Don't Let Government Increase Auto Repair Costs

Frequently Asked Questions

Q: Insurance companies want us to believe they aren't really concerned with making money or profits. I don't buy it.

A: Insurance companies are a business, so of course they want and need to make money. But to do that, they need customers. And like any business, it's in their interest to have lots of happy customers.

That's why many insurers have established relationships with reputable auto body repair shops they recommend to their customers after an accident. These auto body repair shops do quality repairs at a reasonable cost, and the repairs are guaranteed by the insurance company for as long as you own the vehicle.

 

Q: A friend recommended a locally-owned auto body repair shop. Isn't it always better to trust a small, local business like that than a big business like the insurance company?

A: It would be nice to think so, and you're not alone in wanting to think that.  But consider how often you do business with both your insurer and an auto body shop.  At least once a year you have an opportunity to shop around for insurance, to leave your current insurer for another. So your insurance company has every reason to want to make you happy, to keep you as a customer.

But how often do you need the services of an auto body repair shop? The average American has an accident once every ten years or so, so that means the auto body repair shop recommended by your friend has a once-in-a-decade chance to make money off of you.

Now put yourself in the shoes of an unscrupulous auto body repair guy. How
tempting would it be to inflate the cost of a repair job, to use salvage instead of new parts, or to claim repairs were made when in fact they weren't - all to increase your own profits off a customer you'll probably not see for another ten years?

Now put yourself in the shoes of the auto body repair shop recommended by your insurer. Are you going to cheat a customer for a quick short term gain and run the risk of losing the future business recommended by the insurance company?

 

Q: Most auto body repair shops say they guarantee their work too. So why is the guarantee the insurance company a better deal for me?

A: It's highly unlikely you'll ever need to worry about the quality of repairs made by the auto body repair shop that was recommended to you by your auto insurer. But in life, we all know stuff happens.

So imagine you have your car repaired in Providence, and a year or two later you've driven the family down to North Caroline for vacation. Something happens and the car becomes un-drivable.

If the auto body shop that repaired your car was recommended by your insurance, you're in luck. The repair work is guaranteed by the insurance company as well as the shop. And because your insurer is a national company, their guarantee can help you anywhere in the country.

But if the Providence shop that repaired your car was recommended by a friend, you may not be so lucky even though the shop guaranteed the work - unless that repair shop also has a shop in North Carolina (or any of the other 48 states where you may drive that car in the future).

Q: Some auto body repair shops advertise that after I have an accident, I should first call the police and then immediately call the auto body shop. These shops promise to handle all the paperwork with my auto insurer, making everything hassle free. Is there anything I should be wary of in following this advice?

A: Yes. Some repair shops purposefully try to put themselves between drivers and insurer after an accident because they know that auto insurers are a consumer's best weapon against higher priced or unnecessary auto body repairs.

Those auto body repair shops know that once your damaged vehicle is in their control, your insurance company is prohibited by state law from giving you any advice about better repair options that you the consumer could then select from.

Simply put, while claiming to be on the side of consumers, these auto body shops have persuaded state politicians to adopt laws that deny you the right to make your own decisions about where your vehicle is repaired.