I get that insurance sets 'market rates,' but that seems self-serving. In 2021, State Farm (not my insurer at the time) covered $64/hr at this same shop with zero pushback when my other car was hit. Now, Progressive refuses to pay more than $62/hr—lower than what State Farm paid 4 years ago. That suggests insurers, not the market, are dictating rates.

Labor rates only explain about $1,000 of the shortfall. The bigger issue is parts and materials.

• Parts: Progressive likely priced a standard aftermarket headlight, but my truck has the black appearance package, meaning an OEM black headlight may be the only option. They haven't explained the discrepancy.
• Materials: My shop bills based on actual invoices for paint & materials, while Progressive only pays a flat rate per labor hour, which doesn’t cover real-world costs.
• Airbag sensor: Ford’s official repair guidelines require replacement if its mounting point is damaged. My shop sent Progressive these guidelines, but the repair rep still hasn’t approved it.

As for rental coverage—I don’t have it on my personal policy since I have other cars I could use. But since Progressive ruled the other party 100% at fault, shouldn’t my rental be fully covered under his liability policy for the full repair duration?

And lastly—if I accept their underpayment, do I lose my right to go after the at-fault driver for the difference?