Geo Labor Rate & Tax Guide Brochure

Data Overview

• LRTG identifies ‘geographical area’ using a latitude and longitude from the center of each zip code, and then expands the search radius until an established minimum sample size is achieved.
  • This process allows samples from multiple shops so that the displayed rate, used for guidance, is not determined solely by a single shop location in remote areas.
• OEC customers enter a search address where the repairs will be completed. The zip code of the address is used to access the labor rates for that particular zip.
  • If needed, the search radius will be expanded (by a number of miles from the center point of the zip code) until a statistically relevant minimum sample size is established.

Maintenance of Data Samples

• Each month, LRTG collects current labor rates from over 1 million random estimate samples.
• New monthly samples are incorporated into an ongoing pool of estimates, with the oldest month’s data being replaced by the newest addition.
• Estimates containing the sample labor rates are sourced from OEC software solutions where software agreements allow for anonymized use of the labor rate data.

Outliers and Exclusions

• There are no processes in place that exclude rates from any specific shop location.
• Estimate samples are collected at random from approved sources from OEC software solutions.
• LRTG does not provide any insurance carrier specific rates.
• Processes are in place to identify and remove negotiated rates from the sample set and to remove excessive high and low outliers.

NOTE: The above information is provided as general information and as a courtesy to our clients and their trading partners. No further information will be made available and such information and operations may be revised from time to time.

*The intended use of this product is to provide general guidance during the collision estimating and settlement process.

*California survey prevailing rates are based on CDI Regulation File: REG-2012-00002 and are excluded from the methodologies outlined above.