SCRS releases American Family Insurance letter, comments on labor rate changes

Jan. 1, 2020
SCRS released the following statement about a new American Family Insurance policy regarding labor rates:
SCRS released the following statement about a new American Family Insurance policy regarding labor rates:

As of June 15th, American Family insurance is apparently now asking for considerations on labor rates charged to American Family policy holders on customer pay repairs! Fortunately, they specify they aren’t extending the expectation to other discounted repair costs, but who is to say where it goes in the future.
The sad reality is that there is no question the insurance industry will continue to push the envelope in what they expect of us, as we race to the bottom in an attempt to find how far we are willing to  bend before saying “no.” The letter American Family released to its Certified Repair Shops is below:

Dear CRP Shop Partners,

American Family is constantly looking for new ways to promote our Certified Repair Program while providing value added services to our customers. One way we can do this is by helping our customers feel secure that they are obtaining a high quality repair at a fair price when they are paying for their vehicle damage repairs out of pocket.

Therefore, effective June 15, 2013, it will be our expectation that our CRP partners will charge American Family customers that are paying for their vehicle repairs out of pocket no more than the existing labor
rates charged to American Family. This expectation does not extend to discounts being provided to American Family on OEM parts, LKQ markup or off the final bill, although we would certainly welcome the gesture if you are able to pass along the additional discounts to our nonclaims customers.

If you are not able to honor the existing labor rate agreed upon with American Family to ourcustomers paying out of pocket, please notify your Reinspector.

If you have any questions, please contact your Reinspector, State CRP Manager or CRP Administrator, Phil Shaw.

Best regards,
Phil Shaw
Certified Repair Program Administrator
American Family Insurance
1-800-692-6326, x36266
[email protected]

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