Allstate Pays Full Labor Rate to Collision Center to Settle 12 Short-Pay Lawsuits

Allstate recently paid Lakeland, Fla.-based Gunder Auto Center’s full labor rate to settle 12 pending lawsuits over short pays. Allstate’s decision could impact auto glass shops as well since they also face short pays from insurers.

Collision shop owner Ray Gunder sued Allstate on behalf of his customers after the insurer refused to cover full labor rates for collision repair work. Allstate representatives approached Gunder in June of this year to discuss finding closure to the lawsuits.

“I am very appreciative of the way this was handled by Allstate,” says Gunder. “No one wants litigation; however, sometimes it is needed to get disputes resolved. My hope is that this is truly a new way Allstate does business nationwide and they speak to the entire industry with one voice.”

The largest payment from Allstate was for $1,575, while the smallest payment was for $198.

“Enclosed please find payment in the amount of $1,575.24 for your loss on 10/28/2012,” an Allstate representative writes in documents included with the payments to Gunder Auto Center.

Allstate representatives had not responded to request for comment at press time.

Gunder has an ongoing track record of suing insurers on behalf of his customers over short pays.

“We’ll be in depositions all week with Geico representatives and have continued lawsuits with State Farm,” Gunder says. “Perhaps [Allstate] agreeing to our rates will encourage Geico and State Farm to pay rates and allowances that are fair and reasonable. One can be sure that we’ll continue to pound the rock until they do.”

Gunder Auto Center settled a similar case with State Farm in 2012.

The collision center offers auto glass replacement and repair services for its customers. This service is outsourced.

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