Insurance companies only pay exactly what it costs to repair your vehicle. So how does a shop discount your deductible or pay for your rental?
Shops who pay deductibles typically take the money from technicians or cut corners so as to not lose margins from their bottom line.
For example, a typical deductible is $500. The labor rate in our area is $50/hr. When a shop agrees to “pay” your deductible they’re agreeing to work for 10 hours for free. Does that sound right to you? Shops like this will do everything they can to make up for that lost money. This can equate to subpar paintless dent removal, using inferior paint or materials, and even using aftermarket and used parts when they were paid to use OEM/new parts. Paying deductibles invites a whole host of corner cutting. It’s never worth it.
I bet you’ve seen hail companies pop up all over town after a large hail storm. Ninety-nine percent of the time these temporary companies are from out of town, usually out of state, and offer deals like this: “We pay deductible! We pay car rental!” If you already know how much a deductible eats into their bottom line, imagine adding the cost of a rental car for a few weeks. Are you starting to see that none of this adds up?
These fly by night companies are gone a few months after a storm hits town and take with them any warranty and ability to right any wrongs that occurred during the repair process. A simple backup camera issue can end up costing you hundreds of dollars out of pocket for something that never should have been your responsibility to fix in the first place. It’s enticing to let someone else pick up your share of the bill, but the chances of paying for it on the backend with cash out of pocket and headache aren’t worth it.
Food for thought, in 2017 there was 6 hail shops in the surrounding area that took care of your deductible and also gave you a rental car… in 2018, we are one of 2 still in our area. Make a wise choice, choose a shop based on skill reputation and longevity. If something goes wrong with your vehicle down the road, we will still be here.