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...er of ways (for instance, inferior automated systems and nonprofessional staff...d parties should consider the managed auto care model. After all, no agency wo...

... 4/30/2013 12:00:00 AM by CompleteMarkets Editor , Susan Clark This content has not been rated yet. What's an airbag? Well, it depends on your point of view. If you're a typical consumer, an airbag is simply an auto safety device. If you're less than honest, an airbag is an opportunity to defraud. Since airbags were introduced several years ago, a number of different schemes have cropped up, ' demonstrating, once again, the ingenuity of the fraud perpetrator. One of ... removing airbags is convenient for them, too. For only a few minutes work, these items can net anywhere from $360 to $1 ,800 per unit, depending on the make of the vehicle. After quick extraction, the stolen goods are sold to body shops, which use them as replacement parts, neatly sidestepping the usual high cost. A second up-and-coming scam is employed by other unscrupulous body shops. These shops keep a stock of exploded airbags on hand. They use an exploded bag to temporarity replace the unexploded ... from a car that has been towed in for repair, and then claim that it had been deployed in the accident. Once the claim has been approved, the original unpopped bag is put back and the popped bag is returned to the shelf, ready to use again. A third airbag scam involves using inappropriate replacement parts. Airbags are designed to be compatible with the size and weight of the car. Some shops simply replace deployed airbags with whatever type is available, which may be either too heavy or too light for the ...

...l consumer, an airbag is simply an auto safety device. If you're less than hon... the size and weight of the car. Some shops simply replace deployed airbags wi...

... suffer in a number of ways (for instance, inferior automated systems and nonprofessional staff) . This situation has created a cycle of low performance, with consumers ultimately bearing the cost and aggravation of an ineffective business model. CASE HISTORY Let's examine the process for handling Auto Physical Damage claims as it might happen today. Here's the experience of someone we'll call Joe: Joe bought his Auto insurance from Midwest Insurance through the Middletown Agency, whose principal is Joe's lifelong friend. Last month, Joe was in an accident that damaged the ... rear side of his new Mercedes. He called Midwest, who took the accident report and called a tow truck, which took the car to ABC Body Shop. Midwest then referred the claim to the Middletown Agency. When Joe called the agency to inquire about ABC, he was referred to Sally, who handles claims. Sally said that Middletown would never recommend ABC and that he should take the car to Prime Auto Body or Top Notch Auto Body-the agency's usual recommendations. Joe had the car towed to Prime. ABC told him ... (because its appraisal was lower) or that Prime had to match ABC's price (which was based on after-market parts) . Prime refused to lower its appraisal, which was based on OEM parts. After three weeks, Midwest agreed that Joe could have the car repaired at the body shop of his choice, but insisted that he accept after-market parts. Joe refused. He called his old friend Bob at Middletown Agency and asked for help. Bob was unable to resolve the issue with Midwest. After a heated discussion, Joe ...