Rhode Island Shop Fined for Over-Billing Allstate - BodyShop Business

Rhode Island Shop Fined for Over-Billing Allstate

A Rhode Island body shop was fined $2,500 by the Department of Business Regulation (DBR) for billing Allstate Insurance Co. $4,773 for repairs when the insurer found that the actual repair work performed totaled $2,466, according to a DBR decision filed recently. The DBR told the Providence Journal that the shop is appealing the decision.

In its complaint, Allstate claimed that Dean Auto Body of Providence, Rhode Island, failed to perform 24 items listed on the original vehicle appraisal for a damaged Dodge pickup, which totaled $4,772 – the amount Dean instructed Allstate to pay the insured. During a post-repair inspection, an Allstate appraiser determined that Dean performed $2,466 in repairs – the amount Allstate agreed to pay.

The DBR determined that Dean repaired parts that should have been replaced per the appraisal and that Dean did not have authorization from the truck’s owner to perform less work than the appraisal called for.

“While an insured may opt to be reimbursed for a loss in cash rather than by having his vehicle fully repaired, it is the insured’s option, not that of the auto body shop,” hearing office Elizabeth Kelleher Dwyer said in her decision. “The auto body shop may not make that decision for the insured, and then bill the insured as if the repairs had been fully made.”

In defending itself, Dean claimed that since Allstate never paid the full appraisal amount, there was no proof as to whether the body shop would have kept all of the money or paid part of it back to the vehicle owner.

The DBR determined that Dean engaged in an “unconscionable practice” that violated state law by not performing work called for in the appraisal but still billing for it. The shop paid its $2,500 fine while its appeal is pending, the Journal reported.


More information:

Read the full text of the DBR’s decision

• Allstate Fined for Interfering with Repair Process in Rhode Island

You May Also Like

Body Bangin’: Why Follow OEM Repair Procedures?

Micki Woods interviews Logan Payne of Payne & Sons Paint & Body Shop on the importance of following OEM repair procedures.

Micki Woods, master marketer for collision repair shops and owner of Micki Woods Marketing, has released the latest episode of "Body Bangin'," the video podcast that is taking the industry by storm!

In this episode, Woods interviews Logan Payne, manager at Payne & Sons Paint & Body Shop in Dallas, Texas, from the Texas Auto Body Trade Show on why it's important to follow OEM repair procedures. Main point no. 1? Don't let the techs write the sheet — divide up the writers' job versus the old way where the estimator handled everything from beginning to end.

Body Bangin’: Getting Paid for Calibrations

Micki Woods interviews Andy Hipwell and James Rodis of OEM Calibration on how to get started doing ADAS calibrations.

Body Bangin’: What Are The Consolidators Up To With Laura Gay

Micki Woods interviews Laura Gay of Consolidation Coach on the current state of auto body shop consolidation.

Body Bangin’: The Magic of a Massive MSO with Patrick Crozat

Micki Woods interviews Patrick Crozat, the COO of G&C Auto Body, which is the largest privately-owned, family-owned auto body shop group.

Body Bangin’: Changing Your Mindset with Mike Jones

Micki Woods interviews Mike Jones of Discover Leadership Training on changing your mindset to change your life.

Other Posts

Body Bangin’: Rivian Collision Program and Insurance

Micki Woods interviews Frank Phillips, collision repair program manager of Rivian, on how Rivian’s collision program works.

Body Bangin’: Favorite Takeaways from the Southeast Conference

Live from the Southeast Collision Conference, Micki Woods does a post-show wrap-up on the Southeast Collision Conference with the SCC committee.

Body Bangin’: Overcoming Objections

Live from the Southeast Collision Conference, Micki Woods interviews Ron Reichen and Barry Dorn on overcoming objections, the talent shortage and the SCRS blend study.

Body Bangin’: Easily Find and Add Non-Included Operations

Live from the Southeast Collision Conference, Micki Woods interviews Scott Ayers on the Blueprint Optimization Tool (BOT).