Repairs and estimates

How the estimate usually happens

TDI’s auto insurance guide describes the steps a company takes after you file a claim. It says the company will have an adjuster look at your damage, that the adjuster will estimate the cost of repairs, and that the company will base its payment on that estimate. If you can drive the car, TDI says the company might ask you to take it to one of its claim centers so an adjuster can look at it, and that some companies might ask you to get your own estimates and send them in.

TDI also says that if the damage turns out to be worse than the adjuster originally thought, you or the repair shop can talk to the adjuster about raising the estimate. Body shops often find hidden damage after they take panels off. When that happens, ask the shop to document it with photos and a written supplement, and make sure the adjuster receives it before the work continues.

You choose the shop

TDI states that some companies might give you a list of preferred repair shops, but that they cannot require you to use a shop on that list. The Texas auto insurance Consumer Bill of Rights that TDI publishes also addresses repair-shop choice. A preferred shop may be convenient, and some companies offer their own assurances for work done there, but the choice is yours. Ask any shop you consider:

• whether it will work directly with the insurer on supplements;
• what warranty it gives on its own workmanship, in writing;
• how long it expects the repair to take, and how it will tell you about parts delays;
• whether it will return replaced parts or show them to you on request.

Repair time matters beyond convenience. On the rental car page, TDI’s guidance ties the length of a paid rental to the estimated labor hours, so delays should be reported to the adjuster as they happen.

Parts: like kind and quality

TDI says the insurance company is only required to pay for parts of like kind and quality to those that were damaged, and that it does not have to pay for original parts from the manufacturer. If you want manufacturer parts where the estimate lists other parts, ask the shop and adjuster what the price difference would be and who would pay it before work starts. If you lease or finance the car, check whether your contract says anything about parts.

Payment is limited to actual cash value

TDI explains that insurance companies will pay for repairs or replacement of your car only up to its actual cash value, which it defines as the cost to replace your car minus depreciation. When repair costs approach that value, the company may decide the car is a total loss. The totaled car page explains what happens then.

Deductibles: whose claim is it?

TDI says you pay a deductible on collision, comprehensive, and uninsured/underinsured motorist claims, and that you do not pay a deductible on claims against another driver’s insurance company. That is one reason people first try the other driver’s company when the other driver appears to be at fault. TDI also notes that if the other driver’s company refuses to pay, you can file with your own company if you have collision coverage, and your company will probably try to collect from the other company.

Deadlines when the claim is on your own policy

TDI’s guide lists deadlines Texas law sets for a company acting on a claim under your own policy. It says a company must tell you it got your claim within 15 days of getting notice; accept or reject the claim within 15 business days of getting all the information it needs, or take up to 45 days if it needs more time and tells you why; explain a denial in writing; and send a check within five business days after it agrees to pay. TDI adds that this prompt payment law does not apply when another driver’s insurance company is paying, though that company must act in good faith and try to settle quickly and fairly.

Keep a repair file

Keep the original estimate, every supplement, the shop’s final invoice, photos before and after the repair, and any warranty. If you sell the car later, a clear repair record can help explain its history. Keep the file yourself; this guide does not store records.

If you disagree with the estimate

Start by telling the company why, with the shop’s written estimate and photos. TDI says you might be able to work things out by talking with the company or adjuster, and lists further options such as appraisal for disputes with your own company, a written complaint to TDI, and court. Those are covered on the claim disagreements page. TDI’s Consumer Help Line is 800-252-3439. This guide is not legal advice and is not a law firm.