Switched to USAA… now having issues with body shop labor rates?

Insurance Companies Forum USAA
1

I recently switched to USAA after being with AAA for about 14 years. AAA was great overall, and I only had a few minor claims, but my rates went up, so I decided to shop around when I moved states. I figured USAA had a good reputation, so I went with them.

Then, two months in, I get backed into at a bank drive-thru. USAA found me not at fault, and I told them I wanted to use a specific body shop that does quality work. I dropped my car off there, but now, 2.5 months later, I’m finding out that USAA says the local labor rate is almost $12 less than what my shop charges. According to Labor Rate Hero, this shop’s rate is actually within a dollar of the local average. USAA is also refusing to cover some of the material fees, which leaves me stuck with a $500 bill they won’t pay.

There’s no mention of a denial or partial denial clause in my contract, and I wasn’t told I needed to stay within a certain rate. Their initial estimate was off by more than 40%, and now they’re using that to justify not covering the full amount with the supplement. This shop has always been up front with me, and I never had these issues when I used them with AAA. On top of that, USAA hasn’t been communicating with the shop well, and I’ve had to call and ask why they aren’t following up.

Any thoughts on how to handle this?

2

They’re not “trying to say anything”—your shop’s just charging more than what USAA covers. That’s something between you and the shop.

This is why it’s easier to stick with a network shop.

3

Who should you trust here? The adjuster who handles thousands of claims or the one shop setting its own rate.

4

AssuranceAdvisor said:
Who should you trust here? The adjuster who handles thousands of claims or the one shop setting its own rate.

I checked around, and this shop’s rate is actually close to the average in the area.

5

@Jin
That’s hard to believe since insurance companies keep track of the area’s prevailing rates.

6

@Jin
Insurance updates rates quarterly. Since you chose an out-of-network shop, your policy likely says you’ll cover any extra costs.