Why is my car insurance company refusing to pay for the labor on my car repairs?

Esurance told the shop repairing my vehicle that they won't pay for labor costs. I have full coverage and the repairs were initially estimated at $2,500. The final amount is less than this, so I'm not sure why I'm supposed to pay out of pocket for the labor charges. I already paid my deductible.

Answer
“There are several factors that could explain why your car insurance company is refusing to pay for the cost of labor. When you initially chose the repair shop, either you or the shop had to submit an estimate for your insurance company to approve.
Once this is approved, any work that deviates from the estimate would need to be discussed with the insurance company directly. It’s possible that your shop didn’t follow the repairs outlined in the initial estimate.
Your carrier may also believe that the labor cost is accurate. Insurance companies hire adjusters to assess damage and estimate repair cost and time. If the repair shop took longer or charged more than expected, and if it didn’t inform the insurance company, it could be your responsibility to cover the cost.
You should find out why the repair shop charged more for labor and inform your insurance company. You may be able to come to an agreement on payment. “
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Emily Maracle
Answered on May 07, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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