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Does an Insurance Company Have the Right By Law to Ask for All Invoices on Parts Used for Repair?

When repairing a car covered by insurance, does the insurer have the right by law to ask for all invoices on parts used for the repair? It seems to me that your profit on parts is not their business.

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Writer Charlie Barone has been working in and around the body shop business for the last 35 years, having owned and managed several collision repair shops. He's an ASE Master Certified technician, a licensed damage appraiser and has been writing technical, management and opinion pieces since 1993.

When repairing a car covered by insurance, does the insurer have the right by law to ask for all invoices on parts used for the repair? It seems to me that your profit on parts is not their business. If they write a used part for $1,000 and you find the same part for $900, they want the $100 profit you made returned to them. Have you ever asked the pizza parlor to show you how much they paid for pepperoni? I just had an adjuster tell me that the law says I must turn over all records of repair. I refused and he denied my supplement even though I gave the receipts for the supplement parts. I have no agreement with them, and the check was written to the owner.

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Asked by Thomas Klamo, Klamo Garage, Edgewater, Fla.

Absolutely not. The insurer does not have the right by law to ask for your invoices. While shop operators used to be intimidated by insurers and would do darn near anything they asked, there is no contract with an insurer (provided the repairer isn’t on a DRP) and therefore no duty is owed to an insurance company. So you’re correct in refusing to share your personal business information.

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