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.
