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Has any one read State Farm's new agreement for collision shops?

Supposedly, State Farm’s new collision repair agreement requires participating shops to offer State Farm their lowest pricing (whether offered to another insurer or cash customer) for each service provided, including glass. State Farm will supposedly use electronic means to audit compliance. If a shop is caught offering a lower price for any pricing segment (e.g. rates, glass, discounts etc.), that shop may be bounced from the program.

Re: Has any one read State Farm's new agreement for collision shops?

i'm just glad state farm isn't trying to throw their weight around, and manipulate pricing. sarcasm off.

i actually could understand (in theory only), state farm getting the biggest discount, because of their volume of work. i have never understood why progressive and others think they are entitled to better discounts than anyone state farm. They don't have enough customers to justify the rates they demand, that's why we won't bill those companies. Actually, state farm should be the lowest discounted insurance company, everybody else should pay more.

ok, from state farm's prespecive, they can get pricing stable, then increase what their rates are, forcing rates for other insurance companies up, since everybody else has to pay 30 percent more than state farm. eventually state farm will run the other insurance companies out of business.

see, the good neighboor people are looking out for you after all.

Re: Has any one read State Farm's new agreement for collision shops?

Yeah, well they showed me... They "bounced" me off of their preferred list for a mistake we made.

We tried to call in a claim with an insured and for some reason at the time we couldn't get through. It slipped through the cracks and we did the work and forgot to call it in again. So, we biiled them as normal at their normal rates they require us to and they paid it. 7 months later they sent us a letter telling us we broke their rules and we are removed from their program.

So now I get to bill at 40% over NAGS instead of 10% under. Boy they showed me. lol

Re: Has any one read State Farm's new agreement for collision shops?

Ouch, it is highly unlikely that anyone would be bounced from the program, once IN, for billing at a lower rate to someone else.

It is HIGHLY likely that that shop would have its rates of reimbursement adjusted to reflect lower pricing across the board.

The funny part is, if you bill your grandmother at cost for a job, guess what?

This is similar to the Farm moving glass shops into the lowest pricing area they serve, in entirety, no matter what geographic locations you are servicing the customer in.

More of the same...from more of the same, as I see it.

How come nobody is focusing on the liability provisions in these contracts?

Re: Has any one read State Farm's new agreement for collision shops?

You are all nuts. First of all, we are the dummies that respond to their survey and establish the rates. I know a lot of my fellow shop owners that forget to submit their survey or submit low rates. Secondly, I can't blame SF for wanting us to give them the same discount that we are giving other carriers. If you don't want to give them a discount then you do not have to as long as you are providing the otehr carriers with a discount. What is wrong with that?

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