EXECUTIVE DIRECTOR’S MESSAGE
If It Isn’t Broken, Don’t Fix It! by CHARLES BRYANT I have been involved in the collision industry for many, leaning toward this type of change for years. However, many years. In all that time, I have never seen claim now that COVID-19 has come along, insurers are blaming settlement delays as bad as they are right now. What do it on this. Some are taking the position that they can’t come you think may be causing them? out to inspect damaged vehicles because of it. Give me a Of course, everyone is going to say, “COVID-19” – just break! like COVID-19 is being blamed for everything else that On top of the fact that no one can prepare an accurate is going on lately. “The COVID-19 made me do it.” LOL! estimate on a severely damaged vehicle from a picture, Well, that argument just won’t hold water this time, even it is actually illegal for a collision shop to prepare an though some insurers might be attempting to make it. estimate on a damaged vehicle based on photos, phone Would you like to guess again? calls or by any manner other than personal inspection. For as long as I can remember, insurers have This provision was put into the New Jersey Auto sent either a staff appraiser or an independent Body License Law for good reason: It is appraiser out to inspect a damaged impossible to prepare an accurate estimate vehicle, prepare an estimate and based on photos of the damage. Well, negotiate the cost of the repairs with The reality is that insurers are likely the shop that is going to perform them saving billions of dollars by getting nothing could be when a claim is made. This process rid of their staff and independent has worked well over the years, appraisers and attempting to force further from the truth. and the regulations governing fair collision shops to perform the claim settlement practices require administrative services that they The elimination of the that the inspection be performed, should be paying for. appraisers and the negotiations are commenced and Insurers are also making the a good faith offer of settlement is claim that by changing the process personal inspection made within seven working days. from a personal inspection to photo This provision in the regulations estimates, they are expediting the of the vehicles has has kept the process timely and process. Well, nothing could be has resulted in people getting their further from the truth. The elimination caused major delays in damaged vehicles repaired and of the appraisers and the personal back on the road in a reasonable inspection of the vehicles has caused the claim settlement amount of time. Until now! major delays in the claim settlement process. All of a sudden, insurers are refusing process. I have run a Hot Line here in to come out and inspect damaged New Jersey for over 25 years, and I have vehicles, instead attempting to prepare never received so many calls relating to estimates of damage based on photos. On top claim settlement delays, not to mention the of that, they are attempting to force collision shops additional cost insurers are faced with in terms of to perform the tasks that their own staff or independent protective custody charges on vehicles that have been appraisers have been performing for at least the last 50 stalled in the collision shops waiting for repairs. In many years, including taking photos of all four corners of the cases, the vehicle is ultimately considered a total loss after vehicle, the VIN number, the interior of the vehicle and any five, six or seven sets of photos. prior damage – and all of this without any compensation At some point, photo estimates may become the way whatsoever. Naturally, collision shops are taking the of the future, but that time is not now! Once AI, or artificial position that they should be compensated to perform intelligence, is developed further to where an estimate of administrative services that insurers’ own employees can be accurately prepared using it, the collision industry or independent contractors have been performing and would welcome it. However, again, that time is not now. have been paid for, including that insurer providing the For the time being, “If it isn’t broken, don’t fix it.” As usual, appraiser a car, gas, camera, film, etc. for many years. AASP/NJ will be watching this situation and reporting back This is not entirely new. Many insurers have been to our members as it plays out.
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16 | New Jersey Automotive | September 2021
NJA
