BodyShop Business
  Legal
Florida Repairer Gets GEICO to Take 10 Percent Parts Discount Off Estimate
1/16/2012

It took a little work and a lot of frustration, but Florida body shop owner Eddie Quintela was finally able to get GEICO to take a 10-percent parts discount off one of his customer’s estimates.

Quintela, owner of Collision Concepts Inc. in Delray Beach, Fla., had previously challenged GEICO over its automatic deduction of 10 percent off the price of domestic OE parts on estimates. GEICO claimed it was customary in his market, while Quintela, who is not a DRP for the insurer, said it wasn’t and proved it by surveying other shops in the area.

“I would like to take this opportunity to thank you for assisting us in settling the matter in regards to [this claim],” Quintela wrote to GEICO after the matter was resolved. “Your insured and I are grateful to all involved for resolving this issue, and not making your insured pay the 10-percent parts discount and other labor operations.”

Other labor operations were wet sand and buff and all clips and bolts.

Quintela, however, has had another dispute with GEICO since this last one was resolved. He claims the adjuster agreed to pay for everything on the estimate in question except for the 10-percent parts discount. Plus, he claims that the adjuster’s supervisor agreed to pay the mechanical labor rate for labor operations listed as mechanical, then called the adjuster back and said no. He has once again written to GEICO and threatened legal action for breach of contract and bad faith.

“Out of good faith, we delivered the vehicle back to our customer, your insured, without final payment,” Quintela wrote. “…How can you agree to pay for something and then change your mind on a whim? I believe there is a term called 'estoppel' that applies to this.”

He has yet to receive a reply.  


More information:

Florida Body Shop Owner Challenges GEICO's 10-Percent OE Parts Discount with Survey

Florida Body Shop Owner Takes GEICO to Task for Deducting 10 Percent Off Domestic OE Parts Cost on Estimates



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