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Consumers Gain From Auto Repair Screening

24 August 1999

Washington Insurance Council Alert - Consumers Gain From Auto Repair Screening

    SEATTLE, Aug. 24 -- Auto accidents are a major source of
stress and tension.  Wondering if your car will be repaired safely and
efficiently can add to the anxiety.  Consumers can feel more confident when
their insurance companies pre-screen body shops and guarantee the shops'
performance.
    "Consumers who understand their rights and options can reduce some of the
frustration associated with getting their cars back on the road," says
Karl Newman, Executive Director of the Washington Insurance Council (WIC), a
nonprofit insurance consumer information organization.
    According to Newman, WIC has received numerous consumer calls on the
subject of auto repairs.  "We believe this is an important consumer issue," he
says.  "Sharing these questions and answers helps consumers ensure that their
needs are met."

    WIC lists the consumer questions and answers below:

    * Can I have my car repaired anywhere?
    Washington state law allows consumers to have their cars repaired at any
auto repair shop they choose, whether or not the shop is on a company's list
of preferred shops.

    * What is a preferred shop?
    To help ensure timely and accurate repairs, many insurance companies
pre-screen auto repair shops for qualities such as customer satisfaction,
technician certifications, on-going training of technicians, state-of-the-art
equipment and capacity.  The goal is to assist the consumer by recommending
repair shops that will do the job right the first time.  After quality and
capacity requirements are met, the company looks at a shop's pricing compared
to other shops in the area.

    * Why are insurance companies concerned with a repair shop's pricing?
    Since auto insurance prices are a direct reflection of the cost of
treating people and repairing cars, finding repair shops that do excellent
work at reasonable prices helps to reduce claim costs and keeps consumers'
insurance payments down.

    * How can insurance companies ensure the quality of repairs?
    A company's list of preferred body shops comes with a guarantee that work
done by those shops will be right the first time or the insurance company will
spend the time and money to make it right.  Most companies only guarantee the
work of the repair shops on their preferred body shop lists.  A preferred
repair shop whose performance becomes unacceptable will be removed from a
company's list.

    * Why do insurance companies offer guarantees?
    Consumers and their insurance companies both want the same thing:  high
quality repairs the first time.  Guarantees give consumers confidence that if
a repair job is not done right, their insurance company will do the legwork to
get it corrected.  Guaranteeing the work of a preferred shop also helps
insurance companies improve the repair process for consumers and, by reducing
claims costs, helps to keep insurance rates down.

    * What can I do if I suspect that the repair work hasn't been done right?
    Consumers who suspect a repair hasn't been done properly should contact
their insurance claims adjuster immediately and ask for an inspection of the
repairs.  It is in the best interest of both consumers and their insurance
companies to correct any problems immediately.  A vehicle repaired improperly
can increase the chance of future accidents -- not only jeopardizing the
vehicle's occupants, but also leading to additional claims costs.

    "Unsafe or improper repairs are absolutely unacceptable to consumers and
their insurance companies," Newman says.  "Pre-screening and guarantees are
ways insurance companies can take some of the stress out of the repair
process.
    "The consumer always has a choice," Newman adds. "This simply gives
consumers confidence that if anything goes wrong, they won't be the ones
taking time out from work or other priorities to get things straightened out."
WIC is a non-profit, consumer education organization funded by member
insurance companies and dedicated to helping consumers understand and use
insurance to protect themselves and their property.  WIC has been serving
insurance consumers in Washington state since 1968.