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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...

... 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 ... , Joe decided to have the car repaired at Prime and pay the difference between the Prime and the ABC estimates. Repairs were finished in six weeks, but when he picked up the car, Joe noticed that it didn't handle properly. An inspection by the Mercedes dealer revealed that damage to the wheel assembly had never been repaired. Joe returned the car to Prime, who began renegotiations with Midwest. After four weeks, Prime was able to complete the repairs. What was the final result of the claims experience? As a ... of this claim, not only did Joe have to pay $2 ,800 to get OEM parts, but the time he devoted to solving the problem came to $3 ,500 in lost earnings. (As a corporate tax accountant, Joe's time is billed at about $350 per hour.) His irritation was immeasurable. Midwest Insurance and the Middletown agency lost a good client. And Bob nearly lost a friend. While Joe's example may seem exaggerated, it does happen and it illustrates how flawed the system is. ...