Auto Insurance Companies vs Auto Repair Shops
Tuesday, July 21st, 2009According to the article “Shops debate the place of insurers in the repair process” by Brian Albright on SearchAutoParts.com, car designs have become more complicated and costly which is causing auto insurance companies to become more involved in the repair process.
Conflicts often arise between repairers and insurers as the insurance companies pressure shops to reduce costs. The repair shops often see this as unnecessary meddling as they deal with their own financial pressures. Most shops prefer that the insurance company cut a check and stay our of the repair process, but customers find value in the insurers taking over and the insurance companies want to keep costs down as much as possible.
Not all insurance companies get in the way. State Farm auto insurance is generally regarded as cooperative according to this article. Recently they have engaged in programs looking for efficiencies in the repair business. While some independent shops see this as intrusive, others see it as positive. Gene Regan is a general manager at Causeway Collision Center in Manahawkin, NJ and he believes it’s a good thing State Farm is getting involved. He sees the programs bringing the shops and insurance companies together to practice better business, and that ultimately will benefit the mutual customers.
