Competitive Bids
The competitive bid process requires that two or more repairers submit competitive estimates or
"bids" for a specific repair job. The amount of the low, complete bid is generally considered to
be the "competitive" price and is used as the basis for settle
PCPs
State Farm uses a continuous
survey that gives repairers the opportunity to provide information
online. The repairer information is used to determine labor rates and material pricing levels that
reflect prevailing prices in that area. PCPs are determined
Select Service Program
In some market areas, repairers have been selected to participate in State Farm's Select Service
Program. The program is designed to enhance claim service,
increase efficiency, and afford
customers an opportunity to select qualified repairers to inspect a
Paintless Dent repair
Paintless Dent Repair (PDR) is an industry recognized repair process that involves the removal
of
hail dents or other types of damage from metal exterior surface panels without disturbing the
vehicle's finish. In most cases, this procedure involves the us
ICAR
Inter Industry Conference on Auto Collision Repair.
Determining Repair Costs
The prices we pay for most repair operations will be determined from printed or electronic
collision estimating guides and repair facility survey results. However, it is not possible to
determine the cost of every repair operation from these sources. For
Estimats are based on
Estimates written or approved by
State Farm are based on labor rates and repair costs not to exceed what is charged by a majority of the repair market in a given area.
Contracts with repairers
We do not enter into contracts with repairers on individual repair jobs on a fixed or "contract"
repair job basis. We pay for the estimated cost of repair based on physical damage caused as a
result of the loss.
Freight Charges
Similarly, if freight charges are submitted to State Farm for payment, payment should normally
be resisted. Freight charges are not
considered as part of actual repair costs and are generally aligned with an expense a repairer or dealership may incur as a
Minimum Cost
Establishing minimum costs or authority levels can provide a realistic measure of repair costs for
items such as the number of hours allowed for a complete refinish
job, material costs, or similar
items.
Publication of survey information
We will not knowingly violate that confidentiality by publicizing individual
survey data to persons outside our organization
Claims Summary
State Farm will pay claims based upon reasonable, competitive prices for repairs necessary to
repair the vehicle in a quality manner. The policy contract and law of dam
ages will assist us in
determining whether certain operations are payable
Non original equipment and recycled parts
State Farm
promises satisfaction to the vehicle owner when new non
-
original equipment and/or
recycled parts are specified on an estimate that is written or approved by State Farm or a Select Service repair facility.
The State Farm promise of satisfactio
OEM
Original Equipment Manufacturer
Non-OEM
Non-Original Equipment Manufacturer
OEM Quality
Used, rebuilt, or reconditioned parts must be of sufficient quality relative to the part
being replaced
Certified Crash Related Non-OEM Parts
such parts are
subject to certification standards developed by an organization approved by State
Farm*:
�Bumper
components
�Lighting components
�Radiator supports/tie bars and associated mounting components
�Outer sheet metal and plastic/composite parts
T
Non-OEM Delay
No unusual delay must occur as a result of considering non-original equipment
and/or recycled parts for use in repairs
If Non-OEM and Recycled parts are used in estimates
The vehicle owner should be notified when the prices of non-original equipment
and/or recycled parts are included in the estimate as outlined in CPG 2700-275
If The non-OEM part is included on the list of suspended parts and not requested by the vehicle owner
The estimate should not
include such part (Part Does not have to be certified) (page 22)
If the Vehicle owner requests a non-OEM part that is currently under suspension
the estimate may include such part pursuant to certification requirements if the part is within one of the four categories requiring certification
and CAPA or NSF has developed a certification
standard.(In the absence of a certified part being available,
If there are other non suspended non-OEM parts available
the estimate may include such part pursuant to certification requirements if the part is within one of the four categories requiring certification
and CAPA or NSF has developed a certification
standard.(In the absence of a certified part being available,