In the aftermath of an auto accident you want your life back in order and your means of transportation repaired or replaced quickly. Before you begin the vehicle repair process it is particularly important to know what rights and services you are entitled to. Reading the nationally accepted Auto Repair Bill of Rights can help guide you through the repair or replacement process. It will also provide you with the knowledge to build a good rapport with the selected repair shop.

Your Auto Repair Bill of Rights

Basic Rights
1. You have the right to select the repair facility of your choice.
2. You have the right to genuine, original equipment parts.
3. You have the right to a guarantee that your vehicle will be repaired to factory specifications.
4. You have the right to be reimbursed for any diminishment of your vehicle's value.
5. You have the right to a local retail market valuation if your vehicle is totaled.

If you were not the cause of the accident, you have additional rights from the opposing insurance carrier including:
1. The right, at no charge, to a rental vehicle of like, kind and quality to your own.
2. The right to recovery of any deductible or betterment charges.

Choosing a Collision Repair Facility
Many insurance carriers have begun to direct or encourage use of facilities that belong to their Direct Repair Program (DRP). In exchange for direct referrals, participating shops agree to labor discounts and parts pricing concessions, as well as a commitment to expedite your repair. These facilities generally have up to date equipment and qualified personnel.

A possible downside of these programs is that they often include a provision mandating the use of after-factory parts and components, many of which do not meet the safety and appearance requirements required by the manufacturer of your vehicle.

Since participants in DRP programs are independent facilities, it is important to research the individual business that your insurance company recommends. As a consumer, you should not worry about any discounts your carrier may receive. Concern yourself with reputation of the facility and the warranty they provide.

Make sure you are offered:
1. Factory replacement parts,
2. A minimum of a five year warranty on these parts,
3. A paint warranty of at least 3 years, and
4. A lifetime guarantee on all labor.

All repair facilities, whether a member of a DRP program or not, should work for you in achieving a repair that properly and thoroughly restores your vehicle to it's pre-loss safety, and appearance and reliability conditions. If, because of contract restraints placed on them by your insurance carrier, the shop is not in a position to offer these guarantees, you are within your rights to have the vehicle repaired at another facility of your choice.

Although your insurance carrier can recommend, they cannot require you to use a specific facility or select from a list of their 'preferred' shops. Additionally, if your vehicle is leased, read your contract carefully as it may contain information you need to consider in selecting a repair facility.

The majority of work a quality collision repair facility performs comes from repeat business, past customers and referrals. Ask friends for recommendations on shops that they have used. Check for participation in technician training programs such as the I-CAR Gold Certification.

Deductibles and Betterment
Your insurance company is required by law to promptly begin good faith negotiations with any licensed shop you select. If the damage is covered by insurance, you are entitled to have your vehicle restored to pre-loss condition with respect to safety, function, appearance and value; or to be compensated for the actual cash pre-loss value. If a deductible or betterment applies, your insurance settlement will be adjusted by that amount.

Betterment, in this example, is the amount the value of your vehicle has been increased by the repair. It is applied to items that wear out and are usually replaced during the automobile's normal life. For example, if your tires are 70% worn and one is damaged in an accident, it would be replaced with a new tire but the insurance carrier might pay only 30% of its cost. You would be responsible for the remaining 70%.

Exceptions of these charges occur if you were not the cause of the accident. In this case the third party carrier should be held responsible for both your deductible and any betterment charges, including an additional matching tire on the same axle as the one replaced.

Repair Parts
You are entitled to have your vehicle restored to pre-loss condition, and the type of repair parts installed can affect the repair as much as your choice of a facility. Make sure you know what types of parts are being proposed for the repair of your vehicle.

First, there are new OEM (Original Equipment Manufacturer) parts, which are supplied by the vehicle manufacturer. These meet the same specifications and standards in respect to fit, finish, and corrosion protection and crashworthiness as the parts that were installed on your vehicle when it was built. They also carry the car manufacturer's warranty.

Second, there are used, recycled or salvage parts. If these parts are OEM and undamaged, taken from a similar vehicle as yours and the same age or newer, they are an acceptable lower cost alternative to new OEM parts. The primary area of concern on used OEM parts centers on their preparation by the repair facility. Insist that old paint be completely removed and a quality rust inhibiting primer applied and baked on all surfaces. If all the criteria stated above are met, the use of used OEM parts should restore your vehicle to its pre-loss condition.

Third, there are non-OEM parts also known as after-market, 'quality replacement' or offshore parts that are not made by the vehicle manufacturer. These are not made by or for your original manufacturer, do not undergo the same testing, and do not carry the manufacturer's warranty. Non-OEM parts have been shown in many cases to have decreased tolerances for fit and finish, corrode faster and offer lower crash resistance than factory approved components. In addition, the use of these parts may void your vehicle's warranty in areas that may be affected by their use. It is the opinion of manufacturers and consumer advocacy agencies that the use of these parts does not restore a vehicle to pre-loss condition.

Inherent Diminished Value
Diminished Value is the loss to a damaged vehicle's market value after repairs have been completed. Any vehicle that has undergone a repair as a result of body damage is affected regardless of the quality of restoration.When you trade in your car, odds are the dealership will run a report that will give them its ownership, mileage and body repair history. They will then carefully inspect the repair and deduct the diminished value from their appraisal. The diminished value may be as low as $100 but can go as high as 50% of it's retail market value depending on the year, make and model.

Insurance Related Diminished Value occurs when an insurance company does not allow for the needed repairs or requires substandard parts be used. For example, a car sustains damage to the hood, and the radiator support also suffers minor damage. If the insurance company specifies replacing the hood with an aftermarket part and does not allow for the proper repair or replacement of the radiator support, the non-OEM hood and the visible prior damage will both diminish the value of this vehicle.

Repair Related Diminished Value applies when a facility is paid to perform needed repairs and does not do them correctly. Examples of this may be poor matching paint, a dull finish or misaligned panels.

Total Loss Market Report
A good rule of thumb is that when the damage estimate reaches 70% of a vehicle's market value, it will be declared a total loss. In fact with many newer and/or high-end automobiles, many insurers are lowering the threshold down to the 62-65% range because of the concerns raised by diminished value claims.

If your vehicle is deemed a total loss you are entitled to a local or regional (if market conditions warrant) retail market valuation to determine it's Actual Cash Value (ACV). These often are performed by outside third party companies who analyze dealership and private party sales and availability. These firms compare your vehicle to others available or recently sold and prepare a market value adjusted for the options, mileage and pre-loss condition of your automobile.

It is important to realize that condition plays a great part in a vehicle's value. Gather all maintenance records, repair bills and betterment you have performed and forward these to your claim representative along with a complete description of your vehicle's options, features and mileage. If you are missing any records, the facilities that performed the work should be able to assist you in recreating the vehicle's service history.

Do not blindly accept the insurance company's ACV amount. Insist that your insurance company forward you the complete valuation and compare all the details to your own records. Call the dealers listed and verify all information. If there are any discrepancies notify your claim representative immediately.

Your insurance company is required by law to promptly begin good faith negotiations with any licensed shop you select. It is your responsibility to make sure you are satisfied with the results. To ensure that you receive the maximum settlement possible, order our Detailed Diminished Value Report (for repairable vehicles) or Detailed Local Market Value Report (for total loss vehicles) for an in-depth analysis of your vehicle value or repair costs. With a minimal fee, only $59.00 for either report, you can have all the possible information you'll need about your specific vehicle emailed to you within 24 hours.

ClaimCoach is not affiliated with any law firm or involved in the personal injury claim process. We all pay for automobile insurance. ClaimCoach ensures that you get what you pay for.

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