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I have a major gripe with how insurance companies treat their customers 'behind the scenes'. It is a natural assumption to think that after an accident, your insurance company will pay for the full cost of repairs done by the body shop, but sadly this may not be the case any more.
Here's a brief explanation of how the accident repair process works to the best of my knowledge. Major insurance companies now have contracts with body shops whereby they send a little over £1,000 with every job, and that is the payment. It is then up to the body shop to complete the repairs to your vehicle within this cost.
I think this is officially called 'The average repair cost'. It is a figure that the insurance companies say will balance itself out over the course of the year as they are supposed to send the bodyshop both large and small jobs, with the smaller jobs being, of course, overpaid.
This might work out well on paper, but in reality, and with the greed of the insurance companies most of the small jobs would end up being sent to the other body shops with whom they have no such contact. I suppose it's understandable as they wouldn't want to pay their £1,000 contracted cost for a £200 repair job. However this leaves the original body shop having to fully absorb the cost of any repair.
Now think about it. If they were sent, for example, a standard size job that costs in the region of £4,500 to complete, and only getting paid £1,000 for it, something has to give. Firstly, as much as possible would be repaired and not replaced. This is because the cost of every single new part comes directly out of the £1,000 cost. Could it be that most jobs are simply beaten back into shape and filled with body filler, broken headlamps and bumpers are plastic welded back together and the absolute minimum is done? Basically, as you can imagine, the vehicle body repair industry must now be turning into a cost saving exercise.
...have slipped right back to the bodging 70's again
I personally think the whole process is disgusting. People pay a lot of money for their insurance policies and the least they expect is a decent job done on their vehicle if they ever need to make a claim. We are living in the 00's but have slipped right back to the bodging 70's again, and its all due to the greed of the insurance companies. We are not talking about the smaller insurance companies here, but the main names (I'm sure you know who we're talking about!). No wonder they can offer such cheap insurance.
By: Andrew
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somebody went in to my brand new car yesterday and they have accepted liabilty. my door and the arch near the wheel is dented. nothing major. but the car barely did over 50 miles. now instead of getting the car repaired i want new parts to be fitted or even better can i demand another brand new car?
This is a shop who work with all the insurance companies and the actual cost will be a fraction of this, yet the insurance company are happy. Funny how the owner drives an Audi R8.
I don't believe a word of the original story, the major paint shops rip everyone off but the insurance companies don't care because they pass the cost on to you and me. Its what the crooks call a victimless crime but really its against all of us!!!
And like the last comment the insurance company only agrees to pay out when they know legal court proceedings are guna happen
If you go to ombudsman it's the company between £250 to £200k
Just for the consumer to enquire
If any things breached then company could be looking at £m fines and brand damage
their contracts R.B.S and lots more the rate £ 21/ £22hr Lookes like panel beaters, painters have to work faster and harder
full of filler and i mean filler, top of the doors to the bottom and thats on new cars
and parts stuck on just to save money because the insurance did not want to pay for
new parts if it was my car i would not want it back
On a final note.. Please do not lay the blame entirely at the door of the insurance companies for average repair costs. This idea was designed and offered to all Insurance companies by 2-3 or more of the uk's biggest bodyshop companies themselves as a way of becoming magnates in their own rights and capture all of the insurance work countrywide!! Of course the insurance companies were going to agree to it, Saving on repair costs????!!!! Just do the maths on the above figures for the thousands of claims made in a day!!!
collar
I too worked in a body shop, though my job now is a more hands on one. I wouldn't consider anyone odd for wanting a decent job doing on their motor car what they want to do is shop around perhaps, whether it be dealing with the insurers or garage.
I know a few people who work in the insurance department at our local brokers and they are far from cheap skates, they have the most responsible sense of work ethic and are a right honest bunch.
I too can't understand the need to cut corners at repair shops. If people want to see quality, parts and hard-working people, why don't they watch a welder or even a panel beater in the City. If I have to drive an accident damaged car then I keep my hands straight ahead upon the steering wheel. I've been in many situations caused by repairers not watching what they are doing and going on tea breaks ahead of time and causing another bodge up.