I have recently discovered that State Farm has changed how they handle car repairs and thought others should know that they have, as my friend at a body shop said, "gone from being the best to the worst".

To sum it up they have put cost savings above everything and to meet this end they are trying to force body shops to use parts pulled from scrapyard/wrecked cars. They do not restrict the parts to non functional, non wearing parts like bumper covers or other plastic bits, but also want the shops to install used suspension and other parts that are worn and can even be dangerous as they do not test the parts and in any case have no idea if they have hairline cracks, what the history is and if the parts are in any way compromised (which aluminum and cast parts can be). He has had to deal with them and wrecking yard people directly and it is really scary to hear of what they are doing. State Farm also will use non OEM parts if they are cheaper, and they will try not to replace things in pairs, that should be replaced on both sides like suspension, to save money.

I called State Farm and spoke with a rep about this and he defended the practice, it was very frustating as he insisted, of course, that take off parts are fine (even if they can't verify the milege or real condition of them! For example my 16k miles Mini could end up with a 50k shock...) and also said non OEM parts are fine even if it means it could impact the manufacturers warranty (he literally told me that if thats a problem, or if there is any problem with the replaced parts, the body shop would somehow do the work then or be responsible even though the shop would want to use the proper new parts in the first place). Beyond that he did not address my concerns about having to deal with the possible repercussions of failed/worn used parts or non OEM items - the impression was that would be my problem and I could take it up with the body shop then..

I was astounded to find out about the new practices they implemented at some point, and as a long time customer I am upset to find I have been paying for this reduced quality coverage without being informed clearly about these changes. The shop my friend is at chose to drop off the State Farm *select service* list and lose the business rather agree automatically to their new terms, and when I checked the select service listings I found he was not alone, I didn't see any of the good body shops I had known about on the list anymore.

So, there you go, the skinny on State Farms new repair practices if you care - I know I'll be looking for new insurance now. And on that topic, please, if you know of any really good insurance companies I can look into for Auto, and probably everything else, please let me know. TIA

 

I have had similar problems with Allstate but Allstate has not gone as far as State Farm. Allstate directs the body shops to only estimate replacement of damaged parts even if parts should be replaced in pairs, such as suspension pieces. I had to fight with Allstate to properly estimate the replacement of "pair" type parts such as springs. Allstate did agree with me after I documented in writing my safety concerns. Allstate also directs the use of non-OEM parts. I again had to battle with Allstate to estimate OEM parts. They agreed to use OEM parts because the car was relatively new. It could be a difficult battle on older vehicles. I have not had any issues with Allstate directing the use of used parts (that just seems very wrong). I could only understand the used parts practice if there was no other way to get a part and the consumer was notified of the issue and agreed to the alternate solution.

All in All, Allstate has been good. They have always agreed to my demands after a little battle. They have also worked very closely with me on the reimbursment cost of my totalled jeep and Mini. I got fair reimbursements after some hard work on my part. Allstate even let me take my totalled Mini home to remove aftermarket parts before the car was taken to their disposal yard.

Also, remember that most insurance companies cover very little or no cost for aftermarket parts. If you plan to add aftermarket parts to a vehicle, when shopping for insurance you might want to ask about thier policy for replacing aftermarket parts. Allstate gave me $1000 towards my aftermarket parts.

 

Interesting...I just had an accident yesterday. We were both with State Farm. I am going to insist that my car be fixed at the shop that does all of the local dealer's work. I will definately keep an eye on what happens once I get the go-ahead for the repair. Let you guys know what I find out.

 

Thanks for sharing that State Farm info. They carry my homeowners & there was a possibility of me switching my auto to them one day... but not now

I have GEICO now... hmmmm I wonder what their policy is?

Isn't there a special Liberty Mutual MINI policy out there that guarantees to use OEM parts if you ever wreck your MINI?

 

That is yet another concern :( - years ago I checked with State Farm about this and they told me everything was covered as long as I had receipts (and I even copied them on a ton of $$ Dinan and aftermarket stuff, including wheels, I had put on my BMW at the time). Now who knows where they stand - I just can't get over them changing practices like this, enough to make body shops concerned with the safety of repairs and such, without sending me clear documentation or my agent letting me know

Thanks for the Allstate info, it still sounds like you had to fight quite a bit though for them to do the right thing, which is sad. It all comes down to having a high quality trustworthy body shop who will go to bat for you and/or at least provide you with the details of the repair and what the insurance comapany wants to do before doing the work. Beyond that though it does sound like some insurance companies are willing to do the right thing and have the work done with new OEM or direct replacement aftermarket parts the shop deems necessary, the premiums may cost more but I'd like to know things will be done correctly and that the car will be as good and safe as possible.

 

I don't know, but from the sound of it State Farm is doing all this to cut costs and be able to offer lower premiums to compete with the likes of Geico - you should call and see what they say (and let us know ).

I hadn't heard that about Liberty Mutual, sounds worth checking into.

Hmm, maybe what I need is a good independant broker, they should have the lowdown on the companies out there. Anyone know how to find a trusty broker or feedback on them in general?

 

I think the liberty Mutual policy is called MINI Motoring Insurance.

I will check with GEICO when I get time & let you know what they say

 

I had a neighbor drop State Farm a few months ago. They refused to pay for damages to her mini van which were incurred when our neighborhood flooded. They jumped through all the stupid hoops that State Farm wanted them to and still didn't want to pay. They wanted a picture, which she didn't have. She'd been with them for over 15 years with no claims what so ever.Her agent is even our neighbor who lives a few doors down. He wouldn't return her phone calls. He knew the neighborhood flooded, and bad. He should have done his job!!! Sorry, but I'd been knocking on his home front door. He's lost many clients in the neighborhood over this. Word travels fast in these parts.

It was raining one afternoon on my way back from a walk. He drove up and parked his car in the street. I couldn't help myself so I had to say, "Hey, you better put your car up in the driveway in case the neighborhood floods out again. We all know that your insurance company won't cover any damages now will they?" He wouldn't even respond back. He knows he was wrong and that it cost an incident family. I still give him the eye when I catch him mowing the lawn or getting in and out of his car. He owns the State Farm office right down the road to make it worse. I'd love to picket it one day. Can you tell I have no room in my life for mean people.

We have Allstate. My husband has had to make two different claims in the last five years. Both times other cars were involved and our insurance covered their cars and ours, even though my husband didn't recieve any ticket in either accident. Everyone's cars repaired and our insurance did not go up. I've been with Allstate about twenty years with car, house, and camper insurance.

 

I've emailed my SF agent about this post and I'm curious to see the reply. I've been with them for 10+ years and they have always had my back on the auto and home front. But this is distressing news. I recently shopped around for the hell of it and Allstate was priced about the same so I stood pat with SF because of my rating.

My sister had Geico and they took her through the ringer on an auto accident that wasn't her fault, where she wasn't cited, where the other driver was and where the other drive admitted fault. Other driver was uninsured.

There are bad stories with every agency out there as far as claims are concerned. But policies such as Eval has described are a different story altogether.

The best thing is to have a solid relationship with your Agent. But that isn't always a guarantee that things will work out as MINI S Pilot pointed out.

But MINI S, I was always under the impression that flooding of a vehicle is not covered.

 

WTH now I'm gonna have to check that out too. I know you have to have special flood insurance on your house but I always assumed that flooding is covered on a car by comprehensive covergae. I mean hec if your car is a total loss due to a flood how is that any different than a tree falling on it?

 

I have had Allstate for a long time as well. Their customer service is not always great, but in the 2 accidents I had they fixed my car without complaint. Never dealt with State Farm but would expect as much from a company that still insists New Orleans homes were not destroyed buy the Hurricane so they wont have to pay.

 

wow, this is sad news indeed.

 

I am starting to get worried now. It is too late for me to switch though! Arrgghhhh....

 

I could very easily be wrong. But I can see them saying, "You shouldn't have located the car in a flood prone area" or "you shouldn't have driven under that underpass during all that rain. "

Now don't go off on things you don't necessarily know about. The majority of homes in New Orleans weren't destroyed by the hurricane. They were destroyed by the failure of the industrial canal levee. That's a flood case and floods are only covered by Flood Insurance.

I have little pity on those people because if you are living below sea level and surrounded by water on 2 sides, common sense says to have flood insurance. Especially since the City would flood in any serious rain.

 

NEW CLAIM HANDLING PRACTICE !!!! No.

There are no new claim handling procedures in place at State Farm. Nothing has changed in YEARS regarding the way we process and handle claims or the parts the repair shops are authorized to use.

Here's the auto repair practice pretty much EVERY insurance company in the country employs... from someone who knows:

Estimators and repair shops work together to make sure your car is returned to it's pre-accident condition. If any QRP (Quality Replacement Part or Quality Recycled Part) is used, there are strict rules that apply. You, the consumer, should know by now that federal and state laws are written to protect YOU... not the insurance company. So, here's some of the rules:

1. The QRP part must be in equal-to or better-than condition than the part it is replacing. In other words: If your vehicle is a 2004 Dodge Caravan, the repair shop can not use a part from a 2001 Dodge Caravan to fix your vehicle. It has to be as GOOD or BETTER THAN the condition of the removed part prior to the accident.

2. Recycled parts are warranted for at least one year or for the duration of the manufacturer's warranty, whichever is longer.

3. If you are not satisfied with the fit and corrosion resistance qualities of the part, it will be repaired or replaced at no cost to you.

4. Any replacement parts (non-OEM) must meet criteria established by the CAPA (Certified Automotive Parts Association).

Folks... there are reasons 99% of insurance companies use non-OEM or recycled parts. For one good reason, if they didn't, your premiums would be more than they are... maybe a LOT more.

For another thing, the competition driven by this policy keeps the prices down, further reducing insurance premiums.

Also, keep in mind that you have the final say in the parts used on your vehicle. You can reject the non-OEM part (silly in some cases because the same factory is making the part and stamping it "Dodge" or "NAPA") or the recycled part. You just pay the price difference. Again, silly, but it's your car.

I don't have time right now to answer a million questions about this post. But if you have any, go ahead and post them and I'll address them as I have time.

And... regarding flood... not a covered loss under your auto insurance policy. Get it out and actually read it sometime.

If you live in an area that is prone to flooding, get flood insurance. That will cover your home and your auto in the event of flood.

 

But how can you know if a recycled part is in good or better condition? Just because it's from the same year and around the same mileage doesn't mean that the used part is ok for placement on another vehicle.

I was right about the flood thingy.

 

GEICO's definition of comprehensive coverage...

Comprehensive coverage pays for loss or damage to your vehicle caused by fire, theft, vandalism, hail, windstorm, riot, falling objects, flood, and other events as stated in your policy contract.

I am currently awaiting a viewing of my contract documents to see how it's "stated in my policy contract" but upon 1st glance it appears as though I am covered for flood

 

Just reviewed the 8 policies handles out of my State Farm regional office.

6 of them include flood.

So, review your policy's comp coverage. Listed under covered losses, you'll find a list of things like... hail, theft, glass, fire, vandalism... if it includes "flood", you're in there. If it doesn't, you're outta there (so to speak).

Generally speaking, if the part if off a vehicle that is newer, had fewer miles, and is in generally the same overall condition as YOUR car, the part is acceptable.

Keep this in mind, too... State Farm is not going to but a recycled part on a car that is practically new (i.e. less than 3 years old or less than 30,000 miles)

It's my experience that recycled parts make up less than 5 percent of the parts used in the repair process.

 

Remember the unholy hell that airlines faced when it was found out that many were using "recycled" or used parts in their aircraft? So I guess because a car isn't at 30,000 feet, it's ok. No inspection required.

We have AAA, and LOVE IT! Something happens to the Mini that requires insurance work, it goes to Niello. They also have their own collision shop.

 

What about reluctance to replace things in pairs? And how to explain the ranks of body shops bowing out of their preferred service program? It seems odd to me that shops would deliberately take a blow (however large or small) to their business without basis. And it seems that if, as you say, nothing has changed they would be without basis . . .

I've had State Farm since I started driving, and my mother has had all insurance policies with them since the Dawn of Time. I have always been very pleased with their service (save for my present agent, but I, of course, am always free to change). Neither of us has minded paying slightly higher premiums for service that we have both found to be (at least anecdotally, compared to stories we've heard from friends/relatives/etc. with outher carriers) better.

I'm so sick of everything always being reduced to the lowest common denominator. If some people are comfortable scrimping on coverage and service in return for ultra-low premiums then good on them. If I want to pay slightly more to protect my *** I should be able to. Urgh.

 

Anybody that THINKS their insurance company and repair shops they use do not use recycled or non-OEM parts, call their claims department and ask them. I'm betting you'll be surprised.

 

yet we use these aftermarket suspension rods and bits that appear
to be thick and strong, yet never tested under the OE test methods
nor qualified for durablility/reliability at a A2LA qualified test facility.

so, what are you guys crying about?

my borolla that a lady back into (wife was driving) was fixed at a
Toyota certified repair center and they used a recycled door,
recycled fender, and some other new bits to fix it. the bodyshop
mentioned that some of the bits required to be new for safety
and durability so they would not use a recycled part. i didn't
care as long as it was a toyota door and fender and they mounted
it correctly per spec. no different than changing an oil filter or
air element to me.

im glad i sold that pos though... not from the repair..just the
car itself.

 

If State Farm had no intentions in the first place of covering my neighbors car because of the way the policy states something, why did they even advise her to have an estimate done and sent to them? They even told her that she could have a certified mechanic come to her house where the car was stuck in the driveway so that she wouldn't have the towing expense. If there was a clause in the policy that prevented them from covering her car to begin with, they could've stated that from the beginning.

By the way, our neighborhood is not considered to be in a flood zone. This was a brief, very brief storm, that caused major problems for the entire city of Virginia Beach and many other area cities in it's path. I'd never seen this happen to our neighborhood, even during a hurricanes and Northeastern type storms. Although I do have flood insurance, probably the only one around here that does, I hope to never have to make a claim on it.

I know every insurance company has a client that they probably didn't treat correctly. I'm just making the point that I've witnessed it and it did deal with State Farm.

 

Well, I can only tell you that someone I trust told me how State Farm tried to have him put in suspension being taken out of a wrecked car at a yard with over 40k miles on it on a newer (not an old model) luxury car. There is no testing, and beyond using a microscope no way to tell if there are fractures or other non obvious damage - so if you consider that properly recycled be my guest.. And the warranty on that stuff is between you and the body shop, the insurance co is not liable and does not apparently care. Frankly I don't think its right or safe - I mean really, they could have run the Dakkar Rally in that wrecked car, how is that right?

And non OEM branded parts pretty much assures problems with the manufactuers warranty - it doesn't matter if it is the same, the owner should be able to make that choice. Doesn't it seem wrong that your insurance company can choose to gamble with your dealer service? (And having had BMW turn down touching non-oem parts to do service I know what kind of nightmare it can be.)

Now I'm not saying State Farm is bad about handling claims or such, but it is the new approach to dealing with the body shops and replacement parts that I don't like - and I know they were not always like this. There have to be other insurance companies not going this route and who are more willing to let the body shops do what they think is best, safest and with OEM parts.

PS: And forget laws and regulations, as far as I can tell the insurance companies own this state and can get away with almost anything, I've heard complaints go nowhere

 

Just get a good shop and someone there you know will fight for your best interests. It can be done, and maybe there won't be any issues for you to worry about at all if the parts in question are not involved. Don't worry yet, just tell the shop to contact you about what the adjuster says and what they think needs to be done - and remember, you can use any shop of *your* choice.

Best