Can the insurance company do this?

[saint1415]

What is the name of your state (only U.S. law)? FL

Buddy just brought his S2000 to Honda after someone slashed the ragtop. Progressive first said they would only replace it with an aftermarket top. After insisting the sub par quality of the aftermarket replacement they finally conceded to an OEM replacement. Then they followed up with denying the dealership the labor rates they charge of $90/hr. They said they will only pay $40/hr and the difference needs to be billed to the customer. Is this even legal? Thanks in advance.

 

[justalayman]

if the policy allows it, yes.

So, in other words, read the insurance policy to determine not what is legal but what the insurer is liable for. If they limit their compensation to what is allowed per the policy then yes, it would be legal. If there is a cost greater than what the policy covers, the insurer is only required to pay what the contract demands and the owner would be liable for anything above and beyond that.

 

[ecmst12]

Unless the car is current model year, they are not required to pay for OEM parts.

$90 per hour is FAR above the market rate for body labor. If the shop he chose won't accept the insurance company's labor rate, he should find a shop that does - he shouldn't have to look too hard, most shops will jump at the chance for a new customer.

 

[Zigner]

Unless the car is current model year, they are not required to pay for OEM parts.

$90 per hour is FAR above the market rate for body labor. If the shop he chose won't accept the insurance company's labor rate, he should find a shop that does - he shouldn't have to look too hard, most shops will jump at the chance for a new customer.

You haven't been to a Honda dealer lately

 

[ecmst12]

Nor do I plan to, I drive a VW and the only work I have done at a dealership is warranty work. I refuse to pay extra for the same work.

 

[justalayman]

Nor do I plan to, I drive a VW and the only work I have done at a dealership is warranty work. I refuse to pay extra for the same work.

there is some work that is better left to a dealer.

 

[ecmst12]

Granted, but body work ain't it! Body work is best done by a shop that specializes in it.

 

[HomeGuru]

Granted, but body work ain't it! Body work is best done by a shop that specializes in it.

**A: there is no body work for a ragtop.

 

[justalayman]

Granted, but body work ain't it! Body work is best done by a shop that specializes in it.

well, we have a building down the road. Somewhere around 30k square feet I would guess. It's a body shop. It is owned and operated as part of a dealership down the road. Is there some reason I shouldn't think that is a shop that specializes in bodywork?

I don't know any mechanical garage that does bodywork. If a dealer does not have their own in house body shop, they aren't letting the mechanics do the body work in the garage. They send it out or refer the customer.

I'm kind of missing the point.

and if you have a ZR1 Corvette with the carbon fiber top with the clear coat on it and you need that repainted, I believe the ONLY place you are going to get OEM quality is at a GM body shop. Last I heard the additive for the clear coat is a proprietary product and costs $60k per gallon. When you add the appropriate amount to the actual clear coat, the resulting paint is $2k per gallon. About a half gallon of that paint is used on the car so it ends up with $1k worth of paint that is not available anywhere else other than a GM dealer to paint the carbon fiber on a ZR1 Vette to OEM quality.

 

[ecmst12]

I think you're taking this to extremes.

Even most dealer-associated body shops aren't insane enough to try to charge more then double the market average rate for body labor. I maintain that any shop worth going to is going to accept your insurance company's rates.