When you don’t know how to estimate car insurance, it’s easy to be confused when you see conflicting numbers from your insurer and your local body shop. Why is your car insurance estimate so much different from your body shop estimate? Should there be a difference?

The answer is more straightforward than you think. Keep reading to learn why the numbers don’t add up:

Insurance Companies Provide Initial Estimates

In many situations, the estimate that an insurance company provides isn’t the final repair cost; it’s a starting point. They regularly prepare estimates based on visual inspection, submitted photos, and brief contact with the vehicle, in some cases.

They can’t always see the full extent of the damage until the vehicle is disassembled. As a result, their initial estimate won’t always reflect the true cost of the parts and services provided. 

Body Shops Write Repair-Based Estimates

Insurance companies want to know how much it will cost to repair a vehicle to a safe, structurally sound pre-accident condition using the manufacturer’s repair procedures. So, reputable body shops work it out for them.

They create their estimate outlining labor for disassembling and reassembling the vehicle, taking structural measurements, calibrating sensors, performing all necessary repairs and parts replacements, and blending and refinishing the paint. With so much involved in comprehensive repairs, it’s no wonder that body shop estimates often differ from initial insurance company estimates.

Labor Rates Differ from Shop to Shop

Insurance companies may create their initial estimate with an ‘average’ labor rate in the area. An average rate doesn’t mean an exact rate.

Most reputable body shops set their rates to reflect their certified technicians, their specialized equipment, and OEM repair standards, which are manufacturer-approved. After review, insurance companies often agree to these rates.

Aftermarket vs. OEM Parts

OEM parts, or original equipment manufacturer parts, are parts that will be identical to those installed on your vehicle when it was first built. In contrast, aftermarket parts are vehicle components made by third-party companies. They often vary in quality, fit, and performance.

In most cases, aftermarket parts are more affordable than OEM parts, making them more desirable for many vehicle owners and insurance companies. Insurance estimates are often provided on the assumption that all parts used in a vehicle undergoing collision repairs are aftermarket, recycled, or reconditioned.

However, many body shops use OEM parts to ensure proper fit and safety. If your automotive insurance policy allows the use of OEM parts, your insurer may adjust its car insurance estimate to better reflect that of the body shop.

Missing Services

Insurers are in the insurance industry, not the automotive industry. While they might have a pretty good understanding of the repairs required to get a vehicle back on the road, they’ll rarely have as much knowledge as someone specializing in auto collision repair. As a result, it’s entirely possible for services to be missed from an insurance estimate.

Several necessary steps are often omitted, including paint blending, corrosion protection, electronic scanning and calibration, and one-time-use fasteners. When insurance companies are made aware of these exclusions, they often add them later as ‘supplements.’

Supplements Are Normal

Seeing ‘supplements’ listed on a body shop estimate can seem unusual, but they are fairly standard in a car insurance estimate. When repairs are underway and hidden damage is discovered, the body shop submits a supplement to the insurance company detailing the additional costs.

Most claims end up costing more than the original insurance estimate, and a supplement is a straightforward way to explain why.

Paying the Difference

It’s only natural to feel panicked when you see a significant difference between what the insurance company says your vehicle will cost to fix and how much it actually costs to fix through a respected body shop. When you don’t know how to estimate car insurance, you may also not know who has to cover the difference!

In most cases, the insurance company will pay for the approved supplements, which will be the difference between the initial estimate and the final cost. You will only need to cover your deductible.

If there is a disagreement about how much your car cost to fix, most body shops and insurers negotiate between themselves.

Discuss Your Car Insurance Estimate with Mr. Car Shine Body Shop in DFW

Whether you need help with your car insurance estimate or are ready to proceed with auto collision repairs, Mr. Car Shine Body Shop in Dallas-Fort Worth is the team to call. Let our certified technicians lead the way with insurance claim assistance and provide the specialized collision repair you need to get back on the road. Contact us today and request a free, no-obligation estimate!