4 minute read
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, many years. In all that time, I have never seen claim settlement delays as bad as they are right now. What do you think may be causing them? Of course, everyone is going to say, “COVID-19” – just like COVID-19 is being blamed for everything else that is going on lately. “The COVID-19 made me do it.” LOL! Well, that argument just won’t hold water this time, even though some insurers might be attempting to make it. Would you like to guess again? For as long as I can remember, insurers have sent either a staff appraiser or an independent appraiser out to inspect a damaged vehicle, prepare an estimate and negotiate the cost of the repairs with the shop that is going to perform them when a claim is made. This process has worked well over the years, and the regulations governing fair claim settlement practices require that the inspection be performed, negotiations are commenced and a good faith offer of settlement is made within seven working days. This provision in the regulations has kept the process timely and has resulted in people getting their damaged vehicles repaired and back on the road in a reasonable amount of time. Until now!
All of a sudden, insurers are refusing to come out and inspect damaged vehicles, instead attempting to prepare estimates of damage based on photos. On top of that, they are attempting to force collision shops to perform the tasks that their own staff or independent appraisers have been performing for at least the last 50 years, including taking photos of all four corners of the vehicle, the VIN number, the interior of the vehicle and any prior damage – and all of this without any compensation whatsoever. Naturally, collision shops are taking the position that they should be compensated to perform administrative services that insurers’ own employees or independent contractors have been performing and have been paid for, including that insurer providing the appraiser a car, gas, camera, film, etc. for many years. This is not entirely new. Many insurers have been leaning toward this type of change for years. However, now that COVID-19 has come along, insurers are blaming it on this. Some are taking the position that they can’t come out to inspect damaged vehicles because of it. Give me a break! On top of the fact that no one can prepare an accurate estimate on a severely damaged vehicle from a picture, it is actually illegal for a collision shop to prepare an estimate on a damaged vehicle based on photos, phone calls or by any manner other than personal inspection. This provision was put into the New Jersey Auto
“Well, Body License Law for good reason: It is impossible to prepare an accurate estimate based on photos of the damage. The reality is that insurers are likely nothing could be saving billions of dollars by getting rid of their staff and independent further from the truth. appraisers and attempting to force collision shops to perform the The elimination of the administrative services that they should be paying for. appraisers and the Insurers are also making the personal inspection claim that by changing the process from a personal inspection to photo of the vehicles has estimates, they are expediting the process. Well, nothing could be caused major delays in further from the truth. The elimination of the appraisers and the personal the claim settlement inspection of the vehicles has caused process. ” major delays in the claim settlement process. I have run a Hot Line here in New Jersey for over 25 years, and I have never received so many calls relating to claim settlement delays, not to mention the additional cost insurers are faced with in terms of protective custody charges on vehicles that have been stalled in the collision shops waiting for repairs. In many cases, the vehicle is ultimately considered a total loss after five, six or seven sets of photos. At some point, photo estimates may become the way of the future, but that time is not now! Once AI, or artificial intelligence, is developed further to where an estimate of can be accurately prepared using it, the collision industry would welcome it. However, again, that time is not now. For the time being, “If it isn’t broken, don’t fix it.” As usual, AASP/NJ will be watching this situation and reporting back to our members as it plays out.
NJA
Co-celebrating decades of creating chemistry between two industry leaders
Here’s to 235 years of combined service excellence
This year, as Albert Kemperle Inc. celebrates its 80th anniversary, BASF also celebrates its 155th anniversary. We are proud of our decades of partnership with BASF and years of serving the auto paint and body industry together. Kemperle’s founders would be proud of this relationship and the growth their company has experienced because of it.
Today, as we look forward to many more decades of service to our customers, we find ourselves filled with gratitude. The creativity, hard work, and sense of responsibility of the people working for our two companies have made us what we are today.
Thank you for your many years of loyalty.
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