Secrets Insurance Companies Don’t Want You to Know During Negotiations
August 30, 2012 at 10:40 am | Posted in Auto Insurance Practices | Leave a commentThere are secrets that insurance companies don’t want you to know. Here are some of the most important.
- Insurance companies are not your friends. They are in business to make money. The less money they give you for your accident, the more money they make.
- Insurance companies do no want you to hire a lawyer. If you hire a lawyer, they know they will have to pay you more money.
- An insurance company will tell you things that an insurance lawyer knows better than to believe himself.
- An insurance company adjuster is a skilled negotiator. That means he or she will attempt to play you like a poker pro.
- Insurance companies do want to settle your case, but they pretend as if they could care less if you take the case to court.
- Insurance companies will probably not tell you other things that you have a right to be compensated for.
- When you are dealing with an insurance adjuster, you might as well be dealing with their insurance attorneys. The adjuster has often been trained in programs put together by top insurance negotiators and attorneys who know the law, who know psychology, and who know how to pay you the least amount of money they can get by with paying you.
- Insurance companies have reserves set aside for major catastrophes that allow them to hold millions to billions of dollars and gain interest on those funds and improve their profits.
- Insurance companies make interest on every dollar they hold. It is therefore in their best interest not to settle your case quickly, unless they are settling it cheaply.
This list was compiled by: R. Sebastian Gibson, an insurance lawyer. Some of the above is abbreviated. Please click here to view the full article.
Legal News
July 8, 2011 at 10:05 pm | Posted in Auto Insurance Practices | Leave a commentJune 2011
The case of New York lawsuit Progressive Insurance vs. North State Custom is important to the collision repair industry and consumers for several reasons.
1. It reinforces the fact that the contract to repair the vehicle is between the vehicle repairer and the consumer.
2. Its ruling determined that body shops “…should always be preparing their own damage analyses and blueprints for repair without regard to the insurer’s estimate.”
3. “The jury reestablished that the insurer’s estimate is nothing more than an internal document it produces to justify the payment on a property loss claim.”
4. “The insurance company estimate is irrelevant for purposes of determining how the collision repairer will repair the consumer’s vehicle.” That is, “…the shop [is] liable for the propriety of the repairs. Therefore, it [has] to make repairs according to its own professional judgment.”
Click Insurer Relations to view an article published in the June 2011 edition of BodyShop Business, which describes the New York lawsuit Progressive Insurance vs. North State Custom in detail.
Your Choice
May 2, 2011 at 3:43 pm | Posted in Auto Insurance Practices, Choice | Leave a commentIt’s your vehicle, it’s YOUR choice!
Click this link Your Rights, Your Choice to view a document with more details about your rights.
Under Georgia law, you have the right to choose where your vehicle is repaired. It is also your right to choose your insurance agent, company, and policy. Remember YOU are the customer. Anyone YOU hire should work for you and your satisfaction. Ask questions about the policy you are purchasing at the time of purchase and make notes so in the event of an accident you are aware of your rights. Compare various policies and their “payment of loss” provisions. Ask to look at policies of friends because you won’t get to see an insurance policy at the time of purchase – isn’t that great – you must purchase it before you see the policy. If their “payment of loss” section lists limitations that are unacceptable to you, seek to purchase a policy from a better insurer. If it says something to the effect they only pay “current market prices” or “prevailing rates” understand they are using that as a way to avoid paying what it will take to properly repair your vehicle.
If any insurance company or their agent attempts to direct you to have repairs done at one of their preferred shops, or if you are informed that the shop of your choice is ‘not on their list,’ do not let them influence your decision. In a time of crisis you need assistance not steering. Visit their shop and shops that aren’t on their list; ask to verify their equipment and training. Any reputable shop should be willing and able to perform quality repairs and provide a warranty. Please let us know if you feel pressured to take your vehicle to a shop other than one that is your choice. STEERING IS ILLEGAL!
In most cases the insurance company will inspect your vehicle to assess the damage and to provide a preliminary estimate. The two main reasons the insurer needs to write an estimate are (1) to verify a legitimate claim/damage and (2) to set aside money in reserve to pay the claim. They are writing the estimate for their own internal purposes which is fine. The problem that often arises is that the consumer may be mislead by a lowball estimate, especially in these economic times. Until a vehicle is taken to a reputable shop and disassembled with all the damages documented and a repair plan written, an estimate will only be a guess. The insurance estimate is only useful for informational purposes. It is not a repair plan.
Our repair plan and the techniques employed to repair your vehicle are based upon Phillips Paint, Body & Towing, Inc.’s judgment, experience and expertise as to the best means of affecting a high quality repair. We possess the training and equipment to affect the best possible repairs.
It is common for us to discover additional damage during various stages of the repair process. If we do find additional damage, we will as a courtesy to you, submit a supplement request to the insurance company on your behalf. Most insurers appreciate our handling and will pay you properly. Remember there are policies that pay better than others and often are no more costly than the discount choices. You are ultimately responsible to the shop for the cost of the repairs so choose a policy that truly indemnifies you. You should not have out of pocket expenses beyond your deductible. The insurance company you hired or the person who caused the damage to your property owes to properly repair your property.
In the event another driver is at fault, as a courtesy, rather than seeking the repair money directly from the at-fault driver, you may agree to make a claim against their insurance co for the damage. This is called a 3rd party claim. If their insurer does not pay your damages properly or treats you as if you are bound by the terms of the policy of the at-fault driver, you may have legal recourse against the driver who caused the damage.
As a consumer it is in your best interest to do some research. Any insurance company who does not indemnify the person you damaged is leaving you exposed to a lawsuit and that should concern you. It may be difficult to find information on the companies who are repeatedly being sued for improper claims handling. Go to collision industry websites (several listed below) where the insurance companies are not able to make payoffs to keep their bad behavior out of the press.
Our objective is to return your vehicle as close to pre-accident condition as is humanly possible. Our experienced and professional staff is here to serve you.
What is insurance steering and what does it have to do with me?
April 30, 2011 at 3:16 pm | Posted in Auto Insurance Practices, Consumer Education | Leave a comment************************************************************************************
DRP = DIRECT REPAIR PROGRAM
DRP shops may be a chain store or a single independently owned body shop.
************************************************************************************
Steering is an industry term that refers to the practice of insurance providers requiring consumers to use one of their contracted “DRP” shops.
So who does the DRP shop work for? It isn’t you!
DRP shops operate under strict contracts with the insurer and for the insurer’s financial benefit.
DRP shops are unable to look out for the best interests of you and the insurer for fear of losing a steady volume of work.
The state of Georgia cautions consumers about
the illegal practice of steering – OCGA 33-34-6b
Insurance Steering
vs
Every insured consumer
Claim your winning hand by refusing to be Steered!
Why can’t I just leave the details to the insurance provider?
Insurers know very well that steering is illegal but it is extremely profitable to them so they developed a way to control the repair process without incurring the liability for unsafe and/or low quality repairs. They do it by making contracts with shops who will do the repairs for less. Everyone knows higher quality costs more so the more the insurer squeezes the less money the shop makes. Once the shop becomes aware of the financial drain, they start cutting corners on your repair just to keep the doors open.
Beware! When you call in your claim they will rattle off
their list of DRP shops for YOU to choose from
but the sneaky part is they are getting YOU to choose the shop!
Now they are not breaking the law, they are relieved of poor repair liability and they save money at your expense!
The repair pix below are from an inspection we performed for a customer who was
steered to a shop on every insurer’s DRP list in Carrollton!
All the adjusters are aware of the constant poor and unsafe problems at this DRP shop but it is oh so profitable for them to use. Insurers won’t admit their adjusters receive incentives for their ability to keep your claim dollars although everyone in the industry knows it is true. One even admitted to me it is our fault he will never get a raise again. We won’t hide damage that should be repaired and we can’t do the additional work for free, therefore, he won’t get a raise? Sounds like he thinks the money belongs to him. The insurer could spend less on advertising. Wait, wait! Do some research. The insurers are recording record profits in spite of all the catastrophes they are being hit with.
Many of these same adjusters will tell you not to use our shop by claiming we are too high. It does make the bill higher when all damages are documented so they can be repaired. We don’t believe that is a bad thing! Click pix to see this classic example:
This customer was charged for an entire new radiator support however, the DRP saved money by repairing the existing one and only replacing the lower portion. The pic on the right shows where they cut the old lower piece out and shortened it. They didn’t even weld it back in. There are some large pop welds at the top on the left side. This vehicle is extremely dangerous to drive now. In the event of a future front end collision there will be nothing to protect the occupants.
Consumers get caught between the DRP shop and the insurer when trying to have these problems corrected. One man we met said this same DRP shop’s poor repairs caused his engine to blow up. Even though the insurer persuaded him to use the DRP by stating they would warranty the repair if he took it there, in the end refused to pay for the motor and even canceled his insurance after 25 years of loyalty to the insurer. You will need to research info from industry web sites to learn more about insurer bad behavior because they take measures to keep it out of the media for the most part. After all, when you spend millions of the consumer’s money on advertising you don’t want bad publicity.
Common steering word tracks used by insurers in order to maintain control of the process:
* That shop is not on our list of “preferred shops.”
Preferred shop status only means the shop has contracted with the insurance company to make repairs under certain terms, which many times means the insurance company is getting a discount for a volume number of cars being sent to a shop where quality is not the focus.
* We only warranty repairs done by our “preferred shops.”
The best thing you can do to protect yourself is to ask your community members for recommendations! Remember, a reputable shop will warranty their own work as the shop is legally responsible for the repair. Quality and/or safety should never be sacrificed so the insurance company can save money.
Legally Insurance companies are not responsible for repairs. (Unless of course, they are found guilty of steering a consumer to their DRP shop. As stated above, as long as they have you choosing the shop they are safe.)
Check out the Consumer Services homepage under Auto Insurance, FAQ – It says “consumers must contract with a repairer as carrier (insurance company) will not and is not required to do so.” The first example question states your dispute is with the repairer if you have a problem.
* Using our “preferred shop” allows us to monitor the repair and make sure the repair is done correctly.
Sounds good, but from our experience most of the insurance companies making these statements are usually the ones refusing to pay a shop to make proper repairs. You may not have the experience to spot a poor repair but a trained eye can. When you try to trade or sell your vehicle you will find you have lost value due to the poor repair condition.
* We can get you a rental car if you use our DRP shop.
The truth is if you purchased rental coverage with your policy or if the claim will be covered by the other party’s insurance you are entitled to a rental car no matter where your car is repaired.
*A non-DRP shop may not agree with our appraiser.
Appraisers are not repair professionals. Their job is to save money for the insurer. They are compensated according to how much they save on your repair. This is obvious by the poor initial estimates they write in hopes you will spend the money rather than have your car repaired. They save millions by operating this way and our roads are full of damaged property. You are the only one with a legal right to protect your valuable property and family’s safety from insurer greed.
* If you do not use our “preferred shop,” you may be responsible for part of the repair bill.
It is common to discover additional damage during various stages of the repair process. If we do find additional damage, we will as a courtesy to you, submit a supplement request to the insurance company on your behalf. Most insurers appreciate our handling and will pay you properly. Remember there are policies that pay better than others and often are no more costly than the discount choices (Surprisingly, you may find the largest insurers have the most limiting policies so get advice from someone who understands the policy language). You are ultimately responsible for the cost of the repairs so choose a policy that truly indemnifies you. You should not have out of pocket expenses beyond your deductible. The insurance company you hired or the person who caused the damage to your property owes you.
In the event that another driver is at fault, you have a 3rd party claim against their insurer. If their insurer does not pay your damages properly or treats you as if you are bound by the terms of their policy, you may have legal recourse against the driver who caused the damage. An insurance company who does not indemnify the person you damaged is leaving you exposed to a lawsuit and that should concern you. As a consumer it is in your best interest to do some research. It may be difficult to find information on the companies who are repeatedly being sued for improper claims handling. Go to collision industry websites where the insurance companies are not able to make payoffs to keep their bad behavior out of the press.
Click Stop Steering for additional information about insurance company practices and steering.
Aftermarket Parts
April 13, 2011 at 8:51 pm | Posted in Aftermarket Parts, Auto Insurance Practices | Leave a commentBefore you purchase auto insurance, be sure to review the entire policy with your agent. Many insurance companies offer policy choices, some of which may include the required use of aftermarket parts if your vehicle is damaged. You may save money on your insurance premium, however, you may experience a loss of that savings and more when your vehicle is repaired.
The use, manufacture and quality of aftermarket parts are not regulated by any industry or government agency. Many cosmetic parts are not critical to the safety of the vehicle. However, the quality and reliability of structural and body parts are much more important.
Because of recent economic events, everyone in the private and business sectors (including insurance companies) is searching for ways to save money. As a result, the use of aftermarket parts has become more common. The increased use of aftermarket parts may call attention to this practice and perhaps regulations will result. Until then, it is the responsibility of consumers to inform and protect themselves.
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