Automotive

Auto Body Shop Is Milking My Insurance For All It's Worth

  • Last Updated:
  • Nov 15th, 2016 5:14 pm
[OP]
Deal Addict
Sep 27, 2009
1765 posts
187 upvotes
Oakville, ON

Auto Body Shop Is Milking My Insurance For All It's Worth

I hit a deer about a week ago. Front panel and hood pretty dented but car still totally drivable. Took it to the autobody shop my insurance recommended and the estimate was $6000 and they said it was not safe to drive so of course I need the biggest rental car the rental company down the street has for ten days.

I'm pretty sure if this wasn't going through insurance it would be in the $3000 vicinity.

They claim I need a new rad, AC got (punched), etc.

Wow no wonder our insurance premiums are so high.
Images
  • 20161107_070155.jpg
15 replies
Deal Addict
Mar 22, 2004
2973 posts
542 upvotes
Guncho wrote:
Nov 15th, 2016 4:04 pm
I hit a deer about a week ago. Front panel and hood pretty dented but car still totally drivable. Took it to the autobody shop my insurance recommended and the estimate was $6000 and they said it was not safe to drive so of course I need the biggest rental car the rental company down the street has for ten days.

I'm pretty sure if this wasn't going through insurance it would be in the $3000 vicinity.

They claim I need a new rad, AC got (punched), etc.

Wow no wonder our insurance premiums are so high.
This is nothing comparing health claims they pay out in 100k of dollars.
Sr. Member
May 12, 2003
748 posts
211 upvotes
That's why I take my car to a shop and say i'm not going through insurance....and see what the estimate is.
[OP]
Deal Addict
Sep 27, 2009
1765 posts
187 upvotes
Oakville, ON
My understanding is whether my insurance premiums go up or not is not and by how much is not dependent on the cost of the repair so it didn't really matter to me just an observation.
Member
Jun 22, 2009
264 posts
128 upvotes
Toronto
You'd be surprised as to how many body shops are willing to make a deal with you if you use them for repairs. They'll charge the insurance high amounts and do extra stuff for you on the side. My buddy's car got got rear ended and he ended up getting his gfs front lip replaced and painted at no cost along with a complete brake swap for his gfs car.
Deal Guru
User avatar
Jun 12, 2003
14650 posts
1048 upvotes
Markham
Desii wrote:
Nov 15th, 2016 5:14 pm
You'd be surprised as to how many body shops are willing to make a deal with you if you use them for repairs. They'll charge the insurance high amounts and do extra stuff for you on the side. My buddy's car got got rear ended and he ended up getting his gfs front lip replaced and painted at no cost along with a complete brake swap for his gfs car.
Yeap, this is nothing new. It's great when it's your own mechanic.
ShadowVlican
Deal Expert
Jun 30, 2006
15977 posts
3767 upvotes
Toronto
This is nothing new. This is why car body shops make a killing off Insurance claims. They pretty much claim the max they can.
[OP]
Deal Addict
Sep 27, 2009
1765 posts
187 upvotes
Oakville, ON
Why does the insurance allow it?

They must know how much repairs cost.
Deal Guru
Jan 27, 2006
10257 posts
3968 upvotes
Vancouver, BC
It's really a cat and mouse game. The insurance companies run stings but there are just too many independent shops out there for them to do a lot.
Deal Addict
Nov 12, 2004
1754 posts
416 upvotes
Hometown
In Ontario insurance companies are guaranteed 12% "profit" AFTER claims in the following year.... So mathematically if they have to pay all their other fixed costs out of a regulated 12% is that easier after they paid out 1 Million in claims the year before of if they paid out 15 million in the same year? Historically, the government just takes the data submitted on payouts wrings their hands a tad and okays the price hikes. Also drivers are FORCED by law to have insurance and pay whatever the companies charge us, so we can't really revolt, the best we can do is shop around for lowest overpriced rate we can find. Not having insurance is just too big a risk for most honest people as he penalty for NOT having insurance and getting caught is ruinous financially.

The only things needed to keep the scam working.

One, is the belief that your competitors selling insurance in Ontario are on board and doing the same thing, which to feed their shareholders they have to.

Two that the point where consumers are priced out of the market and sell their cars and walk won't be reached, and so far we just whine and moan but we pony up the monthly payments.

Do the insurance companies KNOW that 99% of shops overcharge them? Of course they do. They aren't stupid just greedy. As long as the overcharges don't tip the apple cart right over it is actually beneficial to them in the long run, with the way the system is rigged in their favor in Ontario.
[OP]
Deal Addict
Sep 27, 2009
1765 posts
187 upvotes
Oakville, ON
Canuck2fan wrote:
Nov 15th, 2016 6:47 pm
In Ontario insurance companies are guaranteed 12% "profit" AFTER claims in the following year.... So mathematically if they have to pay all their other fixed costs out of a regulated 12% is that easier after they paid out 1 Million in claims the year before of if they paid out 15 million in the same year? Historically, the government just takes the data submitted on payouts wrings their hands a tad and okays the price hikes. Also drivers are FORCED by law to have insurance and pay whatever the companies charge us, so we can't really revolt, the best we can do is shop around for lowest overpriced rate we can find. Not having insurance is just too big a risk for most honest people as he penalty for NOT having insurance and getting caught is ruinous financially.

The only things needed to keep the scam working.

One, is the belief that your competitors selling insurance in Ontario are on board and doing the same thing, which to feed their shareholders they have to.

Two that the point where consumers are priced out of the market and sell their cars and walk won't be reached, and so far we just whine and moan but we pony up the monthly payments.

Do the insurance companies KNOW that 99% of shops overcharge them? Of course they do. They aren't stupid just greedy. As long as the overcharges don't tip the apple cart right over it is actually beneficial to them in the long run, with the way the system is rigged in their favor in Ontario.
Really? Insurance companies are guaranteed 12% by the government?
Deal Addict
User avatar
Jun 17, 2006
3503 posts
103 upvotes
Halton
Did you keep the deer mm lol
Enjoy Life
Deal Expert
Aug 2, 2001
15445 posts
5702 upvotes
Guncho wrote:
Nov 15th, 2016 5:42 pm
Why does the insurance allow it?

They must know how much repairs cost.
The insurance company has pricing databases they use for the repairs - these are industry standard guides.

Will some shops be able to do it quicker/cheaper? Absolutely. It's the same as someone doing a brake job in 1.5 hours when the book time is 2.5 hours. But insurance companies also do not want to negotiate every job on an individual basis. Instead they rely on a broad pricing list for all of their jobs. Many industries have this sort of system in place - such as computer repair companies that do warranty work.


Remember, the insurance company has to return your vehicle to the condition it was in before the accident. Any corners cut are unacceptable - if a part needs to be replaced, it's replaced. Where as if you were paying for it out of your pocket you may say "Well the rad is just a little dented but still functions fine", even though insurance would have replaced it.
Deal Addict
Feb 24, 2007
3859 posts
775 upvotes
Canuck2fan wrote:
Nov 15th, 2016 6:47 pm
In Ontario insurance companies are guaranteed 12% "profit" AFTER claims in the following year.... So mathematically if they have to pay all their other fixed costs out of a regulated 12% is that easier after they paid out 1 Million in claims the year before of if they paid out 15 million in the same year? Historically, the government just takes the data submitted on payouts wrings their hands a tad and okays the price hikes. Also drivers are FORCED by law to have insurance and pay whatever the companies charge us, so we can't really revolt, the best we can do is shop around for lowest overpriced rate we can find. Not having insurance is just too big a risk for most honest people as he penalty for NOT having insurance and getting caught is ruinous financially.

The only things needed to keep the scam working.

One, is the belief that your competitors selling insurance in Ontario are on board and doing the same thing, which to feed their shareholders they have to.

Two that the point where consumers are priced out of the market and sell their cars and walk won't be reached, and so far we just whine and moan but we pony up the monthly payments.

Do the insurance companies KNOW that 99% of shops overcharge them? Of course they do. They aren't stupid just greedy. As long as the overcharges don't tip the apple cart right over it is actually beneficial to them in the long run, with the way the system is rigged in their favor in Ontario.
I thought insurance will send a guy to look and estimate the cost of the damage with the company. That happened to mine when my car got rear ended. I didn't go to their shop but to my mechanic instead.

@Canuck2Fan. If Ontario Insurance companies are guaranteed 12% profit after claims and would be okay for the price hikes for the following year, then would it make sense that the companies making more profit by giving out more money? ie $12/$100 but $120/$1000 etc. That's questionable.
FS : Promise NS4300N NAS,Linksys RE400W,E5151,HBB1,VIVOTab RT,MemoPad 8
[OP]
Deal Addict
Sep 27, 2009
1765 posts
187 upvotes
Oakville, ON
If you go to a shop they recommend the shop can approve their own estimates.

They recommend like 5 shops in my area.

Top