CRA Wants GEICO Labor Rate Survey Scrutinized - BodyShop Business

CRA Wants GEICO Labor Rate Survey Scrutinized

Labor rate surveys will be the focus of the next series of meetings involving representatives of collision repairers, insurers and the California insurance commissioner. Collision Repair Association of California (CRA) lobbyist Richard Steffen said that he will discuss GEICO’s new labor rate survey at the first meeting on May 6.

“The CRA will be challenging the validity of the survey, which appears to be based on what GEICO paid repairers in specific market areas and not on what these repairers charged for non-DRP work,” Steffen said. “Given that GEICO was subject to a May 2, 2007, stipulated agreement with the commissioner over its labor rates, I would hope the commissioner’s team will respond to the manner in which GEICO is using its new survey to deny paying CRA members the reasonable cost of repairs in some market areas.”

Steffen is asking CRA members to e-mail him information at [email protected] about any current labor rate dispute they might have with GEICO. He cautioned that labor rate surveys are inherently flawed if they do not distinguish between quality repair facilities and those shops with limited equipment and uncertified technicians.

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