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Wednesday, 08 September 2021 16:37

Consultant Says CA Auto Body Shops Need to Know the Laws that Affect Them

Written by
Juan Martinez leverages two decades in the collision repair industry to help auto body shops as a consultant through JM Business Solutions, Inc. Juan Martinez leverages two decades in the collision repair industry to help auto body shops as a consultant through JM Business Solutions, Inc.

Index

...fix the car correctly. Then, when you request a supplement, they do it again---over and over.

 

There are a small handful of insurance companies that don’t do it, but the majority of them do. It ends up being a complete waste of time for the shops, not to mention for the consumers.

 

The insurers would save a ton of money on rental cars without wrestling over every penny. They push cycle time through their DRPs, and then they choke them. Then they start calling the shop every day, asking when will the car be ready? In many cases, the vehicle is sitting there because the shop is waiting on the insurance company. It makes no sense.

 

If they followed the legislation, then these problems would not exist. When a shop files a complaint, they will quickly discover that the California Department of Insurance (CA-DOI) employees don’t understand the legislation. Half the time, they will bail and send a letter that the dispute is over pricing and they can’t mediate.

 

Most of the time, we’re not asking them to mediate, but to simply look at the legislation and the evidence provided. But, they don’t. The shop thinks the complaint didn’t go anywhere because the CA-DOI is on the insurance company’s side. But that’s not the case---they just don’t know.

 

Steering does exist, but the insurance companies have gotten better at it. They don’t put anything on paper. When you file a DOI complaint, the DOI requests the claim file. In that claim file, the DOI won’t find any trace of steering. All steering communication takes place over the phone, using specific language to get a vehicle pulled out of a specific shop that won’t play by their rules. 

 

The solution to that problem would be for the DOI to request phone recordings pertinent to that claim file to hold these insurers accountable. Maybe petitioning or amending legislation to keep up with the electronic data of today would be beneficial. 

Do your clients often encounter issues over the constant wrestling match between aftermarkets parts vs. OE parts?

 

The legislation states that aftermarket parts must have...