We all pay for auto insurance in Louisiana, contributing significant amounts each month to insurers. This money often ends up in savings accounts, generating large dividends due to the massive balances maintained, accruing interest over time. When you file a claim, insurers are required to cover your repairs, rental, medical expenses, and any other covered costs. However, they aim to minimize their payouts to maximize their savings. The most effective strategy for insurers to retain their money or reduce their expenses is to control the entire claims process.
The Role of Preferred Shops
When you file a claim, one of the first actions an insurer will take is to refer you to one of their “preferred” body shops. While Louisiana law mandates that they inform you of your right to choose any shop, insurers will strongly encourage you to use their preferred shops. Why do they push these shops so aggressively?
Is a preferred shop the best shop in town? Not necessarily. Do they guarantee the highest quality repairs? Often, no. Do they boast the best customer ratings? Usually not. So, why are they “preferred”? The reason is simple: they agree to follow the insurance company’s guidelines, often at the expense of quality and thoroughness.
The Preferred Shop Process
Here’s how it typically works: a preferred body shop will assess your car and write an estimate. These shops often face restrictions from insurers, such as avoiding the use of factory OEM parts, bypassing proper paint techniques, and skipping necessary labor as outlined by OEM procedures. If a shop does write a comprehensive estimate using OEM parts and following correct procedures, the insurer will likely pressure them to revise the estimate. They may insist on using cheaper aftermarket or junkyard parts and eliminating certain line items to reduce the cost by thousands. To stay in the insurer’s good graces and maintain their preferred status, the shop will comply, even if it means taking a financial hit.
The Dangers of Preferred Shops
Preferred shops also face challenges when dealing with total loss vehicles. When a car that should be declared a total loss is brought to a preferred shop, the shop may withhold information from the insurer to avoid a total loss declaration, as they make little to no money from such cases. This can result in unsafe vehicles being repaired and returned to customers, with compromised structural integrity and subpar parts.
While not all preferred shops engage in these practices, these scenarios are reported frequently by colleagues nationwide. It’s crucial to understand your rights and options when choosing a repair shop. Insurers may pressure you to use their preferred shops, but you are not obligated to comply.
Know Your Rights
Most states, including Louisiana, have anti-steering laws. Learn more about independent shops vs. insurance DRP shops. Steering occurs when an insurer tells you they won’t pay for repairs if you choose a non-preferred shop. While insurers can’t outright refuse coverage, they may use scare tactics to influence your decision, suggesting you’ll face out-of-pocket expenses if you go elsewhere.
Remember, it’s your car and your choice. The insurance company works for you. Be informed and assertive in your decisions to ensure your vehicle is repaired to the highest standards.
Conclusion
At Redeemed Auto Body, we prioritize proper repairs using factory OEM parts and following manufacturer procedures. We believe in transparency and quality, ensuring your vehicle is restored to its pre-loss condition. Don’t let insurers steer you away from quality repairs. Choose a shop that puts your safety and satisfaction first. Contact Redeemed Auto Body to get started.
Your car, your choice. Be the boss and make informed decisions for your vehicle’s repair needs