What if insurance pays more than repairs?

Original parts can be demanded from the insurers

“There are several ways to reduce the cost of repairs, from using scrapyard parts to repairing others against the manufacturer’s criteria, etc. But the most common is to declare as soon as possible that the vehicle is a total loss and therefore it remains unrepaired. To do so, they will not hesitate to argue that according to statistical tables that the sector handles, the supposed value of the car is lower than the repair value and therefore it is not necessary to repair it”, they continue.

“There are several ways to reduce the cost of repairs, from using scrapyard parts to repairing others against the manufacturer’s criteria, etc. But the most common is to declare as soon as possible that the vehicle is a total loss and therefore it remains unrepaired”.

The reason is that the insurance of the injured party will have to return to the opposite insurance, “what the judge sentences that they have to compensate us, plus the module of the 900€ that they had initially received. “So our insurance becomes our worst enemy again”.

How much does the insurance pay when it is a total loss?

How much do I get paid in case of total loss? Between 80% and 100% of the commercial value of the car is covered and applies as long as it is due to an accident.

What can I do if the insurance company wants to underpay me?

What to do if the insurance does not pay or offers less? The insured must resort to a letter document or civil mediation. In general, the amount reached through a settlement is less than that of a lawsuit, but the advantage is that it is collected more quickly.

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How much does labor cost to repair an engine?

While standard motor repairs can range from $1300 to $1800, complicated motors can even reach the $2500 mark.

Insurance indemnity settlement

Is it better to choose indemnity or repair by the insurance company? On many occasions you will find that the insurance company wants to repair your home or vehicle in an accident. But what happens in these cases? Do they give you an invoice, delivery note, details of the work carried out, guarantee of the work, etc.? Do you have anything to accredit or justify what they have done? If you have to claim, do you know with what supporting document you are going to do it?

The Law also states that if the nature of the insurance allows it and the insured consents to it, the insurer may substitute the payment of the indemnity for the repair or replacement of the injured object.

Article 11 of the General Law for the Defense of Consumers and Users states, among other things, that the services provided to users must be safe, and in many cases the services provided to you are not safe at all. And think that you can suffer an accident worse than the one suffered before. That is why we recommend you to look for a good expert appraiser wherever you are to keep a close eye on what they are doing to you.

How do insurers indemnify?

Actual Value: if the insurer indemnifies according to the Actual value or, also known as Use value, it will pay for the value of the new object subtracting the state in which it is and according to the use. That is to say, it would be the calculation of the value of the brand new object minus the depreciation it has had.

What happens when there is a total loss of a car?

After a traffic accident, the damage to your car must be evaluated by an auto insurance company, which considers a car as a total loss, as long as the repair costs (including labor and parts) exceed 50% of the commercial value of your vehicle.

Where can I file a complaint against an insurer?

You can go to the Condusef to file a complaint against the insurance institution. It is important that the company with which you have contracted the coverage is regulated by the Mexican Association of Insurance Institutions and by the Condusef.

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Payment of insurance indemnities

In the event that the car is completely disabled, there will be no discussion on whether or not to repair it, it will simply be declared a total loss and you will be paid the amount of the actual cash value assigned to the car.

What you can do is to discuss the replacement value of the spare parts that are recognized for a repair, so that they are equivalent to what the car had when it was assembled.

If you believe your car is currently worth more than what the books show for the make and model, you should present evidence such as driving records, service history or mechanic’s testimony to show that your car is worth more. You are entitled to receive the market price of the car you just lost and cannot get more than you should or less than you are entitled to.

When the insurance is not responsible?

If an accident occurs in which it is proven that the insured is at fault and was driving under the influence of alcohol or drugs, the Car Insurance will not cover him/her …. In this situation, the Insurance would not be responsible and, in addition, the driver would have to face criminal liabilities.

How to file a claim with the Superintendency of Securities and Insurance?

– Online Processing Instructions

Enter your RUN and password, and click “continue”. If you do not have one, request one. In the “claims” menu, select “against insurance entities (companies, brokers, adjusters)”. Complete the requested information, attach the required documents, and click “submit”.

How much does it cost to repair a blown car engine?

Ruani said that rectifying a blown engine currently costs around 60,000 or 70,000 pesos, although it all depends on the damage to the components. Thus, the value of the repair can be higher or lower.

What to do if the insurance does not respond

All repairs you make to the vehicle, whether or not the insurance pays for them, are subject to VAT. However, if the repair is paid by the insurance, who pays the VAT? The most logical thing would be to think that the VAT is paid by the person who pays the invoice, right? The truth is that the thing is not so simple. In this article we look at who pays the VAT on car repairs, whether it is the insured or the insurer, and why.

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First of all, we will clarify that VAT is a tax that is settled by the workshop and passed on to the recipient of the service. And it is here where the doubt arises: who is the recipient, the insurer who pays the invoice or the owner of the vehicle. In general, the recipient for these purposes is the one agreed by the parties, that is to say, it depends on what the insured and the insurer agree.

It is usual for insurers to indemnify the amount of the loss net of VAT, and for the tax to be paid by the insured. After all, the insured’s actual loss is not the VAT. If the owner is the one who takes the car to the garage, the invoice goes in his name. In the case of companies, this should not be a problem, since the VAT will be offset later.