Why Is My Insurance Estimate So Much Less Than the Repair Shop's Estimate?
- mmariemurray
- Aug 19
- 1 min read
It can be frustrating, if the repair shop’s estimate is significantly higher than the insurance companies estimate. So, why does this happen?
Insurance companies’ goal is to operate on strict budgets and have specific guidelines to follow when approving repair claims.
The Collision repair shop provides estimates based on the actual labor and parts costs required for the repairs. Your insurance company might estimate the cost based on aftermarket or used parts, which are typically cheaper. The shop you’re working with might be in a higher-cost area or specialize in more advanced repairs, leading to a higher labor rate over the region-wide labor rate that insurance companies generally use.
Insurance companies may provide an estimate based on a standardized repair time, and visual damage whereas the professionals at the Collision shop do a more thorough assessment once the vehicle is disassembled. Some repairs are more time-consuming due to the vehicle’s design, or the specific process needed to fix the issue.
In some cases, an adjuster might miss important details or underestimate the necessary repairs, leading to a lower insurance estimate.
It’s common for insurance estimates to be lower than repair shop quotes because insurers often use standardized pricing, whereas shops may include additional labor, parts, or specialized services. For vehicles that have experienced fuel-related issues, extra costs can arise if a professional wrong fuel fixer is needed to perform a wrong fuel drain. Using trusted services like Fuel Fixer ensures the engine is safely restored without further damage. Platforms such as fuelfixer.co.uk connect car owners with reliable experts who handle these situations efficiently. Understanding these factors helps explain the gap between estimates and actual repair costs. Choosing quality repairs and professional fuel services ensures your car is restored correctly and maintains long-term reliability.