An accident is stressful enough. People may have been hurt, and it is not always clear who was at fault. It is important to note that your insurance company cannot tell you where to get your estimate or your repairs done - the repair shop is your choice, because legally the relationship is between you and the shop, not the insurance company and the shop.
Once you have made sure everyone is healthy or being taken care of, here are the steps you should take*:
Getting your vehicle repaired
Check with your agent or broker to confirm the type of coverage you have.
If the damage to the vehicle is covered by your insurance, the following steps will assist you.
1. Submitting your claim
If you are claiming from your own insurance company, ask the company for a proof of loss claim form. Complete, sign, and submit this form to the company as soon as possible to avoid delay in settling your claim.
2. Repair cost estimate
Before your vehicle can be repaired, you and your insurer need to know how much the repairs will cost.
Your insurance company may accept the repair shop’s estimate of the damage, or may want to appraise the damage to the vehicle. The company has the right to initially assess the damages to your vehicle and estimate the cost to repair them. Because the quality and extent of the repairs will affect the value of your vehicle, you may wish to be present if the insurer’s appraiser meets with the body shop manager to discuss the repair job.
If your vehicle is drivable, take your vehicle and a copy of the insurance company’s appraisal to the repair shop of your choice.
If the vehicle is not drivable, or it was towed from the collision scene, contact your insurance company so that suitable arrangements can be made.
Only one estimate is required. However, you may decide to get more than one, in order to compare prices and opinions about the extent of repairs. If you do get a second estimate and it is different, find out why. Be aware that the lowest price is not always the best deal. Look for a shop that has a reputation for high quality work and a written guarantee.
An estimate of costs should specify:
what repairs are being done,
whether parts are being repaired or replaced,
whether new or second-hand parts are being used, and
whether parts from the original manufacturer or generic parts are being used. If the body shop plans to use generic parts, compare the warranty provided to that offered on parts from the original manufacturer.
3. Choosing a repair shop
You have the right to have your vehicle’s damage estimated and repaired at the auto body shop of your choice. When you select the shop, the responsibility for a satisfactory repair job rests with you, not the insurer. Any dispute about the quality of the repair or the collision shop’s guarantee or warranty is a contractual matter between you and the repair shop. So, it is in your best interest to shop carefully for a body shop. Once you have chosen a shop, notify your insurance company.
You have the right to choose a service provider even if you have an adjuster.
The following associations may be approached for a list of their members-in-good-standing in your area:
Certified Collision Automotive Repair - the industry quality assurance program.
To ensure quality of service, check whether the shop you are dealing with is licensed. A list of licensed shops is available at the Alberta Motor Vehicle Industry Council website.
4. If your insurer recommends a repair shop
An insurance company cannot require that your vehicle be repaired at a specific repair shop. However, an insurance company can recommend that the damage be estimated and repaired at a specific repair shop.
When an insurance company states or implies that they guarantee repairs if you take your vehicle to a shop they choose ask about the details of that guarantee and ask to see the written guarantee. Often, an insurance company’s guarantee is actually the shop’s guarantee, and the responsibility for a satisfactory repair job will remain a contractual matter between you and the shop – just as if you had chosen the shop.
5. If your insurer repairs or replaces your vehicle
In some cases, your insurer may, by giving you a formal notice in writing, exercise its right to repair your vehicle. In such a case, your insurer may assume complete control of the repair process and have the vehicle repaired where they choose. By doing so, your insurance company assumes final responsibility for a satisfactory repair job and must restore the damaged vehicle to its condition prior to the collision with no additional cost, other than stated in the policy or as otherwise allowed by law.
The insurance company has the legal option to repair or replace your vehicle. If the company takes this option, it must give you written notice within seven days after receiving your Notice of Loss and Proof of Claim Form. In this case, the company is responsible for insuring the quality of either the repairs or the replacement.
6. Dealing with the repair shop
Find out who sets the repair standards such as who decides whether the repair has been properly completed. Find out who will re-do the work if you are unsatisfied with the repair.
The shop will ask you to sign a work order authorizing the repairs. Make sure it specifies all the details outlined in the estimate. Any changes or additions to the job and the related costs should be written on the work order. Your signature on the work order means that you are ultimately responsible for the invoiced costs.
Make sure that your insurance company agrees to pay for all repairs before you have the work completed. Find out how your insurer handles supplemental repairs just in case the repair shop finds more damage to your vehicle that was not at the original estimate. You might need to submit an official receipt from the repair shop with your insurance claim.
Once the repairs are done, check them over. You may decide to have an independent party look at them. If you are not satisfied with the repairs, discuss the problem with the body shop manager. If the problem isn’t resolved, notify your insurance company.
There are several methods of paying the bill. You are responsible for paying the amount of the deductible, as noted in your insurance contract. The insurance company may forward to you the rest of the money to pay the body shop. Or the insurance company may pay the shop directly. A third possibility is the insurance company may send a cheque jointly paid to you and the body shop.
Once the shop has been paid, or when the insurance company has confirmed it will pay on your behalf, you can take your vehicle home.
Disagreements and dispute resolution
If the amount of damage to your vehicle is being disputed, or other disagreements arise over your vehicle’s repair, and all attempts to negotiate have failed, a formal arbitration process is open to you.
If you choose to follow this procedure, you will be responsible for your share of the cost involved.
To start the appraisal procedure, submit a proof of loss claim form available from your insurer and send a written request to your insurance company
A three-member group will resolve the dispute. You choose an appraiser, your insurance company chooses one, and the two appraisers appoint an umpire. An appraiser can be anyone either party considers to be qualified to present its side of the dispute. Each side pays for its own appraiser and half the cost of the umpire. The decision of any two of these three people is binding.
Dealing with the other driver's insurance company
If the other driver caused the collision, you have two options:
You may claim under your own collision coverage, if you carry it. Your company will pay your claim, then deal with the other insurance company. Be sure to ask if your premium will be affected if you claim on your own policy. With this option, you may have to pay your deductible up front, but you can attempt to recover it from the other insurance company or the other driver.
When you claim on your own policy, the appraisal process is available to you.You may claim directly against the other driver through his or her insurance company. If you wish to do this, notify that company after contacting your own insurance company. Many of the steps listed above still apply. You select a body shop and obtain an estimate, but your dealings are with the other company. However, if you choose this option, the provision for formal appraisal does not apply.
The other driver’s insurance company may ask you to sign a release form before paying you or the body shop you have chosen. When you sign a release form, you discharge the other person and his or her insurance company from any further liability to you. It is a final payment. Read the form carefully to make sure that you are releasing only the claims for which you have settled. If your claim has not been finalized with regard to personal injuries you suffered in the collision, make sure the form does not release liability for your injury. You may wish to consult a lawyer.
If the other driver refuses to file a report with his or her insurance company, the company may deny your claim unless you sue the driver in court and get a judgment.
*This information comes from the Alberta Treasury Board and Finance Departments: