HARA pricing recommendations June 2005 sent to auto insurers in Ontario

June 7, 2005

Dear Insurance Company Claims Manager:

Since 2002, electricity prices have skyrocketed by 32%. Auto insurance premiums, although slowing going down now, rose some 30% in 2002 and 2003. Shops complain that commercial garage insurance premiums have risen almost 40%.

Collision repair facilities in our coverage area have experienced significant increased expense in their product purchases and operating expenses.

With the continued increase in natural gas and heating costs, and a further increase in coatings costs from Canadian suppliers just announced, shops are continually being burdened by increased costs of operating.

HARA has surveyed shop pricing and cost levels in Western Canada and in particular the increased costs and re-imbursement being paid in British Columbia and Manitoba and have examined their pricing formula to ensure a balanced and fair approach to any recommended pricing in Ontario.

Shops are not required to follow any price guidelines that we may recommend and no shop will suffer in their business relationship with our association should they decide not to follow our pricing recommendations.

For facilities that meet the standard accreditation levels as identified in the CISCO, CCIF or Toronto By-Law standards, we are recommending the following pricing;

Body, collision, refinishing hourly rate $55.00

Paint and prep materials hourly rate $35.00

Shop materials rate (as itemized)

Hazardous waste disposal fee $10.00 per vehicle

Administration/communications fee $55.00 per vehicle

Mandatory branding fee (if required) $55.00 per vehicle

Damage appraisal fee $55.00 per vehicle (refunded on work done)

Vehicle storage
-$30 per day (outside)
-$50 per day (inside as required or security)

Detailing vehicle $25.00

Oxygen/acetylene/welding fee $3.95

Your understanding of our increased costs is appreciated. Please contact me if you have any questions.

Yours truly,

John Norris

Executive Director