Decoding Your Auto Policy: Coverage, Appraisal Clauses, and Real‑World Scenarios

Your insurance policy can look solid on a payment screen and still fail you when you need it most. We sit down with Megan Mueller, co-owner and CEO of Ozzie’s Body Shop, and talk through the auto insurance details that decide whether your vehicle gets repaired to OEM standards or forced into the cheapest option an adjuster can find. If you’ve ever wondered why a claim suddenly turns into an argument over parts, labor, or “what’s covered,” this is the plain-English guide we wish every driver had before the accident.

We dig into the right to appraisal, what it is, why it matters, and how it can protect you when there’s a major gap between a collision repair estimate and an insurer’s offer. We also unpack the reality behind “most cost-effective parts,” including used parts sourced across state lines and aftermarket parts that may not match manufacturer specs. Megan explains why OEMs publish position statements rejecting certain parts, and how an OEM endorsement can be a surprisingly affordable way to require original equipment parts, depending on your vehicle and policy rules.

From Colorado liability minimums to full coverage decisions, we talk about how quickly a $15,000 limit can get used up, what happens when the at-fault driver is underinsured, and why your rights change depending on whether you’re the insured or a claimant. We also cover common surprises like missing rental car coverage, plus a practical path forward: use a broker to compare quotes and ask your repair shop what they’re seeing on real claims.

If you found this helpful, subscribe, share it with a friend who’s shopping for insurance, and leave a review so more drivers can find it. What part of your auto insurance policy do you want us to decode 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 Ozzy’s Body Shop

SPEAKER_00 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 Ozzy's 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 art. 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.

Why Policies Feel Like Gibberish

SPEAKER_01 1:02

Insurance paperwork can feel like a foreign language, but understanding what your policy actually covers can save you stress, time, and money when the unexpected happens. Welcome, I'm Julie Schwenzer, co-host and producer with the awesome Megan Mueller, the co-owner and CEO of Ozzy's Body Shop. Megan, it's so great to see you as we dive into a topic that confuses a lot of us. Can you walk us through understanding auto insurance policies and what we should be looking at and paying attention to, like the sections for every driver?

SPEAKER_02 1:34

Absolutely. Hey Julie, it's awesome to be with you

Picking Insurers That Show Up

SPEAKER_02 1:37

as well. Gosh, where to start? I would say just as a general rule of thumb, the larger insurance companies, the ones that you see that are out there marketing and buying football stadiums and have commercials that have nothing to do with collision repair or your coverage, stay away from those ones. In my experience and from what I'm seeing around the nation, one of the ones that has changed the most as far as their coverage to their vehicle owners and they haven't been clear about it with their policy holders, in my opinion, is going to be State Farm. So highly recommend that people stay away from State Farm. And one of the reasons is because when you are buying a policy, a couple of things to really watch for.

Right To Appraisal Explained

SPEAKER_02 2:25

Number one is going to be whether or not you have something called the right to appraisal within your policy. So right to appraisal, most insurance companies are still going to have. And what it is, is if there is a discrepancy between what the body shop has written for or how you want your vehicle repaired versus what the initial coverage is from the insurance company, you have the right to hire what's called a third-party appraiser. So you have the right to hire a third-party appraiser yourself. And then with most appraisal clauses, the insurance company has to hire an independent third-party appraiser as well. Those two independent appraisers are going to work as non-biased parties to come to an agreement as far as what the value of the loss is. I will tell you that we've had situations where, you know, by following manufacturer guidelines, let's say on a BMW, we're at, you know, 15,000 and the adjuster that we're working with is insisting that they're only going to cover maybe 10,000. That's a huge difference. And we've had vehicle owners enact their appraisal clause. These independent appraisers have actually come in higher than what we're even writing for. So now those vehicle owners get to have their vehicle repaired the proper way per the manufacturer without having to come up with any out-of-pocket difference or to have an improper repair.

SPEAKER_01 3:55

Oh wow, that's huge. Thank you for that tip. Yeah. And then what about if you lease your car versus own

Leasing Rules Versus Your Coverage

SPEAKER_01 4:02

it? Is there anything in particular we should be looking at?

SPEAKER_02 4:05

Absolutely. So most OEM lease agreements are going to state that you are going to go to a certified collision center for the repair and have it repaired that way. That does not necessarily mean that your insurance coverage is up to that standard. So once again, the appraisal clause can be extremely important in that situation. So most insurance policies are going to state that you will accept what is quote unquote the most cost-effective part. That

Used Parts And Aftermarket Risks

SPEAKER_02 4:35

part is typically either going to be a used part out of a junkyard if it can be found and located by the insurance company. We have writers, sometimes we get the supplement back from the insurance company and they want us to use a used part from five states away. But it's just because they found the cheapest part. And technically, per the policy, that's all they have to cover. Or it's going to be for aftermarket parts. Aftermarket parts are parts that are supposed to be the same quality as what is made by the manufacturer, but it's anything from millingage thickness differences to safety concerns to recalls to all kinds of stuff. Every OEM does have a position statement that they do not endorse the use of those parts at all. However, when it comes to the insurance companies, they only have to fulfill what is agreed in your policy.

OEM Endorsement For Original Parts

SPEAKER_02 5:33

So the other thing that I wanted to touch on is, you know, while the appraisal clause is extremely important, you may not need to go with necessarily like a really expensive insurance if they have something called an OEM endorsement. An OEM endorsement is something that you can add to the policy. They're all going to have certain restrictions. Sometimes it's only for vehicles that have been made in the last five years or something like that. But it's an endorsement that you can add on to the policy, much like rental car coverage. And it's typically, my understanding, is somewhere between like five and seven dollars a month. And it guarantees that they cover original parts to go back on the vehicle.

SPEAKER_01 6:13

So you mentioned when you said right to appraisal, is that also considered an add-on? No.

SPEAKER_02 6:19

Nope. So the policy is typically either just gonna have it or not have it. It's not an additional endorsement.

SPEAKER_01 6:25

Okay. Wow, that's a huge one to look for then. If it is not included, that's wow.

SPEAKER_02 6:30

And then a lot of states right now um are trying to push through some legislature that makes it mandatory for an insurance company that if they're selling their policy in the state of call or in the in the state, um, that it has to have that written into the policy. Colorado just unfortunately is not there yet.

SPEAKER_01 6:50

Okay.

SPEAKER_02 6:51

So so it's important that people really find out whether or not it is in their policy because it is not required in our state right now.

SPEAKER_01 6:59

Okay. And I was also wondering about I think they're um, and please correct me if I'm wrong, they are considered add-ons like personal protection, insurance, and other things like that to the auto insurance policy. Have you seen um when people bring it in, even if you're really, you know, you're addressing the actual vehicle, but do you notice that in their policies they probably should have had more protection in other ways, um, and they did not because they're just they don't know.

Colorado Liability Minimums Fall Short

SPEAKER_02 7:28

Yeah, I think that one of the biggest misconceptions that people have is in Colorado, our state minimum for liability coverage is only $15,000. And so, you know, we have a lot of vehicle owners that come in that they've been hit by somebody, and that state minimum gets hit very quickly. So if you don't carry full coverage on your vehicle, your option is to max out at $15,000 or to go through your own policy.

SPEAKER_01 7:57

And then so the difference between liability coverage and like full complete coverage, that's that's a pretty big difference in Yeah, mostly because it's a protection for yourself that people don't really think of, right?

SPEAKER_02 8:09

So for people that have liability only, one of the biggest concerns is, you know, one, if you're hit by somebody that's either completely uninsured or they're underinsured with, you know, the state minimums, you better be ready to just kind of say goodbye to that car. And if you're not, then that's when full coverage is extremely important.

SPEAKER_01 8:30

So we don't want two mass-marketed insurance company people that that those two drivers do not want to get into an accident that have those types of insurance plans because they probably can't cover it both sides. Exactly. Yep, yep. What are the most common accidents that you see that bring somebody into your shop? Is it they got hit? Was it a like a bump back, you know?

SPEAKER_02 8:54

I would say it's kind of half and half. We certainly have a lot of deer out where we are. So we see a lot of comprehensive stuff where it's either involved animals or involved weather, like hail or you know, snow sliding off the road, that type of thing. We just really try to educate our vehicle owners, whether they are what are called the insured, which is they're going through their own policy, or whether whether or not they're the claimant. Um, because you have different rights with with either one. And a claimant is somebody that's been hit in the state

Insured Versus Claimant Rights

SPEAKER_02 9:27

of Colorado. So, really, I mean, both have so many different rights within them, which is like insured when you're buying your policy. That's when you really want to look for like the right to appraisal, because you don't have that option if you're going through somebody else's insurance. And if you happen to be hit with somebody that has either really low coverage or just a poor covering insurance company, you want to be able to have the right to go through your own insurance company, have all of those rights to protect you and your vehicle to make sure that it's properly repaired, and then your insurance company will work on your behalf and go through a process called subrogation against the at fault party. But it's just so important to have that right and that protection for yourself.

SPEAKER_01 10:12

And you mentioned the animals, like you know, wildlife. Is that something that is an add-on too?

SPEAKER_02 10:17

So that's just gonna be your comprehensive coverage. So generally, when people have full coverage, you're gonna have your collision coverage where you know you're at fault for a collision, or you're gonna have comprehensive where it's gonna be, you know, animals, weather, something like that. It technically no fault of your own.

SPEAKER_01 10:35

Okay.

Wildlife Hits And Comprehensive Coverage

SPEAKER_01 10:36

Yeah. What do you find with your clients that most surprises them with their policy? Where they're like, oh my gosh, I didn't have rental car coverage, I didn't have this, you know.

SPEAKER_02 10:46

There's so many people that think, you know, especially when they go online and purchase, a lot of people don't really understand what they are or are not buying. So they think that they got full coverage, they think that that just

Online Buying Mistakes And Rental Gaps

SPEAKER_02 10:58

covers everything. That's not gonna have your rental car. You really don't understand what's in that policy, like the accepting market values or accepting most cost-effective parts. Like people don't really understand what that means. Um, and it's definitely not explained to you when you're purchasing online.

Why A Broker Beats Guessing

SPEAKER_02 11:16

Um, so I always rec I still recommend going through a good agent if you can, or a broker. I really recommend brokers because um one of the things that we do down at our shop, a lot of our vehicle owners, especially when they've when they have State Farm, they switch insurance companies after going through that experience. And and they're looking for recommendations on who we see that offers really good coverage. But of course, people don't want their monthly premiums to double either. So I always recommend that they go see a broker, have multiple different insurance companies um kind of priced out so that they are like, okay, well, here's five different companies with five different premiums. And then I always recommend that they just call us. Like, we're not the end-all be-all in any way, but we can at least tell them our experience for what we see as far as goods and bads. And that's why I really like brokers because they can price out multiple different insurance companies. It's kind of like health insurance, right? You can go ahead, you can take a look at it and be like, okay, for this type of coverage, I'm cool with this kind of premium, right?

SPEAKER_01 12:23

Yes. Yeah. Absolutely. And you brought up a great point about comparing quotes. I mean, that was a huge that was one of my questions for you. So thank you for answering that. And I I like to think too, like, you know, you seem to keep it very real, which is great. So if somebody's like a less, you know, or in a less risky situation, maybe only just drive to work and back and they don't really use their car too much, I'm sure then you recommend this, you know, maybe this will work for you. But if they're like out, you know, in a more more high-risk area, I'm sure.

SPEAKER_02 12:53

With and these deer are crazy, so there's yes, it's that comes from animal hits.

SPEAKER_01 13:01

It's yeah, yeah, absolutely. Well, thank you so much for breaking this down. I wish we had more time. We always appreciate your insight. Thank you, Megan.

SPEAKER_02 13:09

You're welcome.

SPEAKER_01 13:10

Thanks.

Where To Get Help Fast

SPEAKER_00 13:15

You've been listening to Crash Course, the Ozzy's 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.