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Call/Text 540-428-9288
What is "Steering?"
You’ve been in an accident. You have car insurance coverage. Many people assume that one of the first steps in dealing with the aftermath of an accident is to call their insurance company to find out what to do next.
Unfortunately, many insurance companies take advantage of their policyholders’ trust, and engage in a tactic known as “Steering”.
What is steering? Steering is designed to direct customers to a shop in the insurance company’s preferred "network" or “Direct Repair Program” (DRP).
A DRP is an agreement between the body shop and an insurance company that usually means that the body shop agrees to price concessions for the insurance company. In exchange, the body shop is led to believe that more claims will be sent their way because they agreed to lower their prices for the insurance company. The body shop is now contracted to work for the insurance company and not the customer.
When talking to your claims representative, it is a very common practice for them to attempt to steer you to their preferred body shop to have the repairs done. Steering is illegal in most states; however, it is still a common practice. Do not be intimidated or coerced into taking your vehicle somewhere just because the insurance company wants you to use a particular shop. By law, you have the right to have your vehicle repaired by the repairer of your choice.
Here are some FALSE things you may hear when you report a claim to your insurance company:
*We will NOT pay for your rental.
*It will take a longer time to inspect your vehicle
*We can NOT guarantee the repairs (insurance companies don't guarantee any repairs - they are guaranteed by the body shop that does the repairs)
*Your warranty will be void
*You may have to pay extra money for the claim
*We (the insurance company) have had problems with that shop before
*They will say anything that may make you think you are making the wrong decision by NOT choosing their suggested insurance repair shop.
How to avoid being steered
*Steering can be avoided by simply knowing your rights after an accident
*Call a body shop that you trust
*Be adamant about having your vehicle repaired at the shop of your choice
*Bring your car to the shop of your choice and report the claim from their office
If you are having trouble getting your vehicle to us, please don't hesitate to ask us for help! Call or text anytime, 540-428-9288 and we will be glad to assist!
Your Rights & VA Laws
Virginia law is very specific in protecting your right to choose the repair facility of your choice. It is illegal for an insurance company to tell you where you need to have your vehicle repaired or discourage you from taking your vehicle to the body shop of your choice.
Your Rights
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You have the right to choose your repair facility.
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You may be entitled to a rental vehicle. This rental should be of comparable value to your vehicle.
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You have the right to insist on Original Manufacturer’s Parts
VIRGINIA LAW:
Approved March 16, 2003
Be it enacted by the General Assembly of Virginia:
1- That §38.2-517 of the Code of Virginia is amended and reenacted as follows:
§ 38.2-5U. Unfair: settlement practices; replacement and repair: penalty.
A. No person shall:
I. Require an insured or claimant to uti1ize designated replacement or repair facilities or services, or the products of designated manufacturers, as a prerequisite to settling or paying any claim arising under a policy or policies of insurance: or
2. Engage in any act of coercion or intimidation causing or; intended to cause an insured or claimant to utilize designated replacement or repair facilities or services, or the products of designated manufacturers, in connection with settling or paying any claim arising under a policy or policies of insurance;
3. Fail to disclose to the insured or claimant, at such time as it recommends the use of a designated motor vehicle replacement or repair facility or service, or products of a designated manufacturer; in connection with settling or paying any claim arising under a policy or policies of insurance, that the insured or claimant is under no obligation to use the replacement or repair facility or service or products of the manufacturer recommended by the insurer or by a representative of the insurer; or
4. Fail to disclose to the insured or claimant, at such time as it recommends the use of a designated motor vehicle replacement or repair facility in connection with settling or paying any claim arising under a policy or policies of insurance, that the insurer has a financial interest in such replacement or repair facility, if the insurer has such an interest.
B. This section shall, not be construed to require an. insurer to pay an amount for motor vehicle repair services or repair products necessary to properly and fairly repair the vehicle to its pre-loss condition that is greater than the prevailing competitive charges for equivalent services or products charged by similar contractors or repair shops within a reasonable geographic or trade area of the address of the repair facility. Offering an explanation of the extent of an insurer’s obligation under this section to its policyholder or third-party claimant shall not constitute a violation of this section.
C. Any person violating this section shall be subject to the injunctive, and enforcement provisions of Chapter 2 ( 38.2-200 et seq.) of this title. The Commission shall investigate, with the written authorization of the insured or claimant, any written complaints received pursuant to this section, regardless of whether such written complaints are submitted by an individual or a repair facility. For the purpose of this subsection, any insurance company utilizing a third party shall be held accountable for any violation of this section by such third party.
2. That the provisions of this act shall apply to motor vehicle insurance policies issued or renewed on or after July 1, 2003.