BACKGROUND: AUTO REPAIR DIRECT REPAIR PROGRAM (DRP)

The practice of offering names of repair shops to insureds following an auto accident is widely used throughout the automobile insurance industry. The theory behind doing so is simple. The insured does not have to seek two or three estimates and repairs are started without delay. In addition, the insurance company knows and trusts the repair shop to do quality repair work and provide excellent customer service.

It is a misconception that insurance companies require insureds to have their vehicles repaired at insurer-recommended repair shops. Under California law, no insured is required to take his or her car to a direct repair shop. The direct repair program (DRP) is only offered as a repair option.

The DRP program is designed to benefit insurance policyholders. The cost involved in repairing automobiles is better managed by reducing the claims handling time and costs. In addition, insureds are guaranteed that repairs will be done properly and to their satisfaction.


HOW THE DRP PROGRAM WORKS
The insured is given the choice of taking the vehicle to the repair shop of their choice. If desired, the company will provide recommendations to the insured for DRP shops conveniently located near the insured’s residence or place of employment. Once the insured selects a shop, the vehicle is taken there at the insured’s convenience and work begins as soon as the insurance company is notified. The insured is also notified in writing that the repairs are guaranteed for as long as he or she owns the vehicle.


REPAIR SHOP SELECTION
Before a repair shop is selected the insurance company inspects it in order to make sure that the shop meets strict criteria for necessary equipment, training, licensing and management. In addition, random inspections are conducted by insurance companies on work performed by direct repair shops to make sure that repairs are being completed properly.