Insurance Steering

A student e-mailed me with questions concerning insurance steering. So, I thought I would post a blog about insurance steering. I don't claim to be an insurance expert, but I can "steer" you in the right direction.

First of all, it is illegal to steer customers to a repair shop. However, insurance companies have been doing it for years. Insurance companies facing a body shop is like Goliath facing David. They have the money and resources to take how ever long it takes in court to win their case and get their way.

To read the full story and watch the videos visit BCRN (http://bcrn.blogspot.com/2009/03/steering-what-insurance-companies-dont.html)

There are body shops in our area that buy radio spots to inform customers of their rights and what they can do to get their vehicle repaired. Unfortunately not every body shop has the funds to buy radio or tv ads to educate the public as to their rights in this situation. Perhaps in some areas like highly populated areas or areas where there are a larger number of auto body repair shops, they can get together and form a sort of cooperative and pool available monies to buy up spots in the media, ( newsprint and online ads as well) to inform the public about insurance steering and the customer's rights.

Thanks for the feedback. That is an excellent suggestion.

Most insurers today use what are called DRP's, or Direct Repair Providers. These are shops not owned by the insurers, but shops that agreed to provide service to these insures. What does this mean for the vehicle owner. The insurance provider will say it means faster service and quicker turn-around on their damaged vehicle. In some cases this is true. In most cases it is not.