Is it the usual case for a shop to keep a finished bike until they receive payment from the insurance company?
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Repair Shop waiting for insurance payment
- Thread starter stnd
- Start date
Some insurance companies take as long as three months to pay a body shop for work they have done on a car, truck, bike, trike etc. Maybe this shop wants to speed up their payment for work done on your bike and are holding onto it so you can put pressure on the insurance company to pay for repair work. Maybe the insurance company owes that body shop money for previous work and this is the only way they may collect their money by holding your bike captive. Insurance industry wants money upfront when purchasing their products but take ages to pay out when they need to. My friend has had to do that to collect past money from insurance companies which owed him. I guess they were hoping he would go bankrupt and then they would not have to pay him what was due. He no longer wants insurance jobs. They are a big pain in the you know what on everything Roger
Depends on the insurer. I've made not-at-fault claims with three separate insurers and the payments were immediate.
RickT
Well-known member
Not unusual at all. Releasing the bike before they've received payment leaves them vunerable. Depending on the amount of the repair, you could always pay the bill yourself and when the cheque gets issued (it's normally co-payable to you and the body shop) just have them sign it over to you. Either that, or get on the phone to your insurance company to expedite payment. No reason it should take more than a couple days.
Corey McNeely
Well-known member
As I was previously a claims adjuster. I can tell you that this is sometimes the case. Most likely the shop is not a preferred shop with the company sop there is no previous relationship. The can be supplements throughout the repair which can slow payments as the insurance company would perfer to send one cheque instead of mutliple. Repairs are generally approved by the appraiser who are on the road 90% of the time and payment are issued by the adjuster. These things can take time. I would simply have your friend contact his adjuster and work it out with the shop. With regards to the time it takes an company to pay out a claim.
There is a lot more investigation invovled before paying out a claim then setting up an insurance policy. So things do take more time.
There is a lot more investigation invovled before paying out a claim then setting up an insurance policy. So things do take more time.
Anything owed your friend would be assets that the receiver would go after with a vengence.
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