Allstate Lawsuit Claims Shops Over-Charged for Towing, Performed Unauthorized Disassemblies - BodyShop Business

Allstate Lawsuit Claims Shops Over-Charged for Towing, Performed Unauthorized Disassemblies

Three family members operating Houston automobile towing, storage and repair companies lead a list of seven defendants accused by Allstate Insurance Company of over-charging for towing services and disassembling vehicles without vehicle owners’ knowledge.

The charges are laid out in a lawsuit filed Dec. 16 by Allstate in Harris County, Texas, alleging fraud and false representation involving more than 100 Houston-area motorists. The lawsuit is seeking damages totaling more than $180,000, Allstate announced.

The suit alleges the defendants intentionally overcharged Allstate and falsely claimed that teardowns of some vehicles in their possession were authorized by the vehicle owners, further escalating charges to the insurer.

Allstate says the lawsuit was filed following an investigation by the insurer’s Special Investigative Unit and seeks reimbursement of monies Allstate has paid in alleged overcharges.

"Phony insurance claims take an extra $200 to $300 out of every consumer’s pocketbook annually in the form of higher premiums," says Jim Murray, Allstate assistant vice president in charge of the company’s Special Investigative Unit. "Allstate has no tolerance for this crime, and we will continue to fight insurance fraud on behalf of our policyholders and consumers in general."

The lawsuit alleges the defendants engaged in conduct intentionally designed to defraud Allstate by falsely representing the "true nature and origin of their services." The City of Houston and Harris County regulate the amount that automobile towing and storage companies can legally charge in any "non-consent" tow, which is often initiated by a police officer at the scene of an accident.

The lawsuit alleges in many cases, the defendants falsely represented that their towing and storage services were requested or initiated by the vehicle owner, and the defendants then charged significantly higher rates for their services than allowed for "non-consent" towing and storage services.

The lawsuit also contends that the defendants falsely claimed that teardown of the vehicle in their possession was authorized by the vehicle owner. Allstate noted that since teardown performed by body shops to evaluate vehicle damage and estimate repair costs leaves the car or truck in pieces, it’s more difficult to move to a repair facility potentially preferred by the vehicle owner.

The defendants named in the lawsuit include Faraj "Sam" Said, Ghassan "Gus" Said, Ibrahim Said, Patrick Green, Noor Said Enterprises Inc. (aka, Noor Enterprise Inc.), Budget Collision Inc. and National Auto Collision, Inc. The lawsuit identifies several businesses operated by the named defendants, including National Auto Collision, Budget Auto Collision, Holmes Road Storage and South Loop Storage, among others.

More information:


Rhode Island Shop Fined for Over-Billing Allstate

Allstate Fined for Interfering with Repair Process in Rhode Island

You May Also Like

Cruise Postpones Release of Driverless Taxi Service

Cruise, a GM subsidiary, recently announced that it will miss its goal of launching a large-scale self-driving taxi service in 2019.

Cruise, a GM subsidiary, recently announced that it will miss its goal of launching a large-scale self-driving taxi service in 2019. Cruise CEO Dan Ammann said the company plans to dramatically increase the number of its autonomous test vehicles on the road in San Francisco, but will not be offering rides to regular people this year, according to an article from The Verge.

Cutting Edge Automotive Solutions Partners with Andretti Rallycross

Andretti Rallycross announced that Cutting Edge Automotive Solutions will serve as technical partner on Cabot Bigham’s No. 02 OINK Clothing Beetle for the remainder of the 2019 Americas Rallycross season, showcasing their SP Tools USA brand.

Ford, Volkswagen Expand Collaboration to Include Autonomous, Electric Vehicles

Ford Motor Company and Volkswagen AG announced they are expanding their global alliance to include electric vehicles – and will collaborate with Argo AI to introduce autonomous vehicle technology in the U.S. and Europe.

CCAR Updates Website with More OSHA Alliance Resources

CCAR (Coordinating Committee For Automotive Repair) has announced the addition of new Occupational Safety and Health Administration (OSHA) Alliance content on its main website,

CARSTAR McLaren Lake Forest and CARSTAR McLaren Irvine Open in California

Owned by husband-and-wife team James and Mary Davis, CARSTAR McLaren Lake Forest and CARSTAR McLaren Irvine are a family business.

Other Posts

CIECA to Offer Webinar on What Businesses Need to Know to Implement CIECA Standards

CIECA will hold its next CIECAst webinar, “Implementing CIECA Standards: Implementation Guide and Appendix C – BMS, Code Lists and Shema Components,” on Tuesday, Dec. 11, 2018 at 11 a.m. CST.

CARSTAR Urges Customers to Stay Winter Ready

Cold weather can create some of the harshest driving conditions of the year. The months between October and February top the list for accidents, vehicle damage and injuries.

CIECA Adds Broadly as Corporate Member

The Collision Industry Electronic Commerce Association (CIECA) announced that Broadly has joined CIECA as a corporate member.

NABR Launches BillableGenie Online Searchable Database of Insurer-Paid Not-Included Procedures

National AutoBody Research (NABR) has announced the launch of its BillableGenie online service, an independent, centralized source of actual data on insurer paid not-included procedures and operations, labor rates, labor rate concessions and other manually entered estimate line items.