Pay Damage Claim Out of Pocket or No?

[Waxman]

Hi everyone.

I am processing a damage claim and am not sure how to proceed. The estimate is $1200-1300 plus $235 for a rental car ( customer requires it).

The claim will be only $600 ish above my deductible. Would you pay out of pocket or process this one through insurance?

Thank you

 

[soapy]

I would definitely pay out of my pocket. If you still sell cars maybe you could get them to drive one of your vehicles while it is being repaired.

 

[Earl Weiss]

Pay out of pocket. Claim history will affect future insurance premiums more than the $600 savings.

 

[Greg Pack]

I would definitely pay out of pocket. This one probably won't affect your premium, but if your luck is anything like mine soon you'll have another larger claim that will affect it if you claim both.

 

[Waxman]

Yes I think that's all good advice and I will pay out of pocket. Thanks!

 

[PaulLovesJamie]

plus $235 for a rental car ( customer requires it).

I'm curious, does the customer pay for rental car coverage on their insurance? If they dont, then "requiring" a rental car is bogus. (Not sure you want to argue it, but worth pointing out.)
Also Im sure you know this, but dont pay the customer cash, write a check to the shop that does the repair and make sure it is actually done.

 

[Waxman]

This claim is taking a turn toward the bizarre. Spoke to body shop owner. He agreed to accept payment from me when work was one day from completion and then he would release vehicle to customer.

This was last week. Tuesday, the customer came here with a small boy and a local police officer. She complained that I would not pay. I again phoned body shop owner, who again agreed that I would pay, etc. and all the customer had to do was drop the vehicle off for repair.

She became irate, screaming and accusing me of not being willing to pay. I asked them to excuse me as I had work to do. Called my lawyer, who assured me I had no obligation to pre-pay for repairs.

I feel she may be trying to scam somehow. What do you think?

 

[DiamondWash]

Something doesn't seem right with her. I don't know what your audio recording laws are but we record all conversations with customers for legal reasons. If your willing to pay for damages I don't see any issue with your side of this.

 

[MEP001]

It's "single party" in Texas, as long as one person involved knows it's being recorded (even if it's you), it's legal and admissible.

 

[Eric H]

the customer came here with a small boy and a local police officer. She complained that I would not pay.

What did the officer say?
I'm surprised the officer came with her because this is a civil matter not a criminal matter.

 

[Main Street Carwash]

If her car was damaged by your facility then she is entitled to compensation for the damage. Whether she repairs her vehicle or not with the money paid is her business, not yours. I would get at least three estimates from different repair facilities and base the payout on those. When presenting the check, have her sign a release holding you harmless from all past, present and FUTURE claims against you or any of your business enterprises. As far as a rental car goes, you are also obligated to pay for that as well based on the amount of time the aforementioned repair estimates require to complete repairs. Make sure all of this information is stated in the estimates and release.

 

[PaulLovesJamie]

...entitled to compensation ... obligated to pay ...

I dont think that is true. Waxman agreed to make her whole which satisfies any claim she has, I'd be very surprised if a court said that wasnt good enough.
But I'm willing to be proven wrong. You state that pretty strongly and authoritatively, doesnt sound like an opinion -- can you show us where you get the idea that he is obligated to give her cash? Like cite any law or something?

 

[Earl Weiss]

I dont think that is true. Waxman agreed to make her whole which satisfies any claim she has, I'd be very surprised if a court said that wasnt good enough.
But I'm willing to be proven wrong. You state that pretty strongly and authoritatively, doesnt sound like an opinion -- can you show us where you get the idea that he is obligated to give her cash? Like cite any law or something?

You don't cite laws for a civil matter. The basic law of Torts is to put the person back in the same position they would have been in had the damage not occurred. For instance, if car was totaled you pay the market value for the car. Maybe they were going to sell it anyway. They don't have to replace it. If you damage something you pay the cost of repair unless replacement cost is less. If they choose to not repair and later decide to sell the vehicle will be worth the market value of the undamaged car less repair cost.

 

[Main Street Carwash]

Having been in the Automotive industry for 2 decades and having owned and managed several repair facilities where I have dealt with hundreds of insurance claims as a third party I can say this; If your equipment or facility legitimately damaged someone's vehicle, you ARE responsible to make them whole again. This also would include a rental car cost IF they opt to actually have the car repaired. It is just like if someone is responsible for damage to your property then they would be obligated to make you whole again. If you got into an accident in your car and it was the other party's fault, it would be irrelevant if YOU had rental coverage on your policy because THEY would be responsible to make you whole which would include a rental car if you opt to get the car repaired instead of pocketing the money and living with the damage which is also an option. Here is the long and short of it; Waxman can argue about what she does with the money, he can try to force her to use it to repair the car, but in the end he will be on the short end of the stick. Ultimately, if this went to court, he would be ordered to pay the amount of the claim plus expenses and there would be absolutely no stipulations that the claimant had to apply the funds in any kind of specific way. I would just either pay her and move on or file a claim with my insurance and let them deal with her. Unfortunately you lose either way. Like I stated earlier, get a release of liability and I would only pay for a rental if I was paying for the repairs directly. If she wants a check, so be it. She is not obligated to actually repair the car. And yes, everything Earl said as well. I know we are all biased because we are a group of like minded individuals as car wash operators and nobody wants to pony up dollars for damaging anyone's property but it happens. When it does, do the right thing and pay up. If it feels bogus, file a claim because that's why you have insurance in the first place. Please don't gas someone up to overstep their authority and demand things that they are not entitled to demand because if this escalates, which it already appears to be doing so, Waxman will either wish he just paid her or filed a claim straight out of the gate. Who wants a judgement on record? Just my 2 cents, I am not an attorney.

 

[Main Street Carwash]

Also, agreeing to make someone whole and doing it are two different things and I was quoted stating that the injured party was entitled to compensation and the party responsible for the damage is obligated to pay. You (PaulLovesJamie) stated you don't think that is true. Are you saying that you don't agree that Waxman, or anyone else for that matter, is responsible for compensating someone with a legitimate damage claim?

 

[Earl Weiss]

................... I know we are all biased because we are a group of like minded individuals as car wash operators and nobody wants to pony up dollars for damaging anyone's property but it happens. ....................

I don't think that is it at all. I think it was more along the lines of when you write the check for repairs you have a good idea that was the real cost of the damage. If someone just pockets the money it's a little more difficult to be certain. I have had some way out repair claims which I felt were out of line. In court the amount was cut in half. I can give more details if anyone wants to hear them.

 

[Main Street Carwash]

I agree. That is why I recommend at least three separate estimates. Unfortunately in this day and age there seem to be a lot of people trying to get over on people all the time. I am not advocating just writing a check without any due diligence by any means. Earl, if you would like to share details, it would be interesting to hear some real world results of such situations.

 

[JMMUSTANG]

OH OH
This will be interesting

 

[Waxman]

What did the officer say?
I'm surprised the officer came with her because this is a civil matter not a criminal matter.

The police officer agreed with me. She was interrupting me while i was on the phone with body shop owner. i stopped talking, looked at the officer and said :'will you ask her to be quiet while i am on the phone'. he did.

 

[Waxman]

I don't plan to pay $1135.25 for 2 scratches to not be fixed. I will pay when the body shop calls and says the work is finished and payment is due.

If she takes me to court and I am ordered to pre-pay, I will comply. Until then, I have agreed to pay the body shop once it is fixed. That fact is now part of an official police report.

I am not an insurance company; I am a small business owner.