The Collision Repair Industry: Reclaiming Our Golden Age

by Andrew Plischke

As a veteran of the collision repair industry for over 40 years, most of it spent right here in Illinois, I’ve witnessed firsthand how a once-thriving industry has been taken over by corporate giants and insurance-driven monopolies.

The collision repair industry – once dominated by local, family-run businesses that prided themselves on craftsmanship and trust – has now been transformed into a corporate behemoth, a machine driven by private equity, insurance company influence and a relentless drive for profits. The consequences? Lower-quality repairs, manipulated consumer choices and the decimation of small, independent operators.

But here’s the good news: It’s not too late to fight back!

This article is a call to action – not just for repairers like me who’ve seen the erosion of our industry, but for consumers who deserve better. It’s time to take back control.

The Consent Decree’s Unintended Consequences: How Private Equity and Corporate Power Shifted the Industry

To understand how we got here, we need to look at the history of the collision repair industry – starting with the Consent Decree of 1963. On the surface, the Decree was a victory for consumers, designed to prevent monopolistic practices and ensure competitive pricing. It aimed to protect the relationship between insurers and repair shops and maintain fair access to the repair marketplace. But what the Decree unintentionally did was lay the groundwork for private equity to invade the collision repair space and shift the power toward corporate giants, accelerating the rise of referral programs.

These programs, at their inception, were sold as a way to streamline the claims process and create a more efficient system for consumers. What we didn’t foresee was how these programs would be hijacked by insurance companies, enabling them to dictate repair terms, control pricing and ultimately drive small independent shops out of business, aided by private equity investors under the guise of MSOs.

Gerber Collision: The Corporate Guinea Pig of Referral Programs 

Gerber Collision & Glass, an Illinois-born company, was one of the earliest pioneers in this new landscape. Initially, Gerber aimed to grow by partnering with insurance companies, using contracts to secure a steady stream of repair jobs. However, as the company expanded, it became a case study in the dangers of corporate consolidation and the influence of private equity. Over time, Gerber’s focus shifted from quality to quantity, aligning more with volume-based, low-reimbursement agreements that prioritized speed and cost-cutting over consumer safety.

Gerber’s meteoric rise isn’t just about business savvy – it’s also about the role of private equity in accelerating that growth. In 2015, Hellman & Friedman, a major private equity firm, took control of Gerber and began aggressively scaling the company by acquiring other repair networks and driving the business into low-cost, high-volume repair models. This move set the tone for the entire industry, signaling the start of an era where repair quality took a backseat to profits. Gerber is now part of Boyd Group Services Ltd., a Canadian company, which further illustrates the global corporate machinery behind this once-independent operation.

Service King: The Texas Behemoth’s Expansion 

Fueled by Private Equity

Then there’s Service King, another industry giant that followed the same model. Originating in Dallas, TX, Service King’s rise is tied directly to private equity-backed expansion. The company has been on an acquisition spree, purchasing local shops and signing contracts with insurance companies to expand its market share. Just like Gerber, Service King has used its relationship with insurers to create a nationwide repair network that dominates the collision repair space.

But the story of Service King is also the story of how private equity firms like Apollo Global Management have fueled this growth. When Apollo took over Service King in 2015, the focus quickly shifted from repair excellence to profit maximization. The result? A repair model that often favors quick turnaround times and low reimbursement rates – cutting corners on repairs and sacrificing safety in the name of profits. This is the price consumers pay when corporate interests, backed by private equity, take precedence over the craft of collision repair.

Crash Champions: Illinois-Born, Private Equity-Fueled and Rapidly Expanding

The story of Crash Champions is no different. Founded in Mokena, IL in 1999, Crash Champions began as a small independent shop but quickly grew by acquiring other businesses and partnering with insurers through referral programs. What sets Crash Champions apart is its incredible pace of growth, which has been fueled by a series of aggressive acquisitions and partnerships with private equity firms.

In 2020, BlackRock, a global investment management firm, acquired a significant stake in Crash Champions. This partnership supercharged their expansion, enabling the company to acquire hundreds of independent shops across the nation. Crash Champions’ rise is emblematic of the role private equity plays in the collision repair industry – driving scale, squeezing out competitors and prioritizing profits over consumer safety and repair quality.

The Great Suppression: How Referral Programs Are Eroding Repair Quality and Consumer Rights

The stories of Gerber, Service King and Crash Champions all point to a larger issue: the erosion of quality and consumer rights as corporate power and private equity shape the collision repair industry. Today, insurers routinely steer customers toward their “preferred networks” of program shops, pressuring them to use low-cost providers, rather than choosing shops that prioritize OEM standards and safe repairs.

The problem is this: there’s no law that says a consumer has to use a program shop. But the insurance companies make it seem like they do! They pressure consumers with misleading claims, such as suggesting that program shops offer faster repairs or lower out-of-pocket costs, when in reality, these shops are often incentivized to cut corners on repair quality and safety.

As insurance companies and private equity-backed repair chains like Gerber, Service King and Crash Champions continue to dominate, independent shops – especially those focused on quality and safety – are being squeezed out. The pressure to meet volume-based targets often forces these corporate shops to rush repairs and take shortcuts, undermining the safety of consumers and the integrity of the repair process.

How Laws Can Help Level the Playing Field

Collision repair shops are facing an uphill battle to protect their independence, and some areas may find it more challenging than others. 

Illinois is fortunate to have some of the strongest consumer protection laws when it comes to collision repair. The Illinois Collision Repairers Act (815 ILCS 308) ensures that consumers have the right to choose their repair shop – a right that insurers can’t take away, no matter how hard they try. Insurance companies are required to give consumers a list of at least three repair shops when they file a claim. And CRP (Consumer Repair Protection) regulations also mandate that insurance companies must cover the cost of repairs at non-referral program shops, as long as the repairs meet OEM standards. This is a huge win for independent shops in the state, but it’s something that many consumers aren’t aware of.

There are also other regulations, like Illinois Administrative Codes 919.50 and 919.80, that outline fair claims practices and protections against unreasonable insurance practices, ensuring that consumers and independent repairers are not taken advantage of. These laws are critical tools that can help push back against the unchecked power of corporate-driven referral programs.

There’s still more that can be done to strengthen shops’ ability to remain competitive here, but this is a pretty solid foundation that could benefit other markets if they’re able to implement similar laws. 

A Call to Action: How Independent Operators 

Can Take Back Control

Despite the overwhelming corporate influence in today’s collision repair industry, there’s still hope for independent operators across the nation. By focusing on consumer rights, safety, and high-quality repairs, we can reclaim the ground lost to corporate giants.

1. Embrace Certifications and Safe Repairs

The first and most important thing independent shops can do is embrace certifications and OEM repair standards. By committing to the highest standards of repair and investing in the latest technologies, we can offer consumers the safest, most reliable repairs – and differentiate ourselves from the high-volume, low-reimbursement program shops. Consumers are becoming more savvy, and those who seek out quality repairs will find the best options at independent shops.

2. Become Experts in the Law and Protect the Consumer

As an independent repair shop operator, it’s crucial that we become experts in collision repair laws and insurance regulations. Illinois laws like the Collision Repairers Act and the Administrative Codes offer powerful tools that can protect both consumers and repairers from the overreach of insurance companies. Educating your customers on their rights is essential – not only to protect your business but to ensure that consumers understand they have the right to choose where to repair their vehicle.

3. Clarify the Consumer’s Right of Choice

Independent operators must educate consumers about their legal right to choose their repair shop. Too often, insurers push customers toward their own program network with misleading information. By communicating the true scope of consumer rights and clarifying the benefits of independent repair, we can empower customers to make informed decisions that prioritize safety and quality over speed and cost-cutting. It’s time to remind consumers that they hold the power!

Conclusion: The Future is in Our Hands

The collision repair industry is at a crossroads. The rise of corporate giants and private equity-backed repair chains has fundamentally changed the landscape – often at the expense of quality, consumer safety and the small independent shops that once made this industry thrive. Gerber, Service King, Crash Champions and similar companies, fueled by private equity and driven by the demands of insurance companies, have reshaped the repair industry into one dominated by speed, volume and profit margins, leaving consumers with fewer choices and lower-quality repairs.

But it doesn’t have to stay this way!

Consumers have the power to choose where to take their vehicles. As independent repair shop owners, we still have the tools to fight back – through education, certification and the knowledge of our rights. While the system is stacked against us, it’s important to remember: we are the backbone of the repair industry, and we still hold the ultimate card – quality repair and consumer trust.

The battle isn’t over yet, and there’s still time to turn the tide. By choosing quality over convenience, by supporting local independent shops and by demanding transparency from insurers and corporate repair chains, we can create a future where safety, craftsmanship and consumer rights are at the forefront.

Now is the time for consumers to educate themselves and demand better! Now is the time for independent repairers to unite, stand strong and prove that quality can – and will! – prevail over corporate greed.

The golden age of collision repair may be behind us, but it’s up to all of us to reclaim it – one repair at a time.

Andrew Plischke is Director of Client/Insurance Reconciliation at Gold Coast Auto Body (Chicago, IL).

Want more? Check out the January 2025 issue of New England Automotive Report!