OK Tool late, here is another example:
Two years ago I hit a deer in my 924S. $5800. plus tax damage. Went to Pilot's preferred shop which is the best in my area. Asked how the claim was progressing. Car was back in my garage. Shop told me company adjuster said that I was to pay 1/2 refinishing cost of hood because it had two coats of paint on it and they don't exceed two coats. My end was 3 hours which was $200.
I called the regional office and got some regional claims manger and told her that I wasn't going to need the car for another 8 months and in that time I was going to sue them in Small Claims court and no judge would put up with that crap. Next day she calls me back and says no extra charges. 
The point being that my wife, sister, mother and many guys would have buckled immediately and added the $200 to the $300 deductible.
This kind of nickel and diming is constant and throughtout the industry. They love to collect and hate to pay out and when, they as a company, are losing money, they REALLY hate to pay out. The pressure they put on their employees must be horrible.
I don't know all the details but a 924s is at least what 20 years old? How old was the paint? Polices clearly state that betterment can be charged in circumstances where the work done will make the car substantially better than its origional condition. I mean if a car (not saying your car) had a worn out scratched paint job on the hood that badley needed repainting the insurance conpoany isn't obligated to pay for new paint job you otherwise would have paid for. They are only obligated to bring it back to pre accident conditon..which is scratched and worn.
Its absolutley true that they will go by policy first. Many companies have policies where they will waive the betterment if you have it repaired at a prefered shop (ING for example has it written right into their policies and literature).
You could have tried to sue them but you would not have won most likley becuase the policy you bough has specfic wording in it that lests them charge betterment. As much as we may dislike it its not scummy, the adjuster screwing you over or anything else. If one looks at it objectivley its completley reasonable. Its unfortunate that there is fine print in policies and most peiople including me don't read every detail or you buy the policy 10 years ago stick it in a daraw and never look at it again.
It isn't nickle and diming. The adjuster that makes 30 k a year and has 6 months expereince isn't going to waive the better ment on your claim for no reason. They don't discretion to do that 50 times a day nor do they want to. You complained and they figured it was eaisier to waive the 200 (that they are entitiled to based on the agreement YOU signed) than to fight about it and leave the claim open for 8 months. It cossts $ to do that. If you had a Cavilier with rust holes through the hood and didn't want to pay $1000 betterment becuase they had to replace the hood and repaint it they likley wouldn't have given in.
I can tell you for fact that I have been right there when a manager has told an adjuster yes we pay thisbecuase its not our job to pay as little as possible. Its our job to pay what is required to safley bring the car back to pre accident condition.
People who have one or two experiences with insurers think that becuase they try to impose betterment legally in the policy they are trying to rip them off. I see multiple incidents every day where people who get in a minor front end collision in a 10 year old car are adamate that the entire front end be rplaced with new parts, that their brakes (which haven't been replaced in 2 years) worked perfectly before the accident and that the rusty scratches on their trunk were caused by some flying debris from the front collision that happened yesterday and they the insurance should pay to have the trunk repainted.
The other thing that is interesting after spending 6 years around this is how people shop for insurance. I admit before I had this job I did the same thing. Most people simply want the ceapest rate. They shop around for rate quotes and when they find a cheap one they buy it and hang on for dear life. People don't look at what that company offers. They don't assign value to something like a company that offers first accident forgiveness or if a company has policy of paying right off the unbiased valuation of a total loss or if they try to negotiate or if they have local adjusters vs farming out claims to some call center in India.
