Steering (a press article)
Posted: June 19th, 2009, 9:38 am
Steering You Wrong
Exposing The Biggest Scam In The Auto Insurance Industry
More than once steering has been a subject of discussions on this very forum.
I for one just don’t like steering and I am confident that all involved parties (ie; insurers, car owners and the repair business) would be better off without it. To me steering is at least a suspicious form of cooperation between two or more parties, and in too many situations it leads to trouble. We all know what I am talking about right?
The below text is quoted and just a small portion of a very interesting, but long, article which was published yesterday by the Long Island Press. I was triggered by the header which I noticed at the daily AGGR e-newsletter (GlassBytes), I clicked on it and was pleased to see that something actualy is happening and that the press once again stood up
Randy Hassell sounds exasperated before the conversation even begins. The owner of Hassell Bros. Auto Body in Jamaica, Queens, has made these calls hundreds of times; he knows what is coming. A representative from GEICO, one of the largest automobile insurance companies in the nation, answers. She is sweet, her delivery is smooth and soothing. Randy explains that he is calling to report a claim for a customer who has taken his car to his shop for an estimate and repair. The calls all go according to what seems like a pre-set plan.
The representatives ask for information. They ask about the damage. They want a claim number. They ask to speak to the insured party and ask if they had been in an accident. The answer is obviously, “Yes.” They ask if everyone is safe. The sound of a keyboard clicking in the background is barely audible as the person’s account is updated. At some point, triage is performed and certain key aspects of the accident are covered. Now it’s time to get down to business.
The GEICO representative explains repair options. It is a well-rehearsed pitch, not a hard sell at all. There is a fine line the rep is walking. She is trying to convince GEICO’s client to take his car from the body shop he has chosen and bring it to one of the company’s approved Auto Express Facilities or Direct Repair Shops, (DRP), as they are known in the industry. It sure sounds like a good deal coming from the GEICO rep. The first thing is to explain how much easier life would be if the insured would take the car to an Auto Express facility: The car is looked at immediately, and if a rental is necessary, one is available through an on-site auto rental company. All the work is guaranteed by GEICO if it is done at an Auto Express body shop. Choosing otherwise can be a pain in the ass, at least according to the representative.
End of quote, it goes on and on, you should take the time to read it. You should not think, oh well, this is just about Long Island or a paint job, it is not. Our trade also is exposed to steering.
Please follow the link below to learn more.....
http://www.longislandpress.com/2009/06/ ... you-wrong/
Here is one of the replies;
I appreciate the fact an article was done on this that sheds light on how corrupt the insurance industry is. Another key factor here is how much these DRP’s effect the labor rates. I feel we should be getting @ 60 per labor hour, however we average 46-47 as the insurance companies dictate the rates and we as shop owners are not allowed to discuss rate between shops. It’s just insane and eventually it will topple our industry completely. We work our asses off for these companies all for at most a 10% profit margin come the end of the fiscal year.
It is always interesting to see what the insurance industry has to say on their web sites, read their so called Mission Statements and be amazed as to how much difference their is between their sweet promisses and nice words and the reality vendors are dealing with on a daily basis. It appears to me that the various Statements are not worth the paper their written on, it is all useless crap.
Also, if the insurance industry really is all that green and cost driven, why aren’t they promoting windshield repair in a much better manner? Without promoting one business over another, it has always amazed me why they, for instance, do not steer to Superglass, the largest repair only network in the nation. They sure have the capacity to be dealing with the demand, yet, as far as I know, they have no steering.
Thank you Long Island Press for publishing this, it informs your readers properly on how wrong steering is.
Exposing The Biggest Scam In The Auto Insurance Industry
More than once steering has been a subject of discussions on this very forum.
I for one just don’t like steering and I am confident that all involved parties (ie; insurers, car owners and the repair business) would be better off without it. To me steering is at least a suspicious form of cooperation between two or more parties, and in too many situations it leads to trouble. We all know what I am talking about right?
The below text is quoted and just a small portion of a very interesting, but long, article which was published yesterday by the Long Island Press. I was triggered by the header which I noticed at the daily AGGR e-newsletter (GlassBytes), I clicked on it and was pleased to see that something actualy is happening and that the press once again stood up
Randy Hassell sounds exasperated before the conversation even begins. The owner of Hassell Bros. Auto Body in Jamaica, Queens, has made these calls hundreds of times; he knows what is coming. A representative from GEICO, one of the largest automobile insurance companies in the nation, answers. She is sweet, her delivery is smooth and soothing. Randy explains that he is calling to report a claim for a customer who has taken his car to his shop for an estimate and repair. The calls all go according to what seems like a pre-set plan.
The representatives ask for information. They ask about the damage. They want a claim number. They ask to speak to the insured party and ask if they had been in an accident. The answer is obviously, “Yes.” They ask if everyone is safe. The sound of a keyboard clicking in the background is barely audible as the person’s account is updated. At some point, triage is performed and certain key aspects of the accident are covered. Now it’s time to get down to business.
The GEICO representative explains repair options. It is a well-rehearsed pitch, not a hard sell at all. There is a fine line the rep is walking. She is trying to convince GEICO’s client to take his car from the body shop he has chosen and bring it to one of the company’s approved Auto Express Facilities or Direct Repair Shops, (DRP), as they are known in the industry. It sure sounds like a good deal coming from the GEICO rep. The first thing is to explain how much easier life would be if the insured would take the car to an Auto Express facility: The car is looked at immediately, and if a rental is necessary, one is available through an on-site auto rental company. All the work is guaranteed by GEICO if it is done at an Auto Express body shop. Choosing otherwise can be a pain in the ass, at least according to the representative.
End of quote, it goes on and on, you should take the time to read it. You should not think, oh well, this is just about Long Island or a paint job, it is not. Our trade also is exposed to steering.
Please follow the link below to learn more.....
http://www.longislandpress.com/2009/06/ ... you-wrong/
Here is one of the replies;
I appreciate the fact an article was done on this that sheds light on how corrupt the insurance industry is. Another key factor here is how much these DRP’s effect the labor rates. I feel we should be getting @ 60 per labor hour, however we average 46-47 as the insurance companies dictate the rates and we as shop owners are not allowed to discuss rate between shops. It’s just insane and eventually it will topple our industry completely. We work our asses off for these companies all for at most a 10% profit margin come the end of the fiscal year.
It is always interesting to see what the insurance industry has to say on their web sites, read their so called Mission Statements and be amazed as to how much difference their is between their sweet promisses and nice words and the reality vendors are dealing with on a daily basis. It appears to me that the various Statements are not worth the paper their written on, it is all useless crap.
Also, if the insurance industry really is all that green and cost driven, why aren’t they promoting windshield repair in a much better manner? Without promoting one business over another, it has always amazed me why they, for instance, do not steer to Superglass, the largest repair only network in the nation. They sure have the capacity to be dealing with the demand, yet, as far as I know, they have no steering.
Thank you Long Island Press for publishing this, it informs your readers properly on how wrong steering is.