Is this possible? Allowed?

[Disabled Vet]

Jurisdiction

Indiana

Auto was in a wreck in Dec 2016 as it was rear ended. The other driver was found at fault. Their insurance company stated if they took the auto to XYZ shop the repair had a life time warranty. Fast forward to April 2019 the auto again was rear ended. The other driver was found at fault as well. Again the insurance company stated if they took the auto to XYZ shop the repair had a life time warranty. So they took the Auto to XYZ (franchisee) in another town. Once they started the repair process they found that the first repair by XYZ shop in the other town was done half assed. That the repair has caused additional issues like rust. Parts that were stated in the first est as being replaced was just actually hammered out. Since these areas were hidden from the customer. So the other XYZ shop was telling the first XYZ shop that most of their repair was faulty. Now the other XYZ shop has turned this over to their insurance company. The cost of repairing their mistakes will exceed the value of the car. This XYZ shop insurance is stating that this additional cost is because of hidden damage from the first accident. When it really is because of faulty work they did requires their repair to be redone plus fix the rust issues that their faulty repair caused. Can the owner refuse this pay out and require the auto be fixed under their warranty? Their warranty states "we will, at our expense, correct all defective or faulty repair work attributable to our services stated on the repair invoice."

 

[Zigner]

Auto was in a wreck in Dec 2016 as it was rear ended. The other driver was found at fault. Their insurance company stated if they took the auto to XYZ shop the repair had a life time warranty. Fast forward to April 2019 the auto again was rear ended. The other driver was found at fault as well. Again the insurance company stated if they took the auto to XYZ shop the repair had a life time warranty. So they took the Auto to XYZ (franchisee) in another town. Once they started the repair process they found that the first repair by XYZ shop in the other town was done half assed. That the repair has caused additional issues like rust. Parts that were stated in the first est as being replaced was just actually hammered out. Since these areas were hidden from the customer. So the other XYZ shop was telling the first XYZ shop that most of their repair was faulty. Now the other XYZ shop has turned this over to their insurance company. The cost of repairing their mistakes will exceed the value of the car. This XYZ shop insurance is stating that this additional cost is because of hidden damage from the first accident. When it really is because of faulty work they did requires their repair to be redone plus fix the rust issues that their faulty repair caused. Can the owner refuse this pay out and require the auto be fixed under their warranty? Their warranty states "we will, at our expense, correct all defective or faulty repair work attributable to our services stated on the repair invoice."

If they pay you the value of the car, then you will be made whole.

 

[Zigner]

Let me expand a bit on my previous post. Let's say that they refuse to actually repair the vehicle under the warranty, so you decide to sue them. What is the amount that you're going to sue for? Well, the value of the repairs, right? There's a gotcha though...you can't sue for more than the car is worth. So, if they pay you now for the value of the car, then you are made whole.

 

[Disabled Vet]

Fully agree..... At what value should they place on the car? Resell to private party? Retail? Wholesale? Retail the value is around 12,500 Private party value is 11,000 Their offer is 9500 So if they can't have a meeting of the minds in the value can said customer say " Well just fix it "

thanks

 

[Zigner]

Asked and answered. If you don't like their offer, you sue for (up to) the value of the vehicle. It is on you to prove the value of the vehicle.

 

[adjusterjack]

if they can't have a meeting of the minds in the value can said customer say " Well just fix it "

They can "say" it but the insurance company doesn't have to do it. The claim rep can say "Take the $9500 or keep your car, claim closed."

Keep in mind that XYZ's insurance company owes nothing until a court of law says how much it's insured owes.

The customer is free to sue but Indiana small claims limit doesn't go to $9500 so a lawyer will be needed for a lawsuit in regular court. Lawyer fees will quickly eat up the difference and then some and the customer will not be reimbursed for lawyer fees.