What lowballing looks like
Adjusters tend to open with the lowest number they can justify. Justifiable isn't the same as accurate. Most people don't push back, so the first offer often ends up being the final one.
On a collision repair, a low estimate usually comes from one of these:
- Aftermarket parts. Instead of a genuine OEM fender or door, the estimate lists a copy made by another company. These often fit less precisely, and on safety panels that matters.
- Short labor hours. Estimating systems publish standard times for each repair step. An estimate can be written below those times, hoping the shop absorbs it or the customer walks away.
- Denied or delayed supplements. Hidden damage shows up once the car comes apart. A supplement is the shop's request to cover it, and some get pushed back or stalled until the customer gives up.
Your rights as a car owner in California
California Insurance Code Section 758.5 says your insurer can't require you to use a particular repair shop. They can recommend one and tell you it's faster or easier, but they can't make it a condition of paying your claim. You pick the shop.
California rules also say that when an insurer specifies non-OEM parts, those parts have to be of like kind and quality to the originals, and the insurer has to tell you in writing that non-OEM parts are being used. If a part doesn't measure up, you or your shop can dispute it.
The goal of the repair is to return the car to its pre-loss condition, meaning the way it was before the accident. Drivable isn't the standard.
The first few days of the claim
How you handle the start of a claim shapes the rest of it. Here's the order we suggest:
- Document the scene before anything moves: wide shots, close-ups, both license plates, street signs. Video works too. If police come, get the report number before you leave.
- Report the accident to your own insurer, even if you weren't at fault.
- Write down the claim number before you hang up, and start every call after that with it.
- Get an estimate from the shop you chose before the adjuster inspects the car.
- Be careful with recorded statements to the other driver's insurance company. Your own policy may require one; theirs usually can't. If anyone was hurt, it's worth talking to an attorney first.
Tell them which shop you chose on the first call
When you open the claim, ask for the claim number and say you've already picked your repair shop. Something like: "I'd like the claim number now. I've chosen Western Ave Auto Body in Los Angeles to do the repair. Please note that on the claim."
Saying it on the first call puts it on record, and it makes a later push toward a different shop less likely.
Why the first estimate matters so much
Adjusters anchor on the first number they see. If their quick estimate comes first and your shop's number is much higher, the conversation becomes why the shop is so expensive. If your shop's detailed estimate comes first, the question turns around: why is the adjuster leaving out damage that's already documented?
So bring the car to your shop before any adjuster inspection if you can. A shop estimate written step by step, with OEM parts and standard labor times, gives everyone a documented starting point.
What to check on the adjuster's estimate
OEM or aftermarket parts. On a newer car, or on any structural or safety part, aftermarket parts are hard to call like kind and quality. Aftermarket parts are usually marked on the estimate, so ask about any part that isn't listed as OEM. You can request OEM parts in writing.
Structural labor. Pulling a frame after a real front-end hit takes many hours. If the estimate shows a small amount of time for serious structural work, it's probably short, and your shop can supplement it.
Blending. When a repaired panel gets painted, the panels next to it usually need to be blended so the color matches. Estimates sometimes leave blending out. Skip it and you can see exactly where the repair is.
How to push back on a low settlement
If the insurer's number is well below your shop's, you have options besides accepting it:
- Ask for a re-inspection at the repair shop. An appraiser looking at the car taken apart usually writes a more complete estimate.
- Dispute the estimate in writing and ask for a supervisor's review. An email carries more weight than a phone complaint.
- Request OEM parts in writing if the estimate lists aftermarket parts.
- Check your policy for an appraisal clause. Many policies let each side name an appraiser, with an umpire to settle disagreements. Insurers don't advertise it.
- File a complaint with the California Department of Insurance at insurance.ca.gov. It's free, and the insurer has to respond to it.
How a Direct Repair Program shop changes things
A Direct Repair Program (DRP) shop has a standing agreement with an insurer on how estimates and repairs are handled. Because the insurer already works with the shop, there's usually less back and forth on the claim.
We're a State Farm DRP shop and Geico Drive-Thru approved. We also work with every other carrier, including Farmers, Allstate, Progressive, AAA, Mercury, USAA, Liberty Mutual, Nationwide, Travelers, Wawanesa, Kemper, Hartford, and 21st Century. Whatever your carrier, we deal with the adjuster and handle the supplements when hidden damage turns up. If your policy includes rental coverage, your rental car is free while we work, through Enterprise or Joy Rental Car.
A low offer is the start of a negotiation
A low first offer usually doesn't mean someone is acting in bad faith. It means the insurer made the first move. Repair standards, California law, and your right to supplements are all on your side, but you have to use them.
We've been on Western Ave since 1988, and we speak English, Spanish, Korean, and Portuguese. Getting a free estimate from us before the adjuster writes theirs is the easiest way to start from a fair number.
