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It is not uncommon for car insurance companies to disagree with auto body repair shops over the price estimates for conducting repairs. The main reason for that is because of the complexities involved in car repair. The other reasons why insurance companies may refuse to pay the price estimated by the auto body shop could be based on whether to do repairs or replacement, type of replacement parts, duration of the repair works and costs of labor. 

Such disagreements can leave you confused, without any proper knowledge on how to proceed. Nevertheless, here’s what usually happens in such situations. 


Whenever there is a disagreement between the car insurance and the auto body repair shop on the price estimates, the two parties will enter into a negotiation. Generally, the terms of your car insurance stipulate the insurer should cover the costs of repair to redeem the car to its condition before the damage. As such, they will try to make a fair deal with the auto body shop, making sure that your car is fixed using standard components. 

Sometimes the insurance company may involve you in the negotiation process. Regardless, the insurer will see to it that the auto body repair dealer is not over-quoting the prices or adding damage that occurred before the incident in question. 

Insurer Recommends a Local Auto Body Repair Shop 

In case the negotiations fail to bear fruit and, the insurance company insists on not paying the estimated price by your auto body shop, they will recommend alternative dealer shops in your area to handle the repairs at the rates they agree to pay. 

In such a situation, you have three options. One is to pay extra for your initially chosen auto body repair shop and cover the difference from your pocket. The other option is to have the car repaired by the auto body repair shop recommended by the insurer. Your last option is to dispute the insurer’s estimates by filing for arbitration proceedings in court.