"New Pilot Program" = Out of Network & Customer must pay

[DodgeTowGuy134]

I'm writing this to inquire if others have experienced this "New Pilot Program" that Agero-Swoop has "recently" launched, where if a USAA customer needs roadside assistance and/or towing and they (Agero-Swoop) can't get an in-network/contracted provider to run the service, that they (Agero-Swoop) then tell the customer that they (the customer) has to pay out of pocket for all of the cost of the service and then file for "Reimbursement Consideration", even though the customer (USAA insured that already had roadside assistance) added on their policy and had paid for such as part of their insurance bill, has to jump through these hoops in order to get the services they are requesting all just because Agero-Swoop has to go out-of-network and pay retail rates for service. 

 

Sometimes, the Agero-Swoop dispatcher hasn't even told the customer that they (the customer) will have to front the out-of-pocket charges when the dispatcher is calling around for price quotes and price shopping the call to death for hours while leaving the motorist stranded without any status updates...

 

This is now how Agero-Swoop is handling these USAA dispatches, instead of following the standard method of just directly issuing a VCC to the service provider... 

 

In speaking directly with the USAA customers they tell us that they are being told by the Agero-Swoop dispatchers that it's because Agero-Swoop has to go out-of-network to secure service and that it's not covered directly, so they must pay the provider and then file for reimbursement "CONSIDERATION"...

 

We've inquired with the Agero-Swoop dispatchers how this method works when a USAA customer doesn't have the funds to pay or chooses not to pay since they already have coverage that's just not being honored, to which the various Agero-Swoop dispatchers have told us that in those situations they (Agero-Swoop) will still issue a VCC to the provider directly to pay for the services in full. 

 

I'm extremely concerned about this new "Pilot Program" and about the motives behind it being started by Agero-Swoop as a potential tactic for the purpose of price control/price manipulation. 

 

We've experienced this a few times now and I'm collecting more info and documentation about this "New Pilot Program". 

[dperone]

It's almost like if they didn't continually screw the providers actually going out and providing the service they wouldn't have to launch a pilot program to cover situations where they couldn't find a service provider to provide service to their customers. We worked with them briefly when they were still cross country but we quickly grew tired of having to fight to get paid. Now when they call we know they are desperate because we insist on a credit card up front with no GOA's, plus we add a couple bucks to our retail rates to make up for the money they shorted us years ago. Unfortunately as long as they find people willing to jump through their hoops just for the pleasure of running calls for a third rate motor club they will continue to exist. 

[GRUMPS The Towman]

Well Said Dperone. My current motor club policy is the same as yours and has been for over a year now. If they are calling me, Then I already know it has been probably Hours that their client has been waiting and they have exhausted trying all their providers ( both local and out of area ) Or what is more likely the problem is that they dispatched it to one of their fly-by-night contracted clowns in town who told them 45-1 hour for an eta 4 or 5 hours ago and still havent shown up. That happens a lot here because these companies take on every call they get even if they dont have the resources or even the ability to provide the service.

It is the old mentality of " I am SO busy and running my ass off all over so I MUST be making money....

I do feel for the end user ( the disabled driver ) because this is a service they pay for through their insurance or whatnot. But sadly, this is what these Motor clubs have evolved into and the damage done to the system/industry is on the clubs hands. 

The Honest, Professional towing providers like us wont / cant work for what they are willing to pay so they really "Get what they pay for"...

[Eastendtow 66]

swoop called me at 3:35 am for a jump start in san jose california said she is running out of providers to call offered me 25 bucks over invoice its 1 day and 6 hours drive 2078 miles I live in ILLINOIS i gave her a price of 10,390.00 paid on card 

[Stubborn66]

Generally, a customer does not know Agero, or Swoop, all they know is the name of their insurance company.  The Agero (club) dispatchers are trained to interact with the customer as a representative of the various insurance companies.  

 

IF this is a new program, my thought would be that it is being initiated by USAA and implemented by Agero  Don't forget, Agero is going back and billing USAA for our services.  There is a contract between USAA and Agero that says Agero will handle the LOGISTICS of roadside service. 

In that contract, there may be specific language that say that if Agero has to go outside of network they bill USAA at a different rate.  Agero is not stupid, they know they will need to go out of network at times.  USAA is likely trying to save a buck when this happens.

 

Don't forget, those contracts are what all the "clubs" are fighting each other for at the corporate level

 

 I too am credit card up front with Agero and Swoop.  In my opinion, dropping the contracts but still performing the work at your rates is the best way to combat the clubs.  I also make sure to inform the upset customer that I just received the call, and I am not the reason they have waited so long.  I have actually been able to turn a couple of these into new shop customers.

[DodgeTowGuy134]

***UPDATE***

 

As an update to this post, we can confirm that it's NOT just the USAA account that Agero-Swoop is running this "New Pilot Program" on, as we've been able to also confirm that they are doing this with 2 other programs as of this point... That would further indicate that this "New Pilot Program" is being initiated by Agero-Swoop and not by the program itself..

 

In response to the comments by "Stubborn66", please let me clarify how various motor clubs bill for their "dispatch/logistics/administration of a program, as not all motor clubs use the same model:  

 

Agero-Swoop works on a "Breakage" model, where they bill and are paid a flat rate to administer the contract for the program/client (insurance company/vehicle manufacture). They do NOT individually bill the program/client for each service event that occurs! With these types of motor club contracts, the various clubs submit their bid to administer the program for the client and get paid their winning bid amount REGARDLESS of how many "service events" occur for the year. This is known as "Breakage" where the club relies of the odds of the "Lottery" that the customer won't need roadside/towing services and thus "the house" wins, such as in winning the lottery or at a casino. 

 

Conversely, other other motor clubs may have a contract with a program/client that DOES rely on directly billing the program/client for each service event that occurs. This is the case for NSD billing for administering the various "corporate vehicle fleet maintenance programs" that they won the contract for. Where they (NSD) would then bill the program/client for each service event where a vehicle is needing roadside assistance/towing and NSD processes the charge against the WEX fleet card at the time of the dispatch to the provider. 

 

Now, circling back around to the comment about this "New Pilot Program" having been started by Agero-Swoop or the program/client (insurance company), as of this point we believe that that's NOT the case, and that this very specifically is being directly launched by Agero-Swoop on their own, as a "Cost Control" measure pertaining to Out-of-Network providers. This is based on the investigation and documentation  we have collected up to this point and is our belief of what's happening. We do not believe that the program/client (insurance company) is aware that this "New Pilot Program" has been launched by Agero-Swoop, also based on the fact that it further inconveniences the stranded motorist and having them "jump through additional hoops" in order to get the service (towing/roadside) that they ALREADY paid for as part of their monthly/quarterly/annual insurance bill and is contrary to well established procedures ( I could further explain this facet, but at this time it's best that I keep this part brief while we further research and document this "new pilot program"). 

[Stubborn66]

Interesting. 

 

I still cant see how Agero could start charging the insurance companies customer, when they have to go out of network to provide service, without the insurance companies knowledge and approval.  Would seem to me that would be a breach of their contract with the insurance company.

 

I do a half a dozen calls a week for Agero and Swoop, I am not contracted so they pay my rate.  I will try to discretely inquire

[DodgeTowGuy134]

That's the exact perspective we are interested in finding more info about.. Seems that this attempt at price control by pushing the upfront cost onto the customer to pay out-of-pocket and then get reimbursed would be as issue in conflict with the contract between the customer and the insurance policy..  Please let us know if you find out any more "programs" that they say that the customer has to pay-out-of-pocket for the Out-of-network service provider and then submit for reimbursement consideration.

 

[Stubborn66]

I can tell you that I have not collected money from any Agero / Swoop customers to date

 

 

[DodgeTowGuy134]

Update as of 1/17/22 - 

 

We have determined that this is now also affecting Progressive, Liberty Mutual, State Farm and most other accounts also.. It's our conclusion that the "bean counters" are now "flagging" PROVIDER accounts (Non-contract providers) that charge RETAIL rates and don't give them a discount! Meaning that the Agero-Swoop dispatchers are instructed via the computer dispatch software that if XYZ Provider is used, to ask for a Quote and then tell the customer that they have to pay out-of-pocket. 

\

Personally I believe that this new "scheme" that Agero-Swoop is using could constitute a BREACH of contract between the customer and their insurance roadside program that's written into their policy! Why? Because the customer (insured) that's needing assistance has ALREADY paid for their "subscription" into the program via payment of their insurance bill which is where they are billed for the additional roadside assistance program, yet the 3rd party administrator of the roadside assistance is Agero-Swoop, who acts as an intermediary between the customer and the actual insurance company; and by Agero-Swoop telling the customer (insured) that they have to pay-out-of-pocket and then "file for reimbursement CONSIDERATION" that is making the customer (insured) jump through additional hoops to obtain the coverages that they have already paid for and are entitled to use! 

 

Agero-Swoop is telling the customer that they have to out-of-pocket the costs because THEY (Agero-Swoop) had to go "Out-of-Network" and as such they require the customer to pay and seek reimbursement CONSIDERATION. And in the event that a customer hows not have the funds to pay or is the customer (is smart enough) to refuse to pay any out-of-pocket and demands the coverage that they're entitled to, then Agero-Swoop WILL still issue a VCC for payment as they have done as standard operation. It just comes down to the customer willingness to be bullied and pushed around by Agero-Swoop or their willingness to stand up and demand the coverage they are entitled to under their roadside assistance policy. 

 

While we as a provider (non-contract) don't have Standing to step in to address this directly, the customer (insured) that's being told to pay and seek reimbursement DOES have STANDING to address this potential BREACH of contract matter! 

 

Looking at this as a whole, this does seem to be a new scheme by Agero-Swoop to attempt to manipulate "market rates" or at the very least the amount that they (Agero-Swoop) pays for the services that the customer (insured) is entitled to receive. in example: Agero-Swoop INCORRECTLY believes that the provider will charge a lower rate to the customer is the customer has to pay-out-of-pocket, instead of Agero-Swoop paying directly via VCC for the services. 

 

On a somewhat related note: Please be aware that Agero-Swoop is attempting to DISPUTE amounts of VCC payments that were issued for services ranging from a few months ago to ~six months ago... According to the Visa/Mastercard terms, a card holder has up to THREE YEARS to file a dispute! <<<<< WOW! 

Furthermore, this is an important reason to receive an email copy of the "VCC Remittance Authorization" via email and showing the amount authorized to be billed on the last four-digits of the card. We've used this as proof against Agero-Swoop for their disputes where they claim that a different amount was approved.. Furthermore, this is also an important reason to consider requiring a 100% GOA rate as part of YOUR COMPANY TERMS and notifying the Agero-Swoop dispatcher of this at the time of dispatch and doing so on a RECORDED telephone line! 

 

Ultimately, these various schemes that Agero-Swoop continues to put forth only serve to further delay services to the stranded motorist and are overall attempts to CONTROL the costs that Agero-Swoop pays. As an industry, we should rally and combat these overreaching tactics by Agero-Swoop and to also explain to the stranded motorists what's REALLY  going on behind the scenes and why they (the stranded motorist/customer/insured has experienced such a LOOOOOOOOONG wait time! 

 

As for pricing, we each determine what rates we charge, and at what profit margin (unless you're operating as a not-for-profit). We own the trucks, we pay our commercial insurance and all other expenses, so WE control the rates that WE decide to work for. We are NOT obligated to offer a discount or work for sub-par rates that are paid by motor clubs, all so that the motor club saves $$$ and we do all the work. We, as an industry, need to remember that the scales are in our favor since ultimately we are the ones making the customer contact directly doing the work, not the motor clubs. 

Edited January 17, 2022 by DodgeTowGuy134

[MTtow]

I don’t think that the insurance companies care about what agero or swoop is doing. Agero and swoop are no different than a middle man shielding the insurance companies from complaints about delayed service. This ‘scheme’ also allows the insurance companies to sell the roadside service at below market rate. When a complaint is received the insurance company blames agero or swoop who in turn blames the tow companies. The insured motorist is mad that they are not getting the service they paid for but not mad enough to change insurance companies. 
Check your merchant agreements as many charge you when someone (agero or swoop for example) attempt a charge back or dispute even if the credit card processor sides with you. 
Keep good documentation for your authorization and charged amount. 
If they dispute a cc charge I put them on the no service list.

Edited January 18, 2022 by MTtow

[Stubborn66]

If Agero is starting to do this kind of thing, IMHO it is a good thing for us, they may have finally pissed off enough service providers that they need to go out of network to the point where it is hurting their bottom line.  Maybe they will get to a point they will be fair to service providers.  One can only hope.  And if we can get tow operators to stop working for peanuts, maybe we can get back to sustainable rates.  Unfortunately, IMHO, that is our biggest problem, too many operators who work for too little and think they are doing good.....for a while.  Then the next guys tries it.... and so on and so on.  The clubs feed on those operators.

 

I have to agree with MTtow, Agero would not risk millions of dollars in lawsuits with the insurance companies, or risk losing their business, to do something like this without their knowledge.

 

Stay Safe

[Orcas Tow]

I have been in business for over 30 years, dealt with Cross Country on a c card basis, had so many after hours out of area calls (I'm on an island that is ferry serviced only, no bridge so out of area is a day round trip), waking me up (owner/operator/dispatcher/truck washer/bill collector all in one) so I signed up briefly (apron 45 days) with them twice over the years to hopefully curb the 50 to 1 ratio of out of area calls. That did not make a lick of difference & all it did was create a billing/collecting nightmare. They would call me for a member on the side of the road at 3 am out of my area, then call me back an hour later with the same dispatch info, they are very out of touch with efficiency & obviously no human involvement in correcting the situation as its been that way for years. I have all of their incoming phone #'s saved in my phone & block them when I go to bed & on snow days. I have been taking & running card up front quoting them 1.5 times my retail rate as it usually takes 5 phone calls & 30 minutes overall average dealing with their poor dispatching info & mess of accurate job description plus the member is usually pissed off when I arrive as they have been sitting on the side of the road for 4 hrs because of AGREROS  lack of proffessionalism. I have been called by the member due to AGERO making them sit for hours broke down, quoted a price to them of lets say regular retail of $200, the member calls AGERO saying that we can do the service giving AGERO my phone #, AGERO supervisor calls me, I quote $300 to them & I have been lectured/bitched out demanding that I can't charge AGERO a different rate than a retail customer, end call & block #.

[Eastendtow 66]

We had agero call us for a lock out it was outside our area so we offer to do it by credit card only they called back with card info agreed to pay 150 on card ten min later they cancel call before we run call no big deal next day the father of the girl calls me demanding that i pay him the 300 he paid on card i told him we never had any info on his card we never charged him then told him call was canceled and roadside must of charged your card not us and then told him we were charging his roadside 150 not 300 even sent him the copy of the email 3 weeks later i get served to go to court over his 300 .  thats a good profit for agero 150 extra for just a phone call 

[yoBdaBenO]

We do not work for AGERO anymore, no amount to money and still they continue to call. As for this program, customers often do not understand why they do not have full coverage on towing. We explain to them we are not contracted as a service provider with the the club. If they do not want wait hours the service then they need to pay us the difference. What's the club going to do not call us, they have already called 3 times at this point. Thankfully it's only one or two clubs.

[Stubborn66]

I got a call this morning at 2:30 am, Agero.  Breakdown that was being towed 7 miles, I gave them a price, the lady actually sounded like she couldn't believe the price, repeating back to me twice.  I explained that the location was 30 miles from the shop and that mileage had to be paid for and it is 2:30am.  Then she realized why the price was so high.

I went back to bed, figuring I would not get it.  I was shocked when she called back before I fell asleep and asked me if I could still do it. 

 

Got to the customer, got him loaded.  While taking him to the dealer I asked how long he had been waiting, he told me since before midnight.  It was probably 3:30 when I got to him so he had been waiting close to 4 hours I would imagine.  Fishing for more information, I asked if he had any copay with his roadside, he said he didnt.  I also asked who his insurance carrier was and he told me that he actually used his warranty coverage to arrange the tow. It was a newer Subaru. 

 

His biggest complaint was the waiting time naturally and he said he could not understand the person who helped him on the phone 

[DodgeTowGuy134]

***UPDATE***

 

We have determined that Agero-Swoop has negotiated with their clients (Nationwide, Progressive, USAA, StateFarm, etc) that when they have to go "out-of-network" because they can't get an "in-network" provider to run a call at the cheap contract rates, that the customer (stranded motorist) is required to pay out-of-pocket and then submit for the reimbursement consideration.... This still allows Agero-Swoop to price shop the calls and further reduces the likelyhood of Agero-Swoop being on the hook for the 100% GOA or only deciding to cover a portion "up to the policy limits" which is why the dispatchers are still price shopping the calls and wanting to get quotes, even though they aren't going to issue a VCC (unless customer refuses to pay out-of-pocket or can't pay) and then they only tell the customer the "lowest" quotes they got, not based on the ETA's provided, so a lower quote from "flip-flop Chuck" that's 2-hours away will be the quote provided to the customer, instead of your higher priced quote with a 30-minute LOCAL ETA!

 

We've been able to confirm this be speaking directly with INSURANCE company representatives (agents/adjusters/reimbursement agents) as well as reviewing the insurance policy coverage pages on various policies that have roadside assistance coverage added to them and also via finding some additional info online.. 

 

So, in sum, Agero-Swoop continues to work to influence rates all while NOT caring about the customer experience, safety or timeframe it takes to get them services; they do NOT care if a motorist is stranded for 5-HOURS! (see the post about the Flashcards training and read about their system color coding to show timeframe that a customer has been waiting!)

 

Agero-Swoop hopes that the stranded customer either won't file a reimbursement request, that they will deny or only cover a portion of a reimbursement request or that the customer will be too frustrated and will just secure their own service. 

 

As for a word for the wise regarding gathering credit/debit card info from the customers in effort for a 100% GOA and to preclude the customer calling multiple companies and the first to arrive "wins" while attempting to not pay the others, here's my advise: Collect the customer info (vehicle, location, name, address, email) and then send the customer an online invoice via your credit card/merchant processor and have the customer go through the online checkout process and pay, INSTEAD of accepting a verbal credit card # from the customer! That way, you can list your Terms/Conditions, any statement regarding GOA and pricing on your online checkout and all of that WILL be available to you to use to support any claim for a chargeback/dispute from a customer in the event of a GOA, since you wouldn;t have been onsite to get a LIVE signature on any of your paperwork if it's a GOA, but by the customer having completed your online checkout, that in itself has established your GOA terms/pricing to help protect you from chargeback/disputes from a customer. 

 

Let me know what you think and your experiences.

 

This info is presented here as our opinion and belief, based on our experiences, interactions and information gathering efforts. 

[MTtow]

21 hours ago, DodgeTowGuy134 said:

***UPDATE***

 

We have determined that Agero-Swoop has negotiated with their clients (Nationwide, Progressive, USAA, StateFarm, etc) that when they have to go "out-of-network" because they can't get an "in-network" provider to run a call at the cheap contract rates, that the customer (stranded motorist) is required to pay out-of-pocket and then submit for the reimbursement consideration.... This still allows Agero-Swoop to price shop the calls and further reduces the likelyhood of Agero-Swoop being on the hook for the 100% GOA or only deciding to cover a portion "up to the policy limits" which is why the dispatchers are still price shopping the calls and wanting to get quotes, even though they aren't going to issue a VCC (unless customer refuses to pay out-of-pocket or can't pay) and then they only tell the customer the "lowest" quotes they got, not based on the ETA's provided, so a lower quote from "flip-flop Chuck" that's 2-hours away will be the quote provided to the customer, instead of your higher priced quote with a 30-minute LOCAL ETA!

 

We've been able to confirm this be speaking directly with INSURANCE company representatives (agents/adjusters/reimbursement agents) as well as reviewing the insurance policy coverage pages on various policies that have roadside assistance coverage added to them and also via finding some additional info online.. 

 

So, in sum, Agero-Swoop continues to work to influence rates all while NOT caring about the customer experience, safety or timeframe it takes to get them services; they do NOT care if a motorist is stranded for 5-HOURS! (see the post about the Flashcards training and read about their system color coding to show timeframe that a customer has been waiting!)

 

Agero-Swoop hopes that the stranded customer either won't file a reimbursement request, that they will deny or only cover a portion of a reimbursement request or that the customer will be too frustrated and will just secure their own service. 

 

As for a word for the wise regarding gathering credit/debit card info from the customers in effort for a 100% GOA and to preclude the customer calling multiple companies and the first to arrive "wins" while attempting to not pay the others, here's my advise: Collect the customer info (vehicle, location, name, address, email) and then send the customer an online invoice via your credit card/merchant processor and have the customer go through the online checkout process and pay, INSTEAD of accepting a verbal credit card # from the customer! That way, you can list your Terms/Conditions, any statement regarding GOA and pricing on your online checkout and all of that WILL be available to you to use to support any claim for a chargeback/dispute from a customer in the event of a GOA, since you wouldn;t have been onsite to get a LIVE signature on any of your paperwork if it's a GOA, but by the customer having completed your online checkout, that in itself has established your GOA terms/pricing to help protect you from chargeback/disputes from a customer. 

 

Let me know what you think and your experiences.

 

This info is presented here as our opinion and belief, based on our experiences, interactions and information gathering efforts. 

I like the idea of the online invoice. Less BS than having to save phone calls and email files to the CC processor if they dispute a 100% GOA charge. I don’t understand the idea of calling several companies and the first to arrive  is the ‘winner’. Thousands have been collected without providing any service other than arriving.