Auto body repair shop says their AAA wholesale discount will cover my insurance deductible?

I was in a car accident and need to get some auto body repair done. The shop gave me an estimate and told me they could cover my insurance deductible with their 'AAA Wholesale Discount'. Is this a real thing? They would bill the insurance company for the repair, less the deductible, and then instead of holding me responsible for that deductible, they would get it paid through their own AAA Wholesale Discount insurance. Is this shady? Will they back out at the last moment and make me pay the deductible? I told them I wanted this in writing and that I would talk to my insurance company about it first. They said don't bother to talk to the insurance company. This raised a red flag. Why not talk the insurance company if everything the auto body repair shop wants to do is on the up and up?

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  • 7 years ago
    Favorite Answer

    Lots of shops offer to cover your deductible, and it's not shady.

    It would be shady if they covered your deductible and then tried to bill it to the insurance company, but that's not your problem if they do. And all the insurance companies know that trick, so they won't try.

    Here's the bottom line with your deductible: It's the part of your loss that the insurer doesn't pay. They don't care who does pay it, as long as they don't. If the body shop, or your mom, or a total stranger wants to cover your deductible, the insurance company couldn't care less. That's why they said don't bother asking the insurer.

    So if they put "deductible waived" on the final work order, it means you don't have to pay it. And if the insurer doesn't approve of that, they'll take it up with the repair shop. You're off the hook either way.

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  • 3 years ago

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  • Harry
    Lv 7
    7 years ago

    they bill the insurance company but make it look like its more expensive. you get your deductible back. its not exactly legal, but it is done in every industry that deals with insurance. its the peoples way of getting even!

    Source(s): ive dealt with many many insurance companies, mostly through storm damage. the going labor rate is generally cheaper than the insurance companys bid! when it gets higher than norm, then the insurance sends out an investigator. but as was said they only want to pay so much. now think logically is anyone gonna give away from $500- $1000 free labor as a deductible waive? no they are not. they might take a small hit on the deductible, but they are getting paid. like i said its not industry standard, but the insurance company ends up footing the deductible. they know, they dont care, as long as the payout comes UNDER budget. see they like money more!
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  • 3 years ago

    The body keep is gotten smaller by utilising Geico, they don't look to be adjusters. they seem to be a organization and need to receives a fee. because you're the owner of the vehicle and they have not been paid, they are going to you to pay it. call the insurance organization and tell them to pay.

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