Las Vegas, NV– What your auto insurance company doesn’t want you to know.
My friend Lucy had a car accident the other day. It wasn’t her fault. The car was hit in the on the driver’s side rear quarter panel. The car was drivable but looked ugly with a big dent and mess in the back. The responsible driver exchanged auto insurance information and drove his barely damaged bumper away. Lucy said, “I called his auto insurance company hotline for accidents. [PROBLEM#1] The phone rep told me to take it to XYZ shop, because this shop was a “preferred” vendor for this auto insurance company. “I asked if I could go somewhere else, closer to my house. The phone rep told me “You can GO to another shop on the approved list; however, the auto insurance company has an online paperwork system with their “preferred” shop which would eliminate a lot of paperwork AND this shop gives our clients priority so if you take your car there they will start on it immediately. IF you take the car elsewhere I’m not sure WHEN I can get an appraiser out there to see your car. Furthermore, this shop will give you a LIFETIME WARRANTY.”
This should have been a red-flag, however, when your car is hurt, and you don’t think you’re paying for the fix, you tend to drop your guard because it’s not your money being spent and it is your time/inconvenience. Lucy should have smelled a rat in this conversation. The STEERING of BUSINESS to certain shops is to the benefit of the insurance company NOT the car owner. The insurance companies have cut deals with these “preferred” shops to give them cheaper rates, use NON-OEM parts and minimize the work identified as part of the accident*. She should have called her auto insurance company to compare notes and seek additional information. LEGALLY, Lucy could take the car to any body shop of her choice to have the work done, and receive financial satisfaction. BTW< all licensed body shops offer LIFETIME WARRANTY on their work.
[PROBLEM#2] Lucy takes the car to the “preferred shop”, where the manager tells her he will submit the claim immediately. “I asked if the car had frame damage or would take a long time to repair. The body shop representative said it was ‘no big deal’ other than waiting for parts from the factory. He told me he couldn’t give me a price to fix the car until he got with the auto insurance company,” she continued, “The next day the auto insurance appraiser called and told me they had a check ready for me for two thousand dollars.” The bum’s rush.
This should have been a red flag that the amount was too low and the insurance was too quick to close the case.
“I was ready to grab the check and fix the car later,” Lucy told me. Then I pointed out a few unadvertised issues with taking the check now and not repairing the car.
1. The car was not ‘taken apart’ so further repair costs discovered in the future, (after the check is cashed), are her responsibility.
2. The estimate does not indicate potential mechanical or safety-drivability issues that could occur in the future as a result of not doing the repair immediately.
3. Additional costs resulting from further damage caused by not repairing the car at the time of the accident will be at her expense.
4. The estimate prepared by the “preferred” shop may include SPECIAL discounts to the insurance company. These discounts will not be passed on to Lucy when attempting to fix the car at a later date.
5. The cost of parts and labor are not “fixed” for more than 30 days. Inflation of parts or labor for the repair can fluctuate drastically, and will be her problem in the future.
6. Not obtaining a second and even third estimate for the repair cost, could leave LUCY out some serious cash, and this is what the insurance companies’ are betting on.
7. Lucy was concerned when the auto body shop tried to upsell additional body/paint work that was “not included” in the original estimate.
Cash-starved consumers are taking the auto insurance check and cashing it, without repairing their vehicles or questioning the appraisal. The auto insurance companies are saving thousands of dollars on claims because the car owner isn’t giving themselves the benefit of having a full structural breakdown completed to know all the costs involved in the fix. Body shop professionals estimate working estimates jump at least 25% once the process begins. “You will always find additional damage once the car is opened up. With independent suspensions, uni-body and frame on frame construction, deep damage is being missed with this cash-n-go mentality and the consumer is getting short changed. Furthermore, there are now a huge number of potentially dangerous cars on the road with mechanical, safety or drivability issues we won’t know about until the car fails or causes an accident,” offered an anonymous body shop owner. (“I can’t let you use my name because it could cost me my approved vendor status.”)
In the end Lucy took her car to the body shop recommended by her friends familiar with the quality of the shops repair work. The body shop owner ‘tore the car down’, (body shop lingo for doing a complete and thorough estimate). The estimate shown to Lucy was four thousand five hundred dollars. The price estimate would be honored for six months by the shop owner.
[PROBLEM #3] WHY THE DIFFERENCE in auto insurance body shop repair estimates?
1. After-market parts in the lower estimate vs. factory genuine (Original Equipment Manufacturer) parts provided in the second estimate.
2. Paint process in the first estimate did not indicate provider or process to be used. The second estimate included detail of the paint cross-matching technology including the factory recommended three stage paint process. The second estimate included dismantling various components around the door handles and tail lights rather than the customary taping and paper cover.
In the end, Lucy’s car looks and drives like the day she first bought it. Her feeling of relief over a potential $2500.00 mistake far outweighs the momentary buzz of a $2000.00 windfall.
Top learn more about getting your best car deal click here: CAR DEALS Sarah Lee is an automotive executive with 20+ years of experience. She writers about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at www.mycarlady.com ]]>