Why Does Your Insurance Company Urge You To Use Certain Collision Repair Shops?
Posted on: 14 November 2022
When you've been in an accident and need to have your car repaired, your insurance company could give you some names of repair shops and tell you they're preferred by the insurance company. You don't have to go with these shops, and a good insurance agent will tell you that upfront. But other agencies might seem more adamant about you going to these preferred shops. There's a reason for that because how these collision repair centers operate when working on an insurance claim is a bit different.
Preferred Shops and the Direct-Repair Program
Insurance companies have, for several years now, participated in a direct-repair program where they partner with collision centers. In this program, the insurance company directs the repairs and pays money straight to the repair shop. This removes a lot of communication and errands that you might otherwise have to handle. But this also means that the collision center may be required to get the insurance company's approval for the parts they want to use. Shops that are not in a direct-repair program are often referred to as independent; keep in mind that this is a different "independent" than the definition that describes shops not affiliated with a specific car dealership.
When Both Are Good, the Repair Process Is Easy for You
If your insurance company and agent have been nothing but wonderful to you, and the shop has a great reputation, direct-repair can be a good option. You won't have to handle any money except maybe paying a deductible, and all the work will be coordinated between the company and the shop. You just really have to wait for the shop to finish the work. With an independent shop, you might have to receive money from the insurance company first and then endorse it over to the shop, which is an extra step that can be kind of annoying.
But if Your Insurance Company Seems to Fight You, It Might Not Be That Easy
Just as some insurance companies are great about wanting your car to be fixed properly, others want the repairs to be as cheap as possible. The process of getting your car fixed at the time may still seem easy to you as the communication is still between the agency and the shop. But you may get parts that are aftermarket and made very cheaply, rather than OEM parts from the manufacturer of the car. To be clear, aftermarket doesn't equal bad. But it can mean that the part the insurance company wants the shop to use is on the cheaper side of quality. The part may not last as long; for example, a plastic part may break fairly quickly.
Going with a direct-repair collision center can be great if you know that both the shop and the insurance agency will allow for parts of decent quality, and OEM parts when possible. If you haven't had the best experiences with your insurance agency, though, then you may want to go to a shop of your choosing, who will advocate more for you. For more information on auto collision repair, contact a professional near you.
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