Auto Insurers: Body Shop Referrals

After a car accident, your auto insurance company will likely refer you to a specific body shop to get your vehicle repaired. However, you are not obligated to use their recommended repair shop and can choose your own. While going with the insurance company's suggestion can make the process simpler and more efficient, it's important to remember that their priority is to minimise costs, which may result in quick and cheap repairs. On the other hand, choosing an independent shop gives you more control over the repair process and ensures that you, rather than the insurance company, are their main focus.

You don't have to choose the body shop your insurance company recommends

After a car accident, your insurance company will likely recommend a specific body shop for repairs. However, you are not obligated to use their preferred vendor, and in most states, it is your legal right to choose your own repair shop. While considering their recommendation, it is essential to understand the dynamics between insurance companies and their preferred vendors and how it may impact your vehicle's repairs.

Insurance companies typically have contracts with local repair shops, and they benefit financially when policyholders use these shops. These shops provide lower labour, parts, and material costs, which helps insurers meet their goals and quotas. As a result, claims representatives may push back if you choose an independent shop and try to persuade you to use their contracted vendors. They may claim that your chosen shop is not on their list, which could delay the processing of your claim and the repairs. They might also try to deter you by stating that they cannot warranty the repairs if you don't use their recommended shop. However, reputable auto body shops always provide written lifetime warranties on repairs, regardless of who pays the bill.

When selecting an independent auto body shop, you become the primary focus, not the insurance company. Independent shops value their reputation and will recommend repairs that prioritise getting your vehicle into proper working order and looking its best. They will provide a timely written estimate, offer warranties on their work, and may even complete the repairs faster than a partner shop. Additionally, you can expect honest and unbiased recommendations from an independent shop, as they are not bound by the insurance company's interests.

While choosing an independent shop gives you more control over the repair process, there are a few considerations. If you go outside the insurance company's network, they will likely send you a check for the repairs, and you will be responsible for communicating any issues or additional costs directly with the insurance company. This could result in back-and-forth negotiations and potential delays in getting your vehicle fixed. However, if you feel their estimate does not cover all the necessary repairs, it may be wise to get a second opinion from a shop of your choosing.

Ultimately, the decision rests with you. While the insurance company's recommended shop may offer convenience and a streamlined process, it is not your only option. You have the right to choose a repair shop that aligns with your interests and ensures your vehicle receives the attention and quality repairs it deserves.

Insurance companies have contracts with certain shops

However, it is important to remember that the decision of which repair shop to use is entirely up to you, the consumer, and not the insurance company. You have the right to choose your repair shop, regardless of what the insurance company may tell you. While there can be advantages to using a repair shop recommended by the insurance company, such as a simpler and more efficient process, it is not a requirement. If you choose to go with a different shop, the insurance company will likely mail you a check to cover the costs, and you will be responsible for getting that over to the body shop. It is also important to do your research on your state's specific rules when you file a claim, as each state has unique laws and regulatory standards regarding insurance claims and vehicle repairs.

Claims representatives have quotas for claims that go to contracted repair shops

Claims representatives have targets to meet regarding the number of claims that go to contracted repair shops. These quotas exist because insurers have financial agreements with specific repair shops, which benefit both parties. The repair shops receive more business, and the insurance company benefits from lower labour, parts, and material costs.

Insurers will try to persuade you to use their contracted repair shops. They may tell you that your claim will take longer to process if you don't, or that they won't be able to warranty the repairs. However, these are tactics to pressure you into using their preferred shop. By law, in almost all situations, you can choose whichever repair shop you like.

If you decide to use a different shop, be aware that the insurance company may mail you a cheque to cover the costs, leaving you responsible for getting the money to the body shop. If the amount is incorrect, or the shop finds additional damage, you will have to communicate this to the insurance company and arrange a solution. This back-and-forth can cause delays, and you may be responsible for any storage fees that accumulate while your car is in the repair shop.

On the other hand, using an insurance company's preferred repair shop can make the process simpler and more efficient. The body shop can work directly with the insurance company to ensure the estimate is accurate and covers all necessary repairs. The insurance company will pay the body shop directly, minimising processing time.

Independent shops treat you as the customer, not the insurance company

After a car accident, your insurance company will likely recommend a specific body shop to fix your vehicle. While it may be tempting to go with their suggestion, it's important to remember that independent shops treat you as the customer, not the insurance company. Here's why you should consider choosing an independent shop for your car repairs:

You Are the Priority

Independent shops have their reputation on the line, so they will recommend repairs that get your vehicle into proper working order and looking its best. They focus on satisfying your needs, not those of the insurance company. With an independent shop, you are the priority, and they will work to ensure you are happy with the repairs.

Unbiased Advice

Independent shops act as an unbiased third party. They are not beholden to the insurance company and will provide unbiased advice and recommendations. Their goal is to get your vehicle repaired properly and to your satisfaction, rather than simply following the insurance company's directives.

Quality Over Cost-Effectiveness

While insurance companies want to minimize costs, independent shops prioritize quality repairs. They will recommend repairs that ensure your vehicle is safe and reliable, rather than just opting for the cheapest solution. After all, you've paid your insurance premiums, so you should expect quality service in return.

Warranty on Repairs

Contrary to what insurance companies may claim, reputable independent shops do offer warranties on their work. This means you can have peace of mind knowing that the repairs are guaranteed and covered if any issues arise.

No Delays in Repairs

Insurance companies often claim that independent shops take longer for repairs, but this is not always true. Independent shops, especially those in your neighborhood, may have shorter waiting lists and can sometimes complete repairs more quickly than partner shops.

You Have the Right to Choose

In most states, you have the legal right to choose your own auto body shop. While insurance companies may try to push you towards their preferred shops, remember that you are the customer and have the power to make the final decision.

When choosing an independent shop, be sure to research their reputation, get detailed estimates, and ask about warranties and other services they offer. While there may be benefits to using an insurance company's preferred shop, don't be afraid to exercise your right to choose an independent shop that will treat you as their priority.

Recommended vendors have a quick turnaround

After a car accident, it can be challenging to find a car repair shop, so many people opt to go with the body shop recommended by their insurance company. One of the main benefits of going with a recommended vendor is the quick turnaround. The insurance company has an established relationship with their preferred body shops, and the streamlined process between the two parties can increase efficiency.

The insurance company will be able to pay the body shop directly, minimising delays in processing time and eliminating you as the middle person. Recommended vendors have proven to be reliable and cost-effective for the insurance company, which can translate to a faster, more convenient service for you.

However, it's important to remember that the insurance company's interests may not always align with yours. They will guide you towards vendors that are reliable and cost-effective for them, but this may not mean quality or convenience for you. The insurance company wants to minimise financial risk and get your vehicle fixed cheaply, so they will likely rely on vendors to facilitate quick, cost-effective repairs.

Ultimately, the choice of body shop is yours as the consumer, and it's essential to consider both the benefits and drawbacks of following your insurer's recommendation.

Frequently asked questions