'Insurance and Auto Body and Collision Repair Center Warnings'
`What Some Insurance Companies and Body Shops won't tell you!'
1 - Auto Body Shop Secrets You Should Know!
What You Need to Know About Auto Body Shops
Important considerations most Auto Body Shops Won't Tell You
Are all replacement parts of equal quality?
While original-equipment manufacturer (OEM) parts are designed to match precisely and
may be safer, some insurers prefer that shops use generic or salvage replacement parts because they're cheaper. If you cause an accident, you could be bound by wording in your policy to use aftermarket parts -- or pay the difference for OEM parts. But if someone hits you, tell the shop to use OEM parts. The question comes in that what if you have an accident after a shop uses such substandard parts?
The due date is most likely false.
Mechanics routinely blame missed deadlines on delays in parts delivery. But the truth is that delays are due to work overload as many of them take on more business than they can handle effectively. Before you commit to doing business with a shop, check the local Better Business Bureau and government consumer-affairs offices for complaints against it.
A rented car can and usually will cost you
Renting a car for three weeks or so could cost $1,000 or more. Even if you have optional rental-car insurance (which costs $1 or $2 a month), your daily reimbursement may be limited to the cost of a compact car. If you need a minivan while your car is in the shop, make sure you have minivan-size coverage and be sure to do some math just in case.
Your car needs a shop that speaks its 'Specialty' language
Many European cars use aluminum and ultra-hard steel that require special equipment to repair.
This can be especially true with regards to Unibody repairs
. -See Network's Latest Unibody Frame Technology Video for an example-
Plus, replacement parts for late-model European vehicles have to be fit with an especially high degree of precision. Shops should be certified by the manufacturer to do the work, meaning that they have specialized training and equipment -- and charge higher rates. Insurers won't necessarily recommend these shops, but they should be willing to pay the tab, after all, what are you paying the insurance company for?
The insurer's warranty isn't as good as they claim
Insurers sometimes dangle warranties on the parts (for as long as you own the vehicle) to entice you to go to shops in their network. But the body shop's guarantee is the one that's important. Nearly all shops will guarantee their work, and parts makers guarantee their parts, making the insurance warranty all but worthless. This needs to be cleared up in advance, before you take your car in to the shop, ask exactly what is the guarantee, for both the insurance company and the shop.
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2 - Insurance Secrets Consumers Should Know!
Top 10 Hidden Secrets Some Insurers Don't Want You to Know
and Won't tell you!
1 - When you think you have a good policy be sure you mean - it’s a gppd policy for YOU!
While agents can help you navigate auto policies, some may not have your best interest at heart: Often, large auto and home insurers use “contingent commissions” to compensate agents who sold their policies. These fees come in two types: “steering” commissions for signing customers with a particular carrier, and profit-based commissions, when clients don’t file a lot of costly claims. The here is unscrupulous agents may push certain policies to reap larger commissions; with the latter, they might delay or discourage claims.How to protect yourself? Ask about commissions, and have prospective agents explain their recommendations. This lets them know you're a 'sharp' consumer.
2 - Young drivers can't catch a break
Statistics show that drivers under age 25, especially male, are in a high risk group, and have difficulty getting insured. But the specifics are startling: Drivers in New York under the age of 19 pay a median auto insurance rate that is over 100 percent higher than drivers age 60 to 74, according to a 2009 survey published on InsuranceRates.com. It typically takes three years of driving experience to be quoted a lower rate. Source - AllInsuranceInfo.org
But there are other ways to ensure a better rate in the short term. For example, avoid sports cars and opt for a car with a smaller engine. Also ask your insurer for ways to score a lower premium. According to information posted on the AllInsuranceInfo.org site, some insurers will give a lower rate to young drivers who complete a defensive driving course.
3 - Spotty credit? That will cost you!
Since the 1990s, insurers have discovered a strong correlation between low credit scores and filing lots of claims. Today, more than 90 percent of insurers use credit history in their underwriting, according to the Insurance Information Institute, a New York-based organization. While many say they don't run your credit they just do a 'non-inquiry' type run, they really do. Be sure you define this up front as a 'hit' on your creidt inquiry can railse your FIXO and that tells you they are using your credit to score your premium. Although consumer advocates argue that it unfairly penalizes the poor, it can also bite the middle class, says Birny Birnbaum, executive director at the Center for Economic Justice. After all, “87 percent of families in bankruptcy are there because of a job loss, medical catastrophe, or divorce,” he says.
Since many insurers do factor in credit history, it’s important to get your credit report from each of the three bureaus—TransUnion, Experian, and Equifax—and check them for errors before you shop for insurance.
4 - How do Insurance Companies set premiums? That’s for them to know and you to find out!
Insurers are constantly continuing to adopt complex pricing systems, not everyone is seeing savings. Why the discrepancy? First off, premiums vary widely by state.According to a 2007 study from the National Association of Insurance Commissioners, the average year-long policy in 2005 cost $949—ranging from a low of $664 in Iowa to a high of $1,343 in the District of Columbia.
What’s clouded this issue even further are the formulas used to set premiums for individuals.
That's like FICO's over protected formula for their scoring methods. Twenty years ago most insurers sorted customers into four or five pricing tiers, based on where they lived, their age, and their driving record. Over the past decade, hundreds of variables have been added to the mix, including credit history, homeownership, and limits on past policies. making it even harder for consumers to get a handle
on the systems.
5 - Your repaired car might look and run like new, but it’s worth a lot less
As many policyholders know, when the other party’s insurer is paying for repairs after an accident, you have the right to opt for original manufacturer parts instead of generic aftermarket ones. But even with the best parts and service in the world, a fully-repaired vehicle will often be worth less as a used car or trade-in than an identical car without the accident history.
Luckily, it’s not a total loss—even if you can’t collect diminished value, you may very well be able to write it off on your tax return. (Consult your tax adviser on this one.) That’s why it’s a good idea to hire a post repair inspector, both to ensure that the work was done properly and to assess for diminished value.
6 - Totaled your car? Good luck collecting its full value!
Policyholders may be surprised that insurance companies don’t typically get their valuations from
such standard sources as Kelley Blue Book or NADA. Instead, many use claims servicing companies, which consult proprietary databases to assess valuation. Some firms canvasses dealerships in local markets to build a database of comps.
If your car is totaled, you needn’t accept your insurer’s first offer. Go to Edmunds.com or AutoTrader.com to find better comps, and call the sellers listed on the insurer’s report to verify their price. Do some research and print out every applicable comparison you can find from multiple sources, even using Kelley Blue Book, NADA, Edmonds and Auto Trading Magazines and Online sources. You may be surprised that some insurance companies that pride themselves on their consumer reputation wil work tighter with you.
7 - Some Insurance Companies tend more likely than ever to declare your car totaled
With the 'pants pressing you’re likely to take when replacing your totaled car, many policyholders would prefer to have repairs covered in all but the most severe accidents. But that’s becoming increasingly difficult.
What constitutes “totaled”? An insurer’s rule of thumb is to deem a car totaled when repairs would exceed 70 percent of the vehicle’s value. And if your car’s frame is damaged, it can remain a safety hazard even when repaired. But if the damage is limited to a few minor, albeit expensive, components, you can appeal your insurer’s decision to total it.
8 - Does Your mechanic work for your insurance Company? - "Ouch!"
The auto insurance industry has long relied on DRP's or direct-repair programs, which function like medical HMOs for ailing cars, with insurers maintaining lists of recommended repair facilities. In the last decade, some insurers have taken the relationship a step further; in 2001, Allstate announced it was buying a nationwide chain of repair shops.
Whether it’s a chain of preferred providers or outright ownership, such coziness between insurers and body shops makes consumer advocates nervous. It lets the insurers take too much control over the repair process. And when you have pressure to keep costs low, you sometimes see shortcuts in repairs.
More often than not, you have a choice whether or not to use the insurer-recommended shop. So should you? It’s convenient, and in some cases, policyholders who take their cars there can get their deductible reduced or waived. If you do take the “in-network” route, hire a post-repair inspector to make sure repairs are done properly. Now with the passing of AB1200 insurance bill, 'Steering' is becoming more prominent than ever!
Watch a complete Network Auto Body Video Report on this subject here on the Network Site!
AB1200 Insurance Steering Warning!
9 - Is Brand loyalty is for suckers?
More and more insurers are adopting sophisticated-tiered pricing strategies, rates may differ dramatically from company to company. You might be better off comparison-shopping once a year rather than automatically renewing your policy--especially if your own circumstances change. Compare all the Major Insurance conpanies, write down in advance exactly what terms of coverage you want first so you can get an accurate comparison quote.
10 - Be careful switching carriers—it could cost you
No doubt you’ve seen the warnings in your policy that not paying your premiums can cause your policy to be canceled. It might lead you to think that when you want to switch carriers, dropping the old insurer is as simple as stopping payment. Not so. If you don’t pay a bill for the next term, chances are your carrier won’t just simply cancel the policy—it may also report your nonpayment to the credit bureaus. (Grace Period; Most insurers are required to give you a certain number of days’ notice before cancellation.) Also, your new carrier will see a cancellation in your history, which could mean you’ll
pay higher rates or be declined.
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