Over the years we have exposed hundreds of bodyshop, dealership and insurance company blunders and cons. There are “bodies.” I will continue to expose anyone that we Wreck Check and it results in buy-back, total loss, refusal of warranty, or pay off. A mistake is a mistake but we know the difference. Many of these cases we investigate go way beyond a mistake and are flat out consumer fraud.
I will expose motives of corporations, the habitual offenders who daily attempt to injure our customers or any consumer, my corporation or me by slanderous remarks, lies and half-truths. If any person(s), corporation(s) or group wishes to test the accuracy of my business practices or advertising they may contact the appropriate authorities or take legal action; there are many legal remedies. Know that anyone who posts untrue comments or facts will be met head-on and challenged.
While this page is intended to be educational, it is solely “OUR OPINION”. It also serves as a warning. A warning that we will expose the actions of anyone who proclaims to tell or twist the facts to fit their own goals, and let educated consumers decide.
It is my opinion and goal to establish this page as a link to be of support to our consumers while offering an alternate opinion by other experts from the legal and professional fields. Insurance companies spend billions to convince consumers that they will “look out for you” in the event of a loss, when in fact most major insurers have law suits against them - across the country - because they “do NOT want to pay claims fairly”. It can be argued that some are fraudulent claims, but most are hard working people who are owed a fair settlement and are overpowered by the insurance machine. Most consumers cannot afford to take on an insurance company, and in many cases consumers wither under the cost and stress of an insurer’s ability to finance large lawsuits.
Helpful links will guide you to places and services that will help you through the maze of an auto collision claim. The actions you take now may avoid problems for you later. Under- standing that insurance companies and tactics they use to NOT pay a claim or to discourage a legitimate claim ARE real. Some insurance companies discredit INDEPENDENT SHOPS WITH SPECIAL “word tracks” as a way to discourage you from using a particular shop not associated with insurance companies for one purpose: THEY DO NOT WANT TO PAY YOU THE MONEY THAT THEY OWE YOU! One such letter is printed here:
http://www.collisionweek.com/cw/graphics/2007-1120-letter.pdf
Locally, visit The Auto Rebuilding Associates of Greater Syracuse, Inc. for some local shops that share my same feelings; DO YOUR OWN RESEARCH, ASK FRIENDS when it comes to collision repair and choosing an autobody shop. Look to the I-Can Network for shops in other states offering many services for family and friends.
Understand that any shop that is a DIRECT REPAIR OR REFERRAL PROGRAM SHOP (DRP) works NOT FOR YOU, BUT ON behalf of an insurance company. Understand that if an insurance company referred you to a Direct Repair Shop without your specific request, it’s called “Illegal Steering” and is in violation of Regulation 64 Section 2610 of the NYS Insurance Law. Insurance companies may only recommend upon you asking for a recommendation. They are allowed to promote their services but once you decline an offer, no other coercion is allowed. You may report complaints to the NYS Department of Insurance online.
Typically, shops that have decided they need to align themselves with an insurance company have made a desperate decision. They have in my opinion opted to grow their business not by customer goodwill, but by providing cut-rate services to the public while hoping enough cash flow volume will support their operations. Profit is measured not in dollars but in the number of cars processed without being caught. The goal of their growth is obtained by taking work from competitors by any means including deep discounting and back-room deals at any cost.
In effect the deals finance finding new customers by letting the insurance company market for them and thereby refer them work. This is the opposite of paying to advertise. Instead of paying a monthly/annual advertising cost, they discount their work and spread out the cost-per-new-customer, (cpnc); most businesses can measure and relate to that theory of “cost per customer.” A savvy car dealer can tell you to the penny what it cost per car, to bring in customers. A simple formula is to divide the number of customers into the cost of advertising. In some circles this “up-front discounting” would be viewed as creative, however the downside is that it has stymied growth in the collision industry and caused very low entry-level technical growth. Labor rates are equal to the 70’s in comparison to other trades. While the insurance industry is booming and consolidating claims are down over 20% nationally, premiums still rise. You may have heard about or received a discount or even a refund. I got one check for .50 cents!! and one for $14.50!!! Considering the cost and profit most insurers make, my feeling is keep the change, pay the claim!!!
Collision repair is suffering from a recession caused by “rate suppression” where a 3rd party has been allowed to suppress all rates by intimidation and coercion. Also called “monopsony power” No…. That is NOT a misprint! Monopsony power is when one party has an uncontrolled lopsided economic power over another. As in the power insurers hold over consumers and autobody repair shops. Power to control and suppress by their sheer economic size and control. We all know the sting of that power when we receive our premium statement or try to process a health or auto claim and the cost of the alternative to fight outweighs the immediate loss. It’s similar to WalMart vs. a small local department store: WalMart can discount most companies out of business by their sheer economic size. We all know it.
Some Auto Body Shops that have signed a contract offer a discount to insurance companies in hope that they will get referrals. Spend some time and read the I-Can article. Although not exciting reading to anyone that is not in the industry or affected by it, you will see first-hand how a (DRP) offers consumers nothing. I feel that a DRP shop sold out consumers to get referrals from the insurer. That is strike one! The sell out!
Next is, Desperate: It takes on the appearance of discounts on labor, parts or materials, or all items. It could be in the waiving of fees associated with towing or storage. It could be volume discounts and credits. They look good on the surface as everyone likes something for free, but free usually means cutting corners to make up for it. I’ve seen the free services in action. Give-aways by other shops where consumers get nothing! Free towing where the cost is buried somewhere else. That’s desperate and I call it: Strike II.
Some shops GIVE a discount for each referral by a third party or the shop may GET A BONUS for each completed repair through a management company. The guarantee and warranty are spread out between parts suppliers - some from China - and backed by insurance companies that do not fix cars. All the guarantees in the world can’t fix a flawed repair, only an ethical repair shop can. That is a false guarantee and that is Strike III. So while it might look enticing to use an autobody shop the insurance company recommends because it seems easier, it’s not! Faster usually is the only logical benefit and we find that fast doesn’t work in collision repair. Fast means sloppy and missed items. Fast = Sloppy!
Consumers should pick a shop that: stands behind the repair, uses proven methods of repair, has a written contract of repair that is fair to both parties, offers you a final itemized bill of each item repaired, one that will show you the old parts if you ask, one who will go over the repair upon completion or anytime you have a concern; one that offers a nationally recognized paint warranty system like our NAPA program.
Very Important: If you for some foolish reason are considering to allow your vehicle to be repaired by a DRP shop, “ask for a copy of the contract they signed with the insurance company as that contract will outline the quality standards and discount that apply to your repair”. You are entitled to a copy and I recommend you demand one! Since it involves you and your car, DEMAND IT!!! If you are refused, find another repair shop. If you ever get a copy of the contract, (most shops will refuse you!!!) you will see first hand the limitations placed on the repair shop in order to join the program and who really assumes the liability and the true motive behind the scenes. The limitations are quite different than what you have been led to believe by the sales pitch. For other opinions of this subject, visit www.vechileinfoservices.com. Check www.modavox.com/voiceamerica/ as it has a topic called “Meeting by Accident.” Also visit Body Shop Business: February 2007 under “BUSY BUT BROKE.” It’s interesting to note how some body shops are becoming wise that insurance companies are not their partners.
Insurers are risk and investment bankers who look out for the money of shareholders. Remember to have patience with the process because collision repair is an artisan trade. If your bumper is being replaced it may just take a day or two. But if you’re involved in a serious collision repair it takes time. Remember to send a thank you for a job well done. Complaints aren’t the only time to write a letter. Should you have issues or concerns after the repair, review these with the shop as a lady or gentleman would expect. Screaming and swearing or sarcasm will not accomplish anything except to polarize everyone. Treat people the way you wish to be treated. Scream at a waiter and may I suggest….. You don’t drink the coffee!!
When reviewing your repair or as time goes on, things that concern you may come up. Remember, the guarantee you are offered is backed by the shop. Insurance companies do not fix cars. The level of repair at most DRP shops is set by the insurance company and performed to that level by the shop. The shop may at some point tell you they have done ALL THE INSURANCE COMPANY ALLOWED or a version of that. If the insurance company requires aftermarket or junkyard parts or the panels do not fit, the shop may not be able to do any more. They are ethically responsible but you’ll have to go fight with the insurance company. If the insurance company tells you to punt, then you will have to think about another course of action, and it may be court.
There is no such thing as “uniform standards” for collision repair other than those proposed to the industry outlined by Wreck Check, however reality has to be observed when it comes to the value of the car. Many cars are deemed total losses and the title is branded as SALVAGE when 75% of the retail value is reached in damage. Most insurance companies will consider a car totaled at the 60% level because of potential for costs to go higher. At the 60% level or $6000 in damage a $10,000 car is $1500 away from being considered totaled. My experience tells me that most people are not unhappy when a car gets totaled. In their eye the car is gone and only the car’s value pre-loss remains to be negotiated. Some people are unhappy because they owe more than the value, or the car was a prized possession. Review that with your repair shop. We school our customers when the word “total” is hinted, so that they are prepared.
In my experience any shop that will not be corralled or convinced to cut corners on repairs by a strong-arm insurance company, is known by insurers as being “difficult.” In our area we top that list!!! Shops were drawn into these DRP programs with short sightedness. Like a smash-and-grab thief. As time goes by the insurance company tightens the noose on the checkbook, or asks for deeper discounts, opens another program, changes direction, the shop is left looking for work. In my opinion, no self-respecting shop would allow itself to be part of a DRP program. Many shops today want to be released from such programs but can’t because they are hooked to the insurance I-V. Many shops are just starting to wake-up. In some cases it’s a little too late.
INTERNET UPDATE:
Today if you want to slam someone use the Internet. If you are of a mind to AIR YOUR LAUNDRY to the world, buy a domain name and go for it. Internet law is becoming the next bonanza attorneys are going after. Cyber-attacks are usually libelous and the perpetrator can be found and held responsible. By simply failing to explain the options that are available and choosing to take a path of contempt and slander, insurmountable trouble can erupt.
One such site was developed against us and was based on one-sided lies. While we suspect ignorance and contempt drove it, we suspect it really amounts to a hidden agenda, extortion. Following our web pages you will find that each of our true customers is supplied with an initial written contract and agreed to it or they need to find another shop. They are given a written warranty and written options to remedy all issues as are relevant during and after repairs. In fact, a warranty is viewed as a “mutual agreement”, and consumers must abide by the terms or they indeed breach their side of the warranty. When you buy a GE refrigerator from Lowes and it breaks, do you go to Home Depot? Do you call Westinghouse? You take it back or call in a serviceperson. If that fails to solve the problem, you have other options. You don’t put up a website that says “Lowes Sucks!!”
Know that we will not be held hostage by anyone’s verbal abuse, attempts at extortion, fraud or staged fraud committed against us or our well-intended efforts and beliefs. In the United States the last time we checked the freedom of commercial speech exists for us too!
OTHER HELPFUL LINKS:
http://www.princetonautobody.com/Docs/MSWord/JakesPaper.doc
http://www.jobvent.com/companyBrowse.php?CompanyID=232