Would you agree with your insurance carrier to allow them to use used, recycled, reconditioned and/or non-original equipment manufacturer parts to repair your brand new vehicle?

If you own a State Farm auto policy, that is EXACTLY what you agreed to! You have effectively waived (relinquished, renounced, abandoned, surrendered, ceded, signed away, rejected, abdicated, sacrificed and refused) your right to insist upon original manufacturers’ parts.

According to State Farm’s Car Policy Booklet Form 9806B ©2011 page 25:

Limits and Loss Settlement – Comprehensive Coverage and Collision Coverage

“…You agree with us (State Farm) that the repair estimate may include new, used, recycled and reconditioned parts. Any of these parts may be either original manufacturer parts or non-original manufacturer parts.

You also agree that replacement glass need not have any insignia, logo, trademark, etching, or other marking that was on the replaced glass”.

Not only that, but according to your State Farm Car Policy Booklet:

“(2) The cost to repair the covered vehicle does not include any reduction in the value of the covered vehicle after it has been repaired as compared to its value before it was damaged.”

In other words, you are NOT ENTITLED to any diminished value claim – even though your car has been damaged and repaired.

What Are The Right Questions To Ask Your Agent?

The unfortunate “right question” to ask – BEFORE YOU PAY for your policy is: “What are my rights if I don’t agree with the estimate produced by State Farm?” It’s unfortunate, because the answer – according to your Car Policy Booklet is: you don’t have any.

Other insurance companies allow their insured the right to dispute the repair via an IMPARTIAL appraisal process. Not State Farm. (see example of Amica’s policy for repair dispute)

Amica Policy

By paying, you already agree to the policy.

And what if your vehicle is a “total loss”? Section b of the same booklet states that you and they (State Farm) must agree on the actual cash value of the covered vehicle.

“If there is disagreement as to the actual cash value of the covered vehicle, then the disagreement will be resolved by appraisal… using the following procedures:

(a) The owner and we (State Farm) will each select a competent appraiser.

(b) The two appraisers will select a third competent appraiser…”

Here’s what’s missing from State Farm’s policy: the word “IMPARTIAL” when it comes to appraisers.  In other words, State Farm is entitled to simply bring in another State Farm (approved or loyal) appraiser.

In the end – State Farm has stacked the deck in their favor – at the expense of you (their insured) and your rights.

Like a good neighbor…? Not in our book.

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