What to Do When the Insurance Check Won’t Cover Your Car Repairs (California Guide)

After a crash, many people expect the insurance company’s payment to match what the body shop says it costs to fix the car. Then the estimate arrives, the check shows up, and there’s a gap. If you’re in California and your insurance check is less than the repairs to your vehicle, the next steps depend on why the amount is short and what kind of claim you’re making (third-party claim against the at-fault driver vs. first-party claim under your own policy).

Below is a practical, California-focused guide to help you understand why the shortfall happens, what typically affects the amount, what documentation moves the needle, and how to push for a proper supplement or re-evaluation.

What usually drives the size of the insurance check

• Who is paying: the at-fault driver’s insurer (third-party property damage claim) vs. your own insurer (collision coverage, Uninsured/Underinsured Motorist Property Damage, etc.).
• Repair estimate type: an initial estimate based on visible damage vs. a later “supplement” after teardown reveals hidden damage.
• Parts selection: OEM parts vs. aftermarket parts vs. recycled/salvage parts (and whether your policy allows those).
• Labor rates and procedures: the insurer’s “prevailing rate” vs. your shop’s rate, plus whether calibrations and manufacturer-required steps are included.
• Deductible: your collision deductible can reduce the check if you’re using your own policy.
• Policy limits: the at-fault driver’s property damage limit may cap what their insurer pays, even if repairs cost more.
• Total loss threshold and valuation: if the insurer decides the vehicle is a total loss, payment is based on actual cash value (ACV), not your repair bill.
• Betterment/depreciation arguments: insurers sometimes reduce amounts for “betterment” when new parts replace old ones (more common with certain wear items).
• Storage/towing and timing: delays can trigger storage fees and towing costs that complicate negotiations if not addressed early.

First, identify what the check is actually for

Before you dispute anything, confirm what the payment represents. A short check can be reasonable if it’s only an initial payment, or it can be a red flag if it’s meant to be “final.” Ask the adjuster (in writing if possible):

• Is this an initial estimate or the final authorized amount?
• Does the estimate include teardown (disassembly) and supplements?
• What parts types were used (OEM, aftermarket, recycled)?
• What labor rate assumptions were used for body, paint, mechanical, and frame?
• Are calibrations and ADAS (advanced driver assistance systems) procedures included if applicable?
• Is the payment reduced by a deductible or betterment?

Common reasons the insurance payment is less than the repair bill

1) The insurer wrote a “visible damage only” estimate

Many estimates are created from photos or a quick inspection. Hidden damage (behind bumpers, supports, sensors, wiring, cooling components, suspension pieces) often isn’t confirmed until the shop tears the vehicle down. In that case, the fix is usually a supplemental estimate submitted by the shop.

2) The carrier is using different parts than your shop

Disagreements frequently involve parts. Your shop may insist on OEM parts for fit, safety, corrosion protection, or warranty reasons. The insurer may authorize aftermarket or recycled parts to control costs. Whether the insurer must pay OEM can turn on policy language (for first-party claims) and reasonableness/safety/availability (often argued in third-party claims).

3) Labor rate disputes and “not included” procedures

Modern repairs can require specialized steps beyond traditional bodywork: scanning, calibrations, weld testing, corrosion protection, and manufacturer position statements. Some insurers initially omit these line items or price labor at a lower “prevailing rate.” This can create a large gap between the insurer’s number and the shop’s invoice.

4) You have a deductible (first-party claim)

If you’re using your own collision coverage, your check may be reduced by your deductible. If another driver is at fault, you may later seek reimbursement through subrogation, but timing varies.

5) The at-fault driver’s policy limits are too low

In a third-party property damage claim, the insurer generally won’t pay more than the policy’s property damage limit. If your repair bill exceeds the limit, you may need to look to your own coverage (collision or UMPD, if available), or pursue other avenues depending on the facts.

6) The insurer is treating the vehicle as a total loss

If the insurer totals the car, the payout usually follows the vehicle’s actual cash value (ACV) minus salvage value (if you keep it) and minus your deductible (if first-party). If you’re seeing a number that doesn’t track the repair bill, it may be because the claim has shifted from “repair” to “total loss.”

7) Payment is missing related expenses

Your “out-of-pocket” may spike if towing, storage, rental reimbursement, and diagnostic fees aren’t being addressed promptly. These may be separate from the repair authorization and may require documentation and negotiation.

Key terms that matter (and how they show up in your estimate)

• Actual Cash Value (ACV): what the vehicle was worth immediately before the collision, accounting for condition and comparable vehicles.
• Total loss: when repair cost plus other factors meets the insurer’s threshold to declare the vehicle a total loss.
• Supplement: an additional estimate submitted after hidden damage is found or repair procedures change.
• OEM / aftermarket / recycled parts: original manufacturer parts, non-OEM parts, and used parts from salvage sources.
• Betterment: a claimed reduction when a repair improves the car beyond its pre-loss condition (sometimes disputed).
• Diminished value: loss in resale value after repair due to accident history (often debated, and handled differently across claim types).
• Subrogation: your insurer seeking reimbursement from the at-fault party after paying your claim.

The documentation that typically moves a low offer upward

Insurance negotiations are document-driven. If the insurer’s number is low, it usually means key facts or line items aren’t in the file yet—or they’re disputed. Gather:

• Itemized repair estimate from the shop (including parts type, labor hours, paint materials, and any sublet work).
• Photos (pre-repair, during teardown, and of hidden damage).
• Teardown findings and a written explanation from the shop of why additional parts/procedures are required.
• Scan and calibration records (pre-scan, post-scan, and ADAS calibration invoices where applicable).
• Manufacturer repair procedures or position statements if the shop relies on them for required steps.
• Towing and storage invoices if the car was moved or held at a yard/shop.
• Rental car receipts and proof of “loss of use” if rental is disputed.
• Comparable vehicle listings (if the dispute is about ACV in a total loss).

Negotiation and escalation guidance (how these disputes usually play out)

Start with the estimate line-by-line

Ask the adjuster to identify which line items were denied, reduced, or substituted—and why. Keep the conversation anchored to the written estimate and photos, not general statements like “that’s too high.” A focused dispute can lead to a quick supplement approval.

Use the shop’s supplement process strategically

If your vehicle is already at a reputable body shop, the shop may have a direct supplement channel with the insurer. Supplements are a routine part of repairs, especially when teardown reveals hidden damage. Make sure the shop documents why the added work is necessary.

Be careful cashing checks labeled as “final”

Some payments are sent with language suggesting full and final settlement of the property damage portion. Read the check stub and any release language carefully, and ask questions before signing anything that could limit your ability to request additional payment.

Confirm where the payment is supposed to go

Depending on the claim and lien status, checks may be made out to you, the shop, or multiple parties (for example, you and the lienholder). Misunderstandings here can delay repairs and increase storage fees.

If the dispute is really a total loss valuation issue, switch gears

When the insurer totals the car, sending more repair documentation may not matter. The fight becomes about the accuracy of the ACV report: options/packages, mileage, condition, prior damage, and correct comparable vehicles. Request the valuation report and review it for errors.

Decision-focused table: Why the check is short and what to do next

If/Then: quick guidance for common situations

• If the car hasn’t been torn down yet, then treat the insurer’s number as a starting point and push for a supplement process.
• If the shop found hidden damage, then request that the shop submit a supplement with photos and part numbers—not just a higher total.
• If you’re using your own collision coverage, then expect the deductible to apply and ask how subrogation works if another driver is at fault.
• If the insurer insists on aftermarket parts, then ask what the estimate assumes and document any safety/fitment concerns or unavailability.
• If the insurer totals the vehicle, then focus on ACV accuracy (options, mileage, condition, comps), not repair line items.
• If the at-fault driver’s limits are too low, then explore your own coverage and consider whether other responsible parties or coverages may apply.

Example scenario (hypothetical)

Hypothetical: You’re rear-ended in Los Angeles. The at-fault driver’s insurer writes an estimate for bumper cover replacement and paint. Your body shop starts teardown and finds the impact bar is bent, rear sensors need calibration, and the trunk floor has damage requiring additional labor and parts. The shop submits a supplement with photos, scan reports, and itemized operations.

At first, the insurer refuses to pay for calibrations and insists on recycled parts. The shop provides manufacturer procedure documentation for sensor calibration and notes that the recycled part available is damaged and not acceptable. After review, the insurer updates the estimate and issues an additional payment. The repairs proceed without you paying the difference out-of-pocket—because the dispute was supported by teardown documentation and specific line items rather than a general complaint that the check was “too low.”

Mistakes that can cost you money in a repair shortfall

• Signing a release too early on the property damage claim.
• Assuming the first check is the only check and paying the difference before supplements are submitted.
• Letting storage fees accumulate while waiting for inspection or arguing about small items.
• Not requesting the valuation report in a total loss and missing errors in options, trim, or condition.
• Skipping documentation (photos, scan reports, teardown notes), leaving the adjuster with no basis to revise the estimate.
• Mixing up injury and property damage issues; they can overlap but are often handled separately within a claim.

How vehicle damage ties into a California personal injury claim

When a crash involves injuries, the property damage dispute can still matter. Vehicle photos, repair records, and the severity of impact can become part of the overall claim documentation. That said, insurers may argue that “minor vehicle damage” implies minor injuries. Keeping thorough records—photos, repair invoices, and a consistent timeline—can help prevent misunderstandings about force of impact and what happened.

When it makes sense to ask for help

Consider getting experienced help when:

• The insurer is pushing a total loss and the ACV seems wrong.
• You’re facing a policy limits issue with the at-fault driver’s coverage.
• Your repair is stalled due to repeated denials of standard procedures (scans, calibrations, structural work).
• The crash involves injuries and you’re trying to coordinate medical treatment, rental/loss of use, and vehicle repairs at the same time.

FAQ

Can I make the insurance company pay the full repair bill?

Answer: Sometimes, but it depends on why the bill is higher. If the gap is due to hidden damage, missing procedures, or incorrect assumptions, supplements and documentation often resolve it; if the issue is policy limits or a total-loss valuation, the path is different.

Is the first estimate always low on purpose?

Answer: Not always. Many initial estimates are written before teardown, so they can be incomplete even without bad faith—especially with photo-based estimates.

Do I have to use the insurance company’s preferred body shop?

Answer: Generally, you can choose your repair shop. However, insurers may have their own processes for inspections and labor/parts pricing, so confirm how supplements and approvals will be handled.

What if the insurer insists on aftermarket parts?

Answer: Ask what the estimate specifies and why. Depending on the claim type and policy language, the insurer may allow aftermarket/recycled parts, but disputes can arise around fitment, availability, warranty, and safety-related considerations.

What is a supplement, and who submits it?

Answer: A supplement is an additional repair estimate for hidden damage or added procedures discovered after teardown. The body shop typically submits it to the adjuster with photos and itemized documentation.

If my car is totaled, can I still demand repairs instead?

Answer: Usually the insurer will handle a total loss as a valuation payout rather than paying for repairs. If you disagree, the dispute typically focuses on whether it should be totaled and/or whether the ACV valuation is accurate.

Will I get paid for a rental car while repairs are happening?

Answer: It depends on coverage and liability acceptance. Rental reimbursement may come from your own policy if you carry it, or from the at-fault insurer as “loss of use,” but documentation and timing issues are common.

Talk to Jacob Emrani’s team if the repair check doesn’t match the real cost

If you’re dealing with an insurance check that won’t cover necessary repairs—and the crash also involves injuries, disputes over liability, or ongoing claim delays—you can contact Jacob Emrani through CallJacob.com to discuss what’s happening and what options may be available. No case is guaranteed, but getting clarity early can help you avoid costly missteps.

Disclaimer: This article provides general educational information in a California context and is not legal advice. Reading this content does not create an attorney-client relationship. For advice about your specific situation, consult a qualified attorney.