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“Preferred Shops”

Many people ask us, “What is the danger with using an insurance company’s preferred repair shop for my vehicle repairs?”

The idea is this: you are making a large-scale financial decision that has a real and lasting impact on what may be one of your largest financial assets: your vehicle. Not all repairs are made equal, and many repairs performed everyday are even below necessary safety standards. If a repair is performed on your vehicle, there are lasting financial (or worse: safety) impacts to consider when choosing how and where your car is repaired. Generally, when we examine or diagnose vehicles that are repaired at “preferred shops,” we find astonishing lapses in quality and safety in how the vehicle is repaired.

If you think about it, this makes sense. The insurance company in question is liable for paying for repairs to your vehicle. They want to limit their financial liability as much as possible; so if they have a special relationship with the people doing the repairs on your car, what is to stop them from ordering the shop to “save money” here and there? This practice is, unfortunately, a very real and documented phenomenon. What’s worse

It is for these reasons that we are proudly free of ALL insurance contracts or “preferred” agreements. We work directly for our customers and refuse to allow anyone to compromise the quality that people deserve.

Below is a link to a report from a North Carolina ABC affiliate showing one couple’s horror story in dealing with a State Farm “preferred shop.” They even had issues with getting their car repaired correctly under their State Farm-endorsed warranty. Don’t let this happen to you! Choose an independent collision repair facility that will work directly for YOU without any other special interests.

CNN reports on insurance industry tactics

This is a CNN report from back in 2007 detailing some of the tactics used by insurance companies to deny and delay auto insurance claims, and to make it much more difficult to recieve a fair settlement. These are issues consumers across the country deal with everyday. At Haury’s we have plenty of experience with these issues, and can work with you to get your vehicle repaired right, and to fight through some of the unfortunate messes insurers can create.

For Allstate and State Farm, according to documents obtained by CNN, the strategy was developed in the mid-1990s with the assistance of consulting giant McKinsey & Co.

Looking for a way to boost profits, McKinsey focused on soft-tissue injuries incurred in minor crashes.

While the McKinsey documents — numbered in the thousands — are under seal in courts around the country, CNN saw several of them during a court hearing in Lexington, Kentucky.

Playing off Allstate’s signature slogan, one document recommends the insurer put boxing gloves on its “good hands” for those who insist on going to court.

The strategy, according to former Allstate and State Farm employee Jim Mathis, relies on the three D’s — denying a claim, delaying settlement of the claim and defending against the claim in court.

“The profits are good, and as long as the community, the public allows this to occur, the insurance companies will get richer and people … will not get a fair and reasonable settlement,” Mathis said.

Click below to read.

CBC reports on Diminished Value

The Canadian Broadcasting Corporation (CBC) recently featured an episode of their consumer-advocacy program “Marketplace” on the concept of diminished value. The show does a great job of explaining the basic principles behind post-repair diminution in value, as well as what steps consumers can take to try and collect what they have lost. The video notes the tough times Canadian consumers have had in trying to collect on the diminished value of their vehicles, but take note — with a report from a qualified expert on diminished value (like you can get from Collision Consulting), consumers in Seattle routinely have success in being reimbursed for the lost value of their cars.

One addition to the video is that the only place it mentions diminished value as really being claimable is in Georgia, when in fact you can claim diminished value when you are right here in Washington State as well. Collision Consulting offers diminished value services to consumers in the Greater Seattle area. For more information on the services offered by Collision Consulting, head to the info page at http://www.CCofWA.com/.


 

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