If you have been involved in a car accident, your Northwest Territories car insurance company will assess the damage to your vehicle. Based on its findings, it will either pay for the cost of repairs up to the policy limit you choose (less your deductible) or write a check for the cash value of the car.
The idea of receiving an insurance benefit is to make you “whole” following the accident. The insurance company will pay for repairs to bring your vehicle back to the state it was in when the loss occurred. In a case where the repairs do more than simply bring the vehicle back to the state it was in before the accident, the policyholder may be expected to pay more toward the cost of repairs than simply paying the deductible.
While you can choose to have any repair work done on your vehicle at any body shop, there are advantages to going through one of the insurance company’s preferred shops. If you agree to do so, the insurance company will deal with the shop directly to make sure that the repairs are performed to a high standard.
If you exercise your right to have the work done by the repair shop of your choice, you will be dealing with the owner yourself. The insurance company will only pay the amount that it was originally quoted for the work.