If you ever get into a car accident and your car needs to be repaired, your car insurance provider, or the car insurance provider of the driver who was at fault for the accident, should be there to step in and cover the costs of the repair. After all, that is why you pay a pretty hefty premium on your car insurance policy every year.
Drivers have come to expect their insurance providers to cover the costs of the repairs required on their vehicles after they are involved in a car accident. They no longer want to hear any complaints from the car insurance provider, nor do they want to have to answer any questions. A good car insurance company will simply take the costs of repairs and cover them with no questions asked because that is their job and that is why they charge a yearly premium which drivers are required to pay in order to be on the road in the first place.
But what many drivers do not realize, especially whenever they complain about high car insurance rates getting even higher every year, is that those same repair costs are what are causing their rates to rise. Because car insurance providers carry so much responsibility, they end up sometimes losing money because repair costs are so high. And, in the end, the higher costs are transferred to the drivers, who have to pay more in order to help car insurance companies begin making profits again to have enough funding available to cover repairs.
The Problem with Repair Shops
The problem is that repair shops are taking advantage of the system by overcharging for their services and the parts that they use to make repairs to vehicles that were involved in accidents. Whenever they realise that a car insurance will be taking care of the bill, many repair shops end up charging a lot more than they would normally charge the average customer, because they feel that car insurance companies have more than enough money to cover the expensive repairs, while the average person would have a much tighter budget and simply be unable to pay those higher rates at all.
But the problem is that, as more and more repair shops are taking advantage of car insurance companies in this way, premiums are going up to cover the losses. These same individuals who work at these auto repair shops end up having to pay higher premiums even for their own car insurance. So, in effect, they are shooting themselves in the foot.
One of the reasons that car insurance rates have continued to skyrocket is all of the fraudulent activity throughout the industry. If repair shops would charge reasonable rates, even to car insurance companies, then everyone would be better off because providers would be able to lower their premiums, the repair shops would be able to do their work, and drivers would be able to get the services that they need at reasonable rates that fit their budgets.
Jessica Davies is a renowned author and expert in all things insurance related. Jessica often visits garethsquote.com to check out the latest car insurance tips and advice.