Bodyshops speak out about insurance

24 January 2013  

A DOCUMENTARY has been aired showing the way that insurance companies call the shots over independent bodyshops.

The programme, named Dispatches: Secrets of Your Car Insurance provided quotes and evidence from Andrew Moody, one-time motor vehicle technician, now managing director of law firm Retail Motor Law.

Following the broadcast, he commented: “We showed the Dispatches team our Retail Motor Law report outlining the agreements that certain paint manufacturers and distributors enter into with insurance and accident management companies. They decided the subject deserved further investigation and we have been on hand to provide background information and expert opinion throughout the production process.”

The number of bodyshops in the UK has reduced dramatically over the last decade. There are only around 3,000 left and over 8% of those are likely to shut for good in 2013. Many have closed because they are unwilling to work with insurers and accident management companies who are often said to have ‘absolute power’ over their workflow and profit margins.

Moody added: “The report was also submitted to the Office of Fair Trading, who passed it to the Competition Commission as part of their wider investigation into the motor insurance market. I have got a huge amount of evidence, some of it was posted anonymously to my office – that gives you an idea of the culture of fear that exists. A specialist competition barrister who has seen it said it raised ‘serious competition concerns’.”

The main concern raised by the documentary is that the method and mode of the repair is being dictated by the insurer who have cost and not quality at the front of their minds. Moody said: “They are in a position to say to the repairer ‘you must do this otherwise your supply of work will be cut’. That is dangerous because insurers’ interests lie in maximizing their own profits, not delivering the best quality repairs.”