PCTG Consumer Complaint Report Record ID#: 1215532418

Pennsylvania Department of Insurance On June 16, 2008 our customer's vehicle sustained comprehensive damage when a ground hog, climbed into the engine compartment and chewed apart the main wiring harness. Our customer contacted his insurance company State Farm Insurance Company and requested they open a claim for the repairs of his 1994 Ford F-150 pick-up truck. Our customer then contacted our repair facility to tow his vehicle to our shop for repairs. State Farm sent out Mr. James Shifflett on June 23rd to inspect the damages. Mr. Shifflett wrote an estimate of $1,074.18 for repairs however his estimate identifies the wiring harness as discontinued at $567.00 and 4.0 labor hours to install @ body rate. Mr. Shifflett's appraisal did not include all necessary items and procedures to repair our customer's vehicle. Our facility spent several hours researching the availability of a proper original equipment wiring harness. By contacting Ford dealers we eventually found a wiring harness at a Ford dealer in Louisville KY. This harness was purchased at $1,158.32 and received on June 27th. We contacted State Farm to re-inspect our customer's claim and they sent out a Mr. Chip Conover on July 1st. We handed Mr. Conover our repair order that represented an amount of $2,799.43. This included the new wring harness with invoice and our labor needed to install the new parts. Mr. Conover included the part price increase in his appraisal however refused to pay our repair order labor hours for replacement at our mechanical rate of $75.00 per hour and our administrative time (research & identify part) to locate the wiring harness. Mr. Conover also refused to reimburse our shipping / freight expense with the customary mark-up of 33.3 %. Mr. Conover also refused to pay additional labor time to repair the adjacent wiring that had been damaged. We asked Mr. Conover to explain how he arrived at his estimated 4.0 to remove the damaged harness and install the new replacement. He agreed that there is no documented labor procedure by repair manual or factory recommended labor guides. He advised that in his opinion Mr. Shifflett's labor allotment for the replacement was accurate. He also advised the 4.0 represented his experience with wiring harness replacements. I asked if he had in fact replaced a harness in this type of vehicle. He advised no. I explained our facility has experience with this type harness and our invoiced 8.0 hours was reasonable. At this point I suggested we move forward with the repairs and State Farm could pay off our labor sheet once the repairs had been completed and a time clock sheet would show the hours needed for the job. Mr. Conover advised he would have to seek advise from his supervisor if State Farm would accept this method of tracking the labor needed. I asked Mr. Conover if he was a state licensed appraiser. He said yes. I then explained he should follow the Appraisers Act and write an independent appraiser. Mr. Conover explained he is employed by State Farm and required to follow the State Farm Insurance Company estimating guidelines while preparing estimates. Mr. Conover further explained his State Farm Employee Guidelines are to write only what he can see, that is obvious damage. He stated he only sees 4.0 hours for the procedure at $46.00 per hour. I asked again, what is our shop to do with additional hours to do the job? Will State Farm pay off our labor control sheets once the repair is completed? Since the procedure is not documented, it would make sense to handle the repairs through completed labor hours. Mr. Conover again advised he would check with his supervisor. Mr. Conover also advised he would not reimburse at our mechanical rate for the wiring repairs or reimburse for our administrative labor to search for an OEM wiring harness nor would he pay for a mark-up on our freight charge. Mr. Conover also advised our repair order identified a charge for Test Driving the vehicle. State Farm l not pay for a Test Drive as this type procedure is to be considered part of a shop's operating expense when a repair is completed. I explained a test drive is necessary for a finished repair process and to check for other possible mechanical damages.'' That afternoon Mr. Conover contacted our shop to advise State Farm would not recognize our labor control sheet to reimburse for the wiring harness replacement. The estimated 4.0 hours at body rate is all they will pay. Mr. Conover & State Farm Insurance Co. are in violation of state guidelines as the actual cost of repairing our customer's damaged vehicle is not being reimbursed in full. By following his employer's estimating guidelines rather than preparing an independent appraisal, Mr. Conover appears to be abusing the no-conflict of interest requirement of the administrative code. Please investigate the behavior of State Farm Insurance Co and their staff appraisers for nonpayment of necessary items and unprofessional behavior. Thank You, Stephen Behrndt'''' #276003