Customer Resources
Car Insurance "Steering"
What it is & How it Effects you
You've been in an automobile accident and as a lawful citizen you have insurance coverage. Many would assume that one of the first steps in dealing with the after math of a collision is to call their insurance company to find out what to do next. Unfortunately, this is where MANY insurance companies take advantage of their policy holders trust and engage in an unlawful tactic known as 'Steering.'
What is "Steering"
"Steering" when applied to automobile insurance is when an insurance company representative directs (or attempts to direct) policy holders or 3rd party claimants to get their vehicle repaired at a specific repair facility also known as a "Preferred Network Shop" or "Direct Repair Program (DRP)". Insurance companies have also been known to steer policyholders away from specific collision repair facilities. This practice is in violation of US Law (1963 Federal Consent Decree), yet is still widespread throughout the industry, as insurance companies attempt to driver customers to shops on their referral network. In exchange for high volume of Insurance referrals, preferred shops will often resort to poor and unsafe repair practices because of the 'rigid' guidelines set in place by the Ins. Company.
How do Direct Repair Programs Work?
Direct Repair Shops will agree to follow repair standards set in place by the Insurance Co- often working within a very low budget. This can lead to cut corners or entirely skipped procedures that return your vehicle to it's safe, structurally sound pre-accident condition. These practices can include the use of aftermarket structural components, imitation or unsatisfactory junk yard parts.
These specific safety and quality concerns are just some of the reasons why steering is illegal. In the State of Maryland, your insurance company may not make any repair facility recommendations without explicitly stating you are under no obligation to use that specific facility or their recommendations. The law also states they may not intimate, coerce or require appraisals to be made at specific shops- per Maryland Insurance Section 10-503
Unfortunately, Insurance Companies regularly engage in steering despite the fact its illegal. They often make misleading or down right false statements to deter you from taking your vehicle to a shop that doesn't play ball with their strategies to maximize their profits.
Contact John Pledgers Auto Body for a Free Consultation!
Call (410) 742-7176 or contact us online below
Common Scare Tactics
Here are some false and even unlawful statements you may hear
- *We can NOT guarantee the repairs
- Insurance companies DO NOT guarantee any portion of your repair...The Repair Facility does!
- We (The Insurance Company) have had problems with that shop
- Likely due to the fact the Repair Facility is asking for items to repair the vehicle correctly
- "It will take longer to inspect your vehicle"
- "Your warranty will be void"
- The Repair Facility provides the repair warranty AND carries the liability- Insurance Co. do not provide any sort of warranty EVEN IF you take your vehicle to a DRP Facility...
- "We (The Insurance Company) do not work with that shop"
- The law clearly states customers have the right to take THEIR vehicle to the shop of THEIR choice
- "You may need to pay extra money towards your claim"
- They will say just about anything to make you think you are making the wrong decision by NOT choosing their suggested insurance repair shops
Why you should STEER CLEAR of Network Shops
Why would an insurance company steer customers away from a body shop like John Pledgers Auto Body? Control and Profit. John Pledgers Auto Body works with all insurance companies, but we do not have any contractual agreement for referrals.
How to Avoid Steering
- Steering can be avoided by simply knowing your rights after an accident
- Call a Repair Facility you trust
- Be adamant about having YOUR vehicle repaired at the Repair Facility of your choice- Under Maryland Insurance Section 10-503 Insurance Companies are required to inform you that you are under no obligation to use one of their repair facilities. Additionally, it is illegal for them to intimate, coerce or threaten the use of a specific facility
- Bring your vehicle to the shop of your choice and report your claim from their office
We take your safety very seriously at John Pledgers Auto Body. Of course, we hope you never have an accident. But, if you do its important for you to understand the concept of steering and the motivations that may be behind it.
If you would like more information or would like to consult the repair experts at John Pledgers Auto Body, give us a call (410) 742-7176 or click the link below
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