Friday, 07 January 2022 10:47

ABAT’s Consumer Complaint Form Drive is Making a Difference

Written by Autobody News Staff


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During a recent meeting of the Auto Body Association of Texas (ABAT), the association shared information about its discussions with the Texas Department of Insurance (TDI) regarding labor rates, as well as the progress made with ABAT’s Consumer Complaint Form drive.

The meeting was led by Jill Tuggle, ABAT’s executive director and president of Summit Marketing Solutions, and Burl Richards, president of ABAT’s board of directors and owner of Burl’s Collision Center in Henderson, TX.


Discussions with Texas Department of Insurance (TDI)


Since the formation of ABAT seven years ago, Richards said the association has met with TDI to try and understand who determines the prevailing market rate.


“TDI made it clear that it’s up to the shops to decide their posted rates,” said Richards. “It’s up to a court of law to determine if it’s fair and reasonable.”


He shared a TDI Commissioner’s Bulletin dated August 2010:


“The Department is also concerned that setting reimbursement rates artificially low for specific motor vehicle repairs and parts that are used to make the repairs may lead to substandard repairs, which may also impact the warranty on a vehicle. The majority of personal automobile insurance policies require insurers to pay the amount necessary to repair or replace the property with other(s) of like kind and quality.


"It is an unfair claim settlement practice for insurers to pay claimants an amount for the repair of the vehicle, including parts, that is not a reasonable amount for repairing or replacing the property with...

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