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Got Rear Ended, His insurance won't pay for the labor rate

viper2ko

Active Member
Aug 30, 2017
1,441
1,388
USA
I got rear ended a couple weeks ago (shop was backed up), dropped the car off and yesterday it went in and they determined it needed a new bumper. I had 2 choices per the Tesla network of body shops. Service king, or a local shop that specializes in Tesla's and exotics. I had heard bad things about Service King so went with the smaller shop based on a recommendation from a friend. They submitted a supplemental showing I need a new rear bumper but the adjuster is now saying they won't pay for the high labor rate and that I have to pay the difference. What are my options/rights here? I went through the other guys insurance (USAA).
 
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Electricious

Member
Feb 17, 2018
257
262
Alpine, NJ
I got rear ended a couple weeks ago (shop was backed up), dropped the car off and yesterday it went in and they determined it needed a new bumper. I had 2 choices per the Tesla network of body shops. Service king, or a local shop that specializes in Tesla's and exotics. I had heard bad things about Service King so went with the smaller shop based on a recommendation from a friend. They submitted a supplemental showing I need a new rear bumper but the adjuster is now saying they won't pay for the high labor rate and that I have to pay the difference. What are my options/rights here? I went through the other guys insurance (USAA).

Get a good lawyer, hit them with pain and suffering and from that point on you will find them very cooperative.
 
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Sawyer8888

Member
Mar 16, 2017
422
421
South Florida
What are my options/rights here?

You have a few options that include going through your own insurance, hiring a lawyer (most will not talk with you if you are not injured), or a DYI by pursuing a judgement against the other driver in small claims court (hassle).

When I was rear-ended, instead of dealing with the no-name insurance of the at-fault party, I went through mine. I paid my $500 collision deductible, work started immediately, and the $500 was reimbursed when my insurance settled with theirs. It was explained to me that whatever my insurance settled for, I was owed the first $500 of that amount.

Aaannnd of course, consider a diminished value claim. Although a DV claim may not be worth it for a relatively small fender bender.

 
May 3, 2017
241
222
Metrowest, MA
I always use my insurance company whenever I have a claim (either if I am at fault or not). They do the legwork of dealing with the other insurance company.

I have no need to chase down other companies or figure out their policies.

And in this case as long as the other person was at fault, they need to pay for the repair of your car, whatever it costs. You are not asking for a better thing that what you had. You are merely asking to get your car fixed. Your insurance company will go to bat for you.
 

Big Dog

Active Member
Mar 7, 2016
1,639
1,631
Irvine, CA
your option is to go through YOUR insurance carrier. That's what you pay them for. The other guy's insurance is not beholden to you. You are not their customer.

fwiw: I have USAA, and the last time we had an accident, they made us whole and then went after the other carrier. I was able to pick the body shop, but it was also several years ago. USAA even waived the deductible since we had a police report which clearly faulted the other guy. USAA even told me to make sure that I get a loaner car the size of my sedan that was damaged. (The other guy's coverage only included renter coverage for an Econo-box, but they eventually paid up for a full-size four door.)
 
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AMPd

Active Member
Nov 27, 2012
4,598
4,135
Northern California
You have a few options that include going through your own insurance, hiring a lawyer (most will not talk with you if you are not injured), or a DYI by pursuing a judgement against the other driver in small claims court (hassle).

When I was rear-ended, instead of dealing with the no-name insurance of the at-fault party, I went through mine. I paid my $500 collision deductible, work started immediately, and the $500 was reimbursed when my insurance settled with theirs. It was explained to me that whatever my insurance settled for, I was owed the first $500 of that amount.

Aaannnd of course, consider a diminished value claim. Although a DV claim may not be worth it for a relatively small fender bender.

Even if his car will now have an accident listen on carfax? I feel like that definitely diminishes the vehicles value.
 

Sawyer8888

Member
Mar 16, 2017
422
421
South Florida
Even if his car will now have an accident liste[d] on carfax? I feel like that definitely diminishes the vehicle['s] value.

Could the accident get reported to CarFax? Maybe. Maybe not.
Would I pursue a DV claim even if it was only for a few thousand dollars or if I thought it would not appear on CarFax? Yes. So, if you're like me and enjoy subjecting yourself to frustration and headaches, then by all means, do it. In my experience, this is far from an easy process and you will rarely if ever be compensated for the full diminished value.

Another pro-DV article (with video) and it's recent:

All the best with your repair @viper2ko.
 
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trm2

Active Member
Apr 3, 2016
1,074
1,665
CLE
I got rear ended a couple weeks ago (shop was backed up), dropped the car off and yesterday it went in and they determined it needed a new bumper. I had 2 choices per the Tesla network of body shops. Service king, or a local shop that specializes in Tesla's and exotics. I had heard bad things about Service King so went with the smaller shop based on a recommendation from a friend. They submitted a supplemental showing I need a new rear bumper but the adjuster is now saying they won't pay for the high labor rate and that I have to pay the difference. What are my options/rights here? I went through the other guys insurance (USAA).

If that particular body shop has rates way out of line with the market, no, the insurance company will not pay those rates and shouldn't. USAA does have to make you whole again, but doesn't have to pay extra for that. That said, any reputable shop will have rates inline with the market and you won't have to worry.
 

D.E.

Uncorked
Oct 12, 2016
764
984
Ann Arbor, MI
You have no relationship with the other fellow's insurance company. He has the relationship. He pays his insurance premium to protect himself from financial loss.
Basically your claim is against the other driver, not his insurance company. If you sue the other driver and win, it is up to him to recover from his insurance company.
That's the idea anyway. No one wants to go to court, it is expensive and it takes a long time. So what happens is the other fellow's insurance company negotiates. You use your insurance company to negotiate on your behalf.

If the other fellow crashes into your car, and if he's totally in the wrong, it is up to his side to make you whole again, doing all they can to restore you and your car as close as possible to the position you'd be in if this other driver hadn't hit you.

So your car should be restored. If it cannot be, it is up to them to buy yours and provide you an equal replacement. If there is loss of value simply because it has now been involved in an accident, the other fellow is liable for that loss as well. If you are without a car, they should provide you one as well during the time yours isn't available to you. They are responsible for all repairs.

The other insurance company owes it to their shareholders to minimize all losses. So if they can get away with paying less, often they'll do that. You should keep in mind that they are obligated to do all they can to repair all the damage they caused, both physical and financial. They do not have any duty to leave you better off than you were before.

Always keep in mind your beef is with the driver that hit you. It is his relationship with his insurance company that protects him from financial losses. You are not bound by his insurance choices. As far as you are concerned, you should insist on full and complete restitution. At some point you'll need to sign something that says you are satisfied with all the repairs. At that point the other fellow is done so don't sign if repairs aren't complete or if the vehicle isn't restored to the previous condition.

If you are in a no fault state, there will be another set of rules.

I'm not an attorney, I've just been around for a while. I invite any attorney to jump in and point out anything I've said that isn't accurate.
 

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