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Thursday, 10 May 2018 16:53

Retro News: Association Leader 5 Years Ago Called for DRPs to Include 'Grandfather Clause'

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In 2013, Dan Risley of the Automotive Service Association said insurers that change requirements for a direct repair program should give participating shops a “grandfather  clause” to decide whether to adopt the change or drop the program. In 2013, Dan Risley of the Automotive Service Association said insurers that change requirements for a direct repair program should give participating shops a “grandfather clause” to decide whether to adopt the change or drop the program.

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“Insurance company mandates don’t work,” said Dan Risley, executive director of the Automotive Service Association (ASA). “We went through a similar thing many years ago with the estimating systems, and we had shops paying for three different estimating platforms that all did the same thing. And who’s to say that a product won’t come out tomorrow that’s three times better than one being mandated? So now I have to use an inferior product because of a mandate from an insurer?”


Risley said although direct repair agreements obligate a shop that wants to stay on the program to accept changes made to the insurer requirements, he thinks insurers should give shops more time to make a decision and prepare for either implementing the change or dropping the program.


“I would like insurance carriers to consider what I’ll call a grandfather clause, where shops have six months to adopt the change in the program,” Risley said. “At least then you have six months to start building a business model moving away from that program so that dropping it doesn’t have such an immediate negative impact on your business.”


– As reported in CRASH Network (www.CrashNetwork.com), June 10, 2013.


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