SCRS Quick Tip for consumers: How to understand insurance policy language

In a recent Society of Collision Repair Specialists (SCRS) Quick Tip video, Board members Michael Giarrizzo Jr. and Justin Lewis detail why the society recommends consumers reading their current insurance coverage policy in its entirety, and before renewing.

They noted that they’ve found some collision repair facility customers will have only read their declarations page; however, it only provides the monetary cost of coverage versus full details.

“What that doesn’t give you is actual policy language on what you’re being sold,” Lewis said, who is also the president of Accurate Auto Body in Washington State. “There’s a lot of things you should be looking at in policies.”

Those include:

• • Is there an OEM rider? This is optional coverage for consumers who prefer OEM replacement parts over aftermarket or used parts.
  • Is there a dispute resolution? Lewis stated: “If there’s a disagreement between the shop and the insurer on the cost of repair, is there a valid way for you to dispute that without having to go to court?”

“I know some of our customers miss some of the limitations in their policy like not having rental coverage,” said Michael Giarrizzo Jr., who is also the CEO of Ohio-based DCR Systems. “Or who’s excluded? Or are there exclusions to the policy?”

Lewis added, “One thing that we run into quite a bit is them believing that their policy has rental coverage. When it comes to the accident and their vehicle being in the shop, they find out, unfortunately, that they don’t have any rental coverage. At the end of the day, it’s very important when you’re shopping for insurance to look at what options are available, to make sure that you have the coverages that you need for your policy, and to look at the reputation of the company you’re looking to sign up with.”

Giarrizzo noted that when researching reputations of insurance companies, customers should ask themselves how the companies they’re considering typically handle claims — is it with speed or is it a challenging process?

Lewis said he also often sees customers at his shop who lack underinsured motorist coverage.

“You want to make sure that you have underinsured motorist coverage because if you get hit by somebody and their policy limits are a lot less than the cost of your repair, if you don’t have that coverage, you’re on your own,” he said.

To view the video below, as well as more consumer- and shop-facing Quick Tip videos, visit SCRS’s YouTube channel.