Farmers Exchange Sues Calif. Body Shop

Farmers Insurance Exchange and Truck Insurance Exchange began serving summons and complaints July 16 upon a Contra Costa County, Calif. body shop and its owners, accusing them of taking part in a large scale scheme designed to defraud the companies’ policyholders.

The suit details how these individuals allegedly billed Farmers for services that were never rendered, inflated repair costs and submitted phony repair invoices.

“We are determined to take the profit out of fraud,” Doug Ashbridge, Director of Special Investigations for Farmers, said. “It is unfair for honest individuals to pay for the actions of a few dishonest people. Farmers is committed to fighting fraud and controlling the cost of insurance for our customers.”

The Contra Costa County action seeks over one million dollars based upon an investigation that began in April of 2002.