Even though most consumers aren’t familiar with the term DRP, when they make a claim under their comprehensive car insurance coverage or their collision insurance coverage, they’re usually referred to a repair shop that has a DRP agreement with their comprehensive car insurance carrier. But recently in Iowa, a state senator questioned how DRPs affect consumers’ freedom when it comes to choosing a repair shop.
Direct Repair Programs
DRP stands for Direct Repair Programs: contracts between insurance carriers and auto repair shops that allow insurance carriers to recommend the shops to all their clients in return for preferential treatment and lower labor costs. For example, if a driver has comprehensive car insurance and needs to get repairs, his insurance carrier will recommend him to a shop that has a DRP. In most cases, this works out well for all parties involved, and the driver with the comprehensive car insurance considers it good service to get quality repairs at a shop recommended by his insurance company. But when insurance carriers withhold coverage if a driver chooses not to use one of the recommended shops, the driver’s freedom of choice is impeded.
Fortunately, most reputable, nationwide insurance carriers that offer comprehensive car insurance and collision car insurance only have a list of preferred auto repair shops, and do not impose any penalty for choosing a shop not on the list. For the best quotes on comprehensive car insurance with reputable car insurance carriers, contact AgentInsure today!
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