Which shop for which repair

News Extra

Which shop for which repair?

Should panel shops be ranked according to the types of cars they can repair? Just as new car models are becoming more individual in their construction and build materials, repair shops are also moving further apart in their equipment and skills when it comes to fixing them.
Already specialisation is appearing among repairers and is growing Ð along with the problem of insurers and the public being able to decide which repairers are appropriate for which cars.
The move towards car makers forming repairer networks will go part of the way to sorting out shop capability, but this is likely to be a long process. With the Australian fleet averaging around 10 years, the repair market is already faced with a difficult mix of cars made from various strengths of steel, along with other build materials like aluminium, plastics and carbon fibre. Add to that the renewed emphasis on consumer choice of repairer and it becomes obvious that a grading system for shops might be a good idea.
Insurance liability also has a bearing on the problem. The spectre of a bad repair playing a critical role in a subsequent accident is still yet to appear in court, but many repairers think it will. If an insurer sent a car to a repairer who could be shown to be incapable of fixing it properly, that insurer could be liable for the outcome of a subsequent accident.
According to a report on the car repair industry by UK research organisation, Trend Tracker, bodyshops need to invest in new equipment and techniques, but many are not making enough money to do so. The study went on to say that motorists who choose a bodyshop themselves should ensure that it?s competent for the job. Insurers could be in breach of their duty of care obligations if repaired cars were involved in subsequent accidents involving injuries or loss of life, particularly where an insurer has intervened and prescribed a cost-saving alternative repair method to that specified by the manufacturer. It added that insurers will increasingly need to employ specialist, manufacturer-approved bodyshops capable of repairing specific types of car or specific types of damage.
Unless the members of insurers? approved repair networks are able and willing to invest in new techniques, insurers will need to place more accident-damaged cars with the relevant manufacturer?s approved repair network to avoid any potential duty of care liabilities. At present, a high proportion of insurers? approved bodyshops comprises independent rather than manufacturer-approved bodyshops.
If insurers are forced to place a higher proportion of repairs with manufacturer-approved dealer bodyshops, these are likely to seek higher labour rates for approved body repairs, which could help drive up insurance premiums.
The risk is greatest when cars suffer structural damage during an accident. The MFBI study showed that in the UK structurally damaged cars currently account for up to 40 per cent (at odds with NRMA findings of less than 10 per cent in Australia) of all current repairs, after allowing for a rising proportion of total losses. The study recommends that repairs should be assessed for damage severity and then sent to a specialist repairer capable of carrying out the correct repair.
While car makers in Australia are moving steadily, if unevenly, towards forming designated repairer networks, insurers are trying to cover their backs by relying on existing relationships with their repairer networks to know capability levels.
IAG
Australia's biggest car insurer, IAG points out that, in NSW anyway, the MVRIA specifies minimum equipment levels for a repairer to hold a licence, but that more work needs be done in that area to reflect today?s technology needs.
To this end, IAG is reviewing its premises inspection form used when considering an application by a repairer to join its repairer network, and updating it to include equipment levels reflective of today?s market. The form includes reference to customer facilities and overall workshop presentation.
IAG says that competence is a harder value to measure, particularly as technicians move from one business to another but is keen to look at any work being carried out in this area.
Assessors are also well placed in judging whether a repairer is appropriately skilled and has the correct equipment to carry out a particular repair. They take this into consideration when they inspect customers? vehicles. This process is be formalised through regular inspections and data capturing.
In answer to whether IAG was moving towards an official grading system to express levels of PSR competence, an IAG spokesperson said: "We have always had a grading system in regard to performance levels that measure quality, customer service and costs."
AAMI
AAMI, with around 20 per cent of the national market, believes it knows its network repairers well enough to select the right shop for the job. AAMI released the following statement:
"AAMI?s assessors, who are themselves qualified tradesmen, are aware of the equipment levels and competence of all shops with whom we regularly do business. In this way, our assessors will decide on which shops will be invited to quote on a particular repair having regard to the competence and equipment levels of the shop and the extent of the damage to be repaired. The quality of each repairer is closely monitored to ensure each shop is aware of any issues and taking appropriate steps to address them."
AAMI firmly believes in judging outputs rather than inputs and in avoiding overly proscriptive regulation of its dealings with all repairers. "For these reasons we do not believe that a black/white grading system is either appropriate, desirable or workable and would most likely add to costs with no commensurate guarantee as to quality," a spokesperson said.
"We do not support the concept of grading repair shops generally but we do expect all repairers to maintain industry standards, not just for equipment levels but for all aspects of their business."
SUNCORP GIO
Manager, motor claims general insurance, Tim Jeffcoat, said his company has no immediate plans to grade its recommended repairers.
"We choose our repairers carefully," Jeffcoat said, "and we keep in close contact with them. So far we haven't had a problem in getting cars repaired Ð and remember that we have a big spread of models insured. We very seldom get into discussions over method of repair. We accept the advice of the repairer or, if applicable, the car maker."
Jeffcoat reiterates Suncorp GIO's policy of relying on the skill and communication of its repairers to relay any changes that might be necessary. He says that, as a general rule, bigger shops have more capacity to invest in new equipment that would be needed to deal with new types of car construction.
Policy holder choice also plays a role in which repairers do the work.
ALLIANZ
Gavin Strangwick, national manager motor assessing says:
"In our view, insurers are not driving what appears to be the inevitable move to 'repair specialisation'. What is driving the apparent move is the advancement in vehicle engineering, the complexities involved in vehicle construction and the requirement for repairers to have access to the latest smash repair equipment and training. For many, this creates an incredible financial burden.
"It appears some repairers have begun the process of identifying the 'niche segment' they prefer to operate in. Some are aligning themselves to makes and models, others by damage complexity such as towed versus rapid repair. This obviously doesn't mean one repairer is better than the other, but have simply chosen a different segment in which to operate. Therefore, categorisation of repairers would need to carefully consider the perception implications, particularly from a customer perspective.
"Minimum standard criteria should be developed for specialist repairs. Vehicle manufacturers could facilitate discussions with relevant stakeholders to ensure key requirements are met.
"Allianz offers freedom of choice to customers in relation to which repairer undertakes their repair. We have no immediate plans to categorise repairers within our approved network, however we accept that the industry may very well be evolving into specialist segmentation driven by vehicle design.
"If a customer requests assistance in choosing a repairer we will align their need to the most appropriately qualified approved repairer to undertake the work. If we believe a repairer has insufficient equipment levels or doesn't have the competency to repair a specific vehicle we will discuss with our customer the most appropriate repairer to undertake the repair.