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Thursday, 20 September 2012 17:29

NJ Shop Owner Goes Round and Round with State Farm on Material Reimbursements

In an exchange of several letters between body shop owner Don Harvey of International Collision Service in Englewood, NJ, and State Farm, the problem of material reimbursement is yet to be answered.

Harvey initiated the request in a letter to State Farm CEO Ed Rust in February 2012 to address what he felt was an inadequate paint and materials reimbursement rate. Despite State Farm responding to his queries, Harvey says he still hasn’t received a satisfactory answer to how the reimbursement rate was determined from a “yes or no” question on the insurer’s survey. The yes or no question on the survey he referred to is, “Do you use an automated paint and materials rate calculator?”

In response to another letter Harvey wrote dated July 10, State Farm stated that it believed the best opportunity to provide him with a more complete understanding of their survey was to facilitate a one-on-one discussion between him and their estimatics leadership in New Jersey.

Harvey first replied by stating, “It seems State Farm is ‘dancing’ around these issues as this now is the fourth letter and yet no answers to either the material reimbursement or the explanation on how the rate got determined from a yes or no question on State Farm’s survey.”

In a letter dated August 21, Harvey thanked them for the invite but turned it down.

“My concerns as a member of the New Jersey auto body community is an answer to how a paint material rate has been determined from State Farm’s ‘survey’ when a yes or no is the only option,” said Harvey. “This clearly is a question that can be answered in writing and doesn’t require a one-on-one meeting to address.”

For details on the back and forth search “Don Harvey” at

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