Is Farmers Conducting a Survey?
Has anyone heard that Farmers is conducting a prevailing rate survey in Phoenix? The reason I'm asking is that an appraiser from Farmers came in on a supplement on a claim, we tried to supplement on the labor rate increase, and the appraiser stated that he could not pay the increase.
I am wondering if this is true. I am also wondering if the appraiser made untrue statements to not pay the increase, anyone experiencing this? Any suggestions?
I have not heard that they are conducting a survey. It seems the standard answer from some of these guys is "we aren't paying that yet" I wonder what they are waiting for. I am keeping copies of estimates from various ins. companies so that I can hand them proof that other major carriers are paying the "prevailing rate"
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I Don't believe them they said the same line in Tucson about 5 years ago
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To the best of my knowledge, Farmers does not do a survey. Ask them about what they are doing in this area, and they will say to "send in a letter". What they do with these letters is anybody's guess.
ASA Az Collision Division recently sent Farmers (and 26 other insurance companies) certified letters requesting information as to how they establish the rates that they use on estimates. Only one insurance company responded and it wasn't Farmers. Pretty pathetic.
My opinion is that Farmers, like many other companies, deal with this issue by simply avoiding it. They will drag it out as long as possible. One would think that there would be some interest in being "fair" given the length of time since the last change, but the reality is that every day at the "old" rate saves them an incredible amount of money. They believe, I think, that the wholesale rate used at COD shops establishes the market prevailing rate. This, of course, is wrong.
As far as what to do when this comes up, I suggest that every shop in ths situation call the managers of insurance companies and ask them what their policies are regarding rates. Although they probably aren't the one making the decision, the more calls they receive, the more likely the folks above them will consider making a change.
There was a time that Farmers was #1 in the annual insurance company survey. This year they are down to 10th. Given their attitude, I'm surprised that shops have not rated them even lower.
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