Limits of Liability
January 5, 2020



YOU GET WHAT YOU PAY FOR. You go out and spend thousands of dollars for that perfect automobile you have always wanted. You research and checkout all the models you are interested in and choose your dream car. Your dream car has all the options available and carries the highest safety ratings in the marketplace. You protect this automobile investment with one of the most popular insurance companies you believe will be there for you in the event a loss occurs and covers your loss under their umbrella logo giving you the feeling that whatever happens to you or your precious investment, your vehicle will be repaired in “like-new” condition or replaced. This is the portrait they paint for you when you purchase automobile insurance coverage and your expectations should be just as they advertise right?

Well guess what … keep reading and you will better understand what the “umbrella people” will actually try shoving down your throat in your time of need by simply stating, “This is all we pay for based on the policy you purchased.”

In the course of operating a collision repair facility we spend a great deal of time reading assorted automobile insurance policies. We do this to protect and educate our customers helping them become aware of their coverage. We have been taught to look for words that deceive our consumers and induce them to accept parts and procedures that are not what is recommended by the Original Manufacturer (OEM) of the vehicle.

Here are examples:

Functionally equivalent– If the part was “equivalent” it would have to be a part manufactured by the original manufacturer of the vehicle carrying the exact same engineering design and manufactures warranty. Not a “functionally” equivalent part which is nothing more than a replica or an imitation part and most likely a cut-rate aftermarket replacement or used part.

Traveler’s policy language:

“We have the option” Which means you have given them the freedom to choose the cheapest parts available to lower the value and safety of your vehicle. As they list under, if we pay to replace a part or parts we have the option to pay for new, used, reconditioned and remanufactured. (They will only select a new OEM part as a last resort – if they cannot find alternative parts).

Many insurance companies have similar language within their policy. If you would like us to help you better understand your auto body repair rights within your policy, please give us a call.