Ask an Expert: The insurer’s way is to divide and conquer
by John and Theresa Kightlinger
The tactic of “divide and conquer” is designed to weaken the enemy’s offense to a point where it becomes the enemy’s defense. Insurers use it against repairers all the time.
A vast divide
You may be asking yourself what this topic has to do with the collision industry. To be candid, many, if not most, quality repairers across the country see the vast divide between insurers’ and repairers’ interests as the single biggest issue impacting the repairers’ ability to properly serve their customer.
Insurers’ and repairers’ goals are diametrically opposed to one another. Insurers will attempt to impose their will onto the repairer, even though the insurer is not party to the contract of repair between the repairer and their customer.
The quality-oriented collision repairer seeks to be properly compensated for the services provided to their customer while avoiding potential liabilities — and doing so in a manner that enables them sufficient profitability for sustainability and future growth. Meanwhile, the aggressive insurer seeks to contain and mitigate claim-related costs while avoiding potential liabilities.
To clarify, who owes whom?
Consumer and repairer. In a standard relationship, the customer engages the collision repairer in a contractual agreement to perform agreed upon repairs to the subject prescribed vehicle. In exchange, the consumer promises to provide full payment to the repairer for the completion of the agreed upon services.
Policyholder and insurer. In exchange for the policyholder or insured’s timely payment of the agreed upon policy premiums, and when collision coverage is applied, the insurer owes the policyholder to:
- Provide compensation for the repair of the covered vehicle.
- Or provide full payment to replace the covered vehicle.
- Or provide repairs to the covered vehicle.
Generally, insurers will not exercise option No. 3 in vehicle repairs because of the potential liabilities.
In situations where a policyholder negligently causes damages to another, where property damage coverage has been purchased, the at-fault party’s insurer provides payment on behalf of their policyholder for the damages they have caused, up to the dollar amount of property damage liability (PD) coverage the policyholder purchased in their policy contract. This is referred to as a third-party claim. As one can see, in either case, there is no contractual relationship between the insurer and the repairer.
John and Theresa Kightlinger own My Body Shop at 401 N. Clinton St., Stockbridge. The couple have lived in the area and raised their children here over the past 20 years. John has been in the auto body business since 1985, and Theresa began work at General Motors after high school. Between the two, they have been working on cars for more than 75 years.
