From The General Manager
My name is Jim Pfau, and I am the General Manager for Alan’s Collision Center. I would like to discuss your vehicle insurance policy today.
We all see the advertising on TV and hear it on the radio, but do you really know what you have purchased?
The first example is found in your declaration page under “Limit of Liability.” I would encourage you to pull out your policy and go to that section. If you read the language you will find a statement like:
“Will not exceed the prevailing competitive labor rates.”
What does that mean?
Your insurance company determines what labor rate they are willing to pay and you are responsible for the balance. A well-trained and equipped shop obviously has higher overhead than a shop that does not know how to do complicated repairs or lacks equipment to restore your vehicle back to factory specifications. Regardless, your insurance company only seeks the cheapest shop to determine their labor rates.
How about this statement?
“You agree with us that the repair estimate may include new, used, recycled, aftermarket and reconditioned parts.”
What does that mean?
This is a big one! It means you gave away your right to have only new factory parts replaced after a collision. We often fight with insurance companies over the use of junkyard steering and suspension components. We also try to protect against the use of aftermarket safety components that have not been crash tested like bumper reinforcements and structural items. These things can affect your safety and the timing of your air bag systems.
You have to remember that your insurance company is in the business of paying claims and they are NOT a repair authority. They often try and deny the factory repair methods and position statements as to how your vehicle has to be repaired.
Alan’s Collision Center fights for its customer! When these situations arise.
Insurance companies try to contain costs and that is why it is important that you know what coverage you bought for your auto insurance.