Changes to repairs done by GIO Insurance

cobramania · 16-10-2010, 05:01 PM

Guys,
This a a warning & heads up, if you have or are thinking about taking out GIO car insurance for your pride & joy.
Talking to a smash repair owner mate of mine today, he says GIO insurance are about (one step away), to make major changes to how repairs are done on your vehicles.
He says you will no longer be able to choose your own repairer, you will have to take it to a central recovery centre/holding yard & leave it there (even if it's drivable), then smash repairers will come & inspect the vehicle & tender on it's repairs, it will be a minimum 2 quote system & the cheapest repairer will get the job. He has been to meetings with other smash repairers, & those well respected repairers that do a top job, have said they will not be tendering or repairing GIO insured vehicles, which means you'll be left with a job done by a cheap smash repairer, who doesn't really care about the quality of the job done.
I'm not sure if it's only GIO NSW or all Suncorp subsidiaries as well?
NRMA did something similar a few years back & after a lot of backlash from smash repairers & loss of customers reversed this & made choice of repairer a big thing. I'm sure GIO will come to the same conclusion in 6 months time,(though they should have learnt from the NRMA fiasco, but obviously not), but it may be too late for your pride & joy. If you have GIO insurance, now is the time to act & make some noise about it before it's implemented. If your considering GIO insurance be wary. This guy is well respected in the smash repair & motor sport industries & is one of those who take pride in the quality of work they do, so I have no reason to disbelieve what he's told me.

Yaw · 16-10-2010, 06:02 PM

Working within Suncorp group of companies in insurance. I can tell you for fact, the information you have been given is absoulte rubbish.

Yes GIO/Suncorp/AAMI group companies are heading towards a multi brand assessment centre. If your policy allows for choice of repairer this is not going to change. YOU WILL STILL have choice if your policy allows for it. If it does not then they use the two quote system, (which by the way still has a life time guarantee on any repairs done).

It is just the usual scare mongering by repairers that are not aligned to any particular insurance company.

NRMA did it by way of sending digital photos to repairers, not the repairers comming to actually see the car

mickyyyy · 16-10-2010, 06:56 PM

If this is true then im getting of the GIO wagon and will post on other forums if it put through.....

cobramania · 16-10-2010, 07:05 PM

Quote:

Originally Posted by Yaw

Working within Suncorp group of companies in insurance. I can tell you for fact, the information you have been given is absoulte rubbish.

Yes GIO/Suncorp/AAMI group companies are heading towards a multi brand assessment centre. If your policy allows for choice of repairer this is not going to change. YOU WILL STILL have choice if your policy allows for it. If it does not then they use the two quote system, (which by the way still has a life time guarantee on any repairs done).

It is just the usual scare mongering by repairers that are not aligned to any particular insurance company.

As I said, I have no reason to disbelieve him, I've known him for over 15 years & his business has gone from strength to strength. As far as I'm aware he is a recommended repairer for multiple insurance companies (inc. GIO), why would he do something to damage his business (by not working on GIO customers cars), if as you make out, it wouldn't affect him anyway? Same with other quality repairers? He was totally correct & on the money with what he told me about NRMA (before it was introduced), I don't see this as any difference.

Read this news report & make what you will out of it, especially the latter part. http://www.smh.com.au/business/watch...0606-xn4s.html
Note, your choice of repairer will be at an additional cost on your premium, also note Suncorp is trying to get a $235 million annually cost saving. Where is this likely to come from, cheaper poorer quality repairs?

I'm just telling what I've been told from the other side of the industry, it's up to the individual to decide what they want to do based on both sides of the story, but guaranteed the insurance companies will never lose out, only the customers & repairers.

SVR73 · 17-10-2010, 08:11 AM

Interesting reading. Australia does have too many repairers and restoration shops
Way too many dodgy ones. though the one good thing is their work after the car is painted is so bad that it gives me business to fix their **** poor work.
though I despise insurance companies. there wont be much you wont be insuring if they get their way.

I know nothing much about how repairers fix crashed cars but will say that its time for a revolution in the way paint is applied at these shops and the technology of the paint. automotive paint is poor quality compared to what other industries use

there will be a day and age where smash repairers will be obsolete as it will be simply impossible to have an accident as we wont be on the roads and wont be in cars.

Yaw · 17-10-2010, 01:08 PM

Quote:

Originally Posted by cobramania

As I said, I have no reason to disbelieve him, I've known him for over 15 years & his business has gone from strength to strength. As far as I'm aware he is a recommended repairer for multiple insurance companies (inc. GIO), why would he do something to damage his business (by not working on GIO customers cars), if as you make out, it wouldn't affect him anyway? Same with other quality repairers? He was totally correct & on the money with what he told me about NRMA (before it was introduced), I don't see this as any difference.

Read this news report & make what you will out of it, especially the latter part. http://www.smh.com.au/business/watch...0606-xn4s.html
Note, your choice of repairer will be at an additional cost on your premium, also note Suncorp is trying to get a $235 million annually cost saving. Where is this likely to come from, cheaper poorer quality repairs?

I'm just telling what I've been told from the other side of the industry, it's up to the individual to decide what they want to do based on both sides of the story, but guaranteed the insurance companies will never lose out, only the customers & repairers.

Mate, what I have said in my above post is exactly what is happening.
This has ALREADY been done in Mooroka and Aspley.

If a customer has choice of repairer, this will continue as per the individuals policy. And I never said it may not be an option, but if it is an option that is important for you, you pay for the option and you will still get choice of repairer. If however a customer does not have any preference and does not wish to be involved in the repair process, They will still be given the option to nominate a repairer of thier choice, if they don't care, it may get done under the two quote system. I do assure you, it is NOT always the cheapest repairer that gets the work. I have persoanlly seen this happen time and time again. It goes on the MOST complete and competitvie quote. If the quote is not complete the assessor will not assign that repairer. Even so you still get a life time warranty on all repair work approved by the assessor.

As for where the savings are comming from, yes this is a part of it, by bringing toghether 4-5 different assessment centres, its saves heaps in property lease costs/staff/ etc. There is also a huge savings in reinsurance by the suncorp group of companies reinusring thier risk as a whole company rather than 10-20 individual companies.

None of the above reflects on the quality of a repair.

{EDIT** Spelling

genebaby · 17-10-2010, 01:18 PM

What I can't stand is when you do need to use your warranty on crappy repair work and the extra time and hassle to get if fixed properly.

I can't be alone when I say I just want shops to do the work, correctly, the first time. I hate having to go back twice or more to get a proper job done on things.

Yaw · 17-10-2010, 01:22 PM

Quote:

Originally Posted by genebaby

What I can't stand is when you do need to use your warranty on crappy repair work and the extra time and hassle to get if fixed properly.

I can't be alone when I say I just want shops to do the work, correctly, the first time. I hate having to go back twice or more to get a proper job done on things.

So do the insurers. It costs them extra time and money.
Which is why repairers also have quality targets to meet.

fg_nitro · 17-10-2010, 02:43 PM

So who is the best insurance company to go with where you wont be stuck with them taking your premiums and then in return offering you dodgey and time consuming repairs?

Yaw · 17-10-2010, 03:47 PM

If choice of repairer is important to you, make sure its in the policy you buy.

Its as simple as EVERY insurance advert states. Please consider the PDS (product disclosure statement) to ensure the product meets your individual needs.

(or words to that affect)

I for one do not think Choice of Repairer is a major thing. As I know how it works and am quite satisfied that the life time guarantee is there to ensure quality work gets done. After all, the come backs on quality repair if it is a repairer issue , the repairer usually ends up wearing the cost too so there is little insentive to do dodgy work.

EDIT

I might also add that even the prestige repairers in Brisbane Like Domroy's and Hadwens are amoungst the repairers used in the 2 quote system.
These repairers are also "authorised repairers" for quite a few insurers.

genebaby · 17-10-2010, 06:38 PM

I hear you on the repairer having little incentive to do dodgy work but it seems to happen time and time again. It makes you wonder but it's like some parts Ford uses, diffs, cough, cough. You'd think Dana would build them to a better spec etc to avoid the masses of replacements they've been doing but it doesn't seem to be in their interests.

I think a lot of repairers just hope people don't have a good eye or care too much about their car, and this might work for the camry type driver, so I think they give it a go.

**Cav** · 17-10-2010, 07:55 PM

I have been told that NRMA pays different hourly rate to repairers.

Why is this so?

Is it true that non NRMA authorised repairers get paid a lower hourly rate?

This means, if you take your car to a repairer of your choice, and he is not an NRMA authorised repairer, NRMA will pay him substantially less per hour than their 'preferred repairer.'

buickman · 17-10-2010, 08:51 PM

Quote:

Originally Posted by Yaw

Mate, what I have said in my above post is exactly what is happening.
This has ALREADY been done in Mooroka and Aspley.

If a customer has choice of repairer, this will continue as per the individuals policy. And I never said it may not be an option, but if it is an option that is important for you, you pay for the option and you will still get choice of repairer. If however a customer does not have any preference and does not wish to be involved in the repair process, They will still be given the option to nominate a repairer of thier choice, if they don't care, it may get done under the two quote system. I do assure you, it is NOT always the cheapest repairer that gets the work. I have persoanlly seen this happen time and time again. It goes on the MOST complete and competitvie quote. If the quote is not complete the assessor will not assign that repairer. Even so you still get a life time warranty on all repair work approved by the assessor.

As for where the savings are comming from, yes this is a part of it, by bringing toghether 4-5 different assessment centres, its saves heaps in property lease costs/staff/ etc. There is also a huge savings in reinsurance by the suncorp group of companies reinusring thier risk as a whole company rather than 10-20 individual companies.

None of the above reflects on the quality of a repair.

{EDIT** Spelling

I've always been satisfied with GIO in getting repairs done and if there is a bit of ordinary workmanship which happened on my wife’s car they had the shop repair the area that was below the standard it should have been done in the 1st place.
I think AAMI and GIO work out of the same premises for cost cutting

Yaw · 17-10-2010, 09:09 PM

Quote:

Originally Posted by Cav

I have been told that NRMA pays different hourly rate to repairers.

Why is this so?

Is it true that non NRMA authorised repairers get paid a lower hourly rate?

This means, if you take your car to a repairer of your choice, and he is not an NRMA authorised repairer, NRMA will pay him substantially less per hour than their 'preferred repairer.'

I don't work for IAG, however working in recoveries and settlements I can say I have seen no difference, like all repairs that are assessed before the work is done, regardless if it is your choice of repairer or the "preferred repairer" The assessor will ensure the quote is fair and reasonable and within industry standards.
Assessors are trade qualified repairers themselves, so they know what they are looking at and what is fair and what is inflated. Therefore after the quote is assessed it is then given back to the repairer with the adjustments and they only authorise the adjusted quote. If the repairer then needs to go over that the repairer must submit a supplemental quote with what extra needs to be done, it is then again scrutinised and authorised if fair and reasonable.