Consumer Rights

The Right to Choose

That is the crux of the issue in auto body repair as insurance companies try to control the care of your vehicle the way they control your personal health care. It is your right to choose your own collision repair facility and to have the insurance company pay for safe and proper repairs to your vehicle so it retains its value and meets important safety standards.

However, insurance companies often do not volunteer to train you on how to collect what your entitled to or your rights after a loss. They may never tell you what is at stake in the selection of a repair facility. Instead when you report a loss and need information about how to get your vehicle repaired efficiently and effectively, the insurance representative is likely to tell you about referral shops - so called preferred shops or programs. They may try to provide a list of shops that have agreed in advance to insurer price controls and corner cuts. These cost controls may not be in your best interest.

Know Your Rights

In New York you have the absolute right to select the collision repair shop of your choice to make repairs. No insurance company, independent agent, representative, appraiser , adjuster or staff member of an insurance company can legally force you to or away from any specific repair shop, require that repairs be made by a specific repair shop or individual. Nor can they require you to have your vehicle inspected at their drive-in claims center. If you request it, your insurer must inspect the damage to your vehicle at your chosen location or collision repair shop. (Regulation 64)

• You have the right to have your vehicle towed to any location that you choose.
• You must notify your insurance company before repairs begin.
• You do not have to go to a drive-in claims center. Your insurer must inspect the vehicle at any location you choose, within 6 working days.
• You do not need to get two or three appraisals.
• Your insurance company is responsible for payment to restore your vehicle to pre-accident condition.
• Your insurer must negotiate in good faith with the shop of your choice.
• The registered repair shop you choose should provide an estimate of damage and assist you with the processing of your claim to ensure safe and proper repairs are made to your vehicle.
• A repair shop has no right to speak on your behalf without first given Designated Representative Authority by you.
  

Control Your Decision

Exercise Your Rights: Don’t allow the insurance companies to make decisions for you. Don’t be intimidated - steering is illegal in New York. Don’t allow insurance companies or agents to steer you to a specific shop rather than a trusted shop of your choice. The practice of steering places insurance company profits ahead of public safety and penalizes repair shops that place safety first.

Preserve Your Rights

If you feel your rights have been violated, let state regulators and legislators know what happened and that you understand and value your right to choose.

Make Informed Decisions

There are compelling reasons to chose a trusted repair shop who you know will make sure the vehicle is truly restored to its pre-accident condition. Factors to consider include:

Who does the shop actually work for - you or the insurance company?
Referral repair shops work for the insurance company. Independent repair shops work for the consumer. Insurance appraisers work for the insurance company. Independent collision repair facilities work for you. They are looking out for your best interest. They will negotiate directly with the insurance company for at the very least, the most practical value given the age of your vehicle. They will seek full and proper repairs so that your vehicle is safe for you and your family. Independent collision repairers look out for your interests and will serve as your advocate and representative during the repair process. Preferred or referral repair shops represent the insurance company in both negotiations and the repair of the vehicle. They contract with insurance companies regarding the repairs, the costs and the repair procedures. The insurance company sets the guidelines, rules and the repair shop is required to follow them or risk losing the insurers referral business. But the cost reduction has to come from somewhere. It may affect the quality and thoroughness of the repair service and/or the quality and condition of the parts used. You have paid your insurance premiums with the expectation of receiving safe and proper repairs - not cheap, inferior or incomplete repairs.

What kind of parts will be used to repair your vehicle?
The first step to assure your best chance at a correct repair is through the use of original equipment manufacturer (OEM) parts. Other companies manufacture parts that are made to look like your vehicle’s parts, but may have never been crash tested and may affect the performance and safety of your vehicle. These parts are not covered under your vehicle manufacturer’s warranty and there are no provisions for recalls based on the safety or performance of these parts. Consumer Reports reported on the results of its extensive study of non-OEM parts in its story in the February 1999 issue. Your insurance company may attempt to use imitation parts to save money on your vehicle’s repairs. Direct repair shops are, by contract required to use imitation parts. Independent repair facilities will supply you with information to help you negotiate with your insurance company for the appropriate original equipment manufacturer’s parts to maintain the integrity and value of your vehicle. In the case of a poor quality repair you could sustain a loss of value to your vehicle. This is known as Diminished Value or DV. Contact www.wreckcheck.com or your local Wreck Check facility for information about collecting on your loss. Syracuse Wreck Check number is (315) 471-8521.


Frequently Asked Questions Regarding Auto Body Repair

Q: What should I do if I am involved in an accident?
A: No matter how minor, it is wise to report every accident to the police. Then, contact the registered collision repair shop of your choice. Your independent repair shop can assist you with the processing of your claim, answer your questions, and advise you to ensure safe and proper repairs are made to your vehicle.

Q: Do I have to take my vehicle to a drive-in claims center or get multiple appraisals?
A: No. if you request it. Your insurer must inspect the damage to your vehicle at your chosen collision repair shop rather than at their drive-in claims center. They are legally prohibited from coercing or using any tactics intended to prevent you from seeking damage appraisals from your own body shop rather than their drive-in facility.[1963 Consent Decree]

Q: Do I have to use a specific collision repair facility?
A: No. In New York, you have the absolute right to select the collision repair shop of you choice. When your insurer gives you a list of registered repair shops, they likely will have indicated those shops which have entered into a contract with them.. The contract determines how your vehicle will be repaired and encourages the use of imitation replacement parts. By choosing an insurance preferred or referral shop, you may be giving up your rights in the repair process.[Regulation 64]

Q: What is “steering”?
A: Steering is the act of directing a claimant to or away from any specific repair shop or requiring that repairs be made by a specific repair shop or individual. Steering is illegal in New York.

Q: How do I know if I am being steered?
A: If you are told that it will take longer to get your car repaired or cost more if you choose your own shop, BEWARE. You are probably being steered. Comments such as “We don’t pay that labor rate,” “We won’t reimburse paint materials”, ”We won’t guarantee the work if you bring the car there”, ”You will be responsible for the difference”, or “We will pay from our referred shops estimate”. New York has strong consumer protection laws that require insurance companies to expedite appraisals within specific timeframes, insurance companies are required to negotiate in good faith with any registered collision repair facility on the proper cost to repair the vehicle to pre-accident condition. You pay insurance premiums and contract to pay a specific deductible in the event that repairs are required. In effect, you’ve already paid for proper repairs. Don’t be intimidated. Steering is illegal in New York.

Q: Why should I choose my own collision repair facility rather than one “suggested” by the insurance company?
A: There are compelling reasons to choose an independent, trusted repair shop that you know will make sure the vehicle is truly restored to its pre-accident condition. Insurance appraisers work for the insurance company. Independent auto collision repair facilities work for you. They are looking out for your best interest. The will negotiate directly with the insurance company for the proper repairs so that your vehicle is safe for you and your family. Independent collision repairers look out for your interests and will serve as your advocate in the repair process. Preferred or referral repair shops represent the insurance company in both negotiations and the repair of the vehicle. They contract with the insurance companies regarding the repairs, the costs and the repair procedures. The insurance company sets the rules and the repair shop simply follows them to keep the insurance companies’ cost down. These cost reductions have to come from somewhere. They may affect the quality and thoroughness of the repair service and/or quality and condition of the parts used. You have paid your insurance premiums with the expectation of receiving safe and proper repairs - not cheap imitations.

Q: What are imitation or non-OEM parts?
A: Imitation parts (AKA generic, aftermarket, quality replacement or non-original equipment manufacturer) are “knockoff” part made by a company other than the manufacturer of your vehicle. These parts are made to look like your vehicles parts, but may never have been crash tested and are not covered under your vehicle manufacturer’s warranty. In its February 1999 issue, Consumer Reports published the results of its extensive study of non-OEM parts. The cover story was entitled, Shoddy Auto Parts: How to beat car repair rip-offs, Bumpers that shatter, Parts that do not fit, Fenders that rust. In addition to these concerns, there are no provisions for recalls based on the safety or performance of these parts. Your insurance company may attempt to use imitation parts to save money on your vehicle’s repairs. An independent collision repair facility will help you negotiate with your insurance company for the appropriate original equipment manufacturer’s parts to maintain the integrity and value of your vehicle.

Q: Who guarantees the workmanship for the repairs?
A: The repair facility is responsible for the workmanship. Insurance companies do not repair automobiles. If there is a concern, even with a facility selected by the insurance company, the facility itself is responsible. Every collision repair shop registered as a Motor Vehicle Repair Shop with New York is required to be responsible for safe and proper repairs. If your insurance company claims “they will not guarantee the repairs”, do not worry. The repair facility must guarantee them, as required by law. If an insurance representative says they will guarantee a certain shops repairs, that shop is most likely to have a contract with that particular insurance company. Any guarantee is only as good as the issuing party's integrity. An independent repair shop has no motive to see you unhappy. They don’t get automatic referrals from insurance companies. They survive by the quality of their reputation through satisfied customers.

Q: What can I do if I believe my rights have been infringed upon by my insurance company?
A: You can file a written complaint with the New York Office of Consumer Affairs. You can also file a complaint with the New York State Insurance Department, the U.S. Justice Department, the Attorney General's Office of Syracuse, or the Better Business Bureau.

Q: What can I do to protect my rights?
A: Let your state representative and senator know how you feel about big business trying to take even more control of your life. Let them know that you value your rights and do not want to lose them. Remember, you pay for insurance. No one has the right to deny you the repairs necessary to restore your vehicle to pre-accident condition. It is important to voice your opinion and retain your rights! CARE’s voice is small compared to that of the insurance companies’, but with your help we can protect your rights before its to late.

Q: The Insurance Company says I don’t need an attorney. Is this correct?
A: If you feel you are having problems that seem unfair, they probably are. An insurer that argues with a legitimate request is attempting to avoid fair settlement with you. They may have already violated your rights under your policy. An attorney can help you. Should any you need a free consultation regarding your right to collect on a loss, fell free to contact your attorney or an attorney familiar with auto property claims. Remember: not every attorney is willing or experienced in auto damage claims. Our organization has referred many consumers to:

Stefan D. Berg
Attorney At Law
309 Arnold Avenue
Syracuse, NY 13210
(315) 476-0806
sb@berglawoffice.com

Do not hesitate to protect your rights!