Is it legal to ask a repair shop to waive your deductible?

Question

(ie billing it to the insurance company)

Furthermore, will any companies actually do this?

Answer 1

It doesn't exactly work that way.

Let's say your auto deductible is $500 and your auto repairs are $2,800. The repair shop will send you the bill for $2,800 which you then submit to your insurance company. They will subtract your $500 deductible and send you a check for $2,300. You must pay the repair shop for their $2,800 repair job.

The only way to get around this is to ask the repair shop to bill you $3,300 for their $2,800 repair job. Then your insurance company will subtract your $500 deductible from the $3,300 bill and send you a check for $2,800. You then pay this $2,800 to the repair shop as payment in full (assuming they don't go back on their word and demand the $3,300 shown on the bill).

And is this illegal? Yes, it's called insurance fraud.

Answer 2

In most cases the body shop will submit a supplement for " hidden damages" sometimes the adjuster will inspect these damages, other times, if the shop is reputable, he will just let it slide, it depends on the shop. It's not illegal for you to ask. I have seen claims where the shop would not install parts to save the insured their deductible,

As far as the "Aftermarket parts" issue. as was mentioned before read your policy. if it states aftermarket parts will be used in place of OEM only if these parts are considered CAPA certified. This is a guarantee by the manufacturer the parts met the OEM specifications. And carry a warranty that meets or exceed the Original manufacturers warranty. Most companies start using aftermarket parts after the current year or the mileage exceeds 13,000. However these parts are figured into the estimate. The only chance of saving your deductible is to not completer the repairs.

Answer 3

Yes, it would be illegal. Padding an insurance claim or billing the insurance company one amount and actually charging less would be insurance fraud.

Legal ways to get around your deductible:

Read your policy and see if there is a provision for after market (non OEM) replacement parts. My policy reads if I agree to after market parts, they'll split the savings with me and apply it to my deductible.

Agree to not get a replacement rental car and have them apply the cost to your deductible. Of course you'll need to have to coverage on your policy if you're at fault or get the other company to pay it if they're at fault. You'll also have to live without the replacement car.

Try negotiating with your adjuster. Insist on new OEM parts for the body shop estimate (in most states there are statutes that say an insurer cannot force you to use after-market parts). This will cost the insurance company mucho money. When the adjuster blows a gasket, offer to accept after-market parts if they pay your deductible.

Remember, you never get what you deserve, you get what you negotiate. Good luck

Answer 4

Having the repair Co. agree to inflate the cost of
repair to get you off the hook for the deductable is
illegal if your ins.co. discovers,and they do investigate,
you can also be charged with conspirecy to commit
fraud,so you could even end up with prison time no
ins.att.fees and a record!!!

Answer 5

No, it's illegal. There's even a term for it - burying the deductible.

If your dad owns the body shop, you *might* get him to break the law for you. But besides that, you'll need to talk to friends & buddies willing to risk jail time.

Answer 6

I don't see why it would be illegal , dishonest but not illegal , depending on the amount of your deductible chances are the insurance company will know the shop is padding the expenses..

Answer 7

Some will give you a high estimate, just so the insurance will pay more, and you will not have to pay it.
It is legal to do.