We happen to have the experience of watching how and why this occurs. As a 25 plus year veteran in the industry, I watched the insurance companies develop a a strangle hold on the industry to keep down labor rates. When I started, Mechanical labor and body labor were identical; $18 per labor hour. In an effort to increase their margins, insurance companies set out to control the collision repair labor rates through pressure and steering, now mechanical labor is pushing $90 and collision hovering around $44, less then half. It's no wonder college graduates aren't coming fresh out of collage excited about opening a body shop.
If the insurance companies would let the body shops set their own rate - correction; if they would pay the rate the body shop set. We would get a higher educated shop owner who would not feel the need to short cut the system to accommodate what the insurance company say's they are willing to pay. The insurance companies base their labor rate on a high volume shop they have contracts with and then only offer and Independent's the same labor rate based on a different business model and cost structure.
Until the insurance companies lighten up on the industry, this situation will continue to get worse and while they squeeze the industry with their right fist, they point the finger of blame with their left.
Report Puts Consumers on High Alert Over Unethical Body Shops: BodyShop Business - The Body Shop Reference
For the original story click here
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Showing posts with label Insurance vs Body Shops. Show all posts
Showing posts with label Insurance vs Body Shops. Show all posts
Thursday, May 5, 2011
Tuesday, November 16, 2010
Diary of a Bad Collision Repair: BodyShop Business - The Body Shop Reference
Diary of a Bad Collision Repair
Bad collision repairs are allowed to take place, pure and simple. Greed and not caring allow them to take place. And I've seen my fair share.
By Danny Wyatt
10/25/2010
that desire.
But then I thought, what the heck am I going to write about? There have been so many articles written about the collision repair industry already. When my thoughts fell on all the bad repairs I’ve seen in my work as a licensed appraiser, it occurred to me that documenting them and trying to explain why I think they happened would truly be scintillating material. I’m going to share with you my thoughts on why there are so many hack jobs going on out there and invite you to agree or disagree with me.
It’s Allowed
Bad repairs, shoddy repairs, butchered-up repairs, unsafe repairs, hack jobs…whatever you want to call them, they don’t happen on their own. Many of you are going to think I’m nuts for what I’m about to say as to why bad repairs happen, but here goes: Bad repairs are allowed to take place, pure and simple. Greed and not caring allows bad repairs to take place.
Insurance companies wanting more and more profits causes bad repairs to happen. The practice of hiring inexperienced adjusters, pencil-pushing auditors and unrealistic cycle time also allow bad repairs to happen. Until insurers change their ways and agree to pay to have damaged vehicles repaired correctly, the allowing of bad repairs will continue to happen.
Bad collision repairs are allowed to take place, pure and simple. Greed and not caring allow them to take place. And I've seen my fair share.
By Danny Wyatt
10/25/2010
When I was slaving through the process of writing my book, “Collision Collusion: Auto Insurers — Modern-Day Gangsters in Collision Claim Payments,” I remember thinking that I would never again write another one. However, I didn’t rule out writing an article for a trade magazine, so here I am fulfilling
that desire.
But then I thought, what the heck am I going to write about? There have been so many articles written about the collision repair industry already. When my thoughts fell on all the bad repairs I’ve seen in my work as a licensed appraiser, it occurred to me that documenting them and trying to explain why I think they happened would truly be scintillating material. I’m going to share with you my thoughts on why there are so many hack jobs going on out there and invite you to agree or disagree with me.
It’s Allowed
Bad repairs, shoddy repairs, butchered-up repairs, unsafe repairs, hack jobs…whatever you want to call them, they don’t happen on their own. Many of you are going to think I’m nuts for what I’m about to say as to why bad repairs happen, but here goes: Bad repairs are allowed to take place, pure and simple. Greed and not caring allows bad repairs to take place.
Insurance companies wanting more and more profits causes bad repairs to happen. The practice of hiring inexperienced adjusters, pencil-pushing auditors and unrealistic cycle time also allow bad repairs to happen. Until insurers change their ways and agree to pay to have damaged vehicles repaired correctly, the allowing of bad repairs will continue to happen.
Friday, October 8, 2010
Thursday, August 5, 2010
Thursday, June 10, 2010
Insurance Fraud?
So if a body shop charges for a new fender and then places a used fender on the car, this is fraud correct? and if the same shop charges to remove an item and doesn't actually remove the item, but also doesn't refund the money, this too is fraud also? Then how come body shop's charge or get paid 12 hours for repair time; only actually use 6 of it and then keeps the difference? Aren't they defrauding the insurance company and their customers out of 6 hours that were never used? If the average labor rate inside a body shop is $48 per labor hour, didn't they just defraud the insurance company or their customer for $288.00?
Here at our shop we do things different, we only charge for the actual hours required to do the job, materials used, parts required and shop supplies. We don't defraud the insurance company or our customers. Doing things this way takes a different approach and a unique pricing model that we pioneered and are currently in the process of perfecting.
So in summary, you get more for your money at our shop then any other shop in NC, with the quality to match.
Thursday, January 7, 2010
Appraiser Targets Insurers, DRP Shops in Book on Consumer Fraud: BodyShop Business - The Body Shop Reference
"dealership body shops and multiple-chain independent shops, which he says perform the worst quality repairs of any shops".
Appraiser Targets Insurers, DRP Shops in Book on Consumer Fraud: BodyShop Business - The Body Shop Reference
Appraiser Targets Insurers, DRP Shops in Book on Consumer Fraud: BodyShop Business - The Body Shop Reference
Wednesday, December 23, 2009
Thursday, December 10, 2009
Wednesday, November 25, 2009
Tuesday, September 22, 2009
Thursday, September 17, 2009
Insurance companies at it again. Reducing labor times.
Another reason we will never be a direct repair facility for any insurance company that will not protect the insured's (your) interests.
Our shop has experienced this form of harassment first hand. We actually had an adjuster just flat out refuse to pay our labor rate and blatantly told the insured (customer) in our office she had to pay the difference out of pocket. I told him if he wanted to move the car to another shop he could, but he would have to do it in writing, he refused to sign, I also told him he would have to sign a written refusal to pay our labor rate, surprisingly he singed that one and it's currently on file and is scheduel to be posted on our blog soon.
The insurance industry is squeezing body shops in the hopes of saving a nickle, problem is they are hurting the industry as a whole and ultimately its the customer who suffers.More on this article.
Monday, August 17, 2009
Getting Dinged
Auto-body shop owners accuse insurers of steering customers wrong
By: Joy Lanzendorfer
For nearly two years, Gene Crozat has been blowing the whistle on crooked insurance companies, and now it looks like someone is finally paying attention. The owner of G&C AutoBody, with three stores in Sonoma County, has been steadily complaining about insurers steering customers away from shops of their choice or refusing to pay all of their repair bill.
In fact, he has been involved in almost 800 complaints to the California Department of Insurance. He also assisted customers in filing 250 cases in small claims court against insurance companies, winning all but 16. As a direct result of his actions, the GEICO car insurance company has been ordered to appear in a hearing in front of the Department of Insurance on March 15 to answer allegations.
And that's just the beginning. Crozat is bringing the industry's problems out into the open. "Every industry has its dirty laundry," he says. "Right now you are getting into the auto-body industry's dirty laundry." read more
By: Joy Lanzendorfer
For nearly two years, Gene Crozat has been blowing the whistle on crooked insurance companies, and now it looks like someone is finally paying attention. The owner of G&C AutoBody, with three stores in Sonoma County, has been steadily complaining about insurers steering customers away from shops of their choice or refusing to pay all of their repair bill.
In fact, he has been involved in almost 800 complaints to the California Department of Insurance. He also assisted customers in filing 250 cases in small claims court against insurance companies, winning all but 16. As a direct result of his actions, the GEICO car insurance company has been ordered to appear in a hearing in front of the Department of Insurance on March 15 to answer allegations.
And that's just the beginning. Crozat is bringing the industry's problems out into the open. "Every industry has its dirty laundry," he says. "Right now you are getting into the auto-body industry's dirty laundry." read more
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