Direct Repair Program:
The Relation Between Auto Body Shops and Insurance Companies
Have you heard of a direct repair program? It could be beneficial to the auto body shop, the vehicle owner, and the insurance company altogether.
Whenever there is an accident or a vehicle repair is needed, your insurance company can always refer you to their direct repair program.
Insurance companies will provide you with a list of trusted body shop repairs.
Select any one of them to get the job done at an affordable price.
Usually, a partnership is formed between the insurance company and an automotive company called the direct repair program. When this happens, the insurance company recommends this particular auto body repair shop when a customer needs to repair a vehicle.
So, it is said to be beneficial for all three parties involved in the matter. Let us look at how each side gains advantage here.
What are the benefits of Direct repair program shop?
Benefits to the insurance company
Car owners need car insurance especially in the state of California where car accident unfortunately occur on a daily basis. When the customer requests help in repairing their car, the insurance company can easily suggest them with well-reputed auto body shops they are connected with.
They share a list of auto body shops with their customer. From here the customer can select which shop to deal with repairing their car.
Moreover, insurance companies always look for auto body shops with proper certificates and qualified workers, to suggest to their customers. Since the auto body shop is in a deal with the insurance company, they can get the repair done at a lower cost than usual.
As a result, they can save money and have a happy customer, with a happy auto body shop. Overall it keeps all three happy with direct repair program.
Benefits to the auto body shop
If auto body shops want to find customers, they can sign up with an insurance company. Then they will be recommended by the company to new customers often. The direct repair program helps them develop their business in this case.
When they are signing up with an insurance company. The company will check their certificates and all the details necessary to prove that they are skilled and experienced.
So, being in the program is itself a proof that the shop has skilled workers. Additionally, being listed as one of the trusted collision repair services, they are getting more exposure to new clients.
It helps to get their name around to people whom they are unlikely to meet for work otherwise. Although according to the partnership, they are not allowed to share their information with the customer. But is still gives them much exposure to many new customers who are likely to share their names with more people.
Benefits to the customer
As a customer, it is up to you where you want to take your car for repair. You can choose any shop you like. The only problem is, they will prepare high bills for cheap parts which put you at a loss.
Cheap vehicle parts will wear off soon, and you have to be ready for another visit to the repair shop again. When you realize this condition, you want to find someone reliable for a good deal.
If you contact your insurance company for a collision shop repairing service, you know that the shop you will get is worth it. Additionally, you will find information about the shop on google and other sources.
Since you will get a list from the insurance company, you can check out the reviews for each one. After that, decide for yourself where you want repairs to be done.
In a nutshell, you don’t need to worry about looking for someone to repair your vehicle and the auto body handles all the insurance worked involved. All you need to do is wait for your car to be fixed.
Drawbacks of Direct repair programs
Drawbacks for the insurance company
Although it does not seem like, even the insurance company can suffer from losses at times. One of the major problems with the direct repair system is the performance consistency of the collision repair shop.
Although they keep all the files, certificates, and necessary documents in check, the shop they approve of cannot always maintain a decent service. This is where the insurance company has to pay is the service is not up to the mark.
The insurance company tries everything within their power to make sure that the body shop services are consistent. But eventually, there is one or more problems with the service and so the company bears the loss.
It leaves the customer dissatisfied and they may not want to continue their relationship with the insurance company anymore. This can affect the insurance company dramatically.
So, they always need to watch out for good auto body shops that will provide decent service to their customer.
Drawbacks for the auto body shops
One of the major problems that come up by signing with an insurance company is the discounts you agree with. We already know that you will get less money with the customers from the insurance company. But it may be difficult to get a profit from the deal.
Additionally, the program involves you for clean up services, pick up, corrosion protect, door bonding kits, harmful waste disposal, and some other services for free. However, when you are working for them, you will need to pay for those services.
Some insurance companies may limit the time for repairing. In this case, you will get the same money, but you will have to get more technicians working on the same vehicle.
Overall, it affects how much money a technician can earn from the direct repair program. On top of that, sometimes people from insurance companies tend to take too much control of the repair shop workers to get the desired results. But this usually, interferes with their work and affects their performance at repairing.
Drawbacks for the vehicle owner
The vehicle owner rarely faces problems with a direct repair program. In some countries, the owner may be forced to choose a collision repair shop from the list provided by the insurance company.
This can be a problem for customers. However, no matter where you are, you need to be picky about the shop you are choosing. Be reasonable, check out reviews, and select the body shop wisely. If you can do that, you are mostly out of trouble.
It is mandated by law that insurance companies in the United States cannot assign you to a DRP. You always have a choice when it comes to choosing the shop that is right for you. Again, customers consider location, reviews, experience, and customer service when it comes to choosing the right body shop.
As you can see, there are both good and bad sides to a direct repair program for everyone. However, if you want to avoid the issues, you need to collect enough information and then sign up for the program.
We Offer Free Estimates
Accurate Collision Crafting is an auto body shop in Van Nuys, CA that offers free estimates on any dent repairs you may have just visit our shop, give us a call at (310) 299-2829 or fill out a form at our free estimates section.
No worries, we have an excellent reputation whether you go through direct repair programs or find us on your own. We handle insurance insurance work and offer financing options for your deductible.
Let Us Help You.