The major insurance companies (State Farm, Allstate, Geico and Progressive, for example), between fixing their own insured’s cars under a collision policy and fixing someone else’s car that their insured damaged under the property damage portion of a policy, spend millions of dollars every year in South Florida. To control costs, many of the larger insurance companies set up “pro” shops, where in exchange for the referrals, the pro shops offer discounted prices to the insurance company for the labor costs and perhaps even the cost of the parts. So this is the reason the insurance companies push folks towards their pro shop. The incentive to the person with the damaged car for going to these pro shops is that they have car rental very close by and they have certain guarantees of the work, which a private shop often will not offer.
From my perspective (the personal injury lawyer’s standpoint), there are some advantages and some disadvantages of using the pro shop following an accident where the other car is at fault.
The primary advantage is that the pro shops oftentimes offer certain “guarantees” that a car dealer or a private body shop will not offer. Arguably, there is some advantage of using the pro shop in that you are using a connected to the insurance company; thus, the insurance company should not complain about delays and other issues that come up as a result of their sanctioned body shop. I have seen cases where it takes long time due to part delays or other reasons when a client is at a car dealership body shop or a private body shop which results in larger rental car bills and the insurance company refuses to pay all the rental bill. Also, the pro shops usually make it much easier to rent a car (rental company often times located at or near the pro shop).
There are some disadvantages also from the standpoint of the injury claim. First, having the cost of fixing the car at a lower number can impact the settlement or even trial value of an injury case. While I do not agree with such arguments, adjusters commonly refer to a small amount to fix a car, like $500.00, to justify a small offer and the same sort of argument could be made in court (e.g. “How could someone be injured when it merely cost $500.00 to fix the car?). Second, some people may question whether a pro shop is going to fix your car in part from the insurance company’s best interests in mind as opposed to your best interest. Some of these pro shops may have all or a significant percentage of their work come from that insurance company and may get bullied around by the insurance adjuster and not fix certain things that need to be fixed, in order to save the insurance company money. Third, some pro shops may use more after market parts to keep costs down and some people may prefer to have parts from the car’s manufacturer.
Another issue which may play into a decision of whether to use a pro shop is the amount of damage to the car and if the client would prefer to have a car “totaled out” or prefer to have a car fixed. Generally, when the estimate to fix a car exceeds 80 percent of the car’s value, then the car is totaled out; thus, the car is not fixed and the insurance company instead pays the owner the market value of the car on the date of the loss. For various reasons, some clients want their car to be totaled and some people do not want it totaled. IF you would want the car totaled, going to the pro shop may work against you, as the cost of the repair will be lower; therefore, you would be better off going to the dealership or a private, independent shop where regular rates apply. On the other hand, if you are trying to avoid the car being totaled out, then you likely would be better off at the pro shop.
If you have been injured in an accident and another person or company may be at fault, please call Gary J. Drucker at 561-483-9199 or 954-755-2120, 305-981-1561, or 561-967-3840 for a free consultation. My principal office in Boca Raton and I have satellite offices in Miami, Coral Springs, Boynton Beach, Lake Worth and West Palm Beach. I only charge my clients fees and costs if I recovers money for them. I am here so you can know your rights. Please call the law firm to set an appointment today!
It is important to note that every case is different and unique and should be judged based on the specific facts. The discussion in this blog is intended to be general in nature and should not to be construed as specific for your case, as a minor difference in the facts of the case could completely change the result. Also, this blog is, as the web site suggests, based on Florida law and the laws of any other states or even another country could vary drastically from Florida. Please feel free to call with your questions, as I offer a free consultation.
