The Auto Insurance Myths That Cost Drivers Real Money

The first insurance estimate can feel official, but it’s often just the opening bid. We sit down and pull back the curtain on how auto insurance claims and collision repair really work, especially now that more carriers rely on AI photo estimating that can’t see the damage hiding under panels, brackets, and trim.

We talk about the biggest misconception drivers have after a crash: believing the policy automatically restores a vehicle to pre-loss condition with only a deductible due. From there, we unpack why insurers recommend “preferred” shops, what that label can actually mean, and the most important reminder for Colorado drivers: you can choose any body shop you want. We also explain supplements in plain English, including why a full teardown and OEM repair procedures often reveal necessary operations the first estimate misses.

Parts are where the money gets real. We dig into OEM vs aftermarket parts, why fit and safety systems matter on modern vehicles, and how an OEM endorsement can be a small monthly cost that prevents a huge parts downgrade later. Finally, we cover how to advocate for yourself with an appraisal clause, so you can seek a third-party opinion when an offer doesn’t match the true value of the loss.

If you want safer repairs, fewer surprises, and a smarter way to buy car insurance, listen through to the end. Subscribe, share this with a friend who drives, and leave a review with the biggest insurance question you want answered next.

To learn more about Ozzie's Body Shop visit:
https://www.OzziesBodyShop.com
Ozzie's Body Shop 
5280 N. Garfield Ave.
Loveland, Colorado 80538
970-667-7849 

Transcript

Welcome To The Body Shop

SPEAKER_02 0:03

Welcome to Crash Course, the Aussies Body Shop Show, where bent metal mystery noises and uh-oh moments meet Northern Colorado's finest collision repair center. Hosted by Megan Mueller, co-owner and CEO of Aussies Body Shop, an OEM certified and authorized collision repair facility that's been getting families safely back on the road since 1967. From fender benders to full-on frame repairs, insurance questions to will this ever look right again? Megan's here to explain it all in plain English with a little grease, a little grace, and a lot of heart. Because around here, the motto's simple. To be the best, you gotta be the best. And your car deserves nothing less. Let's pull into the shop and get started.

SPEAKER_00 1:11

Welcome everyone. I'm Chelsea Earlywine, co-host and producer here in the studio with Megan Mueller, co-owner and CEO of Aussie's Body Shop. Megan, how's it going today? I am doing great. How are you, Chelsea? Doing good. Well, it's great to have you here. Let's jump right in.

The Biggest Insurance Misunderstanding

SPEAKER_00 1:27

Today's topic. What's the most common insurance misunderstanding that customers have? Okay, most common.

SPEAKER_01 1:35

So I have to preface this by saying that there are some insurance companies that are just fantastic. Like they do the right thing, they communicate well with their customers, they repair the vehicles and cover for the proper repairs per the manufacturer. Um there are insurance companies out there that are amazing. What I will tell you is that most commonly it's gonna be the insurance companies that you haven't heard of. So the companies that you see marketing and spending millions of dollars and buying football stadiums, run, run away. Um, because unfortunately, when you go to utilize them, one, they're going to push you to a shop that does not have the training, they're not gonna repair your vehicle the way that the manufacturer wants. Um two, they are um not gonna cover your claims vault a lot of times. Um, or they are going to only cover for what is called, quote unquote, the most cost effective, which is gonna be the most cost-effective parts, the most cost-effective calibrations. And most cost effective means the lowest that they can find. Um, and if you want the bottom of the barrel repairs, then uh unfortunately that's that's what you'll get with a lot of the major insurance companies.

SPEAKER_00 2:50

Oh, that's so unfortunate. Oh, so Megan, what are some of the biggest misconceptions that customers have about what their insurance actually will cover? Yes.

SPEAKER_01 3:00

Um so again, with I would say the the major insurance companies, right? Um most people think that they are going to get their car restored to what is called pre-lost condition. That's what most people assume. Um, and that all they're gonna owe for is their deductible. And unfortunately what they're actually going to get um is is just not that.

SPEAKER_00 3:26

Yeah. So tell me, how does the first estimate

Why The First Estimate Is Low

SPEAKER_00 3:29

from the insurer differ from what that final repair cost is? Yes.

SPEAKER_01 3:34

So a lot of insurance companies have started moving to AI, where you will go ahead and submit photos. AI will typically write an estimate for you that is, you know, very, very, very basic. It's missing the majority of what's going to actually be needed for the repairs. Um, it is my personal opinion, it is not a fact, but it is my personal opinion that they do that because they are hoping that you are going to take that money, put it in your pocket, and walk away. And they just save themselves thousands of dollars. So I always tell people um there are a lot of ways with independent appraisal companies um to go to a shop and get another opinion um to if you are even going to cash out on the job. There are ways to make sure that you are actually getting closer to what you are owed for the loss.

You Can Choose Any Shop

SPEAKER_00 4:22

So one of the things that I have been confused about when I call my insurance, they tell me a shop that I should go to. Do I have to go to that shop? And and why do we assume that whatever they say the shop is we have to go to, we we go to that one.

SPEAKER_01 4:37

Absolutely. Um, so you do not have to go to the shop that they are recommending. Um, you can go to any shop that you want in the state of Colorado. I think one of the misconceptions and one of the misleading things that they do, so they'll do a few different things. One, um, they will call them like preferred partners, or they they use like wording like that makes it sound like these are the shops that we have vetted and um are gonna are gonna do the right thing for you. Realistically, unfortunately, those shops are actually the ones that it's just about a dollar. Um, it's about saving money. It's not about fixing the vehicles properly and putting people back into a safe, um, functional vehicle. It is about the pennies that can be

Supplements And Proper Disassembly

SPEAKER_01 5:20

saved.

SPEAKER_00 5:20

Can you explain a little bit about how supplements work and why those are so common? Absolutely.

SPEAKER_01 5:27

So um all vehicles will likely go through a supplement, um, unless it is like a very simple just paintless dent repair dorting. Um so what a supplement is, is once the vehicle comes into the repair facility, they will perform a full disassembly. Um, here at our shop, we will actually look up the way that the manufacturer wants it repaired. We will document all of that. And then we will issue what's called a supplement um to the insurance company, which is saying, hey, this is all the stuff that's actually needed for the proper repair. And depending on the insurance company, they'll either send an adjuster out that will review that supplement with us in person and issue additional funds, or um, some of them are just doing it virtually now.

SPEAKER_00 6:12

So oh, okay.

OEM Vs Aftermarket Parts Explained

SPEAKER_00 6:14

Okay. Um, so can you tell me a little bit about what customers should know about OEM versus aftermarket parts within their insurance policy? Yeah, absolutely.

SPEAKER_01 6:25

Um, in so there are some insurance companies that I highly recommend because they offer what's called an OEM endorsement, um, which means that I believe it's like somewhere around six or seven dollars a month. It guarantees that you're gonna have original parts from your manufacturer put back on your vehicle. It is absolutely worth the investment because some of these parts you're talking, I mean, especially like with a BMW. Um, we've had, we just recently had a BMW that had a headlamp. The insurance company was only gonna cover the aftermarket one, which I think was like $1,700. The OEM headlamp is like $5,300. So we're talking massive differences. And if you can do that for seven bucks a month, I highly recommend it. Um, not all companies offer that. So it's something really um, you know, a lot of people like to go online and buy their insurance, and I completely understand that, but you're not really understanding what you're purchasing um if if you do it that way, because there's nobody to explain it to you. So having a really great agent that can help walk you through the policies asking about an OEM endorsement, asking about the the parts that are going to go back on your vehicle that are covered is very important.

SPEAKER_00 7:38

Wow. So tell me before we close out here, how can customers really advocate for themselves in the claim if something doesn't seem right?

Appraisal Clauses And Self Advocacy

SPEAKER_01 7:48

One of the other things that I highly encourage people to look for when they are buying a policy is whether or not you have the right to an appraisal in your policy. Um you can go ahead and, you know, you can even call us and we can put you in touch with the right people that can um that are independent adjusters and can look through that policy and let you know where you're sitting. But an appraisal clause, what it is, is it's your right to a third-party opinion on the value of the loss of the vehicle. Um, a couple, um, unfortunately, Colorado is a state that does not require that when you buy a policy. There are states that are starting to require it, which um I would love to see Colorado do. Um, because it just otherwise the insurance company's offer is your end all be all. You have you have no right to a third-party opinion. So definitely check uh to make sure that you've got the appraisal clause inside of your policy.

SPEAKER_00 8:43

Oh, that's so helpful. Megan, I've learned a lot, and I think I'm uh gonna change my auto insurance policy after after

Insurance Report Card And Closing

SPEAKER_00 8:50

this conversation. So give us a call.

SPEAKER_01 8:52

There's this thing that comes out every year called an insurance report card. Oh, and it is enlightening, I will, I will tell you. And it's exactly what we see. Um, and it's it's on the national scale, is where this insurance report card comes from. So wow.

SPEAKER_00 9:06

If anybody wants it, give us a call. We'll email it out. Absolutely. Well, this has been fascinating, Megan. Thank you so much. We will see everyone next time.

SPEAKER_02 9:19

You've been listening to Crash Course, the Aussies Body Shop show with Megan Mueller, serving auto owners all across northern Colorado with certified family-owned collision care. If your vehicle's had a rough day, or you just want repairs done right the first time. For more information, visit OzzyBodyShop.com or call 970-667-7849. Ozzy's Body Shop. To be the best, you gotta be the best. On the road and in the repair bay. Until next time, drive safe. And if life dents it, you know where to send it!