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Insurance Industry is Unhappy with Steering Policy

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Published on : Jun 05, 2014

The Insurance Bureau of Canada is busy rejecting every allegation put on it as insurers are routing customers to the body shops for getting their vehicles repaired. 

Many concerns are raised by the owner of Spectrum Spray – Kevin Robinson in Boiestown as his business is significantly sloping down this year because insurance companies are urging their respective customers to use shops that are preferable for repair works. 

The system of ‘preferred’ shops is proposed to guarantee customers that shop has certain standards and requirements that will be able to fulfill the needs of the customers, said Amanda Dean, the vice-president, Atlantic, of the Insurance Bureau of Canada. In this manner, the benefit of the insurance company is the loyalty and trust with the workmanship held within that shop, she added. 

She also said, the system is a clear guarantee that the shop has been technically approved, tested, and inspected thoroughly so that the customers do not face any type of hassle or problems and drive away without any worries about the quality of the repairs. Nonetheless, she also added that the customers are still free to choose any auto body shop they want to get their work done in. 

However, according to Robinson the policy is still frustrating and he believes his shop is being slandered. 

Rob Dumais, a writer with Collision Repair Magazine Canada said the practice of preferred lists system and driving customers to those particular businesses is called ‘steering’ in the industry. According to his research, big scaled body shops and insurance companies are signing deals to send businesses to one another. 

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