Dandenong South car repairer says insurance companies are too greedy
MOTORISTS should demand choice of repairer in their insurance policies to get the best quality work and stop ‘greedy’ insurers sending small businesses to the wall, repairers say.
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MOTORISTS should be demanding choice of repairer in their insurance policies to get the best quality work and stop ‘greedy’ insurers sending small businesses to the wall, repairers say.
A Dandenong South panelbeater says insurance giants are driving small businesses like his to the wall.
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Supaspray owner David Barker said customers were put at risk by big insurers’ routine practices of underpaying true costs, quoting low hourly rates, and demanding rushed repairs.
The veteran vehicle enthusiast said luckily he had a sideline of restoring rare classic and collectable cars, otherwise he probably would have gone broke.
He said insurance assessors quoted work in too-tight time frames, scrimped on part costs and suggested below-wage pay rates, which in turn lowered repair quality.
“It is driving the good, honest panel shops out of business, which is a real shame,” he said.
“Business is so tough; we have diversified so we could survive, but I can see standards across the industry are dropping and that’s not a good outcome for the customer.”
He said having operated Supaspray for over 30 years he knew far better than a “keyboard insurance assessor” what a perfect job would really cost.
“They are undercutting us everywhere, it is just greedy.”
Victorian car Chamber of Commerce executive director Geoff Gwilym agreed, saying over recent years there had been increasing pressure applied by insurers.
He encouraged every motorist to demand ‘choice of repairer’ in their insurance policy, even if it cost a few dollars more, as it gave them far more control in how their vehicle was fixed.
“Our members (car repairers) are being asked to do repairs at ongoing reduced rates, or risk missing out on the work altogether,” Mr Gwilym said.
“(This) doesn’t work well for small business owners who want to feed their families.
“It is a race to the bottom.”
Insurance Council of Australia spokeswoman Lisa Kable said insurance companies “work with” repairers to get the best results for car owners.
She said the “highly competitive” insurance market led to customer’s demanding the lowest premiums, and there were regulations and safeguards in place to ensure quality work was done.