Plan addresses gap in crash repair coverage
November 14, 2006
Los Angeles Times
By Kathy M. Kristof
Abstract:
State regulators said they would propose measures today that would help motorists fully recover their repair costs when their vehicles are damaged in accidents. Under the current system, insurers typically pay "prevailing rates" for hourly labor, and it is up to consumers to pay any costs that exceed that amount.
Eileen Dolores Fall, a Northern California resident, found that out last year when she took her Mercedes E320 to an auto body shop in Gilroy after an accident. The repair shop charged $80 an hour for body repairs and $95 an hour for mechanical work. Allstate Insurance Co. refused to pay more than $62 an hour for either, and Fall found herself on the hook for $1,685 in unreimbursed expenses, according to her attorney, John Quisenberry.
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