Results of 1996 Society of Collision Repair Specialists Paint Capping Study

Steps To Overcome Arbitrary Paint Capping
Repairers who continue charging for paint and materials by multiplying a dollar amount times the paint refinish hours on the repair will continue to run into resistance from the insurance companies. Arbitrary paint capping can be overcome with the proper procedures. When the cost of paint and materials exceeds the insurance company's cap, the repairer needs to document the paint and materials for that job. Then those charges are no different than charges for a part. It's the cost of those specific paints and materials.

Eleven Insurers State Their Position
Eleven insurance companies have replied to the SCRS inquiry of their position regarding arbitrary paint capping. Basically, they say when the repair shop documents paint and materials costs that are more than the cap amount, it will be considered for additional payment.
They are:
Allstate
State Farm
USAA
Integon
Nationwide
Metropolitan
Safeco
Shelter
Automobile Club/Southern California
Farmers
California State Automobile Association/Northern California

Five Insurers Won't State Their Position:
They are:
Travelers
Erie
Liberty Mutual
EMC
Mercury

Thirty Six Insurance Departments Said Arbitrary Capping Of Paint and Material By Insurance Companies Was A Violation Of The Policy And Department Regulations
They are:
Alabama
Alaska
Arizona
California
Colorado
Delaware
Georgia
Guam
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Mississippi
Minnesota
Montana
Nebraska
New Mexico
New York
North Dakota
Ohio
Oregon
Pennsylvania
Puerto Rico
Rhode Island
South Dakota
Texas
Virginia
Washington
Washington D.C.
Wisconsin
Wyoming

Twelve Insurance Departments Said Maybe It's Illegal:
Florida, Hawaii, Michigan, Missouri, New Jersey,
Nevada, New Hampshire, North Carolina, Oklahoma, Tennessee, Vermont, West Virginia

Four Said They Never Received A Complaint:
Arkansas, Connecticut, South Carolina, Utah

One Has Not Replied:
Massachusetts