“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.