Savvy Strategies for Surviving a Fender Bender

The Better Business Bureau (BBB) says that just as consumers must be vigilant about checking out credentials when choosing contractors to do needed repairs on their homes, consumers should be just as prudent after an accident in checking out which collision repair center is the most qualified to fix one of their most expensive possessions. With more than 35,000 auto body repair shops nationwide, there are a lot of choices.

And there is a lot of demand. According to the U.S. Department of Transportation’s most recent statistics, there were nearly 6 million reported non-fatal motor vehicle traffic crashes in 2005. Most of these vehicles likely ended up at a collision center, where the average repair bill was $2,200 to $2,300 and where 80 to 92 percent of the work involved auto insurance claims.

“Although an insurance company may make some recommendations, drivers have a choice when selecting an auto body repair shop," says Bill Moak, President of the BBB Mississippi. "Choosing a trustworthy shop is very important for ensuring the best possible results.”

The National Auto Body Council (NABC), a not-for-profit organization representing all segments of the collision repair industry, agrees. “Despite many stereotypes about auto collision repair shops, the reality is that the industry has a high degree of professionalism and integrity,” said Chuck Sulkala, Executive Director the NABC and a second generation owner of an auto body repair business in Boston.

“One of the things that is least understood by motorists is that when a damaged car is brought in for repairs, the repair contract generally is only between the vehicle owner and the repair shop, not the auto insurance company,” said Sulkala. “It’s usually the owner’s responsibility to choose a trustworthy, quality oriented shop that will repair his or her car safely and protect its resale value.”

Choosing a shop can be confusing. So the CBBB and the NABC have teamed up to help consumers better manage the collision repair experience with tips on choosing a trustworthy shop, saving money on a replacement rental car and knowing how to settle any disputes. More information on “Wiser Drivers Wise Up” is available at .

Choose a Trustworthy Collision Repair Shop
Compare collision centers before you need one. In addition to asking friends and relatives for recommendations on shops that have performed quality work for them in the past, check the shop’s qualifications by asking about advanced technician training from a national organization such as the Inter-Industry Conference on Auto Collision Repair (I-CAR) or National Institute for Automotive Service Excellence (ASE) certification.

Verify commitment to ongoing training and customer satisfaction. One way is to look for decals or plaques indicating the shop’s current membership status in industry associations, local business groups and consumer agencies such as the Alliance of Automotive Service Professionals (AASP), Automotive Service Association (ASA), Society of Collision Repair Specialists (SCRS), National Auto Body Council (NABC), and the Better Business Bureau. Verifying information on the BBB Web site at http://www.bbb.org/ will indicate whether the shop maintains a good reputation.

Arrange a Replacement Rental Car. Ask the shop to pre-arrange a rental car. Since the average car is in the repair shop for two weeks, ask if the shop can make recommendations for a rental car company and if they can make arrangements for a replacement rental car to be ready when you drop off your car.

Save on the cost of a replacement rental car. If your auto insurance policy includes replacement rental car coverage, which usually is only a couple dollars a month, you may get a rental car for little or no money. Keep in mind that one full-year of replacement rental car coverage may be less than the cost of a one-day rental car if you have to pay out of pocket. See an insurance professional for details.

Get Everything in Writing Upfront. Review price estimates for work and parts. Get a written repair and price estimate of the work to be performed, as well as an explanation of why specific recommendations are necessary to correct the collision damage before the job begins. Also obtain an itemized list for all parts and services, with prices, identifying any used or re-manufactured parts.

Ask about a warranty. Professional, reputable repair shops will stand behind their repair work by offering a warranty. Usually this warranty is for a specific time – from 30 days to lifetime – and covers the labor, materials used and installation. The actual parts will be covered by the manufacturer’s warranty.

Don’t shop for price alone. The lowest estimate could indicate that the shop’s estimator has improperly assessed the vehicle’s damage or that the shop specializes in “quickie” repair jobs and poor quality. If you get a quote that is significantly different from another shop, ask the estimator to explain why the quote is so different before you make a decision about where to have the car repaired.

Your satisfaction is important. Inquire in advance about the auto body repair shop’s policy in the event you are dissatisfied with the repair. Will they fix it at no additional charge and how long will the extra repairs take? Once the repair is completed, tell the technician or business owner before leaving the repair shop if you notice any problems with the body work of your automobile. It is best to bring up any concerns immediately in order to confirm a problem is a result of incorrect repair work. If you do happen to notice a problem after you get the car home, call the repair shop immediately and let them know that you will be returning your automobile for additional repairs.

The collision repair business is a $38.2 billion industry, with paint and body repair shops accounting for more than half of the collision repair market at $20.8 billion, according to the 2006 Collision Repair Trends: Industry Statistics & Analysis, published by the Automotive Aftermarket Industry Association (AAIA).

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Credit Repair Fraud Proliferates

The truth is, no one can legally remove accurate and timely negative information from a credit report. But the law does allow you to request a reinvestigation of information in your file that you dispute as inaccurate or incomplete.

There is no charge for this. Everything a credit repair clinic can do for you legally, you can do for yourself at little or no cost. According to the Fair Credit Reporting Act, you are entitled to a free copy of your credit report if you've been denied credit within the last 30 days, and you can request a free copy of your credit report annually for free by visiting www.annualcreditreport.com. You can also dispute mistakes or outdated items for free. Ask the credit reporting agency for a dispute form or submit your dispute in writing, along with any supporting documentation.

If you decide to respond to a credit repair offer, the Better Business Bureau suggests you beware of companies that:

• Do not tell you your legal rights and what you can do -- legally -- for free;
• Recommend that you not contact a credit bureau directly;
• Want you to pay for credit repair services before any services are provided; or
• Advise you to dispute all information in your credit report or take any action that seems illegal, such as creating a new credit identity by obtaining a federal employer identification number to use instead of a social security number. If you follow illegal advice and commit fraud, you may be subject to prosecution.
  

Also, remember that it's a federal crime to make false statements on a loan or credit application, to misrepresent your Social Security Number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.

Understanding Your Credit Score

Information in your credit report or credit file is used to formulate your credit score. This number, which can range between 300 and 850, depending on the credit reporting agency, summarizes your creditworthiness. It helps potential lenders, landlords, employers to quickly gauge your credit history and predict how likely you are to make your credit payments on time. They look at your credit score to decide what kind of risk they assume if they approve your application.

Each credit reporting agency uses a different scoring model so your credit score may vary from agency to agency. Nonetheless, the scoring models are mostly influenced by the following: how you pay your debts and how much debt you owe. When formulating your score, each agency pays close attention to:

• Your payment history. Do you pay your credit accounts on time? Are there bankruptcies or other negative items on your record?
• How much you owe. What is the total owed on all of your account? What percent of your available credit are you using? Is your debt load manageable?
• The length of your credit history. For how many years have you demonstrated responsible credit management?
• Have you recently applied for or opened new credit accounts?

Most people have a credit score in the 600s and 700s. Scores above 700 are a sign of financial health and can earn you relatively low "prime" interest rates and favorable lending terms. People with scores about 760 are charged the lowest rates.


If your credit score is below 600, lenders will view you as high risk. They could turn down your credit application. You may have to use a "sub prime" lender who will offer you less favorable payment terms. You will be charged much higher interest rates and will probably have to make a larger down payment.

If you are married, be aware that you and your spouse do not share a credit score. In fact, each spouse has a separate score that reflects his or her own past credit history.

For more information about credit, visit http://www.bbb.org/alerts/article.asp?ID=616. For a chart that explains how credit scores are derived, click here: http://en.wikipedia.org/wiki/Image:Credit-score-chart.svg.