by Tailspin » Fri Mar 27, 2009 12:41 am
I wrecked my 2008 Lexus and my Ins.Co. is telling me that I need to take it to one of thier "prefered shops" or they will not warrentee the repairs nor will they pay any higher labor rate than thier shops. The shop I want to use has a great reputaion, a written lifetime warrenty, and a couple my friends have used them and are very happy. Thier labor rate is $3.00 an hour higher than my Ins. Co's shops,but is the same as several other shops in our Town . I have a $1000.00 deductible and dont feel that I should have to pay any more out of my pocket, but I want my car fixed right,by the shop I want! I live in Va. [/b]
Posted: Fri Mar 27, 2009 04:09 am Post Subject:
I'd say if the shop wants your business as opposed to loosing it, they should be able to adjust their rates by $3/hour.
If your insurance company can show that several other repair shops will honor the lower price then this is all that the need to pay.
Posted: Fri Mar 27, 2009 08:24 am Post Subject:
if your insurance company is ready to give you the option which is comparable with the shop mentioned by you then you can go for that option rather you should ask for insurance company to give you right option.
one more thing to add $ 3 /hr labor charges according to me is normal one .Insurance company should be paying that much labor charges.
stay on with your stance. do not budge to their (insurer's) pressure so that you end up paying extra from your own pocket.
Posted: Fri Mar 27, 2009 09:49 am Post Subject: insurance
WOW!! I din't have an issue, like this, when I was in an accident. My Insurance company just told me to get 2 estimates from 2 different repair shops. As long as you DO pay your Deductible and take care of things on YOUR end, I don't see why YOU shouldn't pick your OWN repair shop.
Posted: Fri Mar 27, 2009 02:17 pm Post Subject:
This is a somewhat common steering tactic. I have had customers tell me this before, and I have produced an estimate from the insurance company in question showing they do pay the higher rate.
Posted: Sat Mar 28, 2009 05:21 am Post Subject:
is the shop recommended by the insurance company reputable? otherwise, i dont see a problem trying out that shop. on the other hand, $3/hour is an acceptable rate, and i dont see why the insurance company is insistent on you going to their recommended shop.
call up the shop of your choice, get the total estimate for the repair, and discuss with your insurance company. if the difference is small, you could work out some leeway with them.
Posted: Sat Mar 28, 2009 06:55 am Post Subject:
I have worked at Toyota Financial and, at least at the time (late 2001) they were very choosy about who you went to for repairs. They aggressively protect their interest in the vehicle, and made people come in to the office for an inspection of the vehicle and the paperwork (to make sure the mechanic was approved properly) before they would sign the insurance check (which is usually made in the vehicle owner and the lien holder's name).
So double check with Toyota Financial, they may decide that your choice of mechanic is better and tell the insurance company to accept it.
Even though the mechanic has a Lifetime Warranty, the insurance company may raise your rates even more for going against their policy. I've heard some horror stories about insurance companies, so go with what they say, even if the work is substandard, you did as they said and they will have to pay for any consequences (per their warranty).
I doubt that the mechanic would be willing to go down that much, especially if they are that reputable. They probably have a line of other cars who are willing to pay their full price. Plus, it will take quite awhile to make those repairs, and that difference will be a substantial chunk of change.
Hope this helps,
chrys
Posted: Sat Mar 28, 2009 02:35 pm Post Subject:
Man does this thread have a lot of erroneous information on it! :roll:
Tailspin...here's the deal...if your carrier can show and prove that qualified shops will repair this vehicle for the labor rate they have written they are well within their rights to pay that labor rate and only that labor rate.
The state of VA says in part in their fair claims practice regulations:
This section shall not be construed to require an insurer to pay an amount for motor vehicle repair services or repair products necessary to properly and fairly repair the vehicle to its pre-loss condition that is greater than the prevailing competitive charges for equivalent services or products charged by similar contractors or repair shops within a reasonable geographic or trade area of the address of the repair facility. Offering an explanation of the extent of an insurer's obligation under this section to its policyholder or third party claimant shall not constitute a violation of this section.
Posted: Sat Mar 28, 2009 03:54 pm Post Subject:
As tcope said...
I'd say if the INSURER wants your business as opposed to loosing it, they should be able to adjust their rates by $3/hour.
oops, I think I misspelled shop.
FK,
Posted: Sat Mar 28, 2009 06:50 pm Post Subject:
Lori, I hope you weren't referring to my post as being erroneous. A lot of carriers instruct their adjusters (I have seen some Allstate adjusters do this) to write estimates at drp rates. I've had adjusters tell insureds and claimants that is all they will pay. Like I said I have produced estimates showing the higher rate from the carrier sometimes by the same adjuster. :shock: I have been given the excuse that the deficiencies are because the insured or claimant might not get the car repaired. The OP said the shop of choice charges the normal rate commonly paid in the area.
Posted: Sat Mar 28, 2009 09:36 pm Post Subject:
Would be a good time for the insurer to produce their survey and to check it's accuracy. Oh I forgot, that's proprietary information most likely.
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