Do you feel like every time you run errands or shop for basic necessities you leave a little more of your wallet behind? Despite more reasonable gas prices these days, it seems like everything costs just a bit more. California apartment rental prices are up 3.8 percent, food costs are up, Netflix raised its prices and the beloved avocado’s prices are skyrocketing.
Auto accidents are also on the rise as is the cost to repair our cars following a crash. The National Highway Traffic Safety Administration (NHTSA) reports that motor-vehicle deaths jumped 7.2 percent in 2015 – the largest increase in 50 years. Distracted driving and walking, more congestion on our roads and drugged driving are all causing more accidents and deaths.
Our cars are safer, but technologically advanced cars are more expensive to repair. You used to be able to pound out dents in your bumper. Today, new bumpers have high-priced cameras and sensors that cost thousands to repair after a fender bender. These higher auto body repair costs are spreading across the country. But now, California drivers have another factor to watch out for, which could increase your car repair bill: a special deal auto body repair shops are pushing for in Sacramento.
California auto body repair shops are pushing California Insurance Commissioner Dave Jones to approve a special deal that could drive up auto repair costs by over $100 million. Auto body shops want Commissioner Jones to approve regulations that will essentially force insurers to pay the “rack rates” for labor and prevent companies from being able to negotiate a fair price for their policyholders.
These regulations will allow auto body shops to choose or “self-report” what they want to be paid for labor. Who gets to choose what they are paid? Policyholders rely on their insurers to negotiate fair prices and oversee all repair work so that it is done with the highest quality standards. This helps keep insurance premiums affordable and keeps the repair shops accountable.
If the Department of Insurance interferes in the free market system to financially benefit the auto body shops, it could lead to the unintended consequences of higher insurance costs for California policyholders. With auto accidents on the rise, now is not the time to add potentially higher costs into California’s auto insurance system. Insurance Commissioner Dave Jones should not give in to the auto body shops’ attempt to line their pockets. He should stand up for California drivers and stop this special deal.