Shifting Collision Repair Practices: Transparency and Customer Empowerment

Greg Luther, collision director at Helfman Collision Center in Houston and chairman of the Auto Body Association of Texas (ABAT), is advocating a shift in collision repair shop practices. Traditionally, repair shops have protected customers from disputes with insurance carriers over repair costs. However, Luther suggests this approach is becoming less viable as the insurance industry evolves.

In a case involving a 2020 Jeep Grand Cherokee, Helfman Collision Center estimated repair costs at $12,200, suggesting the vehicle was better declared a total loss. Yet, the insurance provider approved only $7,100 for repairs, leading to customer intervention that eventually increased approval to $9,500. Luther points out that as claims grow more complex, customer involvement is essential to achieve fair resolutions.

Importance of Transparency and Customer Engagement

Luther highlights the increasing need for repair shops to involve customers in decision-making processes. As repair costs rise due to advanced technologies and stringent OEM procedures, shops can't absorb extra expenses without threatening financial stability. Transparency in insurance policies and repair needs is crucial, according to Luther.

Shops should document and communicate repair procedures, costs, and responsibilities clearly from the outset. Additionally, tools like the Right to Appraisal, mandatory in Texas personal auto policies, offer consumers alternatives in disputes with insurers. Luther asserts that these practices empower customers, ensuring they are informed about their repair rights and processes.

Ultimately, fostering transparency and education benefits both the repair industry and its customers, leading to better outcomes and stronger support for vehicle owners. Luther's recommendations aim to adapt to the evolving dynamic between repair shops and insurers while safeguarding the interests of both parties.