Consumer Information

Negotiating A Quality Repair:
TEN THINGS YOU NEED TO KNOW BEFORE AN AUTO ACCIDENT

Following are 10 things you need to know to successfully negotiate a quality repair with a minimum of confusion and frustration.  Though you may not have control over being involved in an accident, by following these guidelines you can have control over the quality of repairs your vehicle will receive, and the accompanying peace of mind.  Remember that you alone will have to live with the repaired vehicle.

1.
 Keep in mind that insurers’ main business is making money, though they may promise you the world when vying for your policy dollars.  It’s common for insurers to retain millions in profits annually through limiting or denying pay-out to repairers for certain necessary repair operations and materials.  The result: If you aren’t watching, you may receive a repair of lesser quality than the “pre-loss condition” your policy promises.  Insurers are increasingly dictating to repair professionals how your vehicle will be repaired, what type of parts will be used, in what time frame repairs will be completed, and at what price.  This “cost-containment” pressure can result in repair practices that produce unsafe repairs and loss of resale value.  Contrary to what you might be told, it is your right to choose the shop that will repair your vehicle.
2
 Deal with the shop that puts your concerns ahead of insurer alliances.  While many collision shops are in business only for the money, and many have “partnered” with insurers in DRP arrangements (similar to medical HMOs), those who have chosen to not make such agreements are generally better able to cater to your personal needs and provide you a more positive repair experience.  DRP agreements generally imply that the insurer will supply the DRP-partner shop an increased flow of insurer-directed work in exchange for that shop performing repairs in accordance with insurer-mandated guidelines, often including discounts on labor and parts, and denial of payment for certain procedures and materials necessary for proper repairs.  The result: Insurers, not you, become the shop’s long-term customer.  An excerpt from SmartMoney magazine, (Feb. 99) 10 Things Your Insurer Won’t Tell You, confirms this disparity: “State Farm’s Service First program even includes a ‘gag clause’ that prevents shop owners from talking to customers about their cars until they’ve cleared it with State Farm first.”  Before being involved in an accident, search out a collision shop that covets you as its customer above insurer ties – a shop that is interested in the quality of each repair, and satisfaction of every customer, rather than insurer-directed volume.
3.
 Take the initiative in choosing the shop that will repair your vehicle, rather than entrusting this all-important decision to an insurance representative.  Some insurer representatives have become masters in the use of cleverly worded statements that “direct” work, away from many quality-conscious shops, into shops with whom these insurers have agreements, sometimes forcing these shops into questionable practices at your expense.  Your auto is a major investment; choose a collision repairer based on the testimony of satisfied friends.  Also, before an accident occurs, review your insurance policy’s fine print with your agent and attorney to confirm it doesn’t restrict your right to patronize the shop of your choice. 
4.
 Make sure your vehicle will be repaired using Original Equipment Manufacture (OEM) parts.  OEM parts and components have been designed and manufactured to very strict tolerances and collision specifications by your auto’s manufacturer.  If you aren’t watching, though, the replacement parts installed on your vehicle may be of much lower quality.  Insurance companies, seeking low-cost substitutes to OEM crash parts, created the Certified Automotive Parts Association (CAPA), touted as “a standard setting organization to insure the quality of (aftermarket / imitation) crash repair parts”.  But Consumer Reports (Feb, 99) testing told a much different story: “Shoddy auto parts: parts that don’t fit, bumpers that shatter, fenders that rust”.  Following rigorous laboratory testing of these mostly “CAPA certified” imitation parts, their conclusion was that “cheap car parts can cost you a bundle”.  Don’t become the loser in this shell game.  Only OEM replacement crash parts perform as originally intended, restore your vehicle’s pre-loss safety factor, and fully maintain its warranty and value.
5.
 Patronize the shop that doesn’t inflate costs to “cover your deductible”.  Any shop that will steal for you (by hiding your deductible in inflated costs) will also steal from you (by performing less than “pre-loss quality” repairs).  Consider this when choosing your policy deductible, and collision shop.
6.
 Insist on a detailed estimate and “visiting rights” to monitor repair progress.  You are entitled to a detailed estimated breakdown of repairs before they begin, so refuse to deal with any insurer or shop that denies you this right.  Though shop liability insurance forbids unsupervised wandering, the shop that wants no contact with you before repairs are completed might be hiding something.  Get to know your repairer, make sure he knows you are reasonably knowledgeable, and patronize the shop with nothing to hide. 
7.
 Investigate the credentials of your shop of choice.  Any reputable shop will be proud to give you a tour.  Check their certifications, written warranty, general cleanliness, organization and collection of notes from satisfied customers.  Though patronizing a shop displaying certifications from automotive repair standards-setting, training, and testing organizations - among them Automotive Service Excellence (ASE) and Inter-Industry Conference on Auto Collision Repair (I-CAR) - doesn’t necessarily guarantee a perfect experience, generally these shops are above average. 
8.
 Check out consumer-oriented Web sites for a shop recommendation.  Unfortunately, many Websites that claim to know the best shops in your locale, don’t.  But among the several that specialize in promoting shops that have proven themselves reputable are www.ICAN2000.com (the Insurance Consumer Advocacy Network), www.beyondparts.com, www.autoclaimshelp.net, and www.claimcoach.com.  Such sites contain information valuable in helping you make informed decisions… including how to negotiate your claim, and how to shop for a repair shop, or insurer.
9.
 Remember that if you are the claimant, your repairs are not limited by the insured’s contractual obligations.   Though this is not to be construed as legal advice, generally speaking, if the other person’s insurer is paying for your repairs, you are considered the claimant.  Whereas insureds (they whose insurer is paying) are strictly bound by the wording of the policy they signed, claimants generally have no contractual obligation concerning what that insurer will and will not pay for, what kind of parts will be used, and the like.  Whichever your case, it’s always best to consult your attorney concerning your repair rights in your state.  Also, as a claimant you are generally entitled to a free rental vehicle, or “loss of use” reimbursement if you opt not to use one.
10.
 Report any bad collision repair experiences.  Whereas all collision shops occasionally make mistakes (often just a matter of miscommunication), reputable shops will go out of their way to regain your confidence and future recommendation.  If you believe you have a legitimate complaint, it’s always best to first give the repairer a chance to make things right.  But if you feel you received fraudulent or deficient repairs, and aren’t able to negotiate a fair settlement with the repairer, there are collision repair associations (among them the Automotive Service Association (ASA) (800) 272-7467, and the Society of Collision Repair Specialists (SCRS) (877) 841-0660) that can provide mediation services.  As a last resort you may need to inform your state Department of Insurance, in your correspondence also “cc-ing” your state Senator, Representative, or others who can apply pressure where needed.  Also available are post-repair “re-inspection” companies that, for a modest fee, will determine your vehicle’s Diminished Value (the difference between pre-accident and post-accident vehicle value).  These can coach you through the process and provide the documentation you need to recoup any losses.