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Collision shops tell committee insurers frequently refuse OEM repair items, causing delays and safety concerns
Summary
Collision‑repair business owners told the House Insurance Rate Study Committee that insurers often decline manufacturer‑required repairs or decline calibration work, leaving shops to absorb costs, delay repairs, or perform work insurers will not pay — risks that the shops say can return unsafe vehicles to Georgia roads.
Collision‑repair owners and industry representatives told the House Insurance Rate Study Committee that repair estimates based on Original Equipment Manufacturer (OEM) procedures are regularly reduced by insurers, producing delays, unexpected out‑of‑pocket costs for customers or pressure to perform repairs without completing manufacturer‑specified safety steps.
What witnesses said
- Lehman Franklin, owner of a collision shop and member of the Georgia Collision Industry Association, said shops submit estimates listing OEM‑required repairs (he summarized as “a, b, c and d”) and that insurers will routinely accept only part of that list; shops must choose between doing incomplete work at the company’s expense, passing costs to customers or pressing the carrier for full payment. He described the practice as “a safety issue.” - Chuck Akers (collision center owner) told the committee that modern vehicles are “rolling safety systems” with advanced driver‑assist features and high‑voltage components that require qualified tools, training and verified procedures; he said a shop that cuts corners can return a vehicle that looks repaired but is not safe. - Jason Babb, a shop owner from Chatsworth, cited long waiting times for insurer approvals and supplements; he described cases where a repair that should take one to two weeks stretched to six to eight weeks and said customers often exhaust short rental allowances.
Key concerns raised
- Safety risk: shops emphasized that failure to follow OEM repair and calibration steps (camera and sensor recalibration, correct structural repairs, airbag and seat‑belt anchor work) can leave vehicles unsafe. - Delay and cost: shops reported frequent back‑and‑forth supplements and approvals that extend repair time and raise rental costs; some insurers use aftermarket or lowest‑cost parts selected without CAPA certification, which shops contend lowers repair quality. - Geographic inconsistency: witnesses said insurers sometimes approve full OEM repair in one market (e.g., Atlanta) but not in others, creating uneven standards by geography.
Committee context
Members asked whether legislative or regulatory responses could standardize accepted repair practices, increase transparency on part quality, or create an expedited claims resolution process for small dollar disputes. Shops urged the committee to identify practical standards to ensure vehicles are repaired to OEM safety specifications and to limit unsafe cost‑cutting by payers.
Ending
Representatives told shops the committee will seek concrete examples and potential models (such as CAPA certification or an independent supplement arbitration process) for future hearings.
