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	<title>Comments on: Ever Wonder Why Insurance Companies Use Direct Repair Shops</title>
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	<link>https://www.autobodyfaq.com/2010/09/26/ever-wonder-why-insurance-companies-use-direct-repair-shops/</link>
	<description>Auto Body Repair and Insurance Questions &#38; Answers</description>
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		<title>By: AutoBodyAdvocate</title>
		<link>https://www.autobodyfaq.com/2010/09/26/ever-wonder-why-insurance-companies-use-direct-repair-shops/comment-page-1/#comment-1176</link>
		<dc:creator><![CDATA[AutoBodyAdvocate]]></dc:creator>
		<pubDate>Sun, 08 Jan 2012 23:33:22 +0000</pubDate>
		<guid isPermaLink="false">http://www.autobodyfaq.com/?p=47#comment-1176</guid>
		<description><![CDATA[The body shop industry has always found a way to shoot itself in the foot. back in the 70&#039;s and 80&#039;s greed and lies and lack of professionalism led to more insurance company interference.

ICAR actually did help to give some conformity and standardization to shops that wanted to &quot;play fair and do right by all.

The pendulum has swung the other way. Lobbyists, greed and lies now &quot;control&quot; our industry through the Insurance Industry. The Direct Control&quot; programs now hold our industry impotent through DRP&#039;s that hold labor rates low due to greed, short cited goals or just ignorance / apathy. 

By rolling over and helping the insurance companies establish ubfair and low labor rates, &quot;Direct Control&quot; body shops establish low &quot;Prevailing rates for the entire Industry&quot; 

The article &quot;Ever Wonder Why Insurance Companies Use Direct Repair Shops&quot; is just wrong. It&#039;s about Insurance companies profits and bottom line. Do you really believe they &quot;pass on the savings&quot;... Really???... Really!???]]></description>
		<content:encoded><![CDATA[<p>The body shop industry has always found a way to shoot itself in the foot. back in the 70&#8217;s and 80&#8217;s greed and lies and lack of professionalism led to more insurance company interference.</p>
<p>ICAR actually did help to give some conformity and standardization to shops that wanted to &#8220;play fair and do right by all.</p>
<p>The pendulum has swung the other way. Lobbyists, greed and lies now &#8220;control&#8221; our industry through the Insurance Industry. The Direct Control&#8221; programs now hold our industry impotent through DRP&#8217;s that hold labor rates low due to greed, short cited goals or just ignorance / apathy. </p>
<p>By rolling over and helping the insurance companies establish ubfair and low labor rates, &#8220;Direct Control&#8221; body shops establish low &#8220;Prevailing rates for the entire Industry&#8221; </p>
<p>The article &#8220;Ever Wonder Why Insurance Companies Use Direct Repair Shops&#8221; is just wrong. It&#8217;s about Insurance companies profits and bottom line. Do you really believe they &#8220;pass on the savings&#8221;&#8230; Really???&#8230; Really!???</p>
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		<title>By: Tony Passwater</title>
		<link>https://www.autobodyfaq.com/2010/09/26/ever-wonder-why-insurance-companies-use-direct-repair-shops/comment-page-1/#comment-1022</link>
		<dc:creator><![CDATA[Tony Passwater]]></dc:creator>
		<pubDate>Sat, 29 Oct 2011 19:20:28 +0000</pubDate>
		<guid isPermaLink="false">http://www.autobodyfaq.com/?p=47#comment-1022</guid>
		<description><![CDATA[The fairy tale to use DRP&#039;s or non-DRP&#039;s to &quot;save insurance premium dollars&quot; for all of us ... is just that ... a fairy tale that is far from reality.

By theory one would think and be led to believe that the discounts and what were called &quot;perks&quot; would translate to policy premium costs, but in reality it doesn&#039;t. Take a look at the war that is going on between insurance companies to gain policy holders. You can&#039;t go 15 minutes on any TV channel, or sponsorship of any sporting event to not be bombarded with promotions to switch to the advertising insurance company. Just in 2009, the top 10 insurance companies spent more than 2 billion dollars to convince the vehicle owner to switch !

The current average claim is over 10 years now due to the increased deductibles and economic conditions we are now faced with, yet insurers are pressing collision repair shops to cut corners by reducing what they will pay for and even how to repair the vehicle. This is not good for any one, but the insurers, mainly their stockholders and incentive their officers make in bonuses.

Not all DRP shops are bad, but the pressure directed by the insurer to utilize their &quot;network&quot; is not based on these &quot;perks&quot; and cost savings for the policy holders. 

It is critical the vehicle owner makes a very informed decision on who they allow their vehicle to be repaired by, what parts are being used, and the reputation, skill, and training of the repairer. It is their vehicle ... their safety ... their choice.]]></description>
		<content:encoded><![CDATA[<p>The fairy tale to use DRP&#8217;s or non-DRP&#8217;s to &#8220;save insurance premium dollars&#8221; for all of us &#8230; is just that &#8230; a fairy tale that is far from reality.</p>
<p>By theory one would think and be led to believe that the discounts and what were called &#8220;perks&#8221; would translate to policy premium costs, but in reality it doesn&#8217;t. Take a look at the war that is going on between insurance companies to gain policy holders. You can&#8217;t go 15 minutes on any TV channel, or sponsorship of any sporting event to not be bombarded with promotions to switch to the advertising insurance company. Just in 2009, the top 10 insurance companies spent more than 2 billion dollars to convince the vehicle owner to switch !</p>
<p>The current average claim is over 10 years now due to the increased deductibles and economic conditions we are now faced with, yet insurers are pressing collision repair shops to cut corners by reducing what they will pay for and even how to repair the vehicle. This is not good for any one, but the insurers, mainly their stockholders and incentive their officers make in bonuses.</p>
<p>Not all DRP shops are bad, but the pressure directed by the insurer to utilize their &#8220;network&#8221; is not based on these &#8220;perks&#8221; and cost savings for the policy holders. </p>
<p>It is critical the vehicle owner makes a very informed decision on who they allow their vehicle to be repaired by, what parts are being used, and the reputation, skill, and training of the repairer. It is their vehicle &#8230; their safety &#8230; their choice.</p>
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