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Thread: State Farm and peeled roof

  1. Join Date
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    State Farm and peeled roof

    http://www.prnewswire.com/news-relea...300499619.html


    http://www.prnewswire.com/news-relea...300499619.html

    http://www.prnewswire.com/news-relea...300499619.html

    From my perspective, sometimes warped, to say for example "Body shop profits trump safety" misses the point entirely. It is not really about profit for repairers except to a degree. It is about surviving; staying in business. Folks that have opposed the insurance company understand that the threats the coercion are relentless, and real. Even this case displays either a misunderstanding of what insurer's are about, don't have a clue, or are more interested in the short term; money.


    http://www.repairerdrivennews.com/20...to-body-shops/

    Interesting that Todd Tracy seems to think that regardless of why, if a car is not repaired, the repairer is totally responsible......who would ever thought about that??? Wow. Actually responsible for the work the perform??
    Last edited by Roy Smalley; 08-06-2017 at 04:40 PM.
    Roy Smalley,
    Texas

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    This case drives home what Mississippi's AG, Jim Hood, made in his recent consumer guide. It also reaffirms what the CCRE has tried to drill into the hard heads of the collision repair industry for years. The consumer owes the shop for a PROPER repair and the insurance company owes the consumer. Any false perception of a valid relationship between insurers and shops has now been shot down in flames. Thanks to the plethora of information from manufacturers, what constitutes a proper repair is no longer subjective and insurers are unqualified to weigh in with their opinion. Shops make an easy target for lawyers and the industry is now at a crossroad. Not only does capitulation to insurer policy adversely affect profits, it now can cost a shop owner everything they own. "The insurance company made me do it" is now being proven to be a completely invalid defense for jeopardizing passenger safety.

  3. Join Date
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    It's really kinda funny when you stop to think about it. DRP shops that have feathered their nests with steering from their insurance partners now risk having all their eggs broken. The greater the amount of steering from insurers that refuse to acknowledge OEM repair protocol, the greater the risk of liability, not to the insurance partners but to the shops. What a curious turn of events.

  4. Join Date
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    It has always been a weak position and is inexcusable. However. How many shops have been successfully prosecuted AND the results became public knowledge? Out of millions of claims per year. Insurers are expert at closing proceedings and hiding the results behind some dodge or other.

    A way to force the issue right now, is many poor repairs competed by one large, national DRP being sued by a group of consumers.

    Who and how many really remember the case from nearly 25 years ago in California where a consumer sued a shop for charging for flat rate hours and actually completed the repairs in much less time? Now may be different since RDN is actively publishing.

    This process will take years and years....if ever. And even if somehow a case goes beyond settlement, as long as the insurer can use data it will make no difference in the money side of the equation.
    Roy Smalley,
    Texas

  5. Join Date
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    No need to say any more!

    This is my shop.
    This is my customer
    This is where it is being repaired.
    This is the way we repair it
    This is the way I will bill the customer once it is repaired.
    You can explain to the customer why you(the insurance co.) won't pay for the complete repairs.

  6. Join Date
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    More than one lawsuit has already been filed in Mississippi by customers against insurance companies for refusing to follow OEM repair procedure. They are marching into court with OEM publications and General' Hood's guide in hand. They are going after insurance companies the same way the lawyer in this case went after the shop. Unless OEM repair protocol is followed, the vehicle owner is not made whole....end of discussion.

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    Bill,

    As you know, the fault is really with the body shops doing what their masters tell them to do.

    The whole industry is in trouble because of the shops accepting low ball payments instead of presenting the customer with the invoice when completed.

    Someone may pipe up and say, "but you will lose customers that way".

    How many grocery stores lose customers because they want you pay for your groceries when you take them?

  8. Join Date
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    This latest turn of events may force shops to do what they have lacked the courage to do. Just let a few shops be sued out of business and let's see what happens. Nothing has changed the thinking so far, let's keep our fingers crossed this will. I know that since I am now retired, should I be involved in an accident, a shop will have their hands full with me. I won't go to a shop I like, it will be one I would like to make an example of.

  9. Join Date
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    Roger, in all good will, your opinion regarding whose fault the collision finds itself mostly I agree with but the circumstance you enjoy is far, far from what the majority of repairers face. Most repairers that wanted to do the right thing truly, faced a business life and death decision,as well as personal, financial destruction. Many have gone by the wayside. Others have found a way to survive and I will not judge them for doing what they do to survive, while others have openly and willingly embraced the insurer as the entity that deserves fealty. The latter group will not go willing into the dark and relinquish their advantageous market positions regardless of the current furor from this one case, but to your point they are responsible.

    It has been my opinion for many years that the greatest opportunity to change the business model of insurer/repairer is if a large multi state repairer were taken to task for the same kinds of practices this case is about, but in interstate commerce. Once their investment is on the line, an option for them might be to spill their guts about their relationship with an insurer. Just one, well publicized, is all it would take.
    Roy Smalley,
    Texas

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