Insurance Claim and Payment to Dealership

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MN Blue Skies

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We had damage from a tree that resulted in a claim to replace the roof on our TT.  The total claim is for $6,250.  The insurance company sent a check to the dealership for $6,000.  The check is made payable to the dealership and to us.  (Our deductible is $250)  The dealership wants us to sign the check before they start the work. 

Is that how things are usually handled on TT claims?  It makes me  very nervous to sign over that amount of money to the dealership before the work is done.  That's not how it is would be handled if it was a claim on our home.  The contractor does the work and then gets paid. 

We need advice before we sign the check.

TIA. 
 
I'm with Bob, I'd not pay before they start. Payment should come after completion. Otherwise you have nothing to give them an inentive to do it soon or correctly.
 
I am not sure I would deal with an insurance company that sent the check to the dealer with their name on it as well.  You pay the premiums, you get the check.  The dealer gets paid when the work is done to your satisfaction.  Sounds like a kick back scheme between the insurance company and the dealer.
 
Red flags went up when they asked us to sign the check first.  I'm going to go with my gut instinct and business experience.  We're willing to pay the deductible upfront and then sign the insurance check over to the dealership when the work is satisfactorily completed.  I'll go into the dealership tomorrow to talk to the owner/manager in person.  I have already talked to the insurance company and they will just cancel the check if I can't work something out with the dealership.  Then we'll have to find another dealership.
 
Paul & Ann said:
I am not sure I would deal with an insurance company that sent the check to the dealer with their name on it as well.  You pay the premiums, you get the check.  The dealer gets paid when the work is done to your satisfaction.  Sounds like a kick back scheme between the insurance company and the dealer.

No, I don't think it's a kick back scheme. Many years ago, when I was a General Contractor, I owned a company that did a lot of insurance repair work for Allstate, American Family, and State Farm.  Generally the insurance company sent the check to me before we started the work.  The check was payable to my business and the homeowner.  Once the work was done and the homeowner was satisfied, I had the homeowner sign the check and pay me the deductible.  (On very large fire losses the procedure was different.  I could arrange for draws.) 
 
No way I would sign the check over to them before the work was done.  If they aren't a big enough company to front the materials for a couple of days, then they aren't big enough for my business.  When the job is done correctly, they get their money.  You've already got the check.
 
Have you ever taken your car to a body shop and pay them before the work was done? I never have either. This is no different.
 
    Max, as I see it, your course of action is to go back to the Insurance Company and express your concerns about being satisfied with the work before the dealer is paid.  When we had our hit and run claim, the insurance company paid the 2 separate claims, MH & toad.  However, since we used collision repair companies on their "preferred list" they guaranteed our satisfaction, and did in fact become involved when there was a problem with the Jeep's wiring for being towed.
  At the very least, you should have them negotiate with the dealer to withhold the money until the work is completed to your satisfaction.  That is what you pay them to do when you pay your premiums.

Ed
 
we just had an insurance claim on our camper, except I hit the tree.... State Farm had me find the shop and they sent me the check to pay the shop. the shop started the work and I paid them in full when the job was done to our satisfaction.
I would not pay them up front- if they are paid they might not get the work completed in a timely manner and you have no control over the quality.
 
It is quite common for the insurer to put the name of the shop on the check - they want to be sure the work they paid for actually gets done. This is nearly always the case if there is a lien on the title, since the lien holder wants protection as well. You can, of course, choose a different shop if you want to deal elsewhere.  Insurers tend to write a check immediately to whomever gave the estimate they based payment on, but you can change your mind and use a different shop if you want and have them issue a new check in that shops name. Expect some hassle over that, but it is within your rights.

The business of the shop wanting payment upfront is strictly between you and them and your insurer is not involved. I've not ever paid in advance as they are asking, though I have been asked to pay the deductible up front. Apparently shops have trouble collecting deductibles once the job is done.
 
As Gary said, it is a common practice particularly when there's a lien involved. The only upfront money I've ever paid was the deductible, and occasionally the price difference for a special order part that I requested and wasn't included in the original estimate.
 
Paul & Ann said:
I am not sure I would deal with an insurance company that sent the check to the dealer with their name on it as well.  You pay the premiums, you get the check.  The dealer gets paid when the work is done to your satisfaction.  Sounds like a kick back scheme between the insurance company and the dealer.

If you own the vehicle outright and don't have a lien on the title, the insurance company should issue a check with just your name on it.

If the vehicle is financed and there's a lien on the title, then there will be both your name and the lien holder or the body shop on the check. Sometimes, the body shop's name will only be on the check. The reason why the insurance company does this is because, when you financed your vehicle the lien owner required you to have a certain level of insurance to protect their investment.  The lien holder gets paid first by law.  That's what a lien is.  Doesn't matter who "pays the premiums".  The insurance is to protect the owner from loss.  If you have a lien or your RV is financed, you don't "own" it.  The bank or lien holder owns it.

I get into this every time I do a repo and the possessor comes out screaming about me stealing "his" car.  The he calls the cops, and the cops explain it to him that although he's been driving the car for 3 years, he doesn't "own" the car until it's paid off and the lien holder releases the lien.
 
All money upfront is a big red flag. Search for a better company to accomplish repairs with a schedule that is agreed upon by all parties. Occasionally we have problems with parts to be supplied by the manufacturer which can string out the completion date.  Otherwise you should be able to reasonably view the work progress. When the manuf is dragging its feet make a few phone calls to a person (at the manufacturer) in charge.

A cold drink or breakfast sandwich and a smile will help smooth the process with the techs. 
 
We went to the dealership yesterday and armed with information and good advice I politely stood my ground.  We gave them the $250 deductible and we will sign the check upon satisfactory completion of the work.  We also set up a schedule for the work to be done. 

Thanks all.
 
The way you handled it is completely fair. It is not out of line to pay for materials upon delivery of said materials. To pay in full gives you absolutely no leverage if there is a problem and no guarantee it will ever be completed. Asking for full payment prior to any work should always bring up a big red flag and if not worked out as you did you should find another provider of services.
 
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