Hailstorm of Complaints: Are Insurers Paying-Up?

Gliding his hand over the pockmarked hood, Mike Rockenstyre recalled the hail storm that pounded his 1996 Lincoln Town Car.

According to the body shop, it will cost at least $9,000 to fix the damage. Unfortunately for Mike, his insurance company only offered to pay $2,400. Since the independent estimate exceeds the car's worth, the vehicle is considered to be totaled.

"Like anything," Rockenstyre said, "you pay for something and you expect something in return that's fair."

An Allstate spokeswoman later told CBS 6 News that Mike's situation had changed, and that he would be "satisfied" with the result. She stopped short of saying he would be reimbursed in full.

Either way, low estimates are part of a growing trend, said Robert Ensign, owner of Ensign's Auto Body in Albany.

"(Insurance companies) are taking advantage of consumers," he said. "They're trying to manipulate every little five-dollar deal all the way through the car."

When a consumer calls his or her insurance company to report a low estimate, the company will often recommend its own "direct repair" shop, Ensign said. The New York State Auto Collision Technicians Association alleges many of those shops provide subpar work.

As CBS 6 first reported earlier this month, the New York State Insurance Department is investigating those claims.

The insurance company cannot steer a consumer toward a particular shop, said John Capuano, Associate Examiner for the New York State Insurance Department. "(But) the insurance company has to provide the consumer -- upon (his or her) request -- with the name of a repair shop that will do the repairs for the amount of their estimate."

Insurance companies found to be "low-balling" consumers will be subject to fines and hearings, he said.

Back at Ensign's Auto Body, the owner had a terse warning for consumers.

"Beware," he said. "Read your policy."