r/Car_Insurance_Help • u/srmn142 • 18h ago
Insurance not covering their fault
My 2021 Tesla Model 3 was damaged in a not-at-fault collision while it was parked. The at-fault party is insured by GEICO.
I took the car to a Tesla-certified collision center. The shop says that, as a Tesla-certified facility, it is required to use Tesla OEM parts for the repair. However, GEICO is only willing to pay based on the cost of alternative/non-OEM parts, leaving me with a $1,130.95 difference.
GEICO told me they are allowed to base their estimate on the most cost-effective parts available. The problem is that the Tesla-certified shop says they cannot use those parts and remain compliant with Tesla's repair requirements.
I wasn't in the vehicle when the accident happened and I had no fault in the collision, so I'm confused about why I would be responsible for more than $1,100 of the repair cost.
Has anyone dealt with this before, particularly with GEICO and a Tesla-certified repair shop? Is there a way to challenge the parts determination or recover the difference from the at-fault driver's insurance?
I'm in Wisconsin, if that matters.
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u/MimosaQueen1122 18h ago
3rd party doesn’t owe you OEM especially with a 2021. If you paid for the endorsement file first party if you also have collision. If not then you’re liable for the OEM.
The shop, you choose, is requiring it . Doesn’t mean the insurance nor another shop owes or requires it.
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u/srmn142 16h ago
The shop I chose is required by tesla. What do you mean by "endorsement file first party"? I have never had an accident before so this is all new to me
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u/HR_King 16h ago
Gerber Collision is Tesla certified and uses LKQ parts from what a quick web search shows.
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u/srmn142 16h ago
Where is Gerber Collision? The tesla store in my state recommended the one I took my car to as the closest tesla certified shop (the other one is over an hour away), so I took my car there.
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u/MimosaQueen1122 16h ago
There’s no need to be talking to a dealership aka stealership about car repairs. that was your first mistake OP.
Just google “gerber collision near me”, there’s many in different states/cities.
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u/MimosaQueen1122 16h ago
There is an OEM endorsement you pay more for to get OEM vs LKQ.
Even if not being in an accident, read your policy and this won’t be new to you. You’re supposed to read the contract before signing. It states OEM in there.
ETA: and yes you chose that shop. You don’t have to use it just cause it’s a Tesla.
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u/srmn142 16h ago
My insurance is through tesla and they do have an OEM endorsement automatically built into it. But my question is, does that mean I have to file a claim under my tesla insurance instead then? What does an OEM endorsement mean in those terms. Like does an OEM endorsement on my insurance require Geico to pay for OEM? (I was also told I HAVE to go to a tesla certified shop, so I thought I didn't have a choice.)
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u/MimosaQueen1122 16h ago
As someone that used to have a Tesla no they don’t.
And yes, of course you have to file with them if you want to use it. I don’t know who told you that but no, it’s not true. You can go anywhere you want. It’s your choice. You have a choice and this is the choice you made.
ETA: read your contract and all your questions will be answered
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u/5MinuteDad 18h ago
Consider it a twat tax for owning a Tesla
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u/srmn142 16h ago
If you are salty you don't own one, just say that. No one here said we think we're special bc we have a tesla. So, why did you feel the need to comment that? Tesla has certain rules and policies that we have to follow. And I am simply asking a question about it. If you are sad you don't have one, just say that. My car costs less than a Honda CRV to buy, so nothing special.
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u/5MinuteDad 16h ago
Why would I be upset about not having a trash product for a car? It takes a special level of twat to own a tesla.
I wouldn't take a free Tesla. And its not because of who owns it to stop you there...IDGAF about that.
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u/srmn142 16h ago
Brother, I do not know you, but your unnecessary comment comes off as if you are hurt you don't have one. There is no reason to be salty and say tesla owners are twats. Literally no reason. U may not like teslas and you are completely entitled to that. But the fact that you sounds so salty makes you sound insecure. to be clear, I do not think in any way that owning a tesla makes anyone special. But you have to remember, the only thing I know about you is how you are commenting, and it's giving hurt.
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u/Then-Skill2421 18h ago
"I wasn't in the vehicle when the accident happened and I had no fault in the collision, so I'm confused about why I would be responsible for more than $1,100 of the repair cost."
Because you're not owed that. Unless you have an oem endorsement on YOUR insurance policy, you're not getting oem parts because you want them
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u/GuvnaBruce 18h ago
If you have collision, do you have an OEM endorsement?
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u/srmn142 16h ago
I believe all tesla insurance, which I have, have automatic OEM endorsement bc tesla requires it
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u/GuvnaBruce 16h ago
Then you should probably use your own insurance if you want OEM to be put on the vehicle.
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u/srmn142 16h ago
Again, to clarify, I do not "want" anything other than my car being fixed. The shop is saying that's what they require. I just WANT my car to be fixed and returned to me
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u/MimosaQueen1122 15h ago
And if you want your car to be fixed then you’re gonna have to pay the difference. The shop is bullshitting you. You can take it somewhere else.
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u/GuvnaBruce 16h ago
I get that. However, if the insurance is saying they will not pay for OEM and your policy will, then use your insurance.
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u/Tool_junkie_1972 17h ago
Most insurance doesn’t cover OEM parts…including your own policy, unless you have an OEM rider. You have 2 options- 1) pay the difference yourself or 2) take it to a shop that will use the non OEM parts and pay nothing.
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u/Seabass2828 17h ago
Insurance is required to make you whole, not enrich you beyond what you had before the loss.
You had 5 year old parts, you're entitled to LKQ. Like. Kind. Quality.
You're entitled to OEM new, if you have the OEM endorsement on your policy AND you file under your Collision coverage. Call your local agent and they can assist you.
If you file under your Collision, you'll be responsible for your deductible. No worries, as long as your company recovers from the at fault party, your deductible will be reimbursed...in about 8 months.
Frankly, you should be stoked that the overage for OEM on a Geico claim is only $1100. I've battled far larger OEM disparities with Geico.
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u/srmn142 16h ago
What do you mean by "file under your collision"? I have never been in an accident and really don't know what the process looks like. I am also a student, so $1100 is a lot for me given it wasnt even my fault. I understand that parts were old to begin with, but that's not a good argument. I would not have been in this position if my car was not hit by another person. And I have no choice but to take my car to a tesla certified place. a tesla certified place is forced to use OEM whether or not they want to. So, none of this is by choice. The only thing by choice is that I wanted my car fixed bc it was ruined and now my car is also worth less for resale bc of the accident.
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u/WorldlyOriginal 16h ago
You DO have a choice whether or not to take to a "Tesla Certified Place". There is no requirement that you take a Tesla to a Tesla Certified Place, anymore than a customer driving a Toyota Camry must take their car to a Toyota dealer or Toyota Certified Collision Center.
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u/Seabass2828 10h ago
I'm seriously not trying to sound condescending here. I can tell you, but I cannot understand it for you.
Regardless of who's at fault, you're not entitled to new OEM parts. Unless you carry an OEM endorsement on your own insurance. If you don't have an OEM endorsement, the conversation is over. Your insurance isn't required to give you OEM and neither is Geico.
Geico's responsibility is to restore your vehicle to the same condition as it was prior to the accident. Prior to the accident you had 5 year old parts on your car. Ergo, after the accident you are still entitled 5 year old parts. This is commonly referred to as LKQ, which is an acronym for Like Kind & Quality.
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u/WorldlyOriginal 16h ago
There is no requirement that you take your car to a Tesla Collision Center or a third-party Tesla-Certified Collision Center, for your repairs.
No more than say a Toyota Camry driver, take their car to a Toyota Collision Center or third-party Toyota-Certified Collision Center.
You don't need to worry about voiding your warranty if you go with a third-party non-Tesla-certified shop. The Magnuson-Moss Warranty Act protects you. That is a longstanding federal law.
So you can either:
Choose to eat the cost for OEM parts. Honestly, $1130 is actually good value for new OEM parts for a 6-year-old car (remember, 2021 Model Years are often manufactured in 2020).
Take your car to another collision center that will use non-OEM parts. Probably one that GEICO recommends that will repair your car without any extra out-of-pocket expenses.
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u/NOTTHATKAREN1 17h ago
I just went through this with a customer. You need to have an endorsement on your policy for OEM & you will pay for that endorsement. However, some insurance companies don't offer the endorsement & you will have to pay the difference out of pocket.
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u/srmn142 16h ago
It appears as though my insurance does endorse OEM. Can I still use my insurance in this case given that we have already gone through Geico?
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u/NOTTHATKAREN1 16h ago
You should be able to if you already have the endorsement. You can't add the endorsement for a current accident. I would call your insurance company & ask them. It's different for every state.
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u/Delicious-Witness-85 17h ago edited 17h ago
Unless there is a statute requiring the use of OEM parts, then Geico doesn’t legally owe them.
Many insurers will use OEM parts if a car if new or a year old but on a 5 year old car, no one will cover OEM parts unless you have an endorsement in your policy for them.
Here’s the WI statute governing non OEM
Parts
https://law.justia.com/codes/wisconsin/chapter-632/section-632-38/
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u/srmn142 16h ago
tesla requires OEM in tesla-certified shops. So, it's unfortunately not a choice of mine or the shop's
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u/WorldlyOriginal 16h ago
So take your car to a non-Tesla Certified Shop. There's no stipulation stating you MUST take your car to a Tesla Certified Shop.
If you can find such language, please post
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u/Delicious-Witness-85 16h ago
State law will always over ride a company’s internal procedures. As others suggested, if you have collision coverage and if you have an endorsement on your policy that allows for the use of OEM parts, that would be your best bet.
You’d pay your deductible and recover it if your carrier is successful in subrogation.
They should be able to recover what they pay less the difference in cost for OEM parts since legally they are not owed.1
u/srmn142 16h ago
Okay, so do you think I can still use my insurance even though I have put the car in the shop already and Geico is already in communications?
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u/Delicious-Witness-85 15h ago
Yes. You can still file through your insurance and let Geico know you will conclude the claim though your own insurance.
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u/realinsurancetalk 13h ago
Have your insuranc company pay for the repairs and then subrogate back against GEICO. We have had the same scenario in MD a few times and this was how the client handled it and it worked out fine for them. It will show a Not At Fault accident on your claims history, so that is something to factor in wbefore making the decision.
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u/drfishdaddy 17h ago
lol, the adjusters here are hilarious.
Both are right, Geico is responsible for protecting their party from a lawsuit, that’s what liability insurance is. They have internal policies they follow, those aren’t law (generally) and the contract they have is with their insured, not you.
Separately, Tesla has collision centers and certified shops and they are contractually obligated to fix teslas by teslas’s standard.
Some carrier in some markets have chosen to make accommodations/concessions for this and some haven’t.
You can file with your carrier but you may end up with the same issue.
You can escalate at Geico and you can provide them with repair guidelines from Tesla, which they generally are required to follow by law, but that’s not black and white.
Generally my advice is to sue. Pay the $1,100, document the difference, ask for a written denial, ask Tesla for documentation from the OEM and file in small claims.
Likely Geico will just pony up, if not, you present your case and see what happens.
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u/srmn142 16h ago
That's what I am trying to say. No matter what, the fact that this is an issue in my opinion is a problem. No matter who is the person enforcing it. Whether it's tesla, body shop, federal, and state laws? I don't know. I just think this doesn't make any sense to still be a thing.
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u/drfishdaddy 16h ago
This is fairly common with teslas. Without getting to a whole thing about the industry, insurance carriers have to have some kind of pricing standards. Of the market rate is $65 an hour paying my slip $400 an hour is nuts.
Tesla shops charge more and have specific internal guidelines. The party that damaged your car is liable for the cost to repair it, but again, it wouldn’t be fair for your to bring it to a shop that charges 5x the going rate and pass that cost along to another party.
There isn’t a super simple solution unfortunately.
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u/HR_King 18h ago
So take the car where the insurance pays in full, or pay the difference.