Collision repairers speak out over insurers

Collision repairers speak out over insurers’ service delivery

Motor Trade Association (MTA) and the Collision Repair Association (CRA) say recent results from the national 2010 Collision Repairers Survey of Insurers shows that AMI Insurance and Medical Insurance came out on top in all three categories surveyed and AA/SIS scored the lowest overall.

The annual survey carried out by MTA and the CRA collects the views of collision repairers on the service delivery of insurers. Over 250 collision repairers around the country replied to a survey that covered the performance of 16 different insurance companies.

Respondents were asked to rank each insurer in three areas; efficiency of claims processing, financial and customer relationship management. Collision repairers were questioned on insurers performance in activities ranging from administration and claim completion times to fairness of assessment rates and labour rates to fairness of parts, paint and other margins.

Medical Insurance, AMI, Vero/AMP, Sureplan and Lumley ranked in the top five out of 16 different insurers. AA/SIS and Zurich scored the lowest. Feedback from collision repairers indicated that AA/SIS paid low margins on new parts. AA/SIS Insurance were also more likely to direct business to repairers in their network, rather than allowing the customer to use their regular collision repairer.

Dougal Morrison, MTA Advocacy and Training General Manager said it is important that the safety of motor vehicles or occupant safety is not compromised by low level repair practices that are sometimes geared at keeping the cost of insurance claims down.

“Collision repairers should be chosen based on their skill, service, knowledge, and equipment technology they provide. Low estimates often use cheaper parts and leave off important operations needed to properly restore vehicles to pre-accident condition,” he said.

“An important feature of modern cars is the new level of safety design and the use of sophisticated materials designed for occupant safety.”

Neil Pritchard, CRA General Manager said low cost repairs and cheaper parts were usually not in the best interest of the customer. When you consider the safety issues involved in collision repair, and the considerable investment in the safety systems built into the vehicle, the value of quality repairs becomes clear.

“A modern, well equipped collision repairer represents an enormous investment in equipment, training and people. Insurers need to recognise this investment when setting payment rates,” he said.

“We would like to see vehicle owners being able to have a more informed involvement in the decision-making on who is repairing their vehicle and what kind of parts are being used on their vehicle.”
“We would also like to see a mandatory registration of repairers qualified to carry out critical structural repairs. This would go a long way towards ensuring safety of both the vehicle and driver.”

Pritchard also said consumers are encouraged to consider factors beyond just the premium costs when choosing an insurer. They might also want to talk to a reputable collision repairer in their area about which insurer delivers the best service.

ENDS

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