Our members have said they are not accepting "NO" or " You're the only shop asking for that" for an answer anymore. They are politely requesting the new rates from the appraisers. If that doesn't work they are calling supervisors and even their supervisor if needed. Shops are now taking it to the next pay grade. Several members reported the supervisors were suprised that shops are requesting higher rates because they're field appraiser are simply saying no without requesting approval from management. Our members have been keeping copies of estimates when the higher rates are paid, removing the customers information and using these as proof the new rates are being paid. If the carrier still refuses to pay, our members are filing complaints with the Texas Department of Insurance (TDI). http://www.tdi.texas.gov/ And this brings us to our ACTION PLAN!!!!
 
The ACTION PLAN is:
 
When you have exhausted all other means to get your shops rates paid and the insurer is still refusing, please follow the steps below.
 
Write an estimate for the repairs as your shop would repair the vehicle and at your repair rates, make a copy of the insurance estimate, take a picture of your shop's posted labor rate sign and email it everything to TDI. We also suggest copying your State representative, so they know one of their supporters needs help from a state agency.
 
CLICK HERE to find my State Representative!
 
Here is an example of how to word your complaint:
 
Dear Insurance Commissioner or who it may concern,
 
    I am writing to file formal complaint against ___________ for short paying an insurance claim filed against them under Claim number ___________. My collision repair shop has made multiple attempts to resolves this issue but we were unable to reach an agreed repair amount for this claim. The short pay amount is $_____.___. The short pay consist of repair rate differences and required repair procedures the insurance company says they do not pay for. I am asking they be required to pay the full claim amount owed to the consumer (vehicle owner/Texan) in order to have their vehicle completely and properly repaired without any out of pocket expense. I thank you for your time and I look forward to hearing from you soon.
 
 
Sincerely,
 
(Signature)
 
Your Name here
999-999-9999
Shop Name Here
Address
City, TX 77777
 
 
 
ConsumerProtection@tdi.texas.gov or use to online form to file a complaint
 
Click Here for the TDI On-line Complaint form
 
If you choose to print and mail your complaint, here is the address:
 
Texas Department of Insurance
Consumer Protection (111-1A)
P.O. Box 149091
Austin, Texas 78714-9091
Consumer Help Line: 1-800-252-3439
Fax: (512) 475-1771
 

Our members have said they are not accepting "NO", " You're the only shop asking for that" or "That's above my pay grade" for an answer anymore. They are politely requesting the new rates from the appraisers. If that doesn't work they are calling supervisors and even their supervisor if needed. Shops are now taking it to the next pay grade. Several members reported the supervisors were suprised that shops are requesting higher rates because they're field appraiser are simply saying no without requesting approval from management. Our members have been keeping copies of estimates when the higher rates are paid, removing the customers information and using these as proof the new rates are being paid. If the carrier still refuses to pay, our members are filing complaints with the Texas Department of Insurance (TDI). http://www.tdi.texas.gov/ And this brings us to our ACTION PLAN!!!!

The ACTION PLAN is:
 
When you have exhausted all other means to get your shops rates paid and the insurer is still refusing, please follow the steps below.
 
Write an estimate for the repairs as your shop would repair the vehicle and at your repair rates, make a copy of the insurance estimate, take a picture of your shop's posted labor rate sign and email it everything to TDI. We also suggest copying your State representative, so they know one of their supporters needs help from a state agency.
 
CLICK HERE to find my State Representative!
 
Here is an example of how to word your complaint:
 
Dear Insurance Commissioner or who it may concern,
 
I am writing to file formal complaint against ___________ for short paying an insurance claim filed against them under Claim number ___________. My collision repair shop has made multiple attempts to resolves this issue but we were unable to reach an agreed repair amount for this claim. The short pay amount is $_____.___. The short pay consist of repair rate differences and required repair procedures the insurgence company says they do not pay for. I am asking they be required to pay the full claim amount owed to the consumer (vehicle owner/Texan) in order to have their vehicle completely and properly repaired without any out of pocket expense. I thank you for your time and I look forward to hearing from you soon.
 
 
Sincerely,
 
(Signature)
 
Your Name here
999-999-9999
Shop Name Here
Address
City, TX 77777
 

Your Houston Auto Body Association has contracted CSI Complete to conduct a shop survey that reveals the prevailing labor and material rates charged by Houston area Body Shops. CSI Complete is a well-respected survey company that is utilized by repair shops and insurance companies alike. We have the results and have presented them below.

The last labor rate survey conducted by Csi Complete on behalf of HABA was in 2011. It revealed what we already knew to be true; the prevailing labor and material rates as stated by the insurance carriers was indeed higher than they reported. Well this time is no different; the true prevailing rates are higher than the insurance industry reports them to be. As you will see from the information provided, the rates charged by those surveyed vary greatly. It is our belief that shops should determine the rates they charge by analyzing their expenses and the services they provide. There isn't a single rate charged by more than 50% of repairers. This is because body shops provide different levels of service to customers with varying levels of expectations. Not all body shops perform the same types of repairs. Too properly repair today advanced vehicles; high levels of training and extremely expensive equipment are required. The shop that make the investment in training and equipment should not be limited to fee charged by others that only fix minor dents and dings in their garage, behind their house. Just like automobiles and insurance policies, not all shops are created equally but with that being said; unfortunately they are expected to charge equally. If you believe your shop is being unfairly compensated for its service, here is the information you need to prove what your shops charges is indeed "Fair and Reasonable".
           
In conclusion, The Houston Auto Body Association is releasing the results of our 2013 labor rate survey. As promised, all shop information will remain anonymous and these findings are for informational purposes only. All recipients are herewith notified that the material present herein is not to be construed as information or direction to take concerted actions. The information can be utilized by individual acting within their own judgment, making sound business decisions, without agreements with other recipients of this information.

Use the Labor Rate Calculator as a tool to help you determine your shop is charging the correct amount for its services. Also make sure you forward this to other shop owners and managers that you know. Help us reach others and increase the industry awareness.