VACC's ‘Dracula’ advertisement was published in the Herald Sun on 2 December, 2013. The latest series of consumer awareness ads is a departure for VACC, whose previous campaigns politely advised motorists to check their PDS to see if they had the right to choose their repairer in the event of a crash. These ads typically depicted angry policy holders.
One ad in the new series says, “So you have decided to change insurer. But are you really changing? In Australia, many insurance brands are owned or controlled by two major insurance groups.” The ad then lists the individual motor insurance brands under their respective groups.
Another says, “Many insurers retain the right to choose the repairer or only allow very restricted consumer choice. Take AAMI for instance. In the AAMI Comprehensive Car Insurance Policy, they say: ‘We choose the repairer and arrange the repair for you. And you thought you had control of your car when it needed fixing!’”
VACC executive director David Purchase said the ‘Dracula’ advertisement was a big step for the organisation.
“The concept, message and image was quite extreme for VACC, but this issue
has driven us to extreme measures.”
Not only are some insurers depriving motorists of their right to choose their own repairer, but they are also increasingly treating repairers unfairly, he said.
“Our wider ‘Big versus Small’ campaign highlights increasingly dominant behaviour by large corporations over small, independent businesses. Big businesses are exerting greater influence over small crash repair businesses and our Herald Sun advertisements have drawn attention to unfair competition in this sector.”
VACC is concerned that if left unchecked, it won’t be long before the crash repair industry is controlled by one or two entities, just as the Australian grocery supermarket industry is dominated by Coles and Woolworths.
VACC's body repair division (BRD) members can see their industry going the same way, Purchase said. He has regularly voiced his doubts that fair competition should be left to market forces to decide and has called for more government intervention.
VACC’s BRD manager Darren Curry was involved in the development of the ‘Dracula’ campaign. Curry said the joint venture partnership between Suncorp Group and Capital S.M.A.R.T was a telling example of where the crash repair industry appears to be going if unchecked.
“Suncorp Group’s ownership of 10 motor car insurance brands, including AAMI, and their joint venture partnership with Capital S.M.A.R.T Repairs is one thing,” he said.
“Now, on top of this, Suncorp’s joint venture with US parts supplier LKQ is looming large. Very soon we’ll have one organisation controlling insurance premiums, policies, repairers and the parts used in the repairs.
“How can this possibly be healthy competition for business? Where are the checks and balances for quality repairs and where’s the benefit for motorists? Would you put Dracula in charge of the blood bank? No, you wouldn’t and neither should government allow insurers to be in charge of the smash repair industry.”
A Suncorp spokesperson defended the company's operations.
“While the VACC is free to waste tens of thousands of its members’ dollars on advertising campaigns such as this, the fact remains that S.M.A.R.T is an innovative Australian business producing internationally leading customer satisfaction scores and repair outcomes for consumers, while repairers will be free to use whichever parts supplier they believe will give them the best service, repair quality and cost result," the spokespersons said.
"It’s also important to remember that the vast majority of our repairs are done by independent, highly professional smash repair businesses who share our commitment to getting customers back on the road quickly and safely and produce work we are proud to endorse with our lifetime guarantee.
"We think it’s a shame the VACC aren’t focusing on the future and supporting innovative Australian businesses and a sustainable, modern repair industry. We don’t shy away from our commitment, which is why we have set a benchmark through the Suncorp Vehicle Repairer Standard and have invested millions of dollars in the development of escribe, apprentice subsidies, workforce skills and funding equipment and training for educational institutions.”
VACC continues public awareness campaignVACC has created a hard-hitting advertising campaign to educate the public about the car insurance market.