Price of Service Excellence?

RM1,800 versus RM1,100 in repair costs to my car.

RM1,800 - that’s 63.64% more than that was quoted by my regular car maintenance workshop which is not on my insurance company’s panel.  I had thought that car workshops on insurance companies' panel would give insurance companies better pricing, isn’t that logical?

About a fortnight ago, I had a minor car accident which resulted in my car having to be repaired.

Mr A who knocked into my car, had hoped for a personal settlement so that the NCB (No Claim Bonus) on his insurance coverage would not be affected.  As requested by Mr A, I had then sent my car to my regular car maintenance workshop for an estimate of the repair costs. 

My regular car maintenance workshop is well established and specializes in maintenance of luxury cars. Albeit my car is not a luxury car, they have nevertheless given my old trusty car the same good treatment.  The repair works were estimated to be at maximum of RM1,100.  Mr A was however reluctant to pay this amount and ultimately decided to make a claim against his insurance coverage to pay for my car repair costs.

As my regular car maintenance workshop is not listed on my insurance company’s panel, I had no choice but to send my car for repair works with one of the insurance company’s authorized car workshop.

I had received a telephone text this morning from my insurance company advising “We have approved RM1,800 for the vehicle number XXXXXXX.  The repairs will be completed within 14 days from the date hereof.”

I then called the car workshop to advise that I have received this update from the insurance company and to my surprise, the personnel there advised me that my car has been repaired and ready for my collection!

A news article today advised that in order to enjoy faster claims motorists have to pay higher insurance premium.  Am I experiencing the price of service excellence?

If generally, the cost of repair works are not so exorbitant at the authorized workshops, then insurance companies would not have to pay through their noses to make good insurance claims,. This  savings would ultimately  trickle down to motorists who then don't have to pay higher insurance premium. If you are a car owner, you will be affected.  Food for thought...