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Insurers, Collision Repairers Discuss How to Improve Estimating, Claims Adjusting Process
Collision repairers and insurance company representatives at this summer’s Collision Industry Conference (CIC) discussed the friction that exists between the two segments of the industry in terms of estimating damages and adjusting claims.
An appraiser for Erie Insurance seemed to surprise some collision repairers at the meeting when she suggested shops and insurers should keep customers in the loop about the claims adjusting processes.
“So if you’re emailing the shop, ‘cc’ your customer in that for information purposes,” Connie Hutton suggested during the CIC Estimating Committee panel discussion. “And continue the thread. It keeps them informed and, believe it or not, when I was on the shop side, I got paid for most everything I did because I kept [the customer] informed.”
Panelist Rob Wagner of Rob Wagner Auto Body in Pittsburgh said he was “blown away” by Hutton’s suggestion.
“We need to invest in cloning technology,” Wagner said of Hutton, drawing laughter. “Because that’s literally something that’s created friction between me and appraisers before. It’s, ‘What are you doing talking to the customer about this?’ But it’s their car.” my first line says: If you need a supplement—photos, invoices, sublets, whatever—just send all that’s clear, and you’ll be paid,” she said. “Half of [shops] don’t even read that. It just wastes time for you, not me.”
Hutton was asked what types of repair operations are the hardest for her to approve.
“A sublet to a [dealer] that doesn’t include any documentation when the bill is $3,500,” Hutton said. “It just says, ‘Calibration done.’ I need a little bit more than that. I’ll pay it, but give me a little bit more information. And the shop should need it, too. Any time you sublet something, it’s on you, still. We’ll come back to you, not to them.”
Collision repairers on the panel were asked what operations they most struggle to get approved for payment.
“Safety inspections. It’s getting easier, but that’s definitely one,” Wagner said. “If you have structural damage on a Subaru and you’re writing to take the whole interior apart, and you have a bill-payer that’s not used to seeing that, that’s probably going to freak them out.”
Panelist Erin Solis of the Certified Collision Group referred back to Wagner’s reference to cloning.
“You want to clone them, but the rest of us want to clone you,” she told Wagner. “Because part of the reason why you can’t get paid for the R&I of the steering column on a Subaru when you have to measure it could be because you’re the only one in your market doing it.
“There are still a lot of repairers not doing the safety inspections, and I hear from shops all the time they are getting push back because [they are told] no one else in their market is doing it.”
Claims Handling Inconsistency
Wagner said one of his frustrations with how auto claims are adjusted is the inconsistency in what procedures get approved.
He pointed to two claims at his shop involving the same Lexus vehicle, with virtually the same damage and the same insurer involved. Shortly after the shop completed the first $17,000 repair to the vehicle, the customer hit a deer, resulting in similar damage and a $19,000 bill.
“With the first repair, there was a short-pay of about $2,500, and on
Shop Showcase the second repair there was a shortpay of about $2,500,” Wagner said. with Ed Attanasio “But items that the insurer said on the first claim they would never pay, got paid on the second claim, no problem. And vice versa. It just seems like they reach a quitting
Social Media for Shops point [when reviewing a claim], and decide, ‘That’s good enough.’” with Ed Attanasio Wagner also drew applause at CIC when he challenged the estimating system providers to do a better job including small and onetime-use parts often needed during
SEMA Show Goes On repairs in their systems. “Clips, O-rings, screws are with Ed Attanasio parts, and they need to be in the database,” Wagner said. “If you want to talk about the one thing that absolutely irritates me to no end, it’s all
Media and Publicity for Shops the time I have to spend digging to try to find all those parts.” with Ed Attanasio Wagner said his shop recently Shop StrategiesConnie Hutton of Erie Insurance encourages shops and insurers to keep customers in the with Stacey Phillipsloop while claims are being handled
Body Shops Giving Back with Stacey Phillips
Tips for Busy Body Shops with Stacey Phillips
My SEMA with Stacey Phillips
Erin Solis of the Certified Collision Group said shops often struggle to get paid for safety inspections because too few shops actually do them
See Improve Estimating, Page 42 YOUR ASSURANCE OF QUALITY
Insurer Estimate Not a Repair Plan
Hutton also emphasized there’s a clear difference between an insurer estimate and a repair plan.Shop Strategies
“When I send my estimates out, with Victoria Antonelli www.capacertified.org
is an allowance for a small portion of vehicle sales to be plug-in hybrid electric vehicles, which can run on gas. These vehicles are “designed to prioritize their electric function and use their gas engines in limited circumstances,” according to CARB.
Officials acknowledged Aug. 25 that, despite the new regulations, combustion engine vehicles will likely remain on California roads for years after 2035.
Electric vehicles tend to be more expensive than their combustion engine counterparts, raising concerns among consumers regarding affordability. In October 2020, the average transaction price for a new gas-powered vehicle was $46,000, while the average EV averaged above $56,000, according to Kelley Blue Book. Costs have inflated since 2020 due to a worldwide microchip shortage and record inflation.
The new rules also include incentives to expand electric vehicle access to more Californians, particularly in low-income and disadvantaged communities. The board’s resolution directs officials to continue working with manufacturers and environmental justice advocates to develop strategies and incentives to expand zero-emission vehicle access to low-income communities starting in 2025.
The rules also set minimum durability standards for zero-emission vehicles, which aim to ensure vehicles can maintain 70% of their electric range for 10 years in the first few years after the regulation takes effect in 2026. Come 2030, that percentage will rise to 80% of electric range.
Officials emphasized Aug. 25 that the new regulations will help reduce greenhouse gas emissions and address climate change in the Golden State.
“A clean transportation sector is essential to protect the health of both our communities and our climate,” CARB Chair Liane M. Randolph said Aug. 25. “More stringent mobile source emission controls are necessary to help California achieve federal air quality standards and the state’s greenhouse gas target that will protect public health and mitigate the effects of climate change.”
The regulations are expected to result in additional cumulative costs of $29.9 billion to manufacturers between 2026 and 2040, representing $2 billion on average per year, according to an analysis from CARB. The board estimates that the regulations will result in the total statewide cost of ownership net cost savings of $92.9 billion between 2026 and 2040 for businesses, fleets and individuals who purchase these vehicles.
“Much of the [total cost of ownership] savings stem from reduced gasoline consumption, with gas prices conservatively assumed to remain relatively constant around $4 per gallon, with even greater savings if prices remain at their current elevated levels or increase further,” CARB’s summary stated.
The adopted regulations implement Gov. Gavin Newsom’s previous executive order that required new car sales to be zero-emission by 2035. Newsom called the CARB’s new regulations “groundbreaking” and “world-leading” in a statement Aug. 25.
The board’s regulations garnered praise from vehicle manufacturers, including Ford. In a statement, Ford’s Chief Sustainability Officer Bob Holycross called the regulations a “landmark standard that will define clean transportation and set an example for the United States.”
“At Ford, combating climate change is a strategic priority, and we’re proud of our partnership with California for stronger vehicle emissions standards, forged during a time when climate action was under attack,” Holycross said.
The Advanced Energy Economy, a national business group, also praised the board’s decision on Aug. 25, saying the decision “charts the
“The California program will have a major ripple effect nationally, opening the door for states to increase EV adoption, encourage economic growth and reduce emissions,” AEE Transportation Policy Director Ryan Gallentine said in a statement. “We call on other states to take this opportunity to drive the growth of electric transportation nationwide.”
California has historically set the standard for more than a dozen of other states when it comes to vehicle emission standards, and 16 other states could follow California’s lead with these new standards, according to the New York Times.
CARB staff said Aug. 25 the plan to transition away from gas-powered vehicles is “well-supported” by the recently signed state budget, which includes $2.9 billion this year and $3.9 billion over three years to invest in the state’s electric vehicle infrastructure and provide incentives for in-state manufacturing.
Continued from Cover
Battery Plant
“This marks another significant milestone for our company,” said Norm Bafunno, senior vice president, unit manufacturing and engineering at Toyota Motor North America. “This plant will serve a central role in Toyota’s leadership toward a fully electrified future and will help us meet our goal of carbon neutrality in our vehicles and global operations by 2035.”
In 2021, Toyota, in partnership with Toyota Tsusho, announced the new Liberty location with an initial investment of $1.29 billion for battery production and the creation of 1,750 new jobs. With today’s announcement, TBMNC’s total investment is $3.8 billion.
“This is an exciting time for Toyota, the region and the many North Carolinians we will soon employ,” said Sean Suggs, TBMNC president. “This incremental investment reflects our continued commitment to ensuring jobs and future economic growth for the Triad region.”
Toyota North Carolina is seeking motivated individuals to join its leadership team. To view and apply for open positions, visit www. toyota.com/careers. Production and maintenance employee positions will be available in early 2023.
Source: Toyota
