The passage of AB 297  would ban any new auto body repair shop/insurance owned relationships. The legislation allows for existing relationships an insurer may have but no future ones. Click here for link of the bill.  The bill passed in the Assembly yesterday.

Is it really more expensive to have collision repairs done in Norcal? Any of us in the auto claims industry know it to be the case. In 2009, here’s some numbers we have so far……

NorCal: Average estimate severity is $ 2,481     Body labor rate $71.00 hr, Mechanical rate $75.00

SoCal:   Average estimate severity is $ 2,236      Body labor rate is $ 42.00 hr, Mechanical rate $68.00

This is taking in consideration the dividing line as anything north of Fresno is NorCal and anything south is SoCal for this data report. Of course certain areas are much higher or some even lower.

Data source:  © 2009, AutoClaims Direct, DirectLink

According to an article from the CAA, there are software programs now in use that manipulate the paint materials costs by using an average cost basis. Due to the recent California paint capping legislation it appears some software providers may be coming up with programs that generate an average cost figure. Click here for the full story.

AB 224, The Unfair claims practices bill would make insurers liable for damages and attorney’s fees for violating the act. Click here for the bill text.