Choice of repairer is a subject everyone is talking about

The VACC is advising motorists to double check their vehicle insurance, recommending vehicle owners read, and understand, the small print on their insurance documents.

VACC has fielded a number of consumer questions about 'choice of repairer' in particular, after some motorists discovered they do not have the right to choose who repairs their vehicle after a crash.

"Choice of repairer has become a hot issue. Motorists are realising that, in a majority of cases, it is their insurance company that prevents them from deciding who repairs their vehicle after a crash," VACC executive director, David Purchase, said.

"The other common frustration is that insurance documents are written in complex and ambiguous language so that motorists are left confused about who controls the repair process," Purchase said.

VACC is drawing attention to these issues through its Car Insurance Campaign. The campaign calls for insurance companies to be up-front and transparent, particularly over choice of repairer. The campaign also raises awareness among vehicle owners of the importance of reading the details of their policy documents.

To assist, VACC has produced a Consumer Choice Comparison Table which compares all the choice of repairer sections from Australia’s vehicle insurance companies. It directly quotes (from their websites) what they say about this issue. VACC has ‘translated’ the quotes into simple, straight-talking language.

"Choosing vehicle insurance should not be based on price alone: it should be about choosing the right policy. If that includes choice of repairer, then motorists are advised to read all the paper work, including the small print, in order to find a policy which gives them what they want and not what the insurance company wants," Purchase said.

Meanwhile, Family First Leader Senator Steve Fielding has introduced the Choice of Repairer Bill 2010 which would make it a legal requirement for the big car makers to hand over the technical and diagnostic tools necessary for servicing all new car vehicles.

Fielding said ordinary Australians were being ripped off with higher prices from dealer repairers because they were unable get their cars serviced at less expensive, independent repairers, who don't have access to vital information.

Australians are losing their choice over where they take their car to be serviced and repaired and are paying for it through their hip pocket, he said.

"This is about giving people a fair go when they go to get their car repaired,"

"This legislation will make sure car repair prices are kept low by ensuring the car giants can't build on their ever-increasing monopoly."

Fielding said there were between 12,000 and 14,000 independent repairers operating across Australia.

"Between 2003 and 2007, the number of independent general repairers fell by 11 per cent because they have limited or no access to the information to repair new cars,"

"Family businesses are being killed off around the country, because the big vehicle manufacturers are forcing ordinary Australians to go to their own dealerships and pay over- inflated prices."

Stuart Charity from the Australian Automotive Aftermarket Association (AAAA) said if the legislation passed it could save thousands of jobs.

"There are around 300,000 people employed by independent repairs across the country and this legislation is a key to guaranteeing their jobs," Charity said.

Under the new laws independent repairs would have to pay a reasonable price to access the technical data from the car giants.