Category Archives: Auto Body Direct Repair

Ever Wonder Why Insurance Companies Use Direct Repair Shops

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Direct Repair ShopsLet’s face it. The goal of any good business is to make money whenever they can, and also save money too. This in particular is a delicate balancing act put on by insurance companies. But they do not do this with complete greed in mind, like so many of you would like to believe. Keeping their costs low is huge boon for you the insured as well, because it helps to keep premiums down.

One way insurance companies implement cost cutting measures is by recommending that the people they insure use the direct repair companies with which they are associated. These companies  are under contract with the insurance agencies, which allows the agency some perks that they don’t get from a non-contracted repair shop.

The first is the free storage. Let’s face it. Storing a car is expensive, whether it be for an individual or an insurance company. So one of the things in the contract with the direct repairs shops is free storage for the cars they are working on. You may not even realize this, but this storage fee gets worked into the cost you pay for repairs.

Next is another freebie, and it’s towing. If the direct repair shop ends up towing the car that they later get contracted to work on, the chances of the insurance company ending up paying for the tow truck virtually disappear.

You, as the consumer may not realize this, but it’s a good thing for you too. And I say this because somewhere along the line this fee would get buried right along with a bunch of other things that you would ultimately be paying for in the end anyway. So the insurance company’s deal with the direct repair shop saves you money in the end, which is why it’s truly in your best interest to use the repair shops recommended by your insurance provider. They really do have your best interest at heart.

And what’s the point of making a deal with direct repair shops if there are no pricing concessions involved. It would be kind of foolish, don’t you think?

These contracted repair shops offer discounts on parts and labor in some cases, keeping the costs to the insurance company down where in turn they are not required to pay out as much on their claims.

Right now you might be thinking “Wait a minute. Why is it a good thing for the insurance company to have to pay me less money on my claim?” The answer is very simple. They are only paying you less because the company that did the repairs charged must less than their competitor would have. Do you understand now?

The less the insurance company has to pay for repairs, the lower everyone’s premiums will be. This will always be the case, so it can be smart to work with your insurance company instead of against them. It’s just good business sense. So don’t use people outside of the network because you feel like your freedom is being taken away from you. You are only hurting yourself in the long run.

Are Direct Repair Shops Killing The Collision Repair Industry?

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Direct Repair ShopOnce again, the old battle of good vs. evil rears its ugly head, but this time it’s in the collision repair industry. When you get into a car accident, and you need to repair your vehicle, who do you go to? Do you use your own “guy,” or do you go to one of the shops suggested by your insurance company, which is called a direct repair shop.

The reason this is such a hot topic is because the insurance companies have basically taken the freedom of choice away from the vehicle owner. If you use one of the direct repair shops recommended by the insurance company you will get perks that you will not receive from a non-contracted repair provider.

One major bonus is that the parts and repair you receive will have a warranty. It never hurts to get a warranty, in particular when dealing with a high dollar item such as car repairs.

And another perk, if you can call it one, is if enough people complain about one of the direct repair shops, the will receive bad marks and ultimately be cut from the program. This is a huge loss for the repair shop, because let’s face it, no shop wants to lose millions of dollars worth of business.

But here’s my question to you, and it’s a big one, so pay attention.

Why do you even care if a company gets removed as a DRP (direct repair program)?

Granted, this will only end up helping the people in your shoes that come after you. By getting a subpar repair shop removed, you save future accident victims that belong to the same insurance company as you the agony of dealing with an undeserving company that really doesn’t care about the people they work for.

While this is definitely a nice thing to do for others, this really is not helping you today or even years from now, unless of course you plan on making car accidents and repairs a regular part of your life. If that’s the case, then you are doing yourself a tremendous favor later on down the line.

Truth be told, direct repair programs are not designed with the consumer in mind. Their main function is to save the insurance companies truckloads of money, while they in turn set up a system where the insurance company doesn’t have to pay the insured the what they are truly owed on their claim.

There is a word for this in the English language. It’s called theft. And as usual in this country, a group of major players (the insurance industry) devised a system to legally steal from all of their customers. Because make no mistakes about it, they are stealing from you.

By making it so unbeneficial for you to use a repair shop outside of their network, they are legally forcing you to use companies that work with them to swindle you out of your hard earned cash.

Do you fight the system or conform to it? You be the judge. Anyone have any comments? Feel free to join the discussion.

Who decides what shop repairs my vehicle?

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You’ve had an accident and now you need to get your vehicle repaired. What do you do?

Whether you are a claimant or an insured, you need to report the accident to the insurance company.  When you speak to them, they will recommend one of their Direct Repair Shops.

Do you have to use a Direct Repair Shop?

No. In the end, the choice is yours. The insurance company may tell you that the shop of your choice is not on their “approved” list of shops and that they may not be able to efficiently handle your claim due to your selection of a certain shop, but do not be intimidated by this. It is your right to choose whatever shop you want to repair your vehicle.

However, if by chance you pick a bad shop (that is not a DRP), and they mess up your repairs, it is you against the body shop. The insurance company is only liable to pay for the original repair, it will not warranty how those repairs are made, whereas if you had gone to one of the insurance company’s direct repair facilities, then they would have to get involved.

In closing, always remember, you have to go with a shop that you feel comfortable dealing with. It is your vehicle being repaired and you have to be happy with the outcome.

Legislation to protect the consumer

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From the other side of the tracks

Stumbled across a blog post on a great discussion board I’ve been participating on, much to either the delight or dismay of the other participants, as I apparently do not fit in. But that’s ok. I love a good debate. :)

Back to the blog post. AutoMuse® points out a recent news item up in Connecticut where the Attorney General, Richard Blumenthal, wants to pass legislation to make sure consumers cars are repaired correctly and safely and demands that insurance companies do not harass or push consumers to use their “DRPs” or preferred shops.

Consumers deserve to choose where a car is repaired. No insurer should straightjacket or corral consumers, forcing them to use a so-called preferred shop.

I actually agree with this statement, and although I outline what DRP’s are, and how they work, and how properly run ones will protect and help a consumer, I have always said it is the CUSTOMER’S choice as to where they get their car repaired. I think some of my naysayers miss that part of my discussions, posts and articles.

For the full blog post over at AutoMuse® click here.

And my question for those reading: If Lyn had taken her vehicle to a non-DRP shop and had the same problems with the repairs, who was going to back up her problems then?

Direct Repair Programs Facts and Myths

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Direct Repair Programs or DRP’s are commonplace in today’s world of vehicle repair. More and more shops have joined forces with insurance companies all over the United States in order to gain as many referrals as they can in an industry that can be very competitive. DRP’s facilitate the relationship between the body shop and the insurance company and the owner of the vehicle being repaired. Taking your vehicle to a DRP shop is supposed to save a lot of hassle and paperwork on everyone’s behalf.
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Who is responsible for rental fees…

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If a Direct Repair Shop does not complete the repairs before the rental period approved by my insurance company, who is responsible for rental fees?

Always check with your insurance company as to who is responsible for rental fees in any unexpected circumstances. Usually, if you have taken your car to a Direct Repair Shop on your insurance company’s program, then either the insurance company or the repair facility is responsible for all rental fees. This is NOT the case if you have chosen to take your car to a shop off their “approved” list. Again, always speak with your insurance company and find out what their policy is.

What kind of rental can I be expected to have and for how long?

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Whether or not you are entitled to a rental car is stated in your insurance policy. Generally, for only a dollar or two extra each month, you can add coverage for rental car reimbursement, which provides a rental car for little or no money while your car is in the repair shop or if it is stolen. Check your policy for specifics. The insurance company is generally only obligated to cover the rental car for the amount of time it takes to repair the car.

How long will it take for my car to get repaired?

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Most insurance companies take the labor hours divided by a set formula according to their company guidelines. Every insurance company will be different but it is typically an average of a 5 hour word day. For example, if the estimate calls for 45 hours total labor, divide 45 by 5 and your estimated repair time is 9 business days. The majority of repair shops do not have weekend hours.

 This repair time can be delayed by parts on back order, additional repairs that require supplements or other unexpected factors.

What is expected before the vehicle is brought to the shop…

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What is expected before the vehicle is brought to the shop if it is drivable? What if the vehicle is non-drivable?

 Estimate has to be written and accepted, parts will need to be ordered by the shop and the car scheduled to be brought into the auto body shop for repairs. If the vehicle is non-drivable, it will need to be towed to the repair facility.

How do I know if it is a good reputable body shop?

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Like scouting for a plumber or a mechanic, the reputation of the body shop is an important factor to consider. Always ask for references from your insurance company. They don’t deal with inferior service providers because they have a vested interest in the vehicles being repaired properly. Another thing you can do is ask your mechanic. If he has been around the area awhile you can bet that he knows who the best body shops are and which ones to avoid. A good reference is priceless. You can also contact the Better Business Bureau about a particular shop.Automotive Service Excellence (ASE) and I-CAR are training and certification associations for the collision repair industry. Look for these ASE and I-CAR logos which indicate that technicians at that facility are well trained and certified by these associations.

You also want to be able to view their work. If they are unwilling to show you before and after photos and even let you see jobs they are currently working on just walk away. Any reputable body shop will be more than happy to show you the quality of their work.

Another thing that you definitely want to look for from a quality body shop is a guarantee. A good shop will always stand behind the repairs they have done and will usually give some kind of warranty on paint, parts, and labor. Ask specifically what their policy is regarding guarantees and what they will do for you if you are not happy with the quality of the work that they have. If they get indignant with you leave and find another one, any decent body shop knows and understands a customer has concerns about there vehicle being repaired properly.