Category: Insurance

Understanding Your Rights: Choosing a Body Shop for Collision Repairs in California

Posted on by European Collision Center

Following an accident, insurance companies often attempt to steer you toward their preferred body shops. However, as a consumer in California, you possess the legal right to choose any body shop you prefer to handle your repairs. At European Collision Center, we deeply respect these rights and go the extra mile to ensure that you confidently choose our shop. We work collaboratively with all insurance companies, including yours. 

To ensure you’re able to make the most informed decisions about where to take your vehicle for auto body repairs, here’s a closer look at your consumer rights.

Get Acquainted with the California Motorists Bill of Rights

The California Motorists Bill of Rights establishes fundamental rights and regulations for consumers dealing with an auto body repair facility. Here are some key provisions of the bill:

  • Right to Choose the Repair Facility: In California, you have the right to select any repair facility you prefer, unless your insurance policy explicitly dictates otherwise. This empowers you to make a well-informed choice and opt for a reputable body shop that aligns with your specific needs and preferences.
  • Notifying Your Insurance Company: Before proceeding with repairs, it’s important to notify your insurance company. Most insurance policies require you to file a sworn proof of loss, present the damaged property, and submit it for examination under oath.
  • Obtaining Repair Estimates: Contrary to popular belief, you’re not obligated to obtain multiple repair estimates. California law mandates that you receive a written estimate from your chosen shop before any repairs commence.
  • Responsibility for Repair Costs: As the vehicle owner, you generally bear the responsibility of paying the repair costs directly to your chosen repair facility, unless your insurance policy states otherwise. While your insurance company may cover the loss, deductibles or depreciation may be subtracted. Therefore, it’s crucial to understand the terms and conditions of your policy to avoid any surprises.
  • Repair Facility Accountability: The Automobile Repair Act of 1971 establishes stringent regulations that all repair shops in California must adhere to. This includes being registered with the state, displaying a sign, and maintaining specific standards. Failure to comply with these regulations can lead to the revocation of a repair facility’s license. The act also ensures customers get correct information, requested repairs are included in official documents, customers receive copies of those documents, and that industry standards are followed.

Seeking Recourse for Disputes with Your Insurer

Knowing how to seek recourse in case of difficulties or disputes with your insurance company about your auto body repair is crucial. Here are two options for resolution:

  • Consulting with Your Insurance Company: If you encounter any issues with your insurance company, it is advisable to first consult with your insurance agent or broker to see if they can help you resolve the issue. 
  • Department of Insurance: If you’re not able to reach a satisfactory resolution with your insurance company, you have the option to reach out to the Department of Insurance, State of California. Their toll-free line at 1-800-927-4357 can connect you with professionals who ensure fair practices and will assist you in resolving disputes with your insurer.

Additional Rights and Considerations:

In addition to the rights outlined above, it is important to be aware of the following:

  • Freedom to Choose a Repair Shop: Insurance companies are prohibited from requiring, directing, suggesting, or recommending a specific repair shop unless you explicitly request it in writing. If an insurer elects a particular repair shop, they are obligated to make sure the vehicle is restored to its pre-loss condition without any additional cost to you, as per the policy or applicable laws.
  • Use of Non-OEM Replacement Parts: Insurers cannot mandate the use of non-original equipment manufacturer (OEM) replacement crash parts for repairs unless these parts are equivalent in quality, safety, fit, and performance to OEM parts. If non-OEM parts are specified, insurers must cover any necessary modifications and provide warranties that are comparable to those of OEM parts.

Choose an Auto Body Repair Facility That Respects Your Rights

When it comes to auto body repairs in California, it’s crucial to be knowledgeable about and assert your consumer rights. By law, you have the freedom to select any auto body shop for your repairs.

At European Collision Repair, we’re committed to delivering exceptional auto body repair and refinishing services while prioritizing your safety and satisfaction. Our team upholds a strong code of ethics, emphasizing integrity, honesty, safety, and craftsmanship. We genuinely care about your experience and stand behind all our repairs. Whether you need an extensive repair or a minor fix, we’re here to assist you.

If you have any questions or concerns about your vehicle, or would like to schedule an appointment, don’t hesitate to contact us at (415) 551-9700. 

Auto Insurance Changes in 2023

Posted on by European Collision Center

This year, California drivers can expect to see several changes to their auto insurance policies. The California legislature has enacted several new laws that affect how insurance companies do business, including changes to liability coverage and the use of time-limited insurance policy limit demands. Whether you’re buying car insurance for the first time or you’re reviewing your policy to ensure you have enough coverage in case you need auto body repair, here are some of the most significant auto insurance changes to be aware of. 

Insurance Rate Increases

After two years of steady pricing, many drivers can expect to see increases in their auto insurance rates. Towards the end of 2022, California regulators signed off on eight auto rate increases—half of which were for GEICO. State Farm, Farmers Insurance, and Allstate are also expected to increase their premiums. On average, it’s predicted that most consumers will see an increase of about 8.4%.

Protection Against Illegal Insurance Sales

While not directly impacting your car insurance, this bill will certainly be welcome news for consumers who were targeted in illegal insurance practices. SB 1040 allows Insurance Commissioner to ensure those who have sold insurance without a license pay back the amount they collected from consumers—including people who sold extended vehicle warranties through robocalls or took money from individuals for insurance they weren’t legally allowed to sell. 

The Protect California Drivers Act

Passed in 2022, the Protect California Drivers Act updates California’s minimum auto insurance requirements to provide more coverage for victims of car accidents. The current liability insurance limits haven’t been updated since 1967, yet the costs of medical care and vehicle damage have risen significantly. This new law, which goes into effect on January 1, 2025, will increase the minimum liability for physical injury or death and property damage. The limits will increase again in 2035. 

As of January 2025, the minimum liability coverage required by California state law will increase to the following amounts:

  • $30,000 for physical injury or death of one person
  • $60,000 physical injury or death of two or more people 
  • $15,000 in property damage coverage

In 2035, these amounts will increase to:

  • $50,000 for physical injury or death of one person
  • $100,000 physical injury or death of two or more people 
  • $25,000 in property damage coverage

The law also requires drivers to increase their liability coverage by 2025 and purchase additional liability coverage in another ten years and requires uninsured and underinsured motorist coverage to increase to match the liability coverage limits.

Time-Limited Insurance Policy Limit Demands

Lawyers often use time-limited insurance policy limit demands to make insurance companies vulnerable to bad faith claims. These demands seek maximum recovery with minimal detail, which often causes insurance companies to reject the demand. To address this issue, the California Legislature has enacted crucial legislative changes that took effect on January 1, 2023.

With the passing of this law, claimants must follow specific requirements for time-limited demands to settle a claim against an insured person. The demand must be:

  • Written
  • Labeled as a time-limited demand
  • Specify a period of time for the insurer to accept the demands
  • Offer to settle all claims within the policy limits

The insurer may seek clarification or additional information, but they must respond in writing if they choose to reject the demand. These changes are aimed at creating a more equitable process for both sides in settling claims and ensuring that cases worthy of early resolution receive the appropriate attention based on the facts and evidence.

Review Your Policy Periodically
The recent changes to auto insurance laws have implications for both insurers and policyholders, particularly the changes in liability coverage; it’s important for drivers to review their policies periodically to ensure they have adequate coverage for their needs. This will help protect you in the event of an accident and ensure your medical bills and collision repair are covered. 

If you need an auto body shop, contact European Collision Center. From high-quality OEM repairs and factory repair methods to insurance coordination, we make your repairs as convenient and stress-free as possible. Call us today at (415) 551-9700!

Do I Have To Talk To The Other Driver’s Insurance Company After An Accident?

Posted on by European Collision Center
Close Up Of Two Cars Damaged In Road Traffic Accident

Let’s say you were recently in an accident and have received a call from the other driver’s insurance company. Do you have to talk to them?

The short answer? No. Whether or not you were at fault, you have no legal obligation to speak to the other driver’s insurance company, and in many instances, legal experts would advise against it. Especially if the accident was serious, it’s best to consult with a personal injury attorney and let them deal with the other company on your behalf.

The main reason for this is that the other insurance company isn’t looking out for your best interests; their main priorities lie with reducing the amount of money they have to pay out and protecting the interests of their clients. There are two ways they do this. The first is to deny the maximum number of collision claims outright, and the second is to negotiate the lowest possible settlement on accident claims. Essentially, to reduce the claims they pay, the company needs to deny claims that are made.

Since most drivers aren’t adjusters or attorneys, the insurance companies have an advantage. They know the claims process inside and out and can use this knowledge against you.

It can be risky to talk to the other driver’s insurance company

By talking to the other driver’s insurance company, you could be unknowingly hurting your own case. Whether or not the accident was your fault, the insurance company will likely use any information you provide to reduce or deny your claim.

Even though you’re not legally required to cooperate with them, that rarely stops insurance companies from trying to contact you. If they do, the best course of action is to not take the call and then talk to an attorney or adjuster from your insurance company. If you do talk to anyone from the other company about the accident, take notes about the details of your conversation. The adjuster will likely ask if they can record you, either over the phone or by providing a written statement; often they’ll say something like, “It will speed up the claims process.”

However, a recorded statement could be damaging to your case. It could show you don’t have a valid claim, or it could minimize damages or injuries that are later found to be more severe than you initially thought.

A recorded statement can easily be used to undermine a legitimate accident claim. For example, the insurance adjuster may compare the statement you gave them with the one you provided the police, along with the statement you’d make if the case involves a lawsuit. If they find inconsistencies between any of the statements, the claim may be denied. Inconsistencies can be innocent – it’s not uncommon for small details to change slightly when someone tells the story over four or five times over a period of several months.

Additionally, adjusters have methods of asking questions that can encourage you to answer in a way that hurts your claim. Some adjusters may be particularly aggressive and try to push you into agreeing with inaccurate facts. If you agree for the sake of getting them to leave you alone, this could hurt your case.

Another thing to consider is that if you go to court over the accident, the other driver’s defense team could use your recorded statement to the insurance company to cross-examine you. Depending on how long ago the statement was made, it can be difficult to remember the details, which could cause you to make damaging contradictory statements.

To be fair, not all insurance companies will do this! However, it’s important to understand that it’s a possibility, and if they do try to undermine your case, it could hurt your claim.

Medical Considerations

Another important thing to consider is that depending on the severity of the accident, you may not have a complete medical diagnosis yet. This means you could unintentionally misrepresent your injuries.

This is why insurance adjusters are well known for trying to contact injured parties as soon as possible; they want to have an idea of the “reserve value” or what the case is likely to be worth. Once they’ve set a reserve value, it can be very difficult to get a settlement above that amount. Without an attorney present, you may give the adjuster an artificially low reserve amount, which increases the chances that a lawsuit would need to be filed to receive a higher settlement. This means may you have to wait months to get paid, if at all.

When is it okay to talk to the other driver’s insurance company?

Although you should avoid talking to the other driver’s insurance in most cases, there are times when it can be okay to talk to them.

If you were in a minor accident and the other driver was 100% at fault, and all the details support this, talking to the insurance company may help your claim be settled faster. One example would be if the police report clearly states the other driver caused the collision. If the other driver was also cited by the police, this will help your case even more.

However, if your accident involves any of the following, it’s recommended you work with a personal injury attorney:

  • Broken bones, hospital stays, or long-term health consequences
  • Medical treatments over $2000
  • Missing more than 1-2 days’ worth of work, school, or other normal activities
  • Several people were injured in the collision
  • The insurance company is playing hardball

Regardless of who was at fault or whether you choose to talk to the other insurance company, you are contractually obligated to speak with your own insurance and cooperate with them. Your insurance company may require you to provide a recorded statement, as well. If they do, just be sure to ask the adjuster to tell you the exact language in the contract that requires it.

Keep in mind that your own insurance company can potentially take a position against you, so you should be careful – and as accurate as possible – when providing information for a recorded statement. Many experts advise against providing a recorded statement to any insurance company, even your own, without legal counsel.

At European Collision Center, we understand insurance can get tricky. That’s why we provide complete insurance coordination for your repairs. Once you have a claim number from your insurance company, we’ll work with them directly to ensure your repairs go smoothly. Contact us to schedule your appointment at (415) 551-9700 or fill out our online form.

Nine Insurance Companies Offering Financial Relief for COVID-19

Posted on by European Collision Center

Due to the decreased collision risk, many auto insurers have announced they’ll be compensating their customers, either through refunds or credits. Here’s a list of the nine companies that are making an effort to relieve some of the financial burden and how they plan to handle the reimbursements:

  • Allstate: Allstate customers will receive an average refund of 15% of their auto insurance premiums for April and May. The refund will be deposited back to the credit or bank account you paid with or applied to your account as a credit.

  • Farmers Insurance: Farmers is offering its customers a refund of 25% of their April premiums. If you still owe money for April, they will apply that discount to May’s premium.

  • Geico: Customers with motorcycle and auto policies will receive a 15% credit on six-month policies that renew between April 8 – October 7, 2020, and on 12-month policies that renew between April 8, 2020 – April 7, 2021. The credit will be applied automatically at renewal. Auto customers should expect to see an average of $150 credited, and $30 for motorcycle insurance policies.

  • The Hartford: If your insurance policy was in effect as of April 1, you’ll receive a 15% discount on two months’ worth of premiums.

  • Liberty Mutual: Liberty Mutual is sending out an automatic refund of 15% of two months’ worth of premiums. The refund will either be applied to your most recent payment method or be sent by check.

  • Progressive: Progressive customers will receive a 20% credit on premiums paid in April and May, which will be applied automatically to your account in May or June.

  • Nationwide: Nationwide customers will receive a one-time $50 refund for each policy they have with the company.

  • State Farm: If you had a policy in effect between March 20 and May 31, you’ll receive an automatic rebate averaging about 25% of your premiums. The credits will be automatically applied to your account in June.

  • USAA: If you had a premium that was in effect on March 31, you’ll receive a 20% rebate on two months’ worth of premiums.

While these discounts aren’t huge, every little bit helps, especially if money has become tight due to COVID-19 restrictions. Even in the best of times, it’s always nice to get a little cash back! If your company is not on this list, it may be a good time inquire.

Subject: You Just Got into an Accident; Now What?

Posted on by European Collision Center

Getting into an accident is always a stressful situation, even when there’s little to no damage to your vehicle. Regardless of the damage, it’s inconvenient and stressful, however, knowing what to do when you’re in an accident can help you feel a little more at ease.

  1. Move your vehicle to a safe place, out of the way of traffic and turn your hazard lights on.

  2. Check yourself, your passengers, and the other driver and their passengers for injury.
    If anyone is injured, call 911.

  3. Call the police to file a police report.
    Even if it was a minor accident, having police on the scene can keep everyone’s emotions calm and prevent the possibility of fraud. When filing your report with the police, tell them what happened without admitting fault. If there are no police dispatched to the scene of the accident, be sure to record all the details of the accident, including the year, make, and model of the other vehicle.

  4. Exchange information with the other driver, including:
    Your name
    Address
    Driver’s license number
    Insurance information

  5. Look for witnesses:
    If there were any eyewitnesses on the scene, ask them for their contact information. Their observations may be helpful for the insurance company to determine liability.

  6. Use your cell phone to photograph:
    The other vehicle’s license plate
    Damage to your vehicle
    Damage to the other driver’s vehicle
    The front, sides, and rear of the other driver’s vehicle (so they cannot claim additional damage was caused by you)
    The scene of the accident
    Any skid marks from your or the other driver’s vehicle

  7. Call your insurance company and let them know what happened:
    Regardless of who was at fault. They’ll record the information about the accident and send an adjuster out to asses the damage to your vehicle. Some insurance companies will recommend specific body shops, but you legally have the right to bring your vehicle wherever you like.

  8. Contact European Collision Center to have your vehicle restored back to its pre-accident condition!

We understand that having an accident is a stressful situation for everyone involved but following these steps will make the whole situation a little easier and help you get your vehicle fixed up and back on the road in no time.

Subject: Comprehensive vs. Collision: What’s the Difference?

Posted on by European Collision Center

What type of insurance do you have on your vehicle – and is it sufficient? Many people don’t consider their insurance coverage until they actually need it. Unfortunately, this can lead to confusion when it comes to things like auto body repair. Here’s a quick run-down of the difference between comprehensive and collision coverage

Comprehensive coverage covers damage to your vehicle from things like extreme weather conditions, theft, or vandalism. If someone breaks your window or a tree falls on your vehicle, this would be covered by a comprehensive policy, but wouldn’t qualify under a collision policy. A comprehensive policy will have a deductible that will apply to each accident that you’ll be responsible for. Comprehensive policies will cover the majority of damages that happen to your car, regardless of whether it was your fault.

Collision coverage covers damage caused by colliding with another car or object; this would include things like someone rear-ending you, hitting a tree, or crashing into a fence. If you have a vehicle that’s being leased or financed, you will need to have comprehensive coverage in order to get collision coverage. Collision coverage also has a deductible that will be applied to each accident that will be your responsibility, regardless of who is at fault.

Understanding what your policy does and doesn’t cover will help you determine if you have the right policy to fit your needs and will make the process of auto body repair go more smoothly if you happen to need it!

Subject: Can I use OEM Parts in my auto body repairs?

Posted on by European Collision Center

Many clients who come to us prefer to use OEM (original equipment manufacturer) parts in their repairs, but there’s often confusion about whether they’re covered by insurance. The answer isn’t 100% straightforward and is dependent on your insurance carrier and policy.

Most insurance policies don’t cover the cost of OEM parts, unfortunately. However, that doesn’t mean that you can’t request them when you come in for auto body repair. You’ll most likely have to pay for the cost difference between them and the cost of the aftermarket parts. The cost of OEM parts can be more than that of aftermarket parts, so it’s important to make sure that you budget accordingly.

What If My Insurer Offers Coverage?

If your insurer does cover OEM parts, they may not be automatically included in a standard policy; you’ll most likely need to request the coverage and pay extra for it.

While there’s nothing wrong with aftermarket parts, OEM parts tend to fit better, and you’ll have peace of mind knowing that your vehicle has replacement parts that were made specifically for it.

The bottom line is, you have the right to request the parts you want. We know dealing with insurance is never fun, but we make it easy with our complete insurance coordination. Just let our friendly staff know what type of parts you’d like, and we’ll handle the rest!

Subject: Is a rental car covered by my insurance?

Posted on by European Collision Center

Getting into an accident and needing extensive body work done is never fun – especially because it means you’ll be without transportation for a while. While you could rely on public transportation, a rental car is a more convenient way to stay mobile while your vehicle is in the shop.

A common question many people have is whether a rental car is covered by their insurance. If you weren’t at fault for the accident, it’s generally relatively easy to have the at-fault insurance company cover the cost of a rental car that is comparable to the vehicle that was in the accident. If you were the one at fault, or the at-fault insurance company is putting off making a decision on reimbursement, then it’s time to turn to your own insurance policy.

Knowing Your Policy

With most insurance policies, a rental car isn’t automatically included. Generally, you will have to add on or look for a policy that includes a rental reimbursement, which is available from most insurance carriers and tends to be relatively inexpensive. We recommend taking a look at your policy before you need to use it to make sure that it has the coverage you’ll need.

We understand that navigating the ins and outs of insurance can be confusing, but our complete insurance coordination makes it easy! Let us know that you’ll need a rental car, and our customer service staff will handle all the details and make sure you have reliable transportation while we restore your vehicle back to its pre-accident condition.