One situation many insureds find themselves in today is when they’ve taken their vehicle to a repair center that does not get along with the insurance company that is footing the bill for repairs. Many shops feel that they should not be told how to repair a car or how much they can charge for those repairs. The result is that both sides will take a firm line.
When you first choose a repair facility for your vehicle, the shop should tell you if they have problems working with a particular insurance company. However, what happens is, they start repairs and when they run into a problem with either a supplement, or overage on an estimate, they may tell you that the insurance company won’t meet all their demands.
The next call you will get is from your insurance company. The insurance company will tell you that the shop will not work with them and any charges the insurance company does not find valid, you will owe to the shop.
Obviously this is unacceptable, and the next move you may make is to move your car to a shop that the insurance company will work with. You call the shop that has your vehicle and tell them you want to move it. All of a sudden the shop is not as nice to you as when you first brought your vehicle to them. Now the shop wants to charge you tear down, storage and admin fees, and parts restocking fees. This could be hundreds to thousands of dollars over the original estimate.
Why should you be caught in the middle of a dispute between the insurance company and the body shop?
At the risk of being accused of taking one side or the other, please understand that each situation is different and there can be multiple factors involved. Some insurance companies do try to take advantage of the body shop, but I have seen body shops overinflate the value of repairs.
It has been my experience that shops overcharge to remove your vehicle to make up for the loss of income and hassle. They more than likely knew before they started repairs, that they could not work with the insurance company. They feel that they are punishing the insurance company by charging all the fees but it always comes back to the customer.
What happens all the time is the shop blames the insurance company, the insurance company blames the shop when both of them should have been able to sit down and repair the car per the manufacturer requirements without under or over inflating the estimate.
How do you prevent this scenario from happening?
If you do not use a Direct Repair Shop on the insurance company’s program, always talk to the shop manager of the shop you may want to use. Tell them which insurance company will be paying for the repairs and ask them if they work well with the insurance company or do they normally have issues with collecting full payment for repairs or argue about the repair process. Conversely, speak with your claims adjuster to verify that they have a good working relationship with the prospective shop. If either entity tells you they do not have a good track record, move your vehicle to another shop. Don’t wait until there are problems.
In closing, it is highly recommended to always do your homework when choosing a repair facility for your vehicle as well as on the insurance company itself. Do not be afraid to ask questions about a shop’s reputation with a particular insurance company. It is your right to get your vehicle repaired correctly, and to your satisfaction.
Jake,
Great post, you clearly outlined a problem that does (unfortunately) crop up on occasion. I would add, that when ever I had a vehicle owner that I knew was going to a shop that absolutely refused to negotiate, I always warned them ahead of time, and upfront, that there may be a problem, re: rates etc. and it would be their choice and responsiblity to pay that addition.
Also I have not seen an estimate written (in ten years or better) by an insurance company that doesn’t say somewhere on it. YOU MUST GET PRIOR APPROVAL FOR ANY AND ALL SUPPLEMENTS…So the shops ‘should’ be talking with the adjuster prior to proceeding…..even if it’s a rate difference.
Again…great job!
lori
A customer should never be caught in between the insurance company and the body shop, but realistically it happens.
We advise our customers not to settle for a minimum repair, in the end only benifiting the Insurance Company, Not their investment.
We also bring to their attention if their insurance company has short-commings upfront.
In some instances the insurance company that is representing a claim may have a different opinion on the repair and refinish procedures performed on the vehicle. As a Bodyshop, we respect their opinion, but we are the professionals performing the repairs and detail procedures. Those procedures are guidelines given from the vehicle manufacturer to ensure that the vehicle is retured to pre-accident condition.
The customer pays their premium, no questions asked, each month on time, faithfully.
So when the body shop requests repair procedures, detail procedures, labor rates, etc. Why should the insurance company go out of their way to nickel and dime? Why should they cut corners, bottomlines, etc…
Bodyshops do not work to benifit the insurance company, and customers should not accept anything but the correct and proper procedures when repairing any vehicle. In many cases, the bodyshop is told by insurance companies that other shops do not ask for or charge for certain procedures. WHY WOULD ANYBODY WORK FOR FREE UNLESS THEY ARE NOT DOING A CORRECT REPAIR PROCEDURE?
The customer chooses the shop of their choice based on reputation, refferal , etc. They do so when they choose an insurance provider as well. The body shop wants to correctively repair their vehicle, warranty their repair, and be around long enough to have them again as a customer. Shouldn’t that be an Insurance Companies top priority?……Customer Satisfaction
To whomever may read this comment:
Amber is absolutely correct in her presentation of facts. I work for a collision repair facility that is considered to be one of the finest and most reputable collision repair facilities in the nation. We cannot, nor do we want to be a direct repair for all insurance companies. Some insurance companies are not looking out for the interest of their customers, they are only looking to make a profit and that is their primary M.O./concern.
Naturally, collision repair facilities are looking to make a profit as well. What concerns me is an insurance company that tries to make a profit is seen as business-minded, but a collision repair shop that tries to make a profit is seen as crooked? All reputable businesses are started with the intention of being profitable and prosperous.
We are never in the habit of holding a vehicle hostage. Unfortunately, more often than not, we are shorted payment on the bill by certain insurance companies we are not contracted with. We do not bill the customer for the difference. We take the loss. Just to be clear, we do not like working for free or taking a loss on a job, but it happens.
Another consideration to take into account is once the vehicle leaves a repair facility, the facility is ultimately responsible and liable for the safety of the vehicle and the safety of the driver(s) and passenger(s) in that vehicle.
Liabilty is the primary reason some facilities are viewed as “difficult” to work with by the insurance companies. We do not want to be liable or accountable for an inproper/imcomplete repair that is written or pushed by the insurance company. We offer a Limited Lifetime Workmanship Warranty and our reputation is at stake.
We do not hire cheap labor and we do not hire inexperienced labor. Our estimators are also certfied technicians. They can write an accurate estimate and can competently repair a vehicle as well. I have known very few competent estimators that work for the insurance companies. Most do not have the knowledge to properly repair a vehicle to its pre-accident condition. All they know is what they see on the outside (the cosmetics). Most of them have never worked on a vehicle in any capacity and that is why disagreements between the collision repair shops and insurance companies ensue.
Who do you want writing an estimate for repair on your vehicle? Someone that is qualified to repair it or someone that has never even turned a wrench? Who do you want repairing your vehicle? A facility that is qualified, pro-active and accountable; or a facility that is seen as agreeable by the insurance company? There are a lot of reputable facilities out there that do high quality repairs, back their work and will go to bat for the consumer that are not DRP’s for insurance companies.
Best recommendation for finding a reputable collision repair shop is asking your mechanic who he or she would send their car to. You are always welcome to ask your agent for a referral, but I would phrase it like this, “Have you ever been in an accident? If the answer was yes, then ask him/her “who did you trust to repair your car and were you happy with the repairs?”
We repair vehicles for agents and claims estimators all the time that work for insurance companies we are not a DRP for. I think that speaks novels.
Thank you and please drive responsibly.
Just because a shop is a DRP (direct repair provider) for an insurance company does NOT guarantee a better repair. Sometimes, it just means that they are contracted with the insurance company to offer a lower labor rate.
I am dealing with the same exact problem with AAA-1 Auto Body in Hicksville, NY.
These people are crooks.
I have a 18 year old daughter who has had 3 open-heart surgeries, one very recently.
This company is immorally holding my vehicle hostage too!
This is insurance fraud and why does our local govermental agencys allow this ongoing criminal practice is beyond me.
Anyone out there that can help PLEASE email me. My daughter needs this vehicle too for Dr. visits and AAA-1 has on purpose let car sit in limbo to let rental car allowance run out. Textbook insurance fraud!!!
These companies should have their licenses revoked.
Anyone that can help midgad@aol.com
This body shop is holding my car hostage and against my will.
The insurance companies direct repair programs have shop so afraid of losing a direct repair account that not only do repairs suffer but the relationship between the insurance company and shop does. That relationship becomes, you do what the insurance company wants and repair the car how they say to or lose the account. As soon as a disagreement happens with adj. the first call or nasty email will have the threat of losing there account with statements like “I’m sure blank shop would be happy to do the repair” or the best one being y”our agreement says”. I don’t think the agreement says for us to work under such pressure! The cycle times have become so unrealistic for quality repairs and that goes back to the “well blank shop will do it”, sure they will, there is always going to be hack shops trying to get DRPs by promising what they want to hear. DRP shops are being forced into rushing jobs, repairing things that should be replaced and aftermarket parts that don’t fit as good as OEM. We spend more time fitting aftermarket parts to make it acceptable and we cannot charge for this. I’ve been in this business since childhood over 30yrs and even though our shop has 5 DRPs I think it’s the worst thing that has ever happened to the consumer. Let’s face it, if an insured does not choose one of the ins. company’s DRPs they are penalized with “sorry that’s the shop you chose” that’s in reality forcing them to use DRP’s without saying it. We also do work for non directs and give them the same warranty and customer service as well as work with the insurance company without any problems.
Don’t let this author bend your ear , they are obviously leaning towards the insurance company perspective. If their is one thing you take away from this article it should be; Insurance companies are not fair, nor honest. Google Allstate “unfair practices” or look for insurance consumer complaints-these guys are here to make money.Period. Why can every major insurance company pay a dividend on their stocks? Making money.
So why should a body shop or a tow company let the major insurance company dictate their prices? Seems insurance companies tell you what you pay them…..then tell you what they pay you. Wrong.