Do you want your insurance company to be your body shop?

"JCAlan" (jcalan) 02/21/2014 at 12:07 • Filed to: None

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I didn't realize this, but !!!error: Indecipherable SUB-paragraph formatting!!! . The few reviews I've read have been favorable of the overall experience.

On one hand, this makes perfect sense as a cost-cutting measure. Eliminate the markup from the body shop, spend less money, pass the savings on to customers like me. I have Progressive insurance because they gave me by far the cheapest quote, and cutting-edge ideas like this are probably why.

But on the other hand, there's good reason to have a third party involved in your repairs to make sure that everything that needs done gets done and gets done properly. When the company that is responsible for paying for your repairs is also the single entity involved in deciding what needs to be fixed and how, AND performing the repair....they have every reason to cut corners. Fear about how well an insurance company is going to treat you is a very real concern after an accident, and I've heard plenty of stories of folks having to fight just to get what they're owed.

On the contrary, there is every incentive for the independent body shop to find every little thing that needs repair and spend the most time repairing it using the best quality parts and procedures. That could have everything to do with why insurance is so costly though, as more money spent on repairs means higher premiums. And let's face it, body shops and car dealers aren't exactly on the most trusted list either.

I realize that insurance companies are already making decisions on these repairs, that's what the adjuster's job is. But isn't there usually a little back and forth between the shop and the adjuster over how to proceed with the repairs? Or at least a discussion? Isn't the body shop, by negotiating to get the most work for themselves, also working for you to get the best quality repair done on your car?

What do you think about this? I'm mixed.

dogisbadob > JCAlan 02/21/2014 at 12:11

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So I guess Flo is more than just a pretty face? :p

No really though, independent body shops cut corners all the time. Progressive's own body shops won't be any more or less suspect based on that aspect alone.

For example, look at the salvage title cars that have been so-called "repaired"—um, no, it was declared a total loss because it really IS a total loss! You know, because it couldn't be PROPERLY repaired for less than 70% of the car's pre-crash value.

JQJ213- Now With An Extra Cylinder! > JCAlan 02/21/2014 at 12:15

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I think that shops like these through the insurance will try and cut corners to save as much as possible. It can mean that it won't be repaired perfectly.

ZHP Sparky, the 5th > JQJ213- Now With An Extra Cylinder! 02/21/2014 at 12:25

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Also, they won't be "cutting out the middle man" and passing on savings to customers - this is the insurance company maximizing their profits by charging you what they do for the insurance, and then also getting to keep the mark-ups the mechanic would typically keep....in addition to trying to cut whatever corners they can.

This is a slipperly slope that could lead to a really horrible situation where insurance companies REQUIRE you to use their body shops or go to hell. Less choice is always bad for the consumer.

In theory, sure - streamlining the process and cutting out as many intermediaries as possible would result in cost savings, but let's remember these are private companies trying to maximize their profits and are already in a pretty anti-competitive industry, so they have the upper hand here and will reap 95% of any potential benefits.

CAR_IS_MI > JCAlan 02/21/2014 at 12:25

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I had progressive handle this with my accident. Granted, it was a small blemish in the molded plastic front bumper of my Jeep, so no paint, no metal damage, just literally unbolt and rebolt.

It did make the process easy, Drop the car off at one spot, has enterprise on site, had my rental ready to go, 3 days later I got a phone call saying it was ready to go.

HammerheadFistpunch > JCAlan 02/21/2014 at 12:27

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My brother in law does adjustments for Progressive and he says their body shops are doing better work than about 50% of the 3rd party sites. Its about consistency, consolidated buying and oversight. I wouldn't hesitate to take my car there.

jariten1781 > JCAlan 02/21/2014 at 12:31

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I've had good experiences with the Geico Auto Repair Express shops. It's sort of a hybrid of this. They have full time on site people at an otherwise independent shop. The Geico rep handles everything for you (appointments, adjusters, rentals, etc.) and is on pretty on top of keeping you up to date on what's going on and if they find other problems/want to use non-OEM parts/whatever. What I really like though is that they go in and take pictures throughout the repair process so you get a shot of the car as it's dropped off, after disassembly marked up with all the repairs they're going to do, with repairs prior to paint work, etc.

I've used two of these shops four different times and the repair have been spot on (and bonus, they've not reported to Carfax in my case). It was much less painful than doing the claim and billing dance between an independent shop and the insurance like I'd always done prior to that.

JCAlan > HammerheadFistpunch 02/21/2014 at 12:37

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I would think keeping control over the entire process would be huge in keeping Progressive's satisfaction rating high. In my experience, involving other people can only blow it for you.

Roundbadge > JCAlan 02/21/2014 at 12:55

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I'mma weigh in here in a bit with the word from my gf, who's a Progressive claims adjuster and also licensed to sell insurance in Ohio.

SkilletHead > ZHP Sparky, the 5th 02/21/2014 at 13:05

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It's already illegal for an insurance company to require you to take your car to any particular shop for this exact reason.

Roundbadge > Roundbadge 02/21/2014 at 13:39

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Progressive Service Centers are locations where you can drop off your damaged vehicle and pick up a rental. Estimates are also done in the service centers. It's a convenience factor for the customer....one stop shopping, as it were. When the repairs are completed, the customer vehicle is picked up at the service center and the rental is dropped off there too.

The repairs are not done at the service center, but at a shop in Progressive's network.

The customer is absolutely allowed to opt out and take the damaged vehicle to a shop of their choosing, if they prefer.

Full disclosure: I'm not a Progressive customer. I got my insurance through another company before she started working there. I just happen to have access to someone who knows how it works.