Even though, on average, American vehicles are typically parked for about 95% of their useful lives, according to Fortune Magazine, having adequate car insurance is still important. When choosing an auto collision shop, it's ideal to find one that's approved by your insurance carrier. Insurance carriers and auto body shops work closely together, and working with an approved shop will make any claim process go more smoothly.

The Relationship Between Insurance Companies and Your Local Auto Collision Shop

Ultimately, an auto collision shop enters into a repair contract with the car owner. This means that the auto shop needs to keep in mind that they're working for the car owner, even if their payments are coming from the insurance company. Insurance providers will approve certain shops, making it easier for the insured to have their vehicle repaired and the shop to be paid. Typically, the auto collision shop is paid directly by the insurance companies, but there are some instances where the vehicle owner will receive a check and then pass along the funds to the shop.

Considering how much Americans rely on their vehicles, having repairs completed quickly and correctly is important. Many consumers find that working with a shop that is pre-approved by their insurance provider makes the entire repair process go a lot more smoothly. Of course, car owners have the option to have repairs completed by the shop of their choice and then seek reimbursement from their insurance companies.

This relationship between repair shops and insurance companies can make it more difficult for independent shops to do business. Due to economies of scale, larger automotive repair companies are often able to offer insurance carriers a lower price point. It's common practice for insurance companies to determine how much repairs, including parts and labor, should cost for each job.

A claims adjuster will review the damaged vehicle to determine how much the repairs should cost. There are situations when the insurance adjuster and the repair shop will disagree. Unfortunately, the insurance company will likely win in such situations. Ideally, the way that collision shops and insurance companies work together should create a more streamlined experience for consumers.

Some Shops Are Part of Direct Repair Programs (DRPs)

In a process similar to that used by healthcare providers, many insurance companies create a network of shops that they deal with directly. An auto collision shop that's a part of a company's Direct Repair Program, or DRP, can expect a steady stream of business. While this can be a positive relationship, it can also be detrimental to shop owners.

Occasionally, insurance carriers pressure shops to use lower-quality parts in an effort to keep costs lower. This practice is the exception and not the rule. Many auto shops choose to work directly with their customers rather than become a part of a DRP. Customers who have an auto shop that they rely on will often have their repairs done there rather than deal with an unfamiliar auto collision shop.

Choose an Auto Collision Shop Ahead of Time

Whether you choose a familiar auto collision shop or one that's recommended by your insurance carrier, it does make sense to decide which shop you will want to use prior to needing one. Knowing where you would want to have your car towed if it's involved in an accident and rendered undrivable is good information to have.

Remember, even though it can be easier to work with a shop that's approved by your insurance company, it's not required. Be sure to carefully review your auto insurance policy and ask your agent for clarification when it comes to the requirements for repairs.

Car accidents can be very traumatic events, and having to deal with a complicated and drawn-out repair process isn't something that anyone wants to deal with. By having an auto collision shop selected beforehand, it can help make everything go more smoothly. No one wants to have to scramble at the last minute to try to find a reliable shop.

The way that an auto collision shop works with insurance companies should benefit all parties. The insured vehicle owner receives reliable repair services and has their insurance provider pay the shop directly, making the process more straightforward for them. The insurance companies have a network of repair providers that they can rely on. The body shops enjoy a stream of business with guaranteed payment.

When auto shops and insurance companies work together, they can make it easier for anyone who is involved in a claims process to get back on the road more quickly. If you're looking for a reliable auto collision shop, reach out to City Side Auto Body today. We look forward to working with you.