PCTG Consumer Complaint Report Record ID#: 1166447149

Ms. Walcome inspected the loss vehicle at our shop for a supplement which, among other things, contained a request to remove the material cap that was on the original Nationwide appraisal, and to color sand and buff the vehicle to remove dust and nibs from the paint finish. Ms. Walcome refused to address the color sand and buff issue, and did not remove the entire material cap. The Paint Labor on the Nationwide estimate was 21.6 hours. The Nationwide Paint Supplies rate is $21 per hour. 21.6 hours X $21 per hour = $452.60 before sales tax. Nationwide originally capped the Paint Supplies at $335, then added an additional $50 at the time of their original estimate, for a total of $385 before sales tax. Nationwide was therefore deficient in their Paint Supplies payment by $68.60 before sales tax. Ms. Walcome admitted that she had no documentation supporting Nationwide's arbitrary capping of paint supplies. She also acknowledged that her supervisor, Jim Russell, made her put this cap in place, and that his supervisor, Bud Bollinger, made those under his supervision put the cap in place. Not only did Nationwide cap materials illegally, they also left a copy of a letter that was sent to our customer which stated in part that "Unfortunately, after negotiating in good faith, I have been unable to reach an agreed price for repairs with Cicconi Auto Body." A unilateral capping of materials is NOT a "negotiation in good faith." Further, the term "agreed price" does not appear anywhere in the state's statutes or regulations. The law states in 62.3(a)(5)that an appraisal must contain "A description of repairs, known at the time of appraisal, necessary to return the vehicle to its predamaged condition, including labor involved, cost of all parts, necessary painting or refinishing and all sublet to be done." The Nationwide further states "You will need to personally assume those charges which exceed our enclosed appraisal." This is nothing more than an attempt by Nationwide to reduce their exposure at the expense of their insured, particularly in this instance (capping materials). The Nationwide letter goes on to say "Should you desire, we can provide a list of facilities which will honor the enclosed appraisal. All repairs completed by these facilities will be warranted for as long as you own your vehicle." This is an attempt to steer our customer from us. Further, Nationwide cannot know in advance what another shop will or will not charge. If another shop will, in fact, honor the deficient Nationwide estimate, then Nationwide is manipulating and controlling the market. Also- by what mechanism does Nationwide guarantee a repair? The last part of the Nationwide letter states that "Part of our commitment includes paying a fair amount on claims. The enclosed appraisal fulfills this obligation." This is patently untrue as the facts show that Nationwide has underpaid the claim. Plus, although I am not a lawyer, I feel the letter from Nationwide to our customer is tortious interference. In closing, Nationwide has violated the Appraisers Act and regulations by capping materials, not including all items necessary to return the loss vehicle to its predamaged condition, steering, and market manipulation. The Insurance Department has had knowledge of the capping problem since May, 2004, has had numerous complaints sent in since then, and was again informed of the problem by my letter to Diane Koken dated May 23, 2006, and by a meeting with Ron Gallagher and others on October 24, 2006. Additional complaints have been filed since then containing additional evidence of capping, but no action has been taken by the department to date.