ICAR actually did help to give some conformity and standardization to shops that wanted to “play fair and do right by all.

The pendulum has swung the other way. Lobbyists, greed and lies now “control” our industry through the Insurance Industry. The Direct Control” programs now hold our industry impotent through DRP’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, “Direct Control” body shops establish low “Prevailing rates for the entire Industry”

The article “Ever Wonder Why Insurance Companies Use Direct Repair Shops” is just wrong. It’s about Insurance companies profits and bottom line. Do you really believe they “pass on the savings”… Really???… Really!???

By theory one would think and be led to believe that the discounts and what were called “perks” would translate to policy premium costs, but in reality it doesn’t. Take a look at the war that is going on between insurance companies to gain policy holders. You can’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 “network” is not based on these “perks” 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.

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.

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 would like to learn more about DRP opportunities.
Phone# 404-664-6900

Thank you,

James Ballis