Vehicles Held Hostage at Repair Shop!

Bit of a harsh title, but it captured your attention, right? I've gotten a lot of flak from the auto body shops over this one, and my experience with what I am about to talk about is purely my own. It is gathered from the shops I deal with and the insurance company I work with. Everyone will have their own experiences. Every shop has its own ethics, every insurance company its own policies. What I hope to impart is some general knowledge so that consumers can be aware and make the right decisions regarding where their vehicle will be repaired.

One situation many insureds find themselves in today is when they've taken their vehicle to a repair center that does not get along with the insurance company that is footing the bill for repairs. Many shops feel that they should not be told how to repair a car or how much they can charge for those repairs. Insurance companies believe they have a right to be involved as they are making the payment on the claim. The result is that both sides will take a firm line.

When you first choose a repair facility for your vehicle, the shop should tell you if they have problems working with a particular insurance company. However, what happens is, they start repairs and when they run into a problem with either a supplement, or overage on an estimate, they may tell you that the insurance company won't meet all their demands.

The next call you will get is from your insurance company. The insurance company will tell you that the shop will not work with them and any charges the insurance company does not find valid, you will owe to the shop.

Obviously this is unacceptable, and the next move you may make is to move your car to a shop that the insurance company will work with. You call the shop that has your vehicle and tell them you want to move it. All of a sudden the shop is not as nice to you as when you first brought your vehicle to them. Now the shop wants to charge you tear down, storage and admin fees, and parts restocking fees. This could be hundreds to thousands of dollars over the original estimate.

Why should you be caught in the middle of a dispute between the insurance company and the body shop?

At the risk of being accused of taking one side or the other, please understand that each situation is different and there can be multiple factors involved. Some insurance companies do try to take advantage of the body shop, but I have seen body shops overinflate the value of repairs.

It has been my experience that shops overcharge to remove your vehicle to make up for the loss of income and hassle. They more than likely knew before they started repairs, that they could not work with the insurance company. They feel that they are punishing the insurance company by charging all the fees but it always comes back to the customer.

What happens all the time is the shop blames the insurance company, the insurance company blames the shop when both of them should have been able to sit down and repair the car per the manufacturer requirements without under or over inflating the estimate.

How do you prevent this scenario from happening?

If you do not use a Direct Repair Shop on the insurance company's program, always talk to the shop manager of the shop you may want to use. Tell them which insurance company will be paying for the repairs and ask them if they work well with the insurance company or do they normally have issues with collecting full payment for repairs or argue about the repair process. Conversely, speak with your claims adjuster to verify that they have a good working relationship with the prospective shop. If either entity tells you they do not have a good track record, move your vehicle to another shop. Don't wait until there are problems.

In closing, it is highly recommended to always do your homework when choosing a repair facility for your vehicle as well as on the insurance company itself. Do not be afraid to ask questions about a shop's reputation with a particular insurance company. It is your right to get your vehicle repaired correctly, and to your satisfaction.

Sincerely yours,
Jake Maxwell

Jake started his automobile career working for a small town automobile repair shop in the South East. After working there for almost a decade, he decided to try his hand on the flip side of the coin and got a job as an auto appraiser for a large insurance company. Using the experience from both sides, he understands the needs of not only the consumers, but the auto body shops and the insurance companies. It's a love triangle with many complex problems. Visit his blog for the complete series and more resources at Direct Repair Advice and Insurance Questions.