INSURANCE

THINGS YOU SHOULD KNOW WORKING WITH INSURANCE COMPANIES DIRECT REPAIR PROGRAMS / PREFERRED SHOPS

When an insurance co. recommends a preferred shop, they are recommending the shop that will do the best job for them, not you. They will refer you to a shop that will cheapen the repair any way possible by “selling” you aftermarket parts. Another cost cutting measure is to cut labor. Most of the giant preferred shops pay the techs substantially less than the going rate (as much as 25% less) and then make them clean the shop etc., off the clock (no pay at all)! A somewhat abusive relationship. My personal observation is that the “best and brightest” will not work for these companies. If the “best and brightest” do not work for them, who does? Another is to simply cut whatever corners they can to make a profit while still giving the insurance company a discount. Some Insurance companies won’t allow the shop to discuss the amount or severity of damage with the customer, without their approval first.

Have you heard the ads about “when you have your car repaired at the preferred shop, we will guarantee the repair?” Why would an Insurance company do that? Is it because when they dictate to the preferred shop how to fix it and what corners to cut, the shop says “OK, but we can’t guarantee it”? Kind of scary, isn’t it? They are playing laws of averages. The average person only keeps a car a little over 2 years and they are banking you will sell / trade it before it goes bad. Even if it does last long enough to sell, the next unsuspecting person is getting burnt and that is still wrong!

Why would a body shop do this? In exchange for cheapening the repair the insurance co delivers a steady stream of customers, they will make it up in volume. In the long run these programs are bad for the consumer, and bad for the auto collision industry.

When you bought the insurance, did you believe that your vehicle would be properly repaired, or half-assed repaired, should it ever get damaged?

Most, if not all “Direct Repair/Preferred Shop” Programs place the shop in a conflict of interest position, who are they most likely to look out for? The customer, or the hand that feeds them?

The bottom line…even if you don’t choose COLLISION CRAFT, don’t go to a “preferred shop”!