Insurance Question

So, a few weeks ago a guy reversed into my car in the car park of where I live. He kindly neglected to leave a note but admitted it when challenged!

Anyway, I went and got a quote for the repair - never had to do this before so just went to the place closest to where I work. He sent an estimate in the post and I passed it on to the other driver, I told him that I was happy for him to get another quote if that's what he wanted.

A week later I got a phone call from his insurance company confirming the details and telling me that it had been sent to their underwriters for approval. A week later I am told that all is approved and that they will transfer the cash into my bank account. I question the fact that it was only an estimate which I gave and will I be covered if the actual cost is higher. They confirm that they have been in touch with the garage and they have guaranteed to do it for that price.

I ask the insurance company should I then send the receipt once it's done and they tell me that it is not necessary.

Now, my query is, if I can get this job done cheaper, is this fraud? Can/will I get in trouble for doing this? Seeing as they handed over cash to me and did not require receipts.

Bonito

One rule of insurance is you can't make a profit from it. This is why they want the work done 1st then there's 2 ways to go about it.

1. You pay the garage there and then from your own pocket and the insurance company give you the money you spent back in to your account or

2. You contact the insurance company when the work is done and when they put the money in your account, you pay the garage.

To answer your main question, if you take the money that has been set for the quote you were given and you then go to another garage and get it done cheaper and pocket the change, yes, that's considered insurance fraud.

Hope that helps.

smash

Bonito wrote: »

To answer your main question, if you take the money that has been set for the quote you were given and you then go to another garage and get it done cheaper and pocket the change, yes, that's considered insurance fraud.

Not really. She got a quote and offered for them to get a cheaper quote which they didn't. She can also go and get a cheaper quote if she wants. they're paying her before she's even getting the work done...

Yeh I would have assumed that one those things would have happened but they've actually already given me the money before I've had it done. The cash landed in my account today and they're not looking for proof that I've had it done. It's a bit strange really!

Bonito

steve06 wrote: »

Not really. She got a quote and offered for them to get a cheaper quote which they didn't. She can also go and get a cheaper quote if she wants. they're paying her before she's even getting the work done...

I'd have to disagree. If that were the case she could have went to her cars main dealer and got a quote there and then got her local indy to do the work. Her tidy up sum could have been fairly substantial depending on what car she has and what work was needed.

Deleted User wrote: »

Yeh I would have assumed that one those things would have happened but they've actually already given me the money before I've had it done. The cash landed in my account today and they're not looking for proof that I've had it done. It's a bit strange really!

Well the only person to report you would be the garage that you got the quote in I guess.

Personally I wouldn't chance it as you said they'd already been in contact with the garage that gave you the quote. For all you know they could be under request to get back in touch with the insurance company to confirm you got the work done with him.

In saying the above someone tipped the rear of my sisters car at a set of lights a few months back. There was no visible damage but the bumper was cracked in behind it.

She got a quote and submitted it to the persons insurance company and they sent her a cheque for the amount due for repairs.

Because there was no visible damage and her being a girl and having the "so long as it looks pretty" attitude she didn't have the car fixed she just lodged the money to her account and never got the bumper repaired.

kildare.17hmr

Its not fraud, come on seriously. the insurance company dont care where you get the work done or if you get it done at all, thats up to the owner of the car not the insurance company that pays for the damage. If they are not happy with a quote they can querey it or send an assesor and adjust it. Post above, your sister did nothing wrong by keeping that money and not fixing her car

CharlieCroker

its not fraud, fraud is where you lie to or deliberately intend to decieve the insurance company. There's no law saying you have to go here or even you HAVE to fix your car. You can go on holidays or buy magic beans with the money if you like but the insurance companies obligation is now over. If you decide to go to your local guy and its more expensive in the end, they wont cover any extra.

Bonito

kildare.17hmr wrote: »

Its not fraud, come on seriously. the insurance company dont care where you get the work done or if you get it done at all, thats up to the owner of the car not the insurance company that pays for the damage. If they are not happy with a quote they can querey it or send an assesor and adjust it. Post above, your sister did nothing wrong by keeping that money and not fixing her car

It doesn't matter how big the scale is, it can still be counted as fraud.

Take an example. Say a building site was robbed and nobody was caught so the builder had to claim from his insurance.

Lets say 2 circular saws, some windows and doors and a kango were robbed.

Now, lets say the builder tells the insurance company that 2 kango's 4 saws, a load of windows and a load of doors were robbed.

The insurance company will give him the money it costs for what he said was robbed when in reality he only needed to replace what was really stolen.

He has then made a profit from his insurance claim which you can't do.

You can only claim to recover costs of what you've actually lost.

sophie1234

similar story happened to my boyfriend but he was selling his car at the time so we told the insurance company that we were not getting it fixed but we reduced the price of the car (the amount of the repairs) so we could sell it fast as the insurance took ages and he wanted a new car the insurance company said that was fine sell the car we will issue the cheque to you and you can spend the money what ever way you want... obviously we lost out in the value when selling the car and we were 100% honest with the buyer and gave him the estimate but the insurance company said to us that the cheques either way will be issued to you and you can do what ever you like with it!!

Bonito

Whoopsy try just ringing the insurance company and say you've found somewhere to do it cheaper and see what they say.

kildare.17hmr

Bonito wrote: »

It doesn't matter how big the scale is, it can still be counted as fraud.

Take an example. Say a building site was robbed and nobody was caught so the builder had to claim from his insurance.

Lets say 2 circular saws, some windows and doors and a kango were robbed.

Now, lets say the builder tells the insurance company that 2 kango's 4 saws, a load of windows and a load of doors were robbed.

The insurance company will give him the money it costs for what he said was robbed when in reality he only needed to replace what was really stolen.

He has then made a profit from his insurance claim which you can't do.

You can only claim to recover costs of what you've actually lost.

what you have described is fraud and totally differant to what i said!!! your builder is making faulse claims about what happened, the op is not. the same builder you mentioned can claim for exactly what has been stolen, get the cheque from the insurance company and go on the pi$$. that is not fraud as he has not proffited, he was compensated for his loss

Bonito

kildare.17hmr wrote: »

the same builder you mentioned can claim for exactly what has been stolen, get the cheque from the insurance company and go on the pi$$. that is not fraud as he has not proffited, he was compensated for his loss

But then he'd have no tools.


P.s. Relax.

kildare.17hmr

Bonito wrote: »

But then he'd have no tools.


P.s. Relax.

He'd be pi$$ed so he prob wouldnt care:D

Relax?????? this is a discussion board isint it??:p

Bonito

kildare.17hmr wrote: »

He'd be pi$$ed so he prob wouldnt care:D

Relax?????? this is a discussion board isint it??:p

Shít I forgot, we're all obliged to be keyboard warriors!

Colonel Sanders

In order to cut down on claims expenses Insurance companies may not challenge repair costs under a certain threshold as long as the quote sounds reasonable

However based on the company I work for the practice of transferring money before the work is actually done sounds odd!!

kildare.17hmr

Colonel Sanders wrote: »

In order to cut down on claims expenses Insurance companies may not challenge repair costs under a certain threshold as long as the quote sounds reasonable

However based on the company I work for the practice of transferring money before the work is actually done sounds odd!!

Iv had a tip before, just in a carpark someone damaged my bumper, i got a quote the following day, following day the assesor from their company came to my house for a look and 2 days later i had a cheque in the post before any work was done. that was quinn

djimi

Bonito wrote: »

It doesn't matter how big the scale is, it can still be counted as fraud.

Take an example. Say a building site was robbed and nobody was caught so the builder had to claim from his insurance.

Lets say 2 circular saws, some windows and doors and a kango were robbed.

Now, lets say the builder tells the insurance company that 2 kango's 4 saws, a load of windows and a load of doors were robbed.

The insurance company will give him the money it costs for what he said was robbed when in reality he only needed to replace what was really stolen.

He has then made a profit from his insurance claim which you can't do.

You can only claim to recover costs of what you've actually lost.

The case in question (the point of the thread) would not be fraud; the damage exists and the quote was given to fix said damage. If there was no damage to the car and they were still trying to claim there was, or if the quote submitted is for a value much higher than the actual cost of the repairs, then that is fraud. Where the damage is real and the quote genuine then it is not fraud.

Your example bears no relation to this thread; it is a completely different situation.

As far as Im aware insurance companies do not care if you actually get the work done or not. End of the day they are paying for damage caused by their clients car. If you choose not to repair the damage then you have the money but you also have a car with €x amount of damage in it, which is devaluing it. It evens out end of the day and Im sure the insurance companies dont give two hoots about it. They have fulfilled their obligations, case closed.

mgbgt1978

whoopsadaisydoodles,
You will not be commiting fraud of any kind by getting your car repaired for less money than this insurance company has given to you.
A third party damaged your car
Their insurance company has decided that the cost to repair that damage is €xxxx.

You now have a number of options.
1. You can have can get your car repaired by the person who gave you the original quote.
2. You can get it repaired by someone who will charge you less.
3. You can continue driving the car in it's current condition as long as you are happy to do so, and it is roadworthy.

One reason the insurance company paid you promptly is because they were quite satsfied that the quote you gave them was a very fair price to pay for their client's error.

The other reason is that they have now avoided paying for the use of a hire car while your car is being repaired, as well as a payment for depreciation of your own car (it is now a car which has been crashed and repaired, and will probably be worth less when you come to sell it or trade it in).