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Direct Repair Program (DRP) the other 1/2 of insurance steering

Posted: February 15th, 2017 By Louie Sharp

Direct Repair Program commonly know as DRP is the auto body shop side of insurance steering (See Video below). The DRP is a contract agreement between a auto body shop and a insurance company. For all the large well known insurance companies the auto body shop gives the insurance company discounts and provides free services as part of the contract. This includes labor rate discounts, parts discounts, use of aftermarket or used parts as well as writing total losses for free and giving the insurance company free storage on the vehicle. This is why insurance steering is so common. This is why insurance steering is a Federal Offense. In the auto body industry the national average of net profit (profit after all the bills are paid) is 10%. You can see that it is easy for a auto body shop to give up all or most of it’s profit when giving the insurance company these discounts. This is why large numbers of shops are having to cut corners and/or do poor repairs in order to make a profit.

The other negative down side for consumers is the fact that the auto body shop did nothing to earn the client. The insurance company sent the client to the shop so client service and quality repairs is often lost.

It always best to do your research and homework. This gives you the ability to make your own decisions when you need auto body repairs. Remember you have the right to choose the auto body shop and not let teh insurance company steer you to the shop they choose.

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