Gunder says 26 insurers have agreed to his labor rate increase

Ray Gunder, owner of Gunder's Auto Center, said as of Nov. 29, 26 insurers have decided to pay full compensation for the company's revised labor rates and materials rather than challenge the 14.3 percent rate increase in court.Like this article? Sign up to receive our weekly news blasts here.

In August, Gunder placed a notice in his reception area and provided handouts to all auto appraisers and insurer claim representatives who visited his shop that new labor rates andallowances were in effect. He raised his hourly rate from $42 to $48. As of mid- September, 15 insurers agreed to pay the increase. The increases include labor, refinishing labor, frame labor, mechanical labor rates and the invoicing of PMC Logic for all body and refinishing related materials.

Insurance companies that have agreed to pay the increases include:

1. MetLife
2. Kemper Services
3. Westfield Comp.
4. Auto Owners
5. Acceptance Casualty
6. Liberty Mutual
7. Amica Mutual
8. Horace Mann
9. The Hartford
10. Direct General
11. Zurich American
12. Mercury
13. Esurance
14. Security National
15. Infinity
16. Occidental
17. First Acceptance
18. GMAC
19. Esis
20. Specialty Products Claims (a division of Nationwide)
21. Sentry
22. Michelin Tire Company
23. Grange Mutual
24. CNA
25. Global Indemnity
26. Commerce Insurance

Some insurers have chosen to have their day in court where they will argue that Gunder, with the power of attorney, has no standing to file lawsuits on behalf of his customers. They have petitioned the court to render a decision in this regard. It’s anticipated that the court will hear arguments from all defendants and render a joint verdict for all 25 cases. The hearing is scheduled for December 13. The defendants include: State Farm, Allstate, USAA, Travelers, Infinity and GEICO.

”This hearing and the judge’s ruling will be significant and may set a strong precedent regarding similar efforts of quality-minded independent repairers across the country," Gunder said. "We are very confident that the decision will be in the favor of our customers and support the right for repairers to stand in the shoes of their customers if and when such issues regarding the full payment of any and all 'reasonable and necessary' charges should arise. I’m excited to bring this matter to closure as it will only embolden us to move forward in serving our customers in an unencumbered fashion. This will also hopefully open a door to better communications and cooperation with insurers to better serve our mutual customers.”