The medical coverage side is a mess, I agree and it is getting worse. At least on the auto side, we still have choices, as long as we are aware of that.

Eileen,

I couldn’t agree with you more re fraudulent claims. It is what drives up the cost of insurance and all of us pay for it in the long run. Some people are just looking for the bid payout.

I believe that all of us a consumers need to be more responsible when we purchase policies, take the time to look at it, ask questions and be more self-reliant in educating ourselves.

Most people buying insurance policies want the lowest price, not the best coverage. Some may choose a replacement parts policy but I bet most would not, it would add more to the price of the policy.

I am aware that the use of LKQ and aftermarket parts are a part of every policy. Just as every policy is different, each insurance company has a different cutoff for the use of such parts. Is it after the current model year, is it on all repairs? There are hundreds of cars that are hit while still under warranty and the use of aftermarket parts voids their warranty. That is when consumers find out they have the option of paying the difference for OEM parts or accepting the alternative. How hard can it be for insurance agents to ask if they want a replacement parts policy or not when they purchase a policy. It is hard enough to gain a person’s trust, and usually people trust that their agent is protecting their interests when they buy insurance because they don’t understand all of the mumbo-jumbo in their policy. I find it laughable that insurance companies pay millions of dollors for television commercials that are cute and presume to protect the policyholder. If they would just use some of those millions to explain the above questions to them, instead of lulling them into a false sense of security, maybe people would trust their companies.

My opinion is this: Unless ALL body shops stand and fight together, your fighting an army with a few boys and no way to win. Insurance companies do NOT have the right to set prices and control labor. Any auto repair shop must charge a minimum of 4 times their techs labor rate to be profitable. Ie: Labor cost should not exceed 25 to max 30% of revenue. Cost of goods is much higher in body shop business. Auto repir shops keep parts, supplies and labor cost at 47% or less to make a profit. My body shop runs about 62% parts, labor and supplies. What a differance, mostly due to labor rates being so much less in the body shop than repair shop.

Busy drp shops are faced with having no work if they fight back, so what do they do for change? Most non drp shops the owner has done nothing more than buy himself a job taking all the risk. What do they do for change? Heck, I tried for one whole year to get information to become a drp for a couple of insurance companies, and no info could be found. No one would talk to us about any drp program or even provide a contact name and number.

Again, my opinion. Set up a dealers assocation for each state. Work at getting 60% plus in the association. Poll the shops for information regarding labor rates by each insurance company they drp for. Then allow the association to be the voice of the whole mandating higher labor rates and such. If you can’t get 60% or greater to stand together as a voice, shut down and go get a job with less risk involved. In the end the pay will be about the same!

Good luck and God bless to all my fellow Body shop owners out their trying to make a decent living.

Sincerely,
Dale

A customer that believes they are forced to drive far from their home for an estimate is clearly being strong armed. However, the fact that an insurance company has DRP’s so far away from customers is a reflection of problems within that companies DRP process. They are always trying to expand and get more shops on board to make it more convenient for the customers.

From the customer’s perspective, if they agree to bring their vehicle to a DRP and there is not one locally, then the ins company will tow it there at their own expense – what more could you ask for? In most situations they will even tow it back again at their own expense! How could this be bad for a customer? The only reason this causes frustration is because we are oddly emotionally attached to our vehicles, we don’t like them to be far from us. But once they are at a shop, what difference does it make if it’s one mile away or 100 miles away if the customer has no additional expense?

And for Rose, I’m not sure what part of the country you are in but I’m in New York and the use aftermarket parts, OEM and used are all explained in every policy. The problem is that most of us don’t read our policy and even if the average person did, they wouldn’t know what in the heck it all means so there is definitely a major disconnect between what the consumer is buying and what they actually know that they are buying. Insurance companies can’t explain it all, and insurance brokers are even worse at understanding the policies. If you’re looking for someone to blame I don’t think you’ll find just one person or entity.

NYS insurance laws are written the way they are for good reasons but they are too complicated for most of us to understand or even care to understand because we don’t have the time. Our health insurance policies are the same. So is the tax code, we sign our income taxes, buy our health insurance and car insurance, homeowners policies, life insurance policies, mortgages (need i go on?) and don’t even know what we are agreeing to most of the time.

This is the state of our country, regulation on top of regulation, meant in order to protect us. My only solution is for each of us to become more aware, take the time to make more informed decisions and live more consciously. Once you do you will find yourself saying NO to alot more of what we usually overlook as the “norm”.

Respectfully