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I was in a motorcycle accident and other insurance accepted fault for the
accident. I was told by the insurance that they would pay all damage just to get
an estimate. The shop appraised the damage to around 3200. Insurance wanted to
pay shop directly but alot of those things i can do. I will still get some work
done at that shop. just not things I can do on my own. Now insurance wants to
deduct taxes labor and pay me only 2400? Is this Legal?
Asked on July 25, 2016 under Accident Law, California
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
They only have to pay for the actual cost to repair. If you are making repairs yourself and reducing the financial cost of the repair, you have therefore reduced what they need to pay you (e.g. by reducing labor costs and the taxes associated therewith). There is no right to make a "profit" on the insurance claim by being paid the full cost of 3rd party repairs but then making some repairs yourself; the insurer can adjust what they pay you to take that into account.
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