Edward
Elio Addict
Well, what about the health insurance model then? They set the rates for repair work and then pay it out when it gets billed. For example, alternator replacement: $85 for the part + 1 hour of labor at $90/hr.There are some aftermarket warranties that work like you suggest however it requires a network of adjusters or farming it out to a contractor to insure you're not getting ripped off. They might want to do something like that for areas not otherwise covered, however for a start up company to do this wide spread it would be a huge money risk that they wouldn't want to deal with.
Okay, this has some issues as well, because shops would have to agree to the prices ahead of time, but if Elio set up a rate schedule to show around, I'm sure I'd be able to talk my local garage into being "in-network"