Paul Hawks, owner of Bernie's Body Shop in Lakeland, Fla., is using a limited power of attorney signed by his customer and has filed a lawsuit for breach of contract against Progressive Insurance Co. on behalf of his customer, a Progressive policyholder who asked that his name be withheld.
Like this article? Sign up to receive our weekly news blasts here.The lawsuit is the results of the nation's fourth largest personal auto insurer's refusal to pay for repair related body materials. The insurer's position is that body materials are not compensable because they are part of a repairer's "cost of doing business."
"It's most unfortunate that a repairer must take these legal steps but the under-payments and non-payments are continually increasing as insurer's squeeze consumers and their repairers," Hawks said. "I'm sick of being intimidated by insurance companies. While rent, lights, advertising and such are (the cost of doing business) body materials are not."
Hawks' shop is in Lakeland, the same city where Gunder's Auto Center is located. Ray Gunder, owner of Gunder's Auto Center, has successfully sued insurance companies in similar lawsuits.
Gunder and Barrett Smith of Auto Damage Experts, are conducting a free legal seminar to help collision repairers recover the full costs required for a proper and thorough repair. The seminar is at 11 a.m. April 14 in Lakeland.
For more information, click here or email Gunder at [email protected].
