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Insurance / Bodyshop question


Scruit

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A few local bodyshops are offering 10% cash back on whatever the insurance company pays for the repairs.

 

Seems like that should be illegal, or is at least unethical.  They are charging the insurance company money that is not needed to effect repairs.  Either by overcharging the insurance company OR cutting corners on repairs.

 

Anyone familiar with with this? 

 

(I already took the car to First Impressions Columbus, so this is purely academic interest)

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That definitely sounds a bit greasy to me, not heard of this practice before and sends up a red flag for me also. I'd simply choose the most reputable business, take it there, and be done.

Edited by Hellmutt
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From what I just read, it's a marketing ply aimed at people who can't afford a deductible.  These places are described as "This Walmarts of bodyshops"

 

The insurance industry is trying to ban the practice because the money either comes from overcharging the insurance (illegal) or cutting costs on the repair (unethical unless the owner knowingly agrees to a shoddy repair), and it's difficult to tell which is which.

 

It immediately struck me as cheesy.  

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Or you take it to a place you trust and that gives you your car back in an as-new condition...  And you don't care how much it costs.   Any money I get cash in hand is money diverted from repairing the car.  I'd rather my car be perfect than have 200 bucks cash back.

Edited by Scruit
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