Insurers Negotiate Repairs Without the Owner's Knowledge

Throughout my career, I have assisted many insureds and claimants in navigating the claims process and obtaining fair treatment from insurance carriers. In recent years, I have observed troubling trends in how some auto insurance carriers prioritize cost savings over vehicle safety.

This issue is particularly evident in collision repair claims. While vehicle owners have the legal right to select the repair facility of their choice, it is not uncommon for insurance carriers to communicate directly with repair shops, without the knowledge or participation of the vehicle owner, and negotiate reduced costs and rates or even request the removal of certain repair operations or procedures.

These negotiations may be based solely on photographs rather than an in-person inspection. The result is that the insured or claimant, who paid monthly insurance premiums for coverage, is effectively excluded from decisions that directly impact the quality and completeness of their vehicle repairs.

With this concern in mind, I strongly encourage the Economic Affairs interim Committee to take up the issue of Right to Appraisal for automobiles.

The Right to Appraisal provides a fair and impartial mechanism for determining whether proposed repairs are prudent and necessary to restore a vehicle to its pre-crash condition. When there is a disagreement regarding the scope, method, or cost of repairs, the appraisal process allows qualified appraisers to independently evaluate the damage and determine the appropriate repair approach.

This process helps ensure that repair decisions are not made unilaterally but instead are based on an objective assessment of the vehicle’s condition and the work required to return it to its safe and proper pre-loss state. By relying on the expertise of independent professionals, the appraisal process promotes transparency, accuracy, and fairness for all parties involved.

Thank you for taking the time to review these concerns. I appreciate the opportunity to share my experience and would welcome the chance to discuss these matters.

Respectfully,

Bob Pemberton