The current auto damage average estimate severity is $ 2612.44 for 2009 as of today.

Data source:  © 2009, AutoClaims Direct, DirectLink

In an article we found, an Air Force F-22 Raptor bumped into a F-18 Hornet at an Air Force Base in Florida while parking. The repair bill was 1 million dollars for that collision.  Click here for the article.

I know we are in the midst of tough economic times and repair shops are hungry for work  but I have been hearing recently about some claims solutions in the industry that tout a new program of  ”online bidding” for collision repair jobs. Insurers who sign up for this program get several network shops to bid for the repairs. The insurer appears to post an appraisal and shops who are a member of this service then bid for the job. The shops who get the job then pay a referral fee to the service. 

Hmmm…. something makes me uncomfortable about such a program. You have shops bidding to get a job. Is it the “lowest” bid that gets it?  Is quality and safety compromised at the expense of doing a cheap fast job?

I have not fully investigated this new program in depth but on the surface I am a bit skeptical.

An LA Times article today just stated that  AIG agrees to sell their Auto Insurance division ( 21st Century) to Farmers Insurance ( part of Zurich ), for 1.9 Billion. Click here for the full story.