Auto Insurance Claims: Labor Rate on Insurance Claim, minor accident, insurance claim

Question
Hi Richard,

I was involved in a minor accident.  I filed a claim with the at fault party's insurance company.  Then I got my own estimate.  When the insurance company had their body shop look at the damage, the estimate was almost identical in terms of labor hours.  However, the insurance company is paying a much lower hourly rate than my body shop quoted me.  My body shop said they would not accept the lower rate.  What can I do to get the insurance company to pay the amount it takes to get my car fixed at the body shop of my choice?  

Thanks!

Answer
Hi Joe,

Insurance comnpanies are the only industry that currently is able to try to get away with price fixing. You should check the labor rates of 3 or 4 other shops in the area if they are all charging the same as the insurance rate then you will have to either pay the difference yourself or find another shop. Of course price fixing is illegal. Another alternative would be to have the vehicle repaired at the shop you chose, pay the difference out of pocket, then file a law suit against the at-fault party for the difference.  If you win the case, it would be the insurance company that would then have to pay the difference.

I hope this helps
Richard Hixenbaugh