Debt Free

Just as insurance companies have brought managed care to health medicine, they’re trying something similar with another popular insurance category, auto insurance. Unbeknownst to most consumers, many insurance companies have a cozy relationship with many car repair providers. These little relationships are known in the industry as direct repair contracts. In such relationships, the insurance company has a contract with various auto body repair facilities to perform repairs at favorable rates. This little arrangement greatly benefits the insurance companies, but said companies don’t always have the best interests of the consumer in mind. 

Be sure, before you get your vehicle repaired after an accident that you know who you’re really dealing with. Ask your auto care provider if they have any relationships with the insurance company. Something else to look for when choosing an auto repair facility is that they will follow the manufacturer’s recommended repair procedures. You should also be informed if they aren’t going to repair your ride with OEM components, not inferior imitations. After all, this will affect the value of your prized machine.

Speaking of value, you should be sure your settlement takes into account the reduced value of the vehicle after its little problem. This is known as diminished value. Your settlement should include this, or you should at least be informed that the value of your vehicle will be not be what it once was.

Just a little consumer protection tip for your weekend. Have a great one, and keep trying to become debt free!