justia Law)​.
2. Glassco vs. GEICO:
   • Details: Glassco, an auto glass repair shop, sued GEICO over the “prevailing competitive price” issue, arguing that their prices were in line with market rates.
   • Outcome: The court sided with Glassco, finding that the shop’s pricing was competitive and commonly accepted in the market. This decision was supported by testimony from industry experts and surveys​ (Repairer Driven News)​.
3. Armstead vs. Royal & Sun Alliance Insurance:
   • Details: Lorna Armstead sued the insurer of an at-fault driver to recover costs for rental car loss incurred after her hired vehicle was damaged.
   • Outcome: The UK Supreme Court ruled that the insurer was liable for the rental company’s lost income, setting a precedent that insurers must cover all losses caused by the insured party’s negligence​ (Law Gazette)​.
4. Westside Collision vs. State Farm:
   • Details: Westside Collision sued State Farm for failing to pay for OEM parts and proper repair procedures as recommended by the manufacturer.
   • Outcome: The court ruled in favor of Westside Collision, mandating that State Farm cover the full costs to restore the vehicle using OEM parts and manufacturer guidelines​ (Repairer Driven News)​​ (Repairer Driven News)​.

Take Action with Confidence

If your insurer refuses to pay the full amount for your vehicle repairs, it’s crucial to take action:

1. Gather Evidence: Collect all documentation related to the repair, including estimates, invoices, and communication with the insurer.
2. Know Your Policy: Review your insurance policy to understand your coverage and your rights.
3. Seek Legal Advice: Consult with an attorney who specializes in insurance claims and short pay disputes.
4. Stand Firm: Be prepared to challenge the insurer’s assessment and insist on OEM parts and full payment for all necessary repairs.

We’re Here to Support You

At Redeemed Auto Body, we are committed to restoring your vehicle to its pre-accident condition using high-quality OEM parts and following manufacturer guidelines. We understand the frustration of dealing with insurers who short-pay claims, and we are here to support you in your fight.

Why Choose Us?

• Expertise: Our technicians are trained to follow OEM guidelines, ensuring your vehicle is repaired to the highest standards.
• Transparency: We provide detailed estimates and keep you informed throughout the repair process.
• Advocacy: We will work with you to challenge any unfair insurance practices and support you in seeking the full amount owed for your repairs.

Have the Courage to Fight Back

Taking on an insurance company can be daunting, but remember, you have rights, and you don’t have to face this battle alone. By standing up to insurers and insisting on proper repairs, you’re not just protecting your vehicle; you’re also helping to hold insurers accountable.

If your insurer is refusing to pay what you’re owed, contact us today. We’ll stand with you, ensuring your vehicle gets the quality repairs it deserves and that you receive fair treatment from your insurer. Your safety and satisfaction are our top priorities.

For more information or to schedule a consultation, visit Redeemed Auto Body or call us at (318) 789-6675. Let’s get your vehicle back to its best condition, together!