Getting Paid for a Proper Repair
4/1/2008
I just finished reading your article on insurer-repairer relations
[“Troubled Times,” February, pg. 58] and have a few comments on it.
We do business in an area with a large number of body shops, many of
which have given in to the DRP relationship. Our shop used to be a
State Farm “Service First” facility as well as a Liberty Mutual DRP
shop, but we were cut by State Farm during the switch to “Select
Service” and also gave up our relationship with Liberty Mutual as its
margins and practices were too poor for our company to turn a profit.
We do, however, service a couple of new vehicle dealerships, and that
has kept us afloat.
Given that our market is flooded with body shops, our biggest problem
is finding an insurer that’s considering new shops for its program. For
the past three years, we haven’t been able to create a single
partnership with an insurance company and, as you would probably guess,
our business has suffered. Keep in mind that we’re a mid-large size
facility with a great location and all the latest equipment. We’re
ready and willing to proceed with some sort of program, but there just
aren’t enough to go around.
Another interesting thing we’re finding is that the way in which
customers are being communicated with by their insurance companies is
ruling out the possibility of them taking their vehicles to non-DRP
shops. In our market, the verbiage is as follows: “Hello Mr. or Mrs.
Customer, I see that you’ve been involved in an accident. Our company
uses the following body shops in your area for repairs: 1, 2 and 3.
Which one would you like to take your vehicle to?” Customers’ ignorance
of their rights leads them to take their vehicles to shops listed on
their insurers’ programs. Even worse is when a customer stands up and
says, “I want to take my vehicle to the dealership,” because the
response is, “If you take your vehicle to a shop not on our list, we
won’t cover any increase in cost and we won’t provide a warranty.”
To this day, I’ve never charged a customer for the shortcomings of his
or her insurance company. The question is, how do we let the public
know that many of the DRP programs are not in their nor the shops’ best
interests? The bottom line is that DRPs are in place to save insurers
money. And in no way do the insurance companies pass on those savings
to customers. Remember the old saying, “You get what you pay for”? That
says it all when you let an insurance company dictate how to repair
your vehicle.
In the meantime, shops are forced to work with insurers that hire staff
with zero experience who have no idea how to repair a vehicle.
Unfortunately for the customer, there seems to be no good option.
Discount labor, discount parts and insurers that are out for themselves
are what you have to look forward to if you’re in an accident.
All I want is to get paid to fix a vehicle “the right way.” If I have
to give a little for that to happen, so be it. I would rather go to war
with an insurer that insists we repair a panel that in reality needs to
be replaced than settle for what our trained techs see as an improper
repair.
Chris Roberts, director of collision services
Vancouver Auto Group
Vancouver, Wash.