In the Name of Customer Service or Profits?

The television ads continue to flow for one large insurer promoting its “customer-friendly” concierge service. The ad urges the insurer’s policyholders, in the event of an accident, to drop their vehicles off at this concierge service and let the insurer do the rest. Maybe I am naïve, but who would ever consider putting their damaged vehicle, the second most expensive purchase that a person makes after their home, into the hands of the insurer and believe that the repair will be done safely and restore the vehicle to pre-loss condition? Unfortunately, this is probably a very successful venture for this particular insurance company. However, those of us participating in the auto glass repair and replacement industry witness everyday the real objectives of insurers and we know that the end result is not pretty.

What advantage does a car owner have in utilizing such a service? Convenience? Are these ads produced in such a way to instill confidence in the viewing audience that the insurance company has decided to put their safety ahead of cost minimization and therefore profit? That the insurance company is a valued friend? Using this service, what is the likelihood that the owner’s vehicle will be restored to pre-loss condition and not suffer from diminished value? What are the odds that the service provider will install replacement parts that meet or exceed the crash safety standards recommended by the automobile manufacturer? Recently, Ford Motor Co. showed us that there are pronounced quality differences between aftermarket and original equipment manufactured parts. As a lifelong Buffalo Bills fan, I would say that the odds would be much better for the Bills to take home the Vince Lombardi Trophy in February 2011 than for the service provider in this scenario to use even one OEM bolt. How’s that for confidence?

This promotion of a concierge service undermines the role that the professional shop owner/operator fulfills in both the collision industry and the auto glass repair and replacement industry. Specifically, in the auto glass repair and replacement industry, the independent shop owner/operator assesses the damage to the customer’s windshield to determine if it can be repaired or requires replacement. Once the determination is made, the recommended service is presented to the customer and the customer makes a decision. If the situation is handled properly, the shop’s customer will have the necessary information to make an informed decision; information that should include the benefits of windshield repair, differences in OEM versus aftermarket glass and safe drive away times. These are the attributes that separate the professionals from the non-professionals. If you recall, one major gasoline company used to advertise, “You can trust your car to the man who wears the star.” Does the same really hold true for this concierge service?

It is an outright shame that the entire commercial is focused on making the repair convenient for the customer, rather than safe for the customer, especially given the underlying motives of the insurer. Apparently, this insurer, by making the collision repair convenient for the customer will have enough influence to keep its policyholders from taking their vehicles to an independent third-party to assess and repair the damage. In addition, I see no message throughout the ad that the insurer is implying to the customer that the insurer will see that the repair is done safely and properly. Unfortunately, for the customer, unless some paint peels prematurely off of the vehicle, or some other cosmetic flaw stems from the repair, he/she will never know how safely the repair was done or the reliability of the parts installed until another accident is encountered. And, at that point, it may be too late.