How Do Repair Estimates Work After an Accident?

Find Law Fast Team
May 27
2 min read

After a crash, one of the first steps in getting your car back on the road is a repair estimate. But how do insurance companies and repair shops figure out the cost? And what happens if their numbers don’t match?

Here’s what you need to know about how repair estimates work after an accident.

1. The Insurance Adjuster’s Estimate

When you file a claim, the insurer will usually send an adjuster to:

Inspect the vehicle’s damage in person (or through photos).
Use software to calculate repair costs based on labor rates and parts prices.
Decide whether repairs are worth it, or if the car should be totaled.

This estimate is often the insurer’s starting point.

2. The Repair Shop’s Estimate

A body shop will also prepare its own estimate. This includes:

Labor costs (which vary widely by shop and location).
Original manufacturer (OEM) parts vs. aftermarket parts.
Additional hidden damage that may not be obvious until repairs begin.

Shops may come up with higher numbers than the insurance company’s adjuster.

3. Why Estimates Differ

It’s common for estimates to conflict. Reasons include:

Shops want to ensure quality repairs, not just the cheapest option.
Adjusters are looking to keep costs low for the insurance company.
Some damage may only show up once repairs begin.

4. What Happens If Numbers Don’t Match?

If your shop’s estimate is higher than the insurance adjuster’s:

The insurer may negotiate or request a “supplemental estimate.”
You can sometimes push back by providing documentation.
In extreme cases, you may need multiple estimates or a third-party inspection.

5. Tips for Handling Repair Estimates

Always get a copy of both the insurer’s and shop’s estimates.
Ask questions about parts, labor rates, and why costs differ.
Don’t be afraid to get a second opinion from another shop.
Keep records in case of disputes.

The Bottom Line

Repair estimates are rarely exact — they’re an informed calculation that can change once work begins. Knowing how insurers and shops prepare their numbers helps you protect your car and your wallet.

👉 If you’ve been in a car accident and need help navigating the repair process, fill out our quick questionnaire. FindLawFast will connect you with the guidance you need.

Disclaimer: This article is for general informational purposes only and should not be taken as legal or financial advice. Repair processes and insurance rules vary by state and provider. Always consult a qualified professional about your specific situation.