The Problem with the Collision Repair Industry…

After a car accident, it is likely that an insurance company is going to pay for your repair. And that’s a good thing. It is one of the reasons we all buy insurance. But insurance companies do more than just write estimates for collision repair and then issue payments.

Many insurance companies have special arrangements with collision repair shops. These arrangements go by different names but are generally referred to as a direct repair program (DRP). Insurance companies advertise these agreements to their insureds as a benefit. And DRP agreements have the opportunity to be a benefit to insureds as they can give predictability and potentially lower cost of claims which, in turn, should reduce premiums for insureds.

However, how can one shop do work for less money than another?

Is the potential for referrals from the insurance company enough to drive down the cost to repair each vehicle? Or does the cost savings stem from incomplete repairs or repairs that don’t follow OEM procedures and use OEM parts?

Before you select a collision repair shop, do you own research. Don’t just rely on just the recommendation from your insurance company.

In the video below, Attorney Andrew Irvin takes a closer look at the issues when insurance companies dictate repairs through direct repair programs.