CONSUMER ALERT!!!!
"ARE DIRECT REPAIR PROGRAMS IN YOUR BEST INTEREST?"
We
at Blue Ash Auto Body, Inc. feel that it is necessary to inform you,
the consumer, of the ever changing events in the collision repair
industry. Over the past few decades insurance companies have devised
what they call direct repair programs, also known as DRP's.
Some
DRP's are very fair in their contracts with the collision industry and
are generally concerned with making their insured happy, and ask for no
discounts on parts and labor. The rule however, is most programs demand
discounts on parts, labor rates, and disallow mark-ups on sublet items.
Paint and material prices are usually capped at a low price, and
insurance companies expect free total loss evaluations, and free
storage when the car is not repaired. These discounts are very
significant to an industry that has been suppressed
for
decades. Many insurance companies have been systematically suppressing
labor rates since insurance companies have evolved. Just an FYI,
compare our labor rates to your mechanics labor rate!
In
order for some repairers to make up for loss of profit, as a result of
these stringent contracts, some of these businesses are forced to
repair these cars as fast as possible, thereby often turning out
substandard and incomplete repairs in order to be profitable.
What
the consumer needs to remember is that your insurance company, by
contract, has to put your car back into pre-accident condition. Some
insurers will try to encourage you, and/or persuade you to follow their
program for their, ease of settling claims, convenience and saving
time, and premium dollars. Categorically they are doing what is best
for their financial interest!
We would like to reiterate to you, the consumer, that in these difficult times in the collision repair industry, the programs are not always in the consumers’ best interest! The consumer needs to educate themselves on what they need to do to protect themselves and the equity in there automobile, to find a safe, honest, quality repair!