Am I The Only One?
Most would agree that the Geico gecko is cute. But for the vast majority of collision repair shop owners, managers and technicians, there isn’t much else that can be said about Geico that is positive. Virtually every decision they make seems to be focused on one thing only, bottom line profits.
Companies like Progressive and Allstate that once acted much like Geico does today, have changed their policies somewhat. For the better. They currently focus more of their energies on customer satisfaction than in prior years. Along the way they must have determined that body shops play some small role in improving CSI. Both Progressive and Allstate show increased flexibility when settling a claim. Not that either is a shining example of fairness but at least they seem to be moving in a direction that is better for consumers and collision repair facilities.
So what does Geico do? They refuse to recognize the first labor rate change in 5 years. No matter that costs have risen dramatically or that every other insurer that I know of in this state has allowed for some increase.
When it comes to steering, Geico is re-writing the book on this. Estimates are that 75% to 80% of all Geico paid repairs are performed by shops under contract to them. They will say almost anything to get the customer in one of their shops.
Untested structural aftermarket parts are no problem to Geico. Apparently, consumer safety is not as important to them as profits.
Is anybody out their as sick of this companies strong arming and arrogance as I am? Few in this industry would argue that there are a lot of “fair” insurance companies out there. But, in my opinion, if you made a list of Geico’s good qualities, you couldn’t fill up the back of a postage stamp. There is nothing to indicate that they care one bit about what is necessary to properly repair a vehicle. It is all about profits. So what if they lose a few policy holders along the way. The money they save by underpaying claims lets them run even more ads so that they can replace those customers that, because of a bad claims experience, figure out Geico does not have their best interest in mind.
Personally, I have had it. It hurts for me to tell customers that they will need to pay extra to cover what Geico refuses, but enough is enough. They are the worst of the worst. And if Geico has continued “success”, other insurance companies will follow in their footsteps. It has always been that way.
What say you? Am I the “only one”?
Have found the same issues. They are by far the worst of the worst. One of their adjusters actually told me that shops should be greatful just to have the work and should be willing to do it for less. You can imagine the earful that he received from me. I do inform the customer of their practices so that they can perhaps take another look at their insurance. I have also had to inform the customer that they will need to cover what Geico won't. I can't work for free. Insurers are trying to take advantage of a down market, I for one am digging my heels in.
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Francine, I'm sure whatever you told him he had coming. We have also been forced to tell Geico customers they will have out of pocket costs if we do their repairs.
There is an article in Body Shop Business this month (Take your Customers Back)that was written by a shop owner in California. He actually rewards customers for switching to insurance companies that handle claims fairer. Interesting....
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As with any other industry these days change happens constantly, you can't even compare last years numbers with todays because its all different, business is now more than ever month to month and day to day tracking last years numbers are almost meaningless, change with it or shut your doors. And changes never occurred when complaining and discussing industry problems behind closed doors or posting anonymously on a blog, change only comes when people get together step out of the shadows and take a stand unafraid, if you believe change can happen than do it!.
Hermann
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Hermann,
I would like to address your comments:
Complaining “behind closed doors” and “posting anonymously on a blog”, in my opinion, are two different things. A blog is a form of media. A way to get facts and opinions out to many. A way to get others in the same position thinking a little more about the issues. As long as they aren’t personal attacks and they are posting what they believe to be true, it is a great way for an individual to express concerns without worrying about retribution. It would be nice if freedom of speech applied to this industry but in many cases it doesn’t. Whether or not to put a name on a blog post, in this instance, is just a business decision. Better to have an “Anonymous” post than none at all.
Changing or “closing your doors” is easy to say if you have nothing to lose but many of us have spent our lives building up a business and we have put everything on the line. You are right about last years numbers not always being relevant but ask anybody that owns a shop and is fighting current market conditions every single day and they will tell you they have made many, many changes. Unfortunately, taking a stand today, by yourself, can be a form of business suicide.
But even though I don’t agree with everything you have written, it is great that you have taking the time to reply to the original post. Now, if we could get about a hundred others to do the same thing, we would be getting somewhere……….
Anonymous
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I have to agree, we need robust conversation whether they are posted anonymously or named. In my opinion it doesn't matter, what matters is that we are communicating for the purpose of better understanding our options. Please spread the word and tell people in our industry to participate at any level they feel comfortable.
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While I also appreciate the fact that Hermann contributed to the discussion I think his thoughts are way off the mark.
We need a robust discussion and not everyone can step out and shout from the highest mountain that Geico sucks. Any discussion is better than no discussion.
As for comparing last years numbers with todays I still feel this is a important business tool. I am confident everyone has Quickbooks or some similar version and we have learned to trim overhead, watch expenses and try to earn a profit.
Numbers also motivate us to do better.
Yes the times are tough but most shops are finding ways to survive so they can prosper when things turn around.
Geico is hurting our industry. They are steering, chiseling and refusing to pay fairly for repairs. Geico is unethical and intentionally taking advantage of a weak market.
Geico makes me sick but let us remember that "there is more than one way to skin a cat and every dog has his day.". We need to all remember that "what comes around goes around".
Let's be positive and keep the chatter going both anonymously and by posting your names.
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Well I may not be 100 correct Bob, however I have been listening to same issues from Body shops since 1988,hence my reason as a vendor to become involved and interested in the collision industry, my recent point was to stir the pot, get people to come forward with facts that they already know, business is different now(unless you live in a cave) , more so than it has ever been, to survive one must analyze daily and be in a position to move quickly, the insurance companies know this and because they are strong together they keep you constantly on the defensive.
In order for independent owners not to be constantly on the defensive, owners,and managers need to work together for the common cause, set aside any personal issues, and get involved on the nasty political end of this industry.
However if you can side track all that nasty political stuff, and figure out how to keep your businesses intact with out labor rate or labor time issues, then more power to you, My understanding is that unless you want to be out, or gobbled up, then you need to speak out unafraid of the issues your confronted with daily.
I believe that is the reason for the ASA and Associations across the nation.
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The comments on Geico are 100% correct. This is the worst insurer writing coverage in Arizona. The tactics they use are similar to those used by the Gestapo but without the guns.
Part of what drives this company is the very unique "bonus" system that is enjoyed by their appraisers. At the end of the year, assuming they meet all the quota's for the use of cheap imitation parts and LKQ parts they enjoy a bonus which averages between 25% and 30% of their annual pay. Often this is $15,000 or even $20,000 "extra". The managers and supervisors make even more. The consumer is screwed because of the greed of the company. What a helluva business
model they have.
If Geico was selling tomatoes they would all be rotten and if they sold fish it would be a week old and stink. Sadly they sell insurance that is "rotten and stinks".
For years our industry has made excuses for bad insurers and tried to appease our customers by "making it work". It is past time this company was put on the bottom of the list. This company needs to understand that insurance has no value if it "does not put the customer back where they were before" the incident. Consumers need to know just how good their coverage really is.
Hey, when is the next "Insurer Survey"?
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So lets see, a percentage of every dollar underpaid by one of their estimators goes right back to that estimator at the end of year. I guess if they don't care if the shop loses money and it doesn't make any difference whether the customer gets what they have coming, Geico employees have a pretty good thing going. Hardly seems legal though....
I just filled out an online survey for one of the trade magazines - guess who I listed as the worst insurer to work with?
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We had a Dodge Caravan at our shop which had damage consisting of dents on the front door and rear slider. The rear slider also had a minor scratch in the paint that was unrelated prior damage. Geico took a 50 percent betterment on refinish time/ materials because of the scratch and wouldn't budge even after numerous calls to supervisors. Of course we couldn't charge the betterment to OUR customer so we ended up eating the loss.
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First of all I am confused. I thought I was the only one,but I couldn't agree more.The Gecko adjuster tried to put on aftermarket structural components on our customer's car and said they didn't care if it didn't react the same way in a accident.They told me I didn't see the whole picture and they make a lot of money doing this.They actually told me there pay would be affected by writing OEM parts. Evidently it's so easy a CAVEMAN can do it.I think we should start holding the adjuster more accountable for the decisions they make.What would happen if our industry repaired cars how the insurance companies wrote them. How many procedures would not get done? How many lawsuits would there be? How many unsafe repairs would be made? Why do we work for free!!! Bud
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