It’s true that there can be delays with a claims department that are their own fault, but generally there is some participation in those delays by the insured. Some delays are perfectly reasonable. What does not add up are the actual storage fees that are charged. Put aside any delays and explain why one shop will charge $50/day in storage while another down the street will charge $150+/day. It’s on the insurer to try and negotiate that storage cost down FOR THE INSURED/CONSUMER. Guess who ends up paying for these ridiculous storage costs…that’s right…the INSURED/CONSUMER. On a total loss it will come right out of the final settlement and on a repair it will get passed on to everyone in the form of higher rates. I would love to see storage fees separated out to be strictly between the insured and the shop while excluding insurance. Choice of shops used would quickly make the fees more competitive, consistent, and fair. In fact, I wouldn’t be surprised if the storage fees became a cost of doing business and disappeared entirely. How could someone like Lara not go for that!?
Are you kidding, this has been an issue in the industry for years. There are bodyshop’s in CA that make more money on towing and storage than repairing vehicles. There is an absolute need for oversight. The BAR does nothing when it comes to towing and storage. On overage, the cost to remove a vehicle from a shop in Los Angeles after 5 days can exceed $5000 – charges for towing, storage, admin, clean up, gate fee, after hours fee, 2nd tow, hazmat, release fee, lien sale fee, ect. with an average storage charge of $200-350 p/day. This is eventually passed on to the consumer with higher insurance rates for everyone!!!
It’s true that there can be delays with a claims department that are their own fault, but generally there is some participation in those delays by the insured. Some delays are perfectly reasonable. What does not add up are the actual storage fees that are charged. Put aside any delays and explain why one shop will charge $50/day in storage while another down the street will charge $150+/day. It’s on the insurer to try and negotiate that storage cost down FOR THE INSURED/CONSUMER. Guess who ends up paying for these ridiculous storage costs…that’s right…the INSURED/CONSUMER. On a total loss it will come right out of the final settlement and on a repair it will get passed on to everyone in the form of higher rates. I would love to see storage fees separated out to be strictly between the insured and the shop while excluding insurance. Choice of shops used would quickly make the fees more competitive, consistent, and fair. In fact, I wouldn’t be surprised if the storage fees became a cost of doing business and disappeared entirely. How could someone like Lara not go for that!?
One more layer of bureaucracy, again do we need another department and another budget to solve these issues?
Are you kidding, this has been an issue in the industry for years. There are bodyshop’s in CA that make more money on towing and storage than repairing vehicles. There is an absolute need for oversight. The BAR does nothing when it comes to towing and storage. On overage, the cost to remove a vehicle from a shop in Los Angeles after 5 days can exceed $5000 – charges for towing, storage, admin, clean up, gate fee, after hours fee, 2nd tow, hazmat, release fee, lien sale fee, ect. with an average storage charge of $200-350 p/day. This is eventually passed on to the consumer with higher insurance rates for everyone!!!