Our Policy Regarding Aftermarket Warranties and Insurance
At Page Auto we value our relationship with you. That is why it is important that we work directly with you, our customer. We realize that there are several insurance companies that offer aftermarket extended service contracts, sometimes known as “extended warranties”. These are contracts between you and the insurance company. You must be familiar with the benefits and exclusions of your policy.
We will provide estimates to the insurance company as a service to our customers. We do not have a contract with your insurance company, only you do. We are not responsible for how your insurance company handles its claims or for what benefits they pay or do not pay on a claim. We at no time guarantee what your insurance will or will not do with each claim.
Frequently, insurance companies mislead their contract holders by stating that the reimbursement was reduced because your shop’s charges have exceeded the usual, customary, or reasonable fee (“UCR”) used by the company. These are arbitrary numbers based on what they perceive the market labor rate is and they will often base their parts prices based on either used or poor quality aftermarket parts.
A statement such as this gives the impression that any fee greater than the amount paid by the insurance company is unreasonable, or well above what most shops in the area charge for a certain service. This can be very misleading and simply is not accurate.
Insurance companies set their own schedules, and each company uses a different set of fees they consider allowable. These allowable fees may vary widely, because each company collects fee information from claims it processes. The insurance company then takes this data and arbitrarily chooses a level they call the “allowable” UCR Fee. Frequently, this data can be three to five years old and these “allowable” fees are set by the insurance company so they can make a net 20%-30% profit. Unfortunately, insurance companies imply that your shop is “overcharging”, rather than say that they are “underpaying”, or that their benefits are low. In general, a less expensive insurance policy will use a lower usual, customary, or reasonable (UCR) figure.
OUR TIME MUST BE CONSIDERED
Insurance companies often expect shops to provide free estimates. In fact, it often takes several hours of labor to come up with a meaningful estimate of what it will take to repair your car. They also expect shops to set up vehicles on lifts when their adjusters come to look at the car. We will bill our normal labor rate for our time performing these services. If the insurance company chooses not to reimburse the owner, their contract holder, for this then the owner will be responsible for those charges.