When Your Body Shop and Insurer Disagree, Who Wins?

Why Your Carrier’s Estimate and Your Shop’s Estimate Rarely Match

When a damaged car needs fixing, your insurer usually conducts an initial assessment based on visible harm, photographs, repair estimates, and policy coverage. Meanwhile, the chosen repair shop evaluates the vehicle with an emphasis on the actual repair process and may uncover additional damage once parts are removed and repairs begin.

“As a result, estimates between them often differ because they are prepared at different stages and with different objectives,” says Janet Ruiz, director of Strategic Communication for the Insurance Information Institute.^[2] 

But a gap between these estimates doesn’t automatically mean your carrier is trying to underpay or the shop is attempting to overcharge.

“The insurer’s estimate serves as an initial assessment of covered damage, while the body shop’s estimate reflects the work necessary to restore the vehicle,” Ruiz continues.

Also, keep in mind that labor rates, parts choices, and scope of damage will often vary between these two parties, along with the cost of doing business in a given area, as well as employee wages, overhead costs, and real estate, taxes, and insurance expenses incurred by the shop. 

“Long Island, New York, is one example of a higher-cost market. There, local shops often charge more for parts and labor than shops in lower-cost areas, just because it reflects their costs. Add in the effects of tariffs and inflation, and it’s easy to see why the same repair can cost very differently depending on where you live,” Beth Swanson, insurance analyst with The Zebra, notes.

OEM Vs. Aftermarket Parts: What’s Actually in Your Policy

OEM parts, those made by or for your auto’s original manufacturer or its suppliers, are typically preferred over aftermarket parts, which are replacement components made by third parties. OEM parts commonly provide more predictable fit, finish, and compatibility because they were designed for that particular vehicle, while aftermarket quality can vary.

“Most standard insurance policies promise to return the vehicle to its pre-accident condition using parts of like kind and quality, but they don’t always promise new OEM parts,” says Patrick Peterson, lead automotive analyst at GoodCar.com.^[4] “Acceptable aftermarket parts may cost less, particularly when repairing an older vehicle, so insurers often use them to control claim costs.”

In most states, the carrier or shop is required to disclose in writing on the estimate if non-OEM parts were used.

If you prefer OEM parts, you may be able to purchase an OEM endorsement from your carrier. 

“This is an additional coverage that may pay for OEM replacement parts under specified circumstances,” Ruiz says. “Regulations regarding the disclosure and use of aftermarket parts vary among states, so you should carefully review both your policy and applicable state requirements.”

Why You Might Need a Supplement

If your shop discovers additional accident-related damage, it may submit a supplemental claim to your carrier’s adjuster and request additional payment. This supplement typically includes photographs, measurements, scan results, part invoices, and manufacturer repair procedures—usually for something not seen initially or an issue larger than expected. Your insurer will review the information and may approve, negotiate, or deny individual items in the claim.

Supplemental claims are a routine part of the repair process and help ensure all covered damage is properly addressed.

What Tariffs Are Doing to Repair Costs Right Now

What You Can Do if the Process Feels Unfair

To ensure your damaged car is properly repaired and your carrier and body shop are treating you right, follow these best practices suggested by the pros:

• Request full estimates from both parties. “Ask for complete, itemized copies of the insurer’s estimate and the body shop’s repair plan. Don’t look only at the final totals: Compare the labor rate, labor hours, parts, paint materials, scans, calibrations, alignments, and other procedures line by line,” Peterson recommends. “If you find a difference, ask why this item was reduced or removed and request the answer in writing. You should be able to understand whether the disagreement involves coverage, labor cost, part type, repair method, previous damage, or missing documentation.”
• Insist on OEM parts, if preferred. Inquire about available OEM endorsements and applicable policy provisions. You may be able to pay the difference if it's an important preference, but not covered.
• Check any depreciation or betterment deduction carefully. “Your carrier may apply what’s called a betterment charge when a new part replaces a worn part and measurably improves the vehicle – such as replacing a heavily worn tire with a new tire, leaving you responsible for part of the cost,” Peterson says. “And the insurer should explain which part was reduced, how it calculated the deduction, and what evidence supports it.”
• Keep records of everything. “Maintain original or copies of records of all communications, photographs, and repair documentation,” advises Ruiz.
• Dispute matters if necessary. “Ask for a claim review, escalate concerns with your insurance company, and consider contacting your state insurance department for guidance,” Ruiz adds.