Your Insurance Companies “Preferred Service Provider” List

Big Question in Mount Pleasant, TX

What is a “Preferred Service Provider” and do I have to use one?


My insurance agent is telling me I have to use a Mount Pleasant auto hail repair shop on their PSP list for my hail damage repairs. Is this true?

Mount Pleasant, TX hasn’t seen a hail storm like the one that hit early March 2018 for over 25 years. With this kind of occurrence comes with lots of questions.

One of the most frequently asked questions we get from our customers is “Do I have to use one of the paintless dent repair shops on my insurance companies ‘Preferred Vendor’ list.” The answer to this question is NO.

In fact, the bigger questions that lie just beneath the surface is, “What is the difference between a PDR shop that is on a ‘preferred service provider list’ and one that is not?”

To better answer both of these questions, let’s start by defining what a Preferred Service Provider (PSP) is.

Preferred Service Provider (“PSP”) lists are a money-saving tool for insurers. Contractors on an insurer’s PSP list agree to complete the scope of repair work approved by the insurer at a price determined by the insurer. In exchange, the insurer sends continuous repair and replacement work to the contractor. Ideally, the insurer achieves its goal of paying less to repair or replace the property, and the contractor achieves its goal of continuous work and income.

Visit this article written by Merlin Law Group, a Property Insurance Coverage group, about PSP to learn more. Read Article

In conclusion, it is up to the vehicle owner who repairs the hail damage on their vehicle, not the insurance company. Additionally, it is unethical for insurance companies to suggest that one of the Mount Pleasant paintless dent repair companies on their “list” is their only option. If you have a comprehensive insurance policy on your vehicle, you are 100% covered for hail damage repairs – no matter who you decide to choose to do the repairs.

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