NIBA calls for action over insurance repair bills

The body which represents more than 50 independent car repair shops in Northern Ireland is calling on Stormont ministers to urgently investigate insurance industry practices after publishing details of an independent report which showed that many garages are being forced to take on repair work at below-cost rates.

The Northern Ireland Bodyshop Alliance (NIBA), which supports more than 200 jobs across the sector, said it had evidence that that many of its members were being asked by insurance companies to take on repair work at rates as low as £24 per hour – much lower than the £33 per hour required to cover its member’s basic running costs.

NIBA said the findings of its independent cost survey report showed that labour rates for repairing cars involved in accidents offered by certain insurance companies were now almost 30% below the breakeven point for garages.

It now wants repair rates to be set independently from insurers.

Sean Bradley, Chairman of NIBA, said: “This is a ground breaking report. For the first time, we have an independent report which highlights the actual costs of running a bodyshop here.  The report puts this figure at £33.46 per hour.  Insurance companies, which represent around 50% of an average bodyshops turnover, have kept the rates artificially suppressed year after year and some have even cut the rate to around £24 per hour.  It is clear that this is not a sustainable rate.