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Here Today ... Then Steered Away

Lost work due to insurer steering.

By Georgina Carson
2/1/2002

We have example after example of this practice in our area," says one respondent to BodyShop Business' annual Industry Profile, regarding insurer steering. "I could write you a book on what's actually going on in the field."

He's not alone. A whopping 82.5 percent of respondents say they've lost work due to insurer steering, and most of them say they know why. Reasons cited include:

• "Insurers have a list. If you're not on it, you don't get the job."
• "I know for a fact I lose business because of steering. Customers have called me because their insurance company has told them to go elsewhere."
• "Insurers make it sound like they won't back the repair if you don't take the vehicle to one of their shops or your facility isn't good enough to be affiliated."
• "If you're not a DRP for a particular insurer, that insurer will push for its own DRP shop. Most customers don't want the hassle, so they'll do what their insurer says."
• "Steering is rampant in this area. Three DRP shops get all the work."
• "Insurers are doing whatever they have to to get customers into their DRPs shops - even if they have to lie and slander."
• "My collision work has dropped nearly 50 percent due to DRPs."
• "Customers don't know they have a choice."
• "If you're not on DRPs today, you're in trouble."

But no respondent was more certain about insurer steering than this guy: "I've had insurers tell customers they'd have to go to their PRO shop - while the customer was in my office and on my phone!"

Writer Georgina K. Carson is editor of BodyShop Business.

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