Have you ever been unfortunate enough to have had an accident or break-in that required an auto insurance-funded repair? If so, you have more than likely you have been the victim of a shady practice known as “steering.”
Steering happens when an insurance company coerces you, whether with veiled threats of no coverage or with longer repair times, to use one of their preferred repair shops. These shops either are owned by the insurer or offer vastly discounted rates to that specific company. Unfortunately, the end result is often-times work that is so shoddy the vehicle comes out the other end unsafe to drive.
On a national level, nothing is being done to put a stop to this practice. But according to a report in Stamfordplus.com, the Auto Body Association of Connecticut has begun a campaign to implement stronger anti-steerage laws in that state.
In a statement made by Thomas Bivona, the chairman of the Connecticut ABA, he describes the problem as “Too often, consumers are unaware that insurance companies direct work to preferred shops because those shops may cut corners on the repair job, perhaps using inferior parts, aftermarket parts that have never been safety tested, or they may even install used parts.” Bivona later added, “We can no longer allow potentially unsafe cars back onto our streets and highways.”
The biggest problem is that most customers don’t know that they have a choice as to where they can take their vehicle for repair. You can take it to an insurer-recommended shop, one you select personally ,or even to your local dealership.
Your local dealership has specialists who handle window replacements and repairing damaged dashboards. It can even sublet, or contract out, any paint work to an actual body shop if it doesn’t have one on site. All of this can be done without you, the customer, doing anything.
When I worked as a service advisor at a Ford dealership, I had a number of first hand experiences dealing with insurance companies for my customers. While a repair on something like a vehicle break-in would end up being a big bill, the number of hours I would spend with insurance adjusters rarely made it worth my time.
The reason I was so incredulous at the length of time it took to finish an insurance-assisted repair is that I mistakenly assumed I would only need to meet with one adjuster. Not the case. After the first guy would come and approve the repair, I would have to meet with number two and three who would audit the parts and labor estimates to see if any money could be saved on the repair. That was the whole purpose of the job these adjusters performed, just to see where corners could be cut!
I recall one customer of mine who had a brand new Ford Ranger with a broken window and torn-up dashboard as the result of someone trying to remove his radio with a crow bar. After I built up a sizeable estimate and met with a representative of the company, the insurer approved a new dash and all the accompanying parts. Then they tried three times to ship us used junkyard dashboards from obviously older Rangers, often times in different shades of grey.
Eventually after three weeks of the vehicle sitting there waiting for the appropriate parts, the customer threatened legal action against his insurer. Promptly after that, the new parts were approved and we finished the repairs in one day.
Would this have happened if this young man had allowed himself to be steered to the insurer approved facility? I doubt it. But then he would have ended up with a dashboard from a 1994 Ranger in his 2004 model truck. And it is doubtful that the technician would have had the specific Ford trim repair experience that made the repair done at my shop so completely flawless.
So what can a conscientious customer do? If you don’t have a body shop or repair facility you trust, be sure to check with the BAR (Bureau of Automotive Repair). Verify there are no complaints filed against the insurer recommended facility. In addition, check with the BBB (Better Business Bureau) for a listing of any lawsuits or actions pending against the shop.
But, in all honesty, it is nearly impossible to know what sort of parts these repair facilities are using to repair your vehicle. They are not doing work that needs to be a positive representation of their reputation, as most of their work comes from insurer referrals. So until the government steps in to put a stop to this practice---shopper beware!