Dealing with inexperienced insurer claim staff is one of the top problems for collision repairers, according to the results of a recent study released by a collision repair association. The study also examined other problems reported by collision repairers — and it names the insurance companies that were mentioned as being the worst offenders.
The study was commissioned by the Society of Collision Repair Specialists (SCRS), an association comprised of 6,000 collision repair businesses that work with consumers and insurance companies to repair collision-damaged vehicles. It was conducted by CSi Complete, and included both direct repair and non-direct repair facilities. All participants were asked about the problems they face and how they perceive their relationships with the top 13 auto insurers (see end of article, Issues at Hand).
Each issue was ranked by how respondents viewed it affecting their businesses. Of the nine issues, nearly all of the repairers surveyed (91 percent) said that lack of insurance field staff training was an issue that had an impact on their businesses, making it the top-rated issue for collision repairers. Other issues that significantly impacted repairers included losing customers to steering (90 percent) and suppressed labor rates (89 percent).
The study's remaining results indicated other serious issues. For instance, more than 75 percent of respondents said that problems with insurers dictating repairs and fear of reprisal/threats from insurers impacted their businesses. Seventy-six percent said that DRP requirements affected them, too.
However, the American Insurance Association (AIA) said the study really boiled down to issues of competition.
"The survey is self-serving commentary by competitors in a market that is increasingly competitive, thereby benefiting consumers," said David Snyder, vice president and general counsel for the AIA. "Insurers comply with all laws applicable to them, and as competitors in a market, they have the right to and do seek the best possible service for their customers at the lowest possible price."
Turning the tables, Snyder discussed the insurance industry's main concerns with the collision industry.
"Our top issues are preventing segments of the industry from trying to limit competition through legislation, regulation, and other tools they use," he said. "We remain solid in our view that competition is the best provider of products and the best possible costs for the consumers we ultimately serve. Those who are trying to restrict competition will find us to be fierce defenders."
When asked if they believed the results of the survey were valid, State Farm spoke about the ways they communicate with the repair industry.
"We would not presume to tell auto repair facilities which among their concerns are valid," he said. "As issues are raised by the repairers with whom we work, our local management addresses those concerns. In addition, our repair advisory council (representatives of the auto repair industry) provides us with input and feedback related to key issues facing the industry."
While not responding directly to SCRS's survey due to methodology concerns, Progressive also discussed its philosophy about working with collision repair facilities.
"Network shops are selected based on a number of factors, including their collision repair capabilities, equipment, training, and their willingness to give priority to our customers — that is, to begin and complete work on their cars promptly," said Leah Knapp, spokesperson for Progressive. "We pay prevailing market rates in each specific market, and we pay the same rate to network and non-network shops within each market."
Knapp also said that Progressive claim representatives undergo some of the most comprehensive estimating training available in the industry.
"We're proud of the thousands of shops we work with every day and our claim representatives and the work they do — together — to provide our customers the highest level of customer service," Knapp said.
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