Specialists in Auto Collision Repair Serving East Central Minnesota Since 1978

Your vehicle is damaged...and you are counting on insurance to help pay for the repairs.  Here are some questions and answers about the auto claim settlement process.

Question-Can I take my car to the repair shop of my Choice?

Answer-Your insurance company cannot require you to have your vehicle repaired at a specific repair shop.  

Question-Does my insurance company have the right to inspect my vehicle?

Answer-While your insurance company does have a right to inspect your vehicle, they are not required to do so.  If your insurer chooses to perform an inspection, they cannot require you to drive your vehicle to one of their “drive-in” claims center or other similar facility solely under control of the insurance company.  The inspection may be performed, however, by one of the company’s “preferred” repair shops.  Your insurer can require you to travel a reasonable distance to complete their inspection.  If your vehicle can be safely drive, they must complete the inspection within 15 days after you notify them of your claim.  If your vehicle cannot be safely driven, your insurer must inspect the vehicle within 5 business days after you notify them of the claim.

Question-Can I have my vehicle repaired with original equipment parts(OEM)...and will the insurance company pay for them?

Answer-If parts are being replaced on your damaged vehicle, your insurance company is required to pay for original equipment(OEM) parts, unless you agree to aftermarket parts (parts not made by your vehicle’s manufacturer).  However, your insurance company is only responsible for restoring your vehicle to the way it was before it was damaged.  If your vehicle was not new at the time of the loss, the insurer does not have to pay for new OEM Parts.  They must pay for parts of “like kind and quality”(OEM parts of comparable age and condition).

Question-What is the difference between “betterment” and “depreciation”?  Can my insurance company reduce my settlement based on either?

Answer-Betterment means that your vehicle is better than it was before it was damaged.  Your insurance company may only reduce your settlement if your vehicle’s resale value has increased over what it was before the accident.  Generally, an insurer will deduct the difference between the cost of a used part (appropriate for the age and condition of the  vehicle) and the cost of the new part.  Betterment is only considered for major parts such as transmissions, blocks, etc.  Items such as fenders and tires do not generally increase the overall resale value of the vehicle enough to merit a betterment reduction.

Depreciation refers to a reduction in your settlement based on the age or use of a part that is to be replaced.  Certain parts on your vehicle have a “life expectancy” and your insurance company may take this into consideration.  For example, if a tire on your vehicle is expected to last 60,000 miles, but it was used for 30,000 miles at the time of the accident, your insurance company may elect to pay only 50% for a new tire.