RAA Insurance is the best insurer to
work with in South Australia according to a survey by MTA SA of its
body repairers.
RAA scored 88 on the sliding scale of 1 to 100 with Lumley and Allianz in second place both with a score of 72.
At the other end of the scale SGIC, AAMI, Suncorp, Bingle, Vero, Budget Direct and NRMA all rated below 50.
MTA CEO John Chapman said that it is clear that insurance companies who truly have their customers’ interests at heart were out performing those who were just interested in making the most money.
“The RAA has ranked the highest for the second consecutive year, which is a testament to the way they carry out their automotive insurance business,” Chapman said.
“It is obvious that their practices to allow customers the freedom to choose a repairer and focus on allowing repairs to be completed to manufacturer’s standard give the body repair industry confidence in the RAA’s insurance business.
“However, where there is good there are always areas of concern. The survey highlighted that 80 percent of the respondents are concerned that insurers focussed more on the bottom line of a repair job rather than the actual correct method of repair.
“This is unacceptable and the insurance industry should be working harder to ensure that all insurance claim repair jobs are being completed to the manufacturer’s specification as a minimum,” he said.
The survey indicated that those insurers who rated the highest generally have freedom of choice policies, only required one quote, no cash settling, no delays with payment and no delays in getting back to the repairer about extra work that may be needed to the policy holder’s vehicle. These repairers generally had great staff who were easy to deal with throughout the claim process.
80 percent of respondents thought that some insurance companies use scare tactics to steer their policy holders to use a low cost network repair option.
“The survey indicated that customers are unwilling to use their chosen repairer as their insurance company said if they did they would not be eligible for guarantees or that the repairer would charge them a gap.
“Over 68 percent of respondents believe that competitive quoting policies of some insurers result in some repairers completing jobs at a financial loss. This is at a time when industry costs are rising; for example, energy costs due to the carbon tax, land tax and Council rates.
“Again, the insurance industry must stop these practices and consumers should be demanding that their insurance company provides them with a guarantee their vehicle has been repaired to manufacturers’ specifications,” Mr Chapman said.
Every respondent believes that there should be a minimum level of equipment and training in the Body Repair Industry. Over 87 percent said they would be investing in equipment and training over the next 12 months to continue to improve standards.
MTA SA CEO John Chapman
