What all car owners need to know about the insurance industry and auto body shops. By Domenic Nigro
Modern vehicles are complex and increasingly easily totaled; advances like anti-lock brakes and traction control have increased driver control, and increased consumer awareness has improved safe driving practices. So what is steering? It’s probably happened to you, steering is when you’re in an accident and you call your insurance company and they tell you where you have to get your car repaired. Some other examples are when the Insurance company says they cannot guarantee the repairs from a certain shop, or that you will have to pay the difference in labor rates. These are all forms of steering and they are all illegal.
Steering has existed since the beginning of the auto insurance industry and, while illegal, it may be here to stay unless something is done to change the awareness, standards within the industry and the laws that govern their behavior. Steering hurts both the shops and the customer, and if there is going to be progression in this industry, a solution must be found and regulations must be enforced. Good body shops are being forced out of business. Car owners are receiving sub par parts and service. A solution would benefit the entire industry and its customers.
Most insurers today use what are called DRP’s, or Direct Repair Providers. These are shops not owned by the insurers, but shops that agreed to provide service to these insurers. So what does this mean for the vehicle
owner? The insurance provider will say it means faster service and quicker turn-around on their damaged vehicle. In some cases this is true. In most cases it is not.
How is steering bad for YOU, the consumer?
Consumers have the right to choose where their car will be fixed after an accident, but the Auto Body Association said insurers continue to illegally steer customers and pay inadequate labor rates to body shops. Insurers skirt the language in the law and steer to save money. They get a cheaper repair at the consumer’s expense. The shops may cut corners and make greater use of inferior aftermarket parts.They say the shops may rush a repair job because if it takes longer than what an insurer specifies, the shop may have to foot the bill for the customer’s additional rental car costs.
Steering is anti-consumer, anti-competitive and anti-car safety because it rewards the insurance companies through preferred body shops but, in effect, deprives consumers of their choice.
Can it be dangerous (steering?)
When a shop signs a DRP agreement it basically turns it’s managerial rights over to the insurer. These agreements direct a shop in how to write estimates, how to report claims, which parts to use, how much to charge,
what not to charge for and a host of other do’s and don’ts. Basically the agreement ties the hands of the shop that tries to repair a vehicle owner’s vehicle back to it’s original pre-accident condition. For instance. to save
money on a claim, the insurer will tell the DRP shop to use A/M, or aftermarket parts. Aftermarket parts are parts made to fit a certain year, make and model of vehicle, but they are not made by the original
manufacturer. Most A/M parts come from overseas and have been proven to not be LKQ, Like, Kind and Quality. A/M parts are not of the same quality of OEM, Original Equipment manufacturer. What does this mean for the
vehicle owner? It means, if A/M parts are used on the repair of your vehicle, they may not fit the same, may not be as safe as OEM and certainly are not the same quality as OEM parts.I say, if you are happy with that shop, then by all means, let that shop repair your vehicle. Don’t go there just because an insurance company says that’s where you have to go.
If you have any questions, give me a call and I’d be happy to assist you, 215-925-4520
Nigro’s Auto Body is located at 939 Washington Ave in South Philly.
