Hello, Pot? It's the Kettle - BodyShop Business

Hello, Pot? It’s the Kettle

Somewhere in this country, a dad is sitting on a couch, smoking a cigarette, watching a football game and resting a bowl of potato chips on his beer belly (which doubles as a TV tray).

During a commercial break, this same dad lectures his son on smoking. "It’s a terrible habit," he says, blowing smoke both literally and figuratively. "Don’t let me catch you doing it again."

Well … that heart-felt speech should effectively suppress any further desire his son has to smoke, don’t you think?

Every day, we see classic cases of "Do as I say, not as I do." Or, as my husband likes to say, "Hello, pot? It’s the kettle."

The most recent example of the pot calling the kettle black was when the National Association of Independent Insurers (NAII) issued a statement about how happy they are that California Senate Bill 1648 (which would’ve outlawed insurer-owned shops) failed to pass. Says NAII Vice President Sam Sorich: "Repair shops, which today are characterized by a 43 percent fraud rate, are not entitled to statutory protections."

Though I don’t know why 1648 failed, I do know that it takes a lot of cojones for the insurance industry to reprimand repairers for fraud. I’m not saying repairers are guilt free, mind you. Plenty of shops commit fraudulent acts every day.

Heck, when I shopped around for estimates after my Celica was rear-ended, three out of the four shops I visited offered to bury my deductible. One estimator even explained how he’d do it. And, frankly, if I hadn’t been knowledgeable about the collision repair industry, I wouldn’t have known that what he was really saying was that he was going to charge the insurer for something the shop wasn’t going to do.

The "phantom invoice" is another type of fraud that’s apparently popular with some repairers. In a big wreck – in which the shop orders 40 to 50 parts – the shop will often fax the order to the dealer parts department, which must then send the parts in three or four loads with the same number of invoices. But when the job’s done, the shop returns many of the parts for credit. You see, all the shop really wants is the original invoice (showing the purchase of all the parts) to submit to the insurer. This practice is so prevalent, in fact, that dealer parts departments – tired of having to restock the unused parts – often ask the shop up front: "Do you want the parts or just the paper?"

But I digress … We all know that there are shops out there that are willing to do just about anything to get business. But we also know that insurance companies aren’t always the victim. In many cases – especially with a "preferred shop" – insurers sometimes look the other way (silently condoning illegal actions and more or less throwing their own policyholders under a bus). We also know that some adjusters encourage fraud. (Rather than having the shop replace an inner-wheel housing, one appraiser told a shop manager to throw away the new part and use the money he’d receive for installing the part to pay for some additional procedures that weren’t on the estimate.)

Insurers are, by no means, in any position to judge repairers.

"What about the fraud committed daily by the powerful insurers in this country?" asks autobody lobbyist Mike Causey, after hearing the NAII’s statements about repairer fraud. "How often do [insurers] lie, cheat and steal [from] body shops, auto glass shops and even their own policyholders?"

I don’t know. What I do know is this: Since insurers are also guilty, they’ve flipped their lid if they think it’s their place to call the kettle black.

Georgina K. Carson
Editor

You May Also Like

Deadline for Busch Memorial Scholarships Approaching

Two scholarships will be awarded to students pursuing a collision career.

The ASE Education Foundation announced that the deadline to apply for the Michael Busch Memorial Scholarships is March 31. Presented by the foundation, two scholarships will be awarded for the 2024-25 academic year to students pursuing a career in the collision industry.

Qualified applicants should be graduating high school seniors or have graduated from high school or received a GED certificate. In addition, applicants should be enrolled or planning to enroll as a full-time student in a two- or four-year college or university or in an ASE-accredited post-secondary collision repair program.

Body Bangin’: Stand Out in a Consolidator’s Market with John Shoemaker

Micki Woods interviews John Shoemaker of BASF on how to be “elite” in a consolidator’s market.

Body Bangin’: Can Loaner Vehicles Be Another Revenue Stream?

Micki Woods interviews Laura Tierney of ShopLoaner.com on turning loaner vehicles into a new profit center for your shop.

Protect Your Shop from Cyber Crimes with Mark Riddell

Micki Woods interviews Mark Riddell of m3 Networks Limited on what auto body shops can do to protect themselves from a cyber attack.

Body Bangin’: The Disengagement Epidemic with Kevin Wolfe

Micki Woods interviews Leaders Way Owner Kevin Wolfe on why 73% of work professionals are disengaged today and what we can do about it.

Other Posts

Body Bangin’: I Thought We Were Doing It Right with Josh Piccione

Micki Woods interviews Josh Piccione on repairing vehicles correctly — according to manufacturer guidelines.

Body Bangin’: Be a Star Not a Hamster with Robert Snook

Micki Woods interviews popular keynote speaker Robert Snook on how to differentiate and grow your business.

Body Bangin’: Know Me, Know My Car with Mike Anderson

Micki Woods interviews Mike Anderson on the importance of building an emotional connection with your customers.

Body Bangin’: Fighting for Consumer Safety with Burl Richards

Micki Woods interviews Burl Richards on his personal mission to fight for consumers’ rights and safety.