Case Study


Auto insurance: paying the full amount for car repairs

Synopsis of Complaint:

A consumer had a not-at-fault accident and their vehicle was declared reparable. The consumer used a non-preferred body shop, and a labour charge rate was applied in accordance with the shop’s fees.

The insurer took the position that this charge was not approved, which resulted in the consumer owing some additional funds.

The consumer stated that they had dealt with the insurer on 5 separate occasions and they were not advised that the labour charge rate was unapproved.

The consumer contacted GIO for assistance after receiving a Final Position Letter from their insurer, which maintained the decision to pay only the labour charge rate when a preferred body shop was used.

Review by GIO:

The Consumer Service Officer (CSO) reviewed the consumer’s Final Position Letter and the supporting documentation of their claim.


The CSO discovered that the consumer’s supporting documentation included an approval by the insurer to pay the labour charge rate in this case.

Once provided with this information, the insurer determined that this information had been overlooked and agreed to pay the outstanding funds owed for the repair.

The consumer was very grateful for GIO’s assistance and this outcome redeemed her confidence in her insurer.

GIO is an independent body set up to help Canadians find a fair resolution to disputes with insurance providers. GIO can provide advice on dealing with your insurance company as a first step. If you are not satisfied with the decision from your provider on your claim, GIO can help resolve your claim. 

If you’d like to submit a claim visit here.

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