Cutting costs leading to cutting corners in Australian bodyshop sector

November 29, 2014
Cutting costs leading to cutting corners in Australian bodyshop sector Terry Flanagan pictured with local politicians and fair deal campaign supporters Tania Mihailuk and O'Bray Smith.
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Reports from the Australian accident repair sector suggest that constant pressure from insurance companies to cut repair costs are leading to poor quality workmanship and ultimately putting lives at risk.


Terry Flanagan who runs a bodyshop in Penshurst is one repairer who has had enough and come out with a strong attack on the current situation. He commented, “It's a mess. The industry is disarray and the main losers are the car owners. The insurance companies want the cheapest deal, so they run their own shops which don't always do top quality work. Small business is getting bashed big time here by insurance companies and the car owners are denied their choice of repairer.” He added, "I'm always getting cars whose owners are saying they have not been fixed properly."

Terry firmly lays the blame at the door of unregulated insurance companies and a government which refuses to act. But he believes the problem could be fixed if the state government would implement recommendations from a recent inquiry into the Australian motor vehicle repair industry.

The Select Committee on the Motor Vehicle Repair Industry found that poor quality vehicle repair practices were putting motorists at risk and that a major imbalance existed in favour of insurance companies over repairers. A total of 21 recommendations were made, with the most important being that insurers did not prevent motorists from exercising their choice of repairer if their policy allows it.

Flanagan has now launched a campaign with the assistance of local politicians  O'Bray Smith and Tania Mihailuk, to call on the New South Wales government to provide a guarantee that recommendations made by a parliamentary inquiry to improve road safety for motorists would be implemented before the state election next year.

Tania Mihailuk commented, "Crash repairers and motorists are demanding a fair and transparent industry that prioritises road safety over cost, and it is time for the NSW government to take action to ensure that only roadworthy vehicles are driven on our roads."
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