Holding your vehicle hostage!
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.
Filed under: Auto Insurance • Repair Shops
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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