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Deductibles – To Pay or Not to Pay – That is the Problem!
I would like to share some information that will shine some light on how collision repair centers are “saving” their client’s money. The latest trend in the collision repair industry is offering to take care of all or part of a client’s deductible or a discount of
10%-20%-25% of their deductible depending on the cost of the repair. Once the needed repairs have been estimated and submitted to the insurance company and approved – this becomes a legal, binding document laying out the proper and safe method of repairing the vehicle. If repairs are completed differently from what the estimate says without informing the insurance company, then that becomes insurance fraud. What is seen most of the time is a person’s deductible “saved” and a vehicle repaired improperly and unsafely compromising the integrity of the vehicle. More often than not the repairs are so poorly performed that if the vehicle were involved in another accident in the same location as the previous accident the driver and its passengers would most likely be badly hurt.
Here are two examples:
-
When a door is damaged from an accident traveling into the inner parts of a door causing the intrusion beam, the inner frame work of the door, to be damaged it would need to be replaced. When this happens, the integrity of the intrusion beam that helps to create the safety of the passenger cabin is compromised and has absorbed the impact as it should have – but cannot perform that task again and in turn should not be repaired. The estimate would be written to replace the door but, the collision center in order to “save” the deductible, repairs the door, including the intrusion beam. The collision center then essentially “shifts” the payment that is made by the insurance company for the replacement of the door that has been repaired – which is less costly - to “cover” the deductible.
-
An additional way would be to write an estimate for replacing a damaged part with an original equipment manufacturer part (OEM) and then purchasing an aftermarket or used part in place of it. These parts are less costly and they then “shift” the payment that is made by the insurance company for the OEM part to “cover” the deductible. I would like to add a disclaimer – the use of aftermarket and used parts are common practice – the issue lies in that the collision center is not being truthful about how the vehicle is being repaired. The client and the insurance company are under the impression that a “new” OEM part has been utilized when in all reality a used or aftermarket part was installed.
As a reputable business always operating above the line we choose not to participate in this practice.
We have had clients remove their vehicle from our collision center after deciding to have their vehicle repaired at a collision center that offers deductible waiving or discounting. As I do not like to see this happen I stand behind the fact that a vehicle repaired at
International
Collision
Repair
Center, LLC will be repaired safely and properly. To International Collision Repair Center, LLC this is a moral issue that we are not willing to compromise – not solely because of the insurance fraud but more importantly because of the unsafe repair.
Below is a copy of an article that speaks of a shop that practices deductible waiving – it is only included so that you are aware as a consumer that this is what is really happening. Below the article is a link to the article posted to the Attorney Generals website.
State sues shop that repairs crash damage
Mid-Ohio Collision accused of 'shoddy' work
By Tracy Turneic
THE
COLUMBUS
DISPATCH
Published:
Tuesday,
February 2, 2010
Edition: Home Final
Section: Business
Page: 06A
Word Count:
190
Document ID:12DA194BEFFD33B8
A
Columbus
collision-repair company has been sued by the state on allegations of performing "shoddy" repair work, failing to make repairs and violating the Do Not Call law.
Mid-
Ohio
Collision, 2135 S. James Rd., called people who had been in auto accidents, even those whose numbers were on the national Do Not Call registry, to offer repair services,
Ohio Attorney General Richard Cordray said in a news release.
In the calls,
Mid-
Ohio offered consumers rebates for having their vehicles repaired by the company but never applied them to the bills, Cordray said. The company also offered discounts of up to $500, or 20 percent to 25 percent off repair bills, but didn't deliver the discounts, he said.
Mid
-
Ohio had been sued by the
Ohio
attorney general's office in 2006 over similar practices, and it temporarily complied with the terms of a 2007 judgment against it, Cordray said.
Calls to the company were not returned.
The latest lawsuits were filed in
Franklin County Common Pleas Court
. The attorney general's office seeks an end to the company's practices, restitution for consumers and a $25,000 fine for each violation, the statement said.
tturner@dispatch.com
THE COLUMBUS DISPATCH Copyright (c) 2010 The Dispatch Printing
Co.
http://www.ohioattorneygeneral.gov/Briefing-Room/News-Releases/January-2010/Cordray-Sues-Columbus-Auto-Repair-Shop-for-Repeat-
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