More Insurance Companies Concede to Gunder's Rate Increases - BodyShop Business

More Insurance Companies Concede to Gunder’s Rate Increases

Approximately 26 insurers have now elected to pay Gunder's Auto Center's increased labor rates and material invoicing.

As of this morning, 26 insurers have elected to provide full compensation for Gunder’s Auto Center’s labor rates and material invoicing.  

This past August, Ray Gunder, owner of Gunder’s Auto Center, placed a notice in his reception area and provided handouts to all auto appraisers and insurer claim representatives who visited his shop that new labor rates and allowances were in effect. As reported on September 12, 2012, 15 insurers had complied with the increases with the exception of a handful of others. The increases include labor, refinishing labor, frame labor, mechanical labor rates and the invoicing of PMC Logic for all body and refinishing related materials.

According to Gunder’s, insurers that are now paying the increases include:

• MetLife                    
• Kemper Services       
• Westfield Comp.       
• Auto Owners             
• Acceptance Casualty
• Liberty Mutual           
• Amica Mutual                       
• Horace Mann
• The Hartford
• Direct General
• Zurich American
• Mercury
• Esurance
• Security National
• Infinity
• Occidental
• First Acceptance
• Esis
• Specialty Products Claims  (a division of Nationwide)
• Sentry
• Michelin Tire Company
• Grange Mutual
• Global Indemnity
• Commerce Insurance

According to Gunder’s, there are some insurers that are fighting the increases and planning to make the argument in court that Ray Gunder, with the Power of Attorney, has no standing to file lawsuits on behalf of his customers. Gunder’s anticipates that the court will hear arguments from all defendants and render a joint verdict for all 25 cases. The hearing is scheduled for December 13. The defendants include:

• State Farm
• Allstate
• Travelers
• Infinity
• Geico

”This hearing and the judge’s ruling will be significant and may set a strong precedent regarding similar efforts of quality-minded independent repairers across the country," said Gunder. "We are very confident that the decision will be in the favor of our customers and support the right for repairers to stand in the shoes of their customers if and when such issues regarding the full payment of any and all ‘reasonable and necessary’ charges should arise. I’m excited to bring this matter to closure as it will only embolden us to move forward in serving our customers in an unencumbered fashion. This will also hopefully open a door to better communications and cooperation with insurers to better serve our mutual customers.”

More information:

Fifteen Insurers Concede to Florida Body Shop’s Labor Rate Increase

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