Posted on by wrote in Blog.

It’s an unfortunate truth that car accidents and fender benders happen. Many drivers are unfamiliar with what next steps to take post-accident, and that can have devastating effects on their wallet. As it is the law to carry vehicle insurance, most drivers quickly make a call to their insurance provider for guidance.

However, it’s crucial to know your options before making that call so you do not end up being taken advantage of. 

For the uninformed, their insurance provider may seem like they have all of the answers – and that’s what they want you to think. You have the right to question the decisions made and the policies they enforce to try to get the best outcome possible for you.

If you feel like you aren’t being given options you should be entitled to, your provider may be engaging in “steering”. 

What is Insurance Steering?

Simply put, “steering” is the practice of directing policyholders to body shops or mechanics that are within the insurance company’s “Direct Repair Program” (DRP). We will go more in-depth on DRP’s in our next blog to further illustrate how they are a poor choice for vehicular repair. 

The terminology of “steering” is pretty self-explanatory – once you report vehicular damage to your insurance company, they will oftentimes refer you to specific places to go for repair.

While this may initially seem helpful, keep in mind that this is ultimately for the benefit of the insurance company itself (as well as the collision providers) – not to mention, an illegal practice. 

If you hear some of the following statements from your insurance provider, they may be illegally engaging in steering and you should insist on your own choice:

 

  • We cannot guarantee repairs (insurance companies never guarantee repairs regardless)
  • It will take a longer time for inspection/completion than X company (they have no way of verifying that)
  • We have heard bad things about that company (they are not supposed to give personal opinions about business practices)
  • Your warranty will be voided (if you use a reputable business, this will not be the case)
  • You will have to pay the difference out-of-pocket (insurers are legally required to pay any reasonable charges regardless of who completes the repairs). 

Why Does Car Insurance Steering Exist?

Unbeknownst to you, your insurance provider has a network of collision repair businesses that provide them with low-cost repairs (including low-quality parts and labor) in exchange for a high volume of referrals.

This is an extremely profitable partnership between the collision shop and insurance provider but leaves the claimant (you) in the dust. Under the 1963 Federal Consent Decree, they cannot force you to use one of the businesses in their direct network, and you have the capability to choose any outside company of your choosing to perform the repairs. 

How Do I Avoid Insurance Steering?

You do not have to take your insurance provider’s recommendations on collision repair – full stop. They are legally not able to force you to use a specific facility and must cover the same amount of damage whether they choose the company or not.

While some recommendations may be reputable, it’s important to do your own due diligence in researching local repair companies to ensure you get the best quality of work on your vehicle.

If you experience your provider engaging in this practice, you have the right to report them to the state insurance commission board. Here is the contact information for residents of Illinois and Missouri:

 

Illinois Department of Insurance

DOI.InfoDesk@illinois.gov | (217) 782-4515 (Springfield Office)

Illinois Consumer Complaint Process
Consumer Complaints Fax: (217) 558-2083 

 

Missouri Department of Insurance

Insurance Consumer Hotline: 800-726-7390 (Weekdays from 8am-5pm)
Missouri Consumer Complaint Online Filing

Download a complaint form to mail or fax:

Fax to 573-526-4898; or

Mail to P.O. Box 690, Jefferson City, MO 65102-0690.

 

Can PDR Be Covered By Insurance?

Absolutely! Paintless dent repair is a legitimate and professional form of vehicular repair for dents & dings, and can be covered by insurance. We recommend you review your auto policy to ensure this is the case, however.

By avoiding insurance steering, you have the power to choose a trusted paintless dent removal business like 618 Dent Guy to fully remove dents and restore your vehicle back to factory-new condition. We are happy to cooperate with your insurance provider to help move your claim along in a timely manner so that you can get back on the road in no time.

Give us a call today to ask how we can help you avoid insurance steering, and instead choose the best repair company for car dents in your area!

Tags: