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Pennsylvania Senator Experiences Steering Firsthand, Calls for Investigation

3/9/2010

A Pennsylvania senator who says he experienced insurer steering firsthand has introduced legislation to address the issue. Sen. John C. Rafferty Jr. introduced S.R. 254, which calls on Insurance Commissioner Joel Ario to investigate the practice of steering by insurers in the collision repair industry.

The resolution asks that Ario investigate insurer steering in the state and report his findings to the General Assembly within six months of the resolution’s passage.

Rafferty says he experienced insurer steering following a collision with a deer. In remarks to Ario, Rafferty said the insurance company insisted he use a preferred shop, but that he fought to have his vehicle repaired at his shop of choice.

“I find it very disturbing that they're putting the strong arm on people to go to these preferred shops,” he said. “I don’t think it's a good way to do business.”

Rafferty noted that he’s also heard from several shop owners in the state who say they’re losing business because insurers are “aggressively turning people who need car repairs to their preferred shops.”

“I think it's something we need to get a handle on,” Rafferty said. “We need to tell the insurance companies to back off the situation.”

More information:

• Download a copy of the resolution

• See a video of Rafferty’s comments on steering
Submit a Comment    Comments (19)
Comment by:
DougR.
4/7/2010
7:57 PM
This will go Nowhere. You ppl want them to fix this issue when you don't fund a politicians re-election! Do you not know how this all works? Politicians are up for re-election and need to shake a money tree ( Insurance Federation ). They come up with some thing that will regulate them and lessen their profits. The federation lobby's the political party, giving word of contributions and poof the legislation is shot down! What really bites is our insurance premium has a political agenda tied to it! What if we don't like the agenda we are funding? I think the first thing to do is correct that very issue! Insurers should not fund political agendas with our premium dollars when we are forced to pay insurance premiums to drive. I will not accept that its a privilege to drive anymore! The Economy needs us to drive or it would collapse! So don't even go there!
 
Comment by:
Eric
4/6/2010
9:47 PM
If you would like more information on how to grow your auto body business into a high volume business, please email me at emeyer@maaco.com Our centers are averaging over 920,000 in gross sales each year.

No need to worry about the insurance steering when you are putting through 25 cars a week on the average.

 
Comment by:
billy
3/16/2010
10:20 AM
listen boys, in the last fifty years you have played cut thought in this business.You have bent to encourage Insurance CO. to send work your way. They found your weakness. installed steering. you have all seen it coming, as well as me. When you applied they turned you down because your bath room didn,t suit them. What the hell did your bath room have to do with ability to get the job done. other then it did show the curator or the people in charge.They told you that you that your frame machine or paint booth didn't fit there requirements . Did they offer more money? Don't get me wrong I see advantages to new ideas & equipment, I just don't need some adjuster that couldn't make it in the business tell me how to run my business.Time to stick together. If you look at mechanical rates you can( $100.00per hour as opposed to $42.00) see results of sticking together. You do the same thing as they do plus bang sheet metal & paint,you all deserve. the same plus more.Time to stop crying start fighting.Is it going to take a union in the shops to to get the owners fired up? Already I see the techs telling management they can't repair at that price. Is this skill level or is it hunger & greed? at any rate is it unrest in the shop
 
Comment by:
Mark
3/12/2010
7:16 AM
I run a small shop in MD without any DRP connections. My shop stays busy yearound due to the fact that I educate each and everyone who comes through my door about their right to have their car repaired at the shop of their choice without any additional expense to them. Also I will never sacarfice quality to save a insurance co. a dime. Afterall I gurantee our work not the ins. co. It is however impossible for me to compete when a ins. co. will waive the deductible if the repair goes to their perferred shop. That is not a level playing feild.
 
Comment by:
a lopez
3/11/2010
9:05 PM
Ya it sucks but you have to stand up for you'r self tell it like it is show the customer what the differences are top coat base sealers sell you'r shop and tell them do you really think there looking out for you!!! it works.
 
Comment by:
Mayra
3/11/2010
7:16 PM
I think the worst insurance company is INFINITY with they're 20% co-payment if they don't take it to their DRP, none of my customers who have INFINITY know of that until they get into an accident and choose they're own shop. They're agents should be more honest about what they're selling :(
 
Comment by:
adam
3/11/2010
5:29 PM
We are not on anyones DRP, yes it is harder since we are not handed jobs on a silver platter, but we have many insurance companies that just bring us jobs without any restrictions, because we fix it right the first time and don't gouge them. Quality seems to be going to the wayside just to stay afloat.
 
Comment by:
Jimmy
3/11/2010
4:37 PM
I hate to say it but it is the body shops fault if we all stuck together we would be way better off, unfortunately we are allowing these insurance companies to control us,(rather to own us).
 
Comment by:
Vaughn
3/11/2010
4:23 PM
Steering in the collision business has put a lot of honest body shop operators out or almost out of business.It has equally hurt the car rental operators as well,which I am one. Most of all it is a defamation of character of ones business.The customer is told by the agent that we are not good to do business with.It seriously damages ones reputation.
 
Comment by:
TOM
3/11/2010
4:05 PM
Just about every customer of mine tell me how the insurance company tries to send them to their approved shops. They lie to them by saying that they will warranty all the work performed, it will be repaired quicker, & they have rental for you now. Then they say the other shops will not do this & you will be responsible for extra charges. What they do not tell the customer they will sign all your rights away & the insurance company will repair the vehicle the way they want it done & those approved shop will do it that way because they want more work to come their way. The approved shop is more worried about making the insurance company happy, not the customer.The approved shop workers are doing repairs for less money,thus not happy.The worker does not look for other damage because he does not get paid for it. I am a small shop & I redo 4 to 6 vehicles a year. Steering is #1, first thing a claims department wants to happen. I hope this will be the start of a change in this practice, it is making our industry look bad. Is this a fair market way to do business ?
 
Comment by:
Joe Alati
3/11/2010
3:30 PM
Yes where is the free enterprise in steering?
 
Comment by:
STEVE
3/11/2010
3:02 PM
To bad he can't experience the same thing with health care!!!
 
Comment by:
Frank in Pa
3/11/2010
2:47 PM
THIS IS A MAJOR ISSUE THAT NEEDS TO BE FIXED 1/2 SHOPS HAVE ALL THE WORK AND THE OTHER 10 HAVE NONE NOT FAIR AT ALL
 
Comment by:
george
3/11/2010
2:11 PM
WERE A DRP FOR MANY,BUT FARMERS@PROGRESSIVE STEER AWAY FROM US,THEY DONT WANT TO PAY FOR PROPER REPAIRS OR GOING LABOR RATES.SO SUBSTANDERD REPAIRS FOR THEM IS NORMAL.
 
Comment by:
adam
3/11/2010
2:06 PM
Wonder what would happen if we put the politicians all on Social Security and watch what happens.
 
Comment by:
VITO DEMONTE
3/11/2010
2:06 PM
THE INS COMPANIES HAVE BEEN DOING THIS 15 YEARS THIS IS A CONFLICT OF INTEREST WHY CAN,T THEY BE STOPED BECAUSE THEY HAVE POWER & MONEY GOOD LUCK
 
Comment by:
dman
3/11/2010
1:58 PM
Here in Ohio they all do it. Someone should look into it!
 
Comment by:
MATT
3/11/2010
1:57 PM
WOW! Our industry has been screaming about steering for years but nothing happens to change it until it happens to a politician! We'll see how far it gets!
 
Comment by:
BILL
3/11/2010
1:50 PM
LOOK AT GEICO THEY ARE BIG BIG AT THAT
 
 
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