The Photo Estimating v. Physical Inspection Controversy Continues

As I am sure everyone in the collision industry is aware by now, the biggest and latest change taking place at the present time is “photo estimates.” That’s right, photo estimates. The insurance industry is doing everything in their power to change the way estimates are prepared these days, continuing to move away from personal inspections to estimates based on photos of the damage. This extreme effort being made by the insurance industry is being pushed on the premise that the photo estimate concept is going to expedite the claim settlement process. In reality, the opposite is true.

In all my years dealing with the relationship between insurers and collision shop owners, I have never before seen an issue be pushed as hard as this one. Certain insurers are even at the point that they will actually state, “We no longer come out to physically inspect damaged vehicles” and then demand that the shop owner or representative take photos of the damage to a vehicle and send them to the insurer along with an estimate based on the photos. Wait, did I say that right? Let me go over that again. Insurers are demanding that shop owners or representatives take photos of damage to vehicles and prepare an estimate of the damage discovered while taking photos of the damage.

Just how stupid do insurers think people are? Estimates prepared by shops are still based on personal inspection of the damage to the vehicle. The difference is that insurers are not sending someone out. Instead, they force shop owners or their representatives to perform the insurer’s job for them – without compensation, I might add! The problem is, even when the shop representative goes along with the process and sends in the photos and the estimate of the damage discovered as a result, the insurer sends back their estimate for a fraction of the estimate prepared by the shop representative who physically inspected the damage, took the photos and prepared the estimate. From there, let the games begin!

When the shop representative questions the low estimate from the insurer, the response is usually, “That’s all we can see based on the photos you sent in, so we need more photos.” Now, I’m not talking about a small difference between the shop’s estimate and the insurer’s estimate. We are seeing differences by thousands of dollars. Just to give everyone a better idea of exactly how

by CHARLES BRYANT

ridiculous this photo estimate game is, the other day I received a call on the AASP/NJ Hotline from a member explaining that they were on the ninth supplement based on photos being sent in over and over, and the caller explained that they were only about halfway through the repairs. Talk about something that is causing a delay rather than expediting the process.

So, what’s the point? The point is no one can prepare an accurate estimate on a severely damaged vehicle based on photos of the damage, PERIOD! The technology needed to prepare an accurate estimate on a severely damaged vehicle has either not been created or has not been introduced to the industry yet. As a result, the settlement of collision claims and the repair of collision damaged vehicles are being delayed severely…PERIOD!

So, how did we get to where we are now? The regulations governing fair claim settlements have not changed to allow for photos estimates. The rules for collision shops that would allow for picture estimates have not changed. In fact, the opposite is true. (See the actual wording in the NJ Auto Body License Law Poster that is required to be posted in the office of every licensed auto body shop in New Jersey below.)

Chapter 53

An Act concerning licensing of auto body repair facilities, amending P.L.1987, c.280 and amending and supplementing P.L.1983, c.360.

C.39:13-4 Fine; refusal to grant suspension, revocation of license.

4. The director may fine or refuse to grant or may suspend or revoke a license of an auto body repair facility for any of the following acts or omissions related to the conduct of the business of the auto body repair facility: f. Making appraisals of the cost of repairing a motor vehicle which has been damaged as a result of a collision through the use of photographs, continued on pg. 34