Question
Has anyone had a similar experience and can tell me a bit about it?
My truck is at a Freightliner dealer body shop. Besides the repairs covered by the insurance company, I had asked the body shop manager for a quote to paint an area that had been peeling that was unrelated to the claim. He said it would be about $300. He then suggested a way that I wouldn't have to pay for it. He said the insurance company adjustor had written up to replace my right side fuel tank, but there was nothing wrong structurally with it. It just had a crease on the side and you can't see it because of the fairing. He said if I didn't replace the tank it could cover the cost of the peeling. Sounded good to me.
Shortly after, I got the insurance company's proof of loss form and they tried to hit me with the "betterment" scam. For those of you who don't know about betterment, simply put, it is a ploy by the insurance company to try and get you to pay more than your deductable towards the claim. Since it was only $195 I figured it was not worth delaying the claim and maybe litigating over. I did figure however, that the fuel tank would cost a bit more than the $300 peeling problem. So I called the body shop back and said that I thought the cost of the tanks should more than cover the peeling jop and the betterment scam. He agreed.
Well, I finally got the adjuster's detailed estimate and the fuel tank with labor is $ 1300. My intention is to take the rest of that $ 1300 after the peel job and the betterment and apply that toward my deductable when I go to pick up the truck. I am sure Freightliner thought they had pulled one over on me and will give me some difficulty. But that money is mine. They did not replace the tank, so they should not be paid for it. Besides, if that tank winds up having problems, I will have to pay for it then.
The original plan was for me to take the claim check to Freightliner and just pay my deductable then. Anyone have any experience with this? Anyone know what my position is legally? Thanks.
Answer
Gordon,
Do I understand you correctly, that you took the $300 the insurance company paid for repairing the tank and kept it and opted not to repair the tank? If so, your vehicle would be considered to have pre-existing damage, should another accident occur. Also, by doing so, you may have violated the terms of your proof of loss, which could be considered fraud.
Answer
I guess you understand it right. The adjuster wrote the tanks up, not me. I don't see how it is fraud. The insurance companies' adjuster saw the damage and wrote it up. The damage is there.
Answer
The money is intended for the repair and the repair was not done, yet the proof of insurance includes the amount for the tank, which you opted to keep and not make the repairs. If there is a loss payee involved, they may have an issue with you have the money and not repairing the vehicle.