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Common Issues with Insurance Carriers
In an ideal scenario, auto body shops and insurance providers collaborate to ensure vehicles are restored to roadworthy condition after an accident. However, disputes can arise, leaving car owners without their vehicles for longer than expected. At DaSilva’s Auto Body, we prioritize safety above all else. Our skilled technicians use genuine OEM parts and meticulously calculate the required labor hours to guarantee your car is safe to drive. Here are some challenges we commonly encounter during the claims process:
Disagreements Over Estimates
Following an accident, the insurance company might ask you to submit photos through their app or send an adjuster for an inspection. The auto body shop then evaluates the vehicle using advanced computer technology and provides an estimate to the insurer. Often, these estimates differ due to the precision of modern tools, which reveal hidden damage that isn’t visible to the naked eye. Ideally, the insurance provider revises their offer, recognizing the need for thorough repairs. Unfortunately, insurers sometimes approve only the initial amount or reject certain repairs deemed unnecessary. This leaves the policyholder responsible for the remaining costs or without a vehicle while the issue gets resolved.
Part Replacement vs. Repairs
Sometimes, the body shop recommends replacing a part with an OEM version based on the manufacturer’s guidelines. Conversely, the insurance company may insist on repairing the existing component instead. In such cases, the shop has to demonstrate why the damaged part cannot be salvaged and requires replacement with a similar model.
Original Equipment Manufacturer (OEM) vs. Aftermarket Parts
While aftermarket parts offer some advantages, their quality varies significantly compared to OEM components. Many auto body shops prefer using OEM parts since they match the original specifications and typically come with a warranty. Although more expensive, these parts ensure optimal performance and safety. Insurance providers often push for cheaper alternatives like aftermarket or refurbished parts to reduce costs. Even if the insurer agrees to OEM parts, the policyholder might need to cover any additional expenses based on their coverage details. Always verify whether your carrier excludes OEM parts and carefully review the final repair estimate.
Labor Hours and Costs
The initial assessment determines the extent of repairs and the estimated duration. Insurers may pressure shops to finish the job faster and at lower rates. They could also challenge the hourly labor rate if it exceeds their budget.
Direct Repair Programs
Recently, body shops have been debating whether to join insurers’ networks. While membership ensures consistent client flow, it can limit flexibility. Shops risk losing business if they request higher compensation for labor, parts, or services beyond the insurer’s limits. Additionally, shops now bear responsibility for potential liabilities arising from their work. In extreme cases, as reported by CNN, excessive cost-cutting measures by insurers at DRP shops have led to substandard repairs, including parts held together with glue and inferior junkyard-quality replacements that worsen vehicle damage.
At DaSilva’s Auto Body, we’re committed to delivering top-notch service and resolving disputes with insurers smoothly. By working closely with local agents, we streamline the claims process for our clients. If you need routine maintenance or repairs, contact us today to schedule an appointment.