Discuss the advantages of a direct repair program.
What will be an ideal response?
A direct repair program, or DRP, is a way of doing business employed by many insurance companies. A DRP is a group of collision repair centers that an insurance company aligns itself with based upon mutual understanding, goals, and the meeting of selected criteria that the insurer and repairers agree to. In turn, when their insureds and/or third party claimants are involved in a collision, comprehensive, or liability loss, the insurer recommends a group of selected DRP shops, and the owner can choose one at which to have the vehicle repaired.
These programs are advantageous for a number of reasons, namely:
• Less paperwork and red tape, leading to a faster, more efficient repair.
• The insurer and the repairer have a good working relationship that is designed to satisfy their customers.
• The work is usually guaranteed by both the insurer and the shop, sometimes for the life of the vehicle.
• Unless otherwise agreed to and stated in the policy contract, an insured party does not have to utilize the DRP shop(s) that are recommended by the insurance company.
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What will be an ideal response?
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