Auto Insurance Claims: Fail to fully pay the repair facility, recommended shops, clout


Question
I was rear ended last month. Progressive has taken full responsibility and I chose my own repair shop. My car has been repaired and I thought everything was settled.
I received a letter from Progressive stating the repair shop bill was not fully paid because they are charging above the prevailing market rate. Do I have to pay the difference and what options do I have to fight this? I was under the impression the body shop & Progressive would handle and find agreement on the cost of repair. I live in Oregon. Thanks.

Answer
If you chose your own shop and they are charging beyond the prevailing market rate for the repair, then you and your shop will need to work this out between yourselves.  Progressive doesn't owe for additional repairs that the shop decided to bill for after the fact and they only would have owed for repairs where the price was agreed upon before the repairs were completed.  

This is likely one of the reasons why this particular shop is not authorized as a Progressive direct repair facility. If you had gone with one of their recommended shops, this scenario would not have occurred and you would have also had the clout of Progressive on your side in the event of a future workmanship issue.