It's On - David vs. Goliath, Auto Insurance Style

Opening arguments in Progressive Insurance vs. North State Custom began today in the New York Supreme Court.  In case you've been under a rock, here's the Reader's Digest version of the particulars:

Progressive Insurance is suing North State Custom and its owner, Greg Coccaro, for fraud in the repair of a Mercedes Benz for one of its insureds in 2005.  One of Progressive's insured got into a single car accident in 2005, and a Progressive appraiser wrote a damage appraisal at the accident site for $7,142.  The insured wanted his car repaired at North State Custom - a shop that specializes in Mercedes Benz repairs and is certified by Mercedes Benz, but that is not a Progressive DRP shop. 

After repairs began, and upon further inspection by a Progressive field rep, Progressive amended the damage appraisal to a total of $26,804.  But this was still far below North State Custom's final bill of $34,091.  Big discrepancy.  Apparently the car has been wrapped in plastic, in storage, awaiting this trial.  Imagine being the insured, without your car for three-plus years!  Mr. Coccaro is being represented by team of lawyers, including our friend, Erica Eversman.

Other shops and shop associations are taking sides in this fight as well.  According to CollisionWeek.com, some of the witnesses include Phil Mosley of Mercedes Benz of Westchester Collision Center in Ohio - another Mercedes Benz certified repair center, testifying for Mr. Coccaro - and Mike West of Southtowne Auto Rebuild in Washington State - a shop owner, CAPA board member, and current ASA-Washington Collision chairman, testifying for Progressive.   

Not only is Mr. Coccaro not caving under what must be enormous pressure from a team of Progressive attorneys, but he's filed a counter suit, accusing Progressive of violating New York State laws against steering, pressuring insureds to choose particular shops, and libel.

Both of these suits are being watched, really closely, by other shops, other insurers, and legislators from several states.  While this first suit isn't about big money - if Progressive wins, they will most likely be awarded the $78,000 they are asking for, and if Mr. Coccaro wins, he walks away with nothing but his reputation intact - but it will either throw open wide or slam closed the door to who is the repair expert.  Can an insurer really state that a shop, certified by the vehicle manufacturer, doesn't know better than a generalist field adjuster what repairs are necessary to make a vehicle safe and in pre-accident condition?  Does a shop have a leg to stand on when a repairer says they won't pay for specific operations? 

According to Mr. Coccaro's attorney, this first trial should last about two weeks.  There is no date sent for the countersuit as of yet. 

--Chrisa 

Comments

[JD Preston]

Sadly, this is exactly why everyone thinks insurance people and most of those associated with the industry are crooks. http://www.ohiocar-insurance.com

[Chrisa]

JD, can you elaborate? The lawsuit is why? Or the discrepancy?

[ken]

I am a repair shop owner ,I think progressive ins is the worst company there is.

[Chrisa]

Ken, are you a Progressive DRP? Can you share why Progressive is worse than others, in your opinion? As with any agreement between to companies, DRPs have their pros and cons - I'm just interested in your opinion on Progressive vs. others in more detail. Thanks for reading!

[Donnie Smith]

Please keep us updated on the case. I am interested to see how this ends up.

[Beth]

Donnie, We do plan to do updates on this case as they come in.

[Marlene Coccaro]

We WON! Case dismissed by the Honorable Judge Mary Smith of the Supreme Court of New York State.

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