Industry Insight with John Yoswick
—John Yoswick is a freelance writer based in Portland, Oregon who has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
Auto Body Shop Billing Practices Related to Total Losses, Not-Included Procedures
Shop Showcase
Disconnecting and later reconnect- connecting the battery often will set sought to be reimbursed for the change over time as the industry being a vehicle’s battery during col- diagnostic trouble codes (DTCs). procedure by eight of the nation’s comes more aware of the need for lision repair work is no longer the You can’t check for those without largest insurers. Among those who the procedure to be performed, and with Ed Attanasio simple operation it used to be—and doing a post-repair vehicle scan in did, just 19% overall found insurers as more shops regularly bill for it. auto body shops are increasingly un The survey also found adminderstanding the need to research the istrative fees for total loss processOEM procedures for doing so, and ing have become increasingly comseeking to be paid for the labor enmon. Direct repair agreements often tailed. prohibit participating shops from That was among the findings charging administrative fees related with Ed Attanasio of a “Who Pays for What?” survey to processing of total losses. Califorin 2021. The survey of more than nia shops are also prohibited by state 500 shops around the country last regulation there for charging adminsummer found about 61% of suristrative fees. But the “Who Pays” survey last vey respondents reported being paid summer found the percentage of “always” or “most of the time” by U.S. shops saying they are paid such the eight largest insurers when they with Ed Attanasio an administrative fee has risen, with performed and invoiced for the pro- “Who Pays for What?” survey last summer found nearly one in five shops say they are paid all or most of the time when they invoice for the labor to clear a customer’s data from a total loss a strong majority (72%) saying they cedures required to reconnect a bat- vehicle tery. are paid always, or most of the time, Overall, the eight insurers in- conjunction with reconnecting the covering the bill “always” or “most when they bill for this work. That cluded in the survey proved fairly battery.” of the time”—and most of those in- compares to just 46% back in 2015. similar in terms of likelihood of The first of the four “Who Pays volved non-DRP repairs. Likewise, the percentage of with Ed Attanasio covering the bill for this work. But for What?” surveys of 2022, one Anderson thinks that will shops that say they have never billed all eight insurers appear to be more focused on not-included refinish lalikely to reimburse their direct repair bor operations, is being conducted shops for this procedure. throughout January; shops can visit This was particularly true in the https://www.crashnetwork.com/colcase of State Farm. More than half lisionadvice to take the survey. (55%) of State Farm shops said Last summer’s survey also withDRP Stacey Phillips they were “always” paid by the insur- found although a majority of shops er for this operation, but only 23% of surveyed said they had not yet billed shops not part of State Farm’s DRP for the time entailed in clearing cussaid they were. Additionally, 24% tomer data from a total loss vehicle, said State Farm “never” pays them some of those who have reported the largest insurers were paying for for this procedure. with Stacey Phillips When shops were asked a fol- those charges. low-up question about how often “Clearing the vehicle owner’s they research the OEM repair pro- personal data from a total loss vecedures necessary after a battery hicle is something we need to start is reconnected, just more than half thinking about for our customers,” (51%) said they do it most or all of Anderson said. “A vehicle owner with Stacey Phillips the time. But more than one in four today may have their home address (28%) acknowledged they research stored in their navigation unit of the the proper procedure only “occa- vehicle. Their contacts can be stored sionally” or even “never.” when they sync their phone. Garage Large Inventory of Genuine Kia Parts “Researching procedures re- door opener codes might be stored. Experienced Wholesale Parts Staff quired when the battery is discon- So we need to be asking the vehinected and reconnected is criticalPhillips to cle owner, when the vehicle is a towith Stacey a safe and proper repair,” Mike An- tal loss, if they would they like us derson of Collision Advice wrote in to erase their personal information. 213.342.0980 Fax the report with the survey findings. The process for this can be found in 1834 S. Figueroa Street “I was analyzing the procedures the owner’s manual.” Mon-Fri 7am-7pm Los Angeles, CA 90015 called for by one Asian OEM recent- Fewer than 20% of the auto ly, and found 11 procedures required body shops answering the survey after reconnecting the battery. Dis- question last summer said they had
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30 JANUARY 2022 AUTOBODY NEWS / autobodynews.com
