Little Red Riding Hood – When Did Doing It Right Become So Wrong?

by Jerry McNee, AASP/NJ Collision Chairman

We all know the story of Little Red Riding Hood: the Big Bad Wolf, disguised as Grandma, lurking with deceptive intentions. But what if that wolf wasn’t in the woods? What if it was sitting in the office of an insurance company?

Have you noticed the evolving tactics of insurance companies? Their marketing is nothing short of brilliant – catchy slogans, warm visuals and promises that tug at your trust. But here’s the rhetorical question: would you trust these marketing slogans to protect yourself and your property, knowing how the industry operates behind the scenes? If you had to rate their service, would it pass or fail? Are these advertisements truths…or are they half-truths cloaked in comforting imagery?

At its core, an insurance policy is a promise: to protect the policyholder in their time of need and restore their property to its pre-loss condition. But is that what’s really happening? Let’s call it what it is: insurance estimates are merely opinions, constrained by KPI-driven guidelines. While insurers claim to be your ally, their actions tell a different story. These estimates are shaped by financial motivations, not consumer needs or protection, and they are sold under the guise of “helping you” while vilifying repair shops as overcharging opportunists. Sound familiar? It’s the Big Bad Wolf, warning Little Red Riding Hood to stay away from the one who actually cares about safety.

Insurance premiums have skyrocketed – rising 73 percent over the last decade, with an average annual increase of seven percent. Meanwhile, insurance companies are raking in millions, rewarded for corporate growth and cost-cutting measures that come at the expense of the consumer. So, ask yourself: are insurers living up to their promise and marketing slogans?

Instead of validating proper repair procedures, insurers invest their time in discrediting or ignoring detailed repair plans. They write estimates that align with their financial goals, not the technical requirements to ensure a safe and proper repair. These decisions aren’t made out of ignorance but as deliberate cost-containment strategies. The consumer, unfamiliar with industry complexities, is left to trust these half-truths, often to their detriment.

It’s no secret that insurers abuse their position, often harming consumers in the process. Conversations with appraisers offer a glimpse into this troubling reality.

Appraisers often admit, “I’m just doing what I’m told,” with no room for negotiation or concern for the consumer. When asked if they would trust a direct repair program shop for their own family’s repairs, their silence speaks volumes. Another appraiser revealed that his personal car, repaired at a DRP shop, now has peeling paint. A third pointed out glaring deficiencies on his company’s vehicle: mismatched headlights, improper part fits, poor color match and a hood with a blend line running straight down the center justifying it as, “It’s not my car.”

This raises critical questions: What’s wrong with this industry? Who is responsible for protecting the consumer? What measures are in place to safeguard the integrity of repairs and ensure vehicles are returned to pre-loss condition safely?

The truth is, many insurers are prioritizing profit over safety. They’ve mastered the art of appearing to protect the consumer while quietly undermining the very promises their policies were built upon. It’s time for a reckoning – a push for accountability, transparency and a commitment to restoring trust in an industry that seems to have lost its way.

As a repair expert with extensive expertise in repairs including OEM certification, it’s disheartening to see our knowledge and skills undermined by individuals with minimal qualifications. It’s like being overshadowed by a preschooler wielding a crayon, yet boldly claiming to be the so-called expert.

Shops should clearly document and communicate to consumers what repairs are necessary and why. This includes identifying any shortfalls in insurance company payouts and their potential impact on actual cash value and safety. 

It’s not surprising when the appraiser purposely avoids answering your questions, especially if the questions challenge their methodology, authority or objectivity in the appraisal process. 

I’ve recently asked a series of questions to an appraiser in multiple emails…would it surprise you that every question went unanswered? Were they purposely ignored as if they never existed in hopes that it would go away, or was it ignorance by deception, as this hadn’t gone unnoticed by our client? 

Accountability:

By not addressing the questions, the appraiser may hope to sidestep scrutiny or avoid admitting fault or a lack of expertise.

Ignorance by Design: 

Appraisers or representatives might intentionally ignore difficult questions, expecting the issue to be overlooked or dropped. This can be a tactic to maintain control or avoid addressing shortcomings in their assessment.

Inadequate Knowledge:

The appraiser won’t respond accurately, especially if your questions highlight gaps in their expertise or understanding of procedures and industry standards.

Bias Toward the Insurer:

In some cases, appraisers may intentionally evade questions that could weaken their position or reveal bias in favor of the insurance company.

The lack of response could be strategic, but that doesn’t mean it should go unchallenged. By documenting the issue and pursuing appropriate channels, you can ensure the appraiser is held accountable for their role in the process

Who Is the Expert?

The repair expert (the shop following all guidelines) should always be regarded as the authority on what repairs are needed – not the “so-called expert” employed by the insurance company to minimize costs.

So, what measures are you taking to protect the consumer? After all, it’s your liability in the event something goes wrong. What have you done yesterday or today or what will you do tomorrow when the insurance company ignores scrutiny and short pays the repair? Who is responsible? Who will pick up the shortage? Who’s the expert? 

The repair expert or the “so-called expert”? Insurance policies aren’t based on HMOs. This is not the medical field. Nowhere in the policy does it claim an out-of-pocket expense other than a deductible, so how are they getting away with it? Does the industry understand what “pre-loss condition” means? 

Push for better consumer education so they understand their rights and the risks of inadequate repairs. After all, you’re the repair expert. Get involved with your local associations, join a 20 group, educate yourself and become part of the solution. 

Little Red Riding Hood trusted the wolf dressed as Grandma, only to discover the truth too late. We need to stop trusting the Big Bad Wolf before we’re eaten alive.

Want more? Check out the February 2025 issue of New Jersey Automotive!