Insurance update

[Steve1968LS2]

State Farm has been working over the estimate they got from BOS. Seems like their biggest "complaint" so far is thier labor rate of $75 an hour.

The very nice person I spoke with today alluded to $48 an hour bing the "average for the area"..

I laughed.. loudly.

No shops that work on old cars charge anywhere near that. Heck, the last shop I used just up the street (Hot Rods and Custom Stuff) charges $125 an hour.

I can't even think of good shops in cheaper areas of the country that charge $50 and hours. much less that being the average.

Anyways, it's all part of the negotiation.

What are shop rates for shops that work on these types of cars in your area?

I'm not worried.. I will prevail even if it has to go to a group of 12 to decide

So ends my update..

[6'9"Witha69]

Last shop I did work at over 7 years ago was $70/hr. $75/hr is very reasonable. State Farm is used to new car collision stuff, which is very cut and paste in terms of body repair.

[Steve1968LS2]

Last shop I did work at over 7 years ago was $70/hr. $75/hr is very reasonable. State Farm is used to new car collision stuff, which is very cut and paste in terms of body repair.

Yea,

My "general mechanic".. the guy that replaces alternators on Hondas charges about $66 an hour.. lol

If $48 is an average then there must be guys in SoCal charging a lot less (to make for the average). I need to find these $30 and hour shops. lol

I know it's a game they have to play.

[BB69]

I posted in your original thread about this exact item earlier today. Basically, State Farm has been making a big push to reduce the number of shops they have approved. Then, they force these shops to accept the "average rate". The end result is that many smaller shops will not work with State Farm. Only the large, high volume shops can make money using the rate State Farm has. I argued for 2 months about this. I think the rate they were willing to pay for me was $39/hour but I would have to go back and read the paperwork. I learned this from talking with the 3-4 shops I had quote my car, and my neighbor who is an insurance adjuster.

Good luck.
Ken

[Steve1968LS2]

I posted in your original thread about this exact item earlier today. Basically, State Farm has been making a big push to reduce the number of shops they have approved. Then, they force these shops to accept the "average rate". The end result is that many smaller shops will not work with State Farm. Only the large, high volume shops can make money using the rate State Farm has. I argued for 2 months about this. I think the rate they were willing to pay for me was $39/hour but I would have to go back and read the paperwork. I learned this from talking with the 3-4 shops I had quote my car, and my neighbor who is an insurance adjuster.

Good luck.
Ken

Thier problem is that in CA you have the RIGHT to take your car to a shop of your choosing...

Most shops in SoCal that work exclusively on older cars are in the $100 an hour range.

[trapin]

In my lifetime I've been the victim of 7 rear end collisons (and no I'm not kidding.....7) So as you can guess today I am a paranoid driver who keeps a very close watch on the car behind me when I'm stopped at a traffic light or in traffic. I always leave about 2 car lengths in front of me so that I have an escape route in the event yet another idiot is not paying attention. I can just imagine the nervous wreck I'm going to be when I finally get my car on the road.

Good luck with this Steve, hope it all works out.

[BB69]

Thier problem is that in CA you have the RIGHT to take your car to a shop of your choosing...

Most shops in SoCal that work exclusively on older cars are in the $100 an hour range.

That is the same in MI. From what I found, you can take it to any shop you want, that doesn't mean they will pay their labor rates. I never took it to a lawyer, so I don't know what would happen if you hired one, but State Farm never budged on the labor rate. They were willing to add an hour or two of labor here and there, but that only added up to $600 more.

Again, good luck with it and let me know if there are any other questions you have about the process.

Ken

[eville]

I was just quoted $72 an hour here for an Allstate approved shop. We got hit on Friday by a car after it cut off a semi it was getting pushed sideways by the front grill of the semi, when it cleared the semi it came slamming into us traveling the wrong direction on the freeway... nice we cleared the front to get it broadside or it would have been head on!

[CraigMorrison]

Steve- you've got to remember that on most insurance jobs it is around $35-$50hr, but they go by the time in the body shop books. Most body shops up here in WA state are doing the job in 1/2 the time, so in effect their rate is $70-$100hr. Sneaky huh? I know a few guys who are wholesale body shop guys that work on comission and get a piece of the action for every hour that they are under the clock by. They are making $100,000 plus with LOTS of time off during the year.

In this model, your shop is over, but what insurance doesn't realize is that custom body shops work for actual time and not quoted time.

Hope this helps you out, and sorry about Penny......

[LMDGUY]

It weird our bodyshop charges $49.00 an hour
But here at the dealership is $99.00 an hour. (mchanical repairs)
Maybe you should get some quotes for other "hot rod shops" that show there labor rate @ $80+ an hour. There is nothing about you car that a normal bodyshop would even wana work on. A few of the older bodyguys do side work on vintage cars but they charge about $70.00 an hour

[TonyL]

75 an hour for my brothers Magnuesson's Yuba Sutter Auto Body shop In Yuba City. (an hour north of Sacramento) other shops in the sac area are over 80 an hour.

[Steve1968LS2]

Steve- you've got to remember that on most insurance jobs it is around $35-$50hr, but they go by the time in the body shop books. Most body shops up here in WA state are doing the job in 1/2 the time, so in effect their rate is $70-$100hr. Sneaky huh? I know a few guys who are wholesale body shop guys that work on comission and get a piece of the action for every hour that they are under the clock by. They are making $100,000 plus with LOTS of time off during the year.

In this model, your shop is over, but what insurance doesn't realize is that custom body shops work for actual time and not quoted time.

Hope this helps you out, and sorry about Penny......

Yea, I know. I buddy of mine runs a "insurance body shop".. the place is HUGE and they charge $45 an hour for insurance work on new cars. Like you said though, they charge a ton of hours. and they wouldn't touch a classic/custom car.

They are just trying to get out as cheap as possible. I'm sure we will work it out in the end.

BOS has (I think) 16 hours down for a complete 1/4 panel replacement. From what I understand that's about what it takes from start to finish.

[BRIAN]

State Farm does a survey about every year and simply asks the shops in a particular area what the charge. Problem is most shops instead of putting down the higher rate ask them what they pay and tell SF that that is fine. Some parts of the Country have strong Auto Body Assoc's that ban together and all put down the higher rate and SF adjusts accordingly. Look at San Fran they have some redicluously high rate compared to the rest of the US.

The problem is you are having restoration and custom work done. They do not survey for restoration or custom work. Ask them what their rate is for that?? They do not have one. You are looking to have work done that is above Industry Standards and it deserves a higher rate. Problem is if your shop has accepted their rate in the past??? If they are in agreement on all the hours and parts the labor rate will fall somewhere in between and everybody will be happy.

[Damn True]

The guy down the street from me owns a real quicky-type insurance collision shop. Last year some jerk backed into me in a parking lot and split so I had no recourse except to pay a huge deductible. Anyway, he fixed for me for free so that was cool. But he normally charges $50 an hour on insurance claims that don't require the frame machine, $75 if it does.

This is in San Jose, CA

[Steve1968LS2]

The problem is you are having restoration and custom work done. They do not survey for restoration or custom work. Ask them what their rate is for that?? They do not have one. You are looking to have work done that is above Industry Standards and it deserves a higher rate. Problem is if your shop has accepted their rate in the past??? If they are in agreement on all the hours and parts the labor rate will fall somewhere in between and everybody will be happy.

They have never accepted a rate like that. In fact they are currently doing a job that's covered by Farmers Insurance and Farmers agreed to the $75 labor rate. He plans on showing that to the State Farm guy tomorrow.

They will negotiate it out.. eventually.. lol

Thanks for the input, Helps with my insurance story I'm currently working on.

[BonzoHansen]

I think in the end you might have a bit more leverage because their insured is at 100% undeniable fault. Now his car, look out, they'll pull blood out of that stone.

[Steve68]

Whew, I gotta up my mechanical labor rate!

[MonzaRacer]

Well as for the labor charged most of the insurance companies are using a computer program and just "touch the screen where its damaged and let the program price it.It supposed to save money but all it does is keep the adjuster for the ins company from having to know anymore than tap a screen and write it up.
If that was the shop that did the work before show them the previous reciepts and say look here it costs this to do this and now we are fixing what was just done because of the knucklehead who hit me.
Good Luck and they cant not pay as you have the right to repair where ever you like and if the rate it $75 well they better get ready to scream.
Let them total the car and see how long it takes to back up on the repair,,, hand them an "apraisal" for about $80k as total loss and see if they back pedal.
Anyway good luck
Lee

[zbugger]

Check this out Steve. Good timing?

http://money.aol.com/kiplingers/insu...r-shop-secrets

[Rolling_Thunder]

Hey Steve... The shop i manage is located in SoCal and we charge $100/hr...