We can only hope that the misdeeds fostering a negative image of the collision repair industry are committed only by a minority of people. I believe this is true.
You have undoubtedly read the news article on our cover detailing the presentations at the Collision Industry Conference (CIC) in Nashville, Tenn., held in April. Hopefully, you are appalled by what you read concerning the experience Missouri Lt. Gov. Joe Maxwell had with an insurance company during the claim settlement process.
Unfortunately, you have probably run across a customer or two who has had a similar experience with an insurance company that was stretching the boundaries of both the law and professional ethics. While collision repairers might say, “I told you so!” and feel their views concerning some insurers’ claims handling practices have been vindicated, the fact is the entire industry—including shops and insurance companies—suffers when actions such as those described at CIC take place.
Yes, collision repairers and insurers do not always see eye-to-eye. But we shouldn’t just look at the day-to-day disagreements regarding parts and procedures. We should instead look at the bigger issues. Repairers still complain it is all too common for insurance company drive-in claims handling centers to write estimates using a lower labor rate than the insurer actually pays repair facilities in the local market. Legal? Perhaps. Ethical? I don’t think so. The same applies to intentionally short-sheeting an estimate by not paying for obvious repair procedures. Undoubtedly, the insurer will approve a supplement for the higher “prevailing” labor rate and necessary work if and when the vehicle arrives at a repair shop in a timely manner.
Last year, a repairer in Massachusetts called to complain about a smaller insurer that operates in the state that was actually advertising on the radio that they’d settle their customer’s claim fast, cut a check and thus allow the customer to shop around for a better price, potentially saving his or her deductible.
Repairers typically get caught in the middle of this situation when the customer cashes the insurance company check and doesn’t have the car repaired immediately. Months later they arrive at your door for an estimate and find out that the amount they received from the insurer will not come close to paying for the cost of repairs. Does the consumer think the shop is overcharging? Or do they feel the insurer attempted to take advantage of them by low-balling the claim? In either case, the image of the industry has suffered.
But those of us living in glass houses should not cast too many stones. Auto repairs in general are often cited as a top consumer complaint generator. The 12th annual consumer complaint survey conducted by the National Association of Consumer Agency Administrators (NACAA) and Consumer Federation of America (CFA) placed auto repairs in the third-highest slot on its list of consumer complaints filed with state and local consumer protection agencies in 2002—behind auto sales and home improvement complaints.
We can only hope that the misdeeds fostering a negative image of the collision repair industry are committed only by a minority of people. I believe this is true.
One indicator that all is not bad in the industry occurred in early May as we were going to press with this issue. The National Auto Body Council (NABC) sponsored a symposium in Chicago to bring together all segments of the industry to discuss the issue of the industry’s negative image and how the situation can be changed.
Beyond the NABC’s normal participation from repairers and suppliers, it was gratifying to see active participation from several of the nation’s largest insurers including State Farm and GEICO. Though insurers have worked with NABC throughout its existence, their expanded presence and participation is an indication that they are coming around to the view that we are all in this boat together
