Is this considered insurance fraud?

Question

A deer recently hit my car while i was doing about 65mph. The bank owns the car, so they will write a check to me AND THE SHOP. I got a quote from a big shop for $4000. I know a guy with a small time shop who will do it for $2000. My question: would it break any laws for me to ask him to raise his bid to match the larger shop's, then basically share what's left? I could really use the money, but it's not worth breaking the law.

Answer 1

If you have to ask whether it's illegal, then it is (btw in this case it is, it's called fraud).

Answer 2

By law (Canadian law) it is your right to choose the shop of your choice, and refuse what the insurance company recommends… that’s all I’m going to say.

Answer 3

Yes, that would be illegal.  

My guess is, by the time the small time shop got in and took the car apart, the bill would go UP to the $4,000 in the end.

Answer 4

your insurance company owes you to put your vehicle back to pre-loss conditions.  if that is $40000 then this is what they owe you.  

If you can find a shop to do it less, then yes, you can keep the money and it is not fraud. Estimates will vary from shop to shop but a $2000 estimate is a shop cutting corners and I certainly wouldn't take my care there.  Here's what typically happens.  You take your vehicles to a low ball shop and they repair it to where it looks good.   Then  you have another accident and the car doesn't hold up or when the adjuster looks at the car he sees the other work that wasn't done the first time for which you were paid.  you now have spent the money but you're  going to have to come up with it to repair it correctly.

Seeing a couple hundred dollars  difference is really not a big deal.  

but $2000 is not worth it.  it's a huge liability risk that i wouldn't risk.  

Answer 5

Insurance cannot tell you which shop to use.  However certain states (USA) have different laws about how they can issue the check.  If you have a loan they have to make it out to you and the loan company... in some states... some states allow them to make it out to you and a body shop, some allow them to make it out to and only one for the insurance company's "network shops".  Why I don't know.. don't ask me that.  It would be fraud if the shop lied about how much it will cost as you are not supposed to make a profit off of insurance.  If the company can make it out to you and that body shop. Maybe they can at least make it out for only $2000 then.  Plus if it were the otherway, for all you know when your body shop tears down the car to start repairs it may end up costing over the $4000 the insurance said and they will want more money, who would they ask,  you or the insurance?

Answer 6

That would be fraud.  And don't complain about high insurance premiums when you're taking money that isn't rightfully yours.  If you're not part of the solution, you're part of the problem.

Do the right thing, get your car fixed and call it a day...

Answer 7

Check with your insurance company to see how they pay claims.  Most insurance companies pay you directly.  If yours does, submit the $4,000 estimate.  Most likely, the insurance company will knock that down somewhat by substituting non-OEM parts.  They will then send you a check which you cash and have the car fixed at the shop charging you $2,000.  Technically, it is all perfectly legal as you have the right to get your car fixed where ever you want.