Eye On America Focuses on Repair Fraud

The CBS Evening News reported last night on insurer-owned repair shops, particularly Caliber Collision Centers in California, which is owned by a group of insurance companies. CBS News correspondent Mika Brzezinski interviewed Jim Asay, a California man who was rear-ended and had his vehicle repaired by Caliber.

"They didn't fix it the way they were supposed to," Asay told Brzezinski. "They had not repaired the frame of the car correctly. It made the car unsafe."

CBS reported that the California Bureau of Auto Repair inspected the vehicle and found the work to be "grossly negligent." However, the report also interviewed Ron Pyle, president of the Automotive Service Association, who explained that he considers it a conflict of interest for an insurance company to own a shop such as this one.

"The folks in that facility actually work for the insurance company," Pyle said on the program.

Brzezinski visited the shop herself and asked about the company's reputation for good repairs.

"I won't let a car go out of here that's unsafe," the owner told her.

Brzezinski also interviewed Carl Parks, a representative of the insurance industry.

"This isn't a conflict of interest because the company and the insured have the same interest," he said.