What is a “Direct Repair Program”?
A “Direct Repair Program”, is an agreement between the insurance company and a collision repair shop that lets the insurance company control most of the costs associated with your collision repair. The repair of your vehicle by, a “DRP”, may compromise the resale value and safety of your vehicle.
It is illegal for an Insurance Company to direct or require you to take your vehicle to any particular shop. When insurance companies attempt to direct work to these shops, they may be violating the State of Michigan Anit-Steering Law PA 218 (MCL 500,100-500.8302).
This law was enacted to protect you as the consumer.
Are you a victim of an Insurance Company’s “Direct Repair” scheme?
Many insurance companies have programs that will attempt to direct you to an “Authorized” Collision Repair Shop. They promise faster service, and a warranty. In fact they may attempt to convince you the “program” is the only way the work will be warranted. They will assure you that your vehicle will be repaired with “Quality Replacement Parts.” This will sound like a fast and trouble free way to have your vehicle repaired with your welfare in mind, but you don’t know what has happened behind closed doors. Now you’ll know the rest of the story.
How are the DRP Shops picked by the insurance companies?
These shops are chosen based on the level of “kickbacks” they are willing to provide the insurance company.
Kickbacks include: discounts on: shop labor rates, parts needed for repairs, overlooking hidden damage, using counterfeit replacement parts, etc.
The shop is told that by agreeing to be a “DRP” shop, additional work will be directed to them. You receive NO DISCOUNT or premium reduction from your insurance company.
Who is our customer?
With a “DRP”, the repair shop treats the insurance company as the customer. In some cases the shop must sign an agreement promising not to disclose any problems to you. Repair shops that do not participate in DRP’s are able to offer discounts to our customers as opposed to your insurance company. The insurance companies get enough of your hard earned dollars, do not let them take advantage of your vehicles repair!