Insurance Company Reversed Repair Approval—is This Legal?

A company car hit my vehicle, and their insurance accepted responsibility, approving $18K in repairs plus a supplement. After more than a month of repairs, when the shop submitted the supplement to finalize the work, the insurance company suddenly declared it a total loss.

They then sent me a property damage release form. Since my vehicle is financed and the loan balance exceeds the estimated loss, I asked how the shop costs would be handled now that they’re declaring it a total loss. However, I received no clear answer. When I pressed further, the adjuster simply said, “Go through your own insurance company, I can’t help you anymore.”

Is this fair, and are they still legally obligated to cover the repair costs as initially agreed? Why didn’t they declare it a total loss before the shop began repairs?