He laughs when he's asked about Progressive's "Concierge" program. His shop has participated in this DRP program's trial run since last fall. "It makes me think of a twist on that old Oldsmobile ad slogan: 'This is not your father's DRP'," said the second-generation East Coast shop owner who spoke about the Progressive program on the condition that neither his real name nor his business location (not even the state) be revealed. 

Progressive's twist on the concept of direct repair programs (DRPs) essentially does away with shop-to-customer contact. The vehicle owner turns the car over to Progressive, which prepares an estimate and calls a participating shop. The shop picks up the car, repairs it and returns it to Progressive for delivery to the customer. The program is being tested in Virginia, Ohio, Pennsylvania and Florida.

Appeals to younger people

"My dad was a reluctant participant in DRPs," said the shop owner. "Me, I've always seen them as an opportunity, probably because it was clear by the time I got involved in the industry 11 years ago that they were here to stay. There are obviously some things I'm not wild about with this Progressive deal, but [Progressive] seems like a real mover in the insurance industry; it's offering something appealing to people - especially young people - that other insurers aren't. I felt that getting in on this from the beginning, maybe helping shape it some, was sort of like getting in on the ground floor of something that's really going to grow."

Shops participating in Progressive's "Concierge" program are tight-lipped, saying part of the agreement with Progressive is that they are not allowed to disclose the terms of the agreement. But for the consumer concerned with convenience and not overly concerned about how their insurer's interests may differ from their own, what's not to like about the program?

It may actually be the insurer, however, who determines that the program has its downsides. "For Progressive, there is no 'they' or 'them' now, if a customer is unhappy about the repair of their car," one industry observer says. "Progressive, to the consumer, is repairing the car, so it's Progressive that customers will be unhappy with, not a shop. Progressive won't have anyone to point to but themselves."

These comments echo what others are saying about DRPs in general: That a sense of change is in the air. Talk with shops and insurers around the country and you'll hear about five trends in DRPs that are occurring now or will be soon. Some are more apparent than others, but all will likely have a significant impact on the industry.

Percentage of DRP jobs is growing

The percentage of claims run through DRPs is increasing. This trend comes as no surprise to anyone. As recently as 1996, claims handled through DRPs amounted to only about 8 percent of all insurance-paid repair work. Within two years, that figure had more than doubled to 20 percent and is expected to be above 30 percent this year.