Panel beaters unhappy with car insurers’ pricing model

Long Lunch 28/08/2018
Photo: Unsplash.

Panel beaters are dissatisfied with how car insurers are managing claims, according to new research.

A survey by the Collision Repair Association (CRA) revealed that panel beaters across New Zealand believe insurance agencies are using an outdated pricing model and not considering significant advancements in vehicle technology.

Industry says they are being remunerated based on rate cards that often are 10 years old, while the work may take significantly longer because the car part has become more advanced over time.

Neil Pritchard told RadioLIVE that repairers don’t “have the luxury” of tweaking the prices themselves, because they are essentially contracted by insurances companies.

“The thing that is unique about the collision repair industry is that the price is kind of set by the insurers.”

But not all is hopeless, according to Mr Pritchard.

The dissatisfaction revealed from the CRA survey as already prompted several insurers to reach out the industry group in order to set things right for their hourly rates.

Listen to the full interview with Neil Pritchard above.

The Long Lunch with Wendyl Nissen, 12pm - 3pm on RadioLIVE and streaming live to the rova app on Android and iPhone.

RadioLIVE.