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‘Who Pays?’ survey finds shops want clarity from OEMs on post-collision inspections

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Announcements | Business Practices | Collision Repair
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About 35% of shops surveyed in the most recent “Who Pays for What?” survey said they didn’t perform a post-collision safety inspection because OEMs did not make it clear what is “required” versus “recommended” for the inspections. 

There’s uncertainty among shops about what is required, under what circumstances it’s required, and even if it’s required, according to a press release about the survey. 

“Please make the requirements for inspections very clear,” the release says a South Carolina shop owner said. 

“We need clearer procedures,” an estimator at a large MSO location in Ohio said. 

While shops want more clarification, 49% of the 476 shop survey respondents said they at least perform a safety inspection on collision-damaged vehicles “a majority of the time,” “most of the time,” or “always or almost always.” 

Shops were also asked how often insurance companies pay them for labor to clean up spilled fluid leaked from damaged lines when vehicles are towed in or during disassembly. 

Of those who negotiated for this, 31% said they are paid “always” or “most of the time.” 

State Farm was most likely to pay “always” (14.9%) and “most of the time” (24.7%). Allstate was the least likely to pay “always” (7.4%) and “most of the time” (16.2%). However, Nationwide was most likely to never pay (57%). 

“It is not uncommon for tow truck drivers to itemize on their invoices clean-up of fluids or debris at the accident scene,” said Mike Anderson, Collision Advice president owner, in the survey report. “This is applicable to our industry as well if a vehicle brought to our facility leaks fluids on the parking lot or inside the shop.”

Respondents said they are paid “always” or “most of the time” for operations involving pre-wash of a vehicle before beginning repairs. 

GEICO was most likely to “always” pay (4.2%) and Allstate was the least likely to “always” pay (1.4%). Allstate also was the insurer mostly likely to “never pay” (69.5%) 

 

“The paint manufacturers state that a best practice is to pre-wash a vehicle before repairs,” Anderson said. “Vehicles may be covered in salt, snow, mud, road tar, or other contaminants that need to be removed prior to the repair process. It is also often necessary to clean the vehicle prior to inspecting for damage during repair planning. That’s often stated in PDR matrixes from paintless dent repair companies.”

Respondents said they are “always” paid or paid “most of the time” (55%) for labor to cut into a door or hood. For, example, to get access needed to open it and complete damage assessment or repairs. 

State Farm was most likely to “always pay” (26.8%) and pay “most of the time” (33.7%). Allstate was the least likely to “always” pay (21.2%) and pay “most of the time” (29.9%). Allstate was also most likely to “never” pay (20.1%). 

“The percentage of shops that have not sought to be paid for this is very surprising to me,” Anderson said. “ It has been my experience that it is not uncommon for a collision technician to need to cut an access hole to remove components from a damaged door, for example, or to get the latch open when the hood is damaged.”

The full survey results and previous survey results are available here.

The latest quarterly “Who Pays for What?” survey is open through October. It focuses on billing and payment practices related to scanning and calibrations, aluminum repair, and shop supplies. Shops can take the survey here

The survey can be completed in about 15 minutes by anyone familiar with their shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses aren’t made public; only aggregated data is released.

Survey participants receive a free report with complete survey findings, analysis, and resources to help shops better understand and use the information presented.

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Featured stock photo credit: standret/iStock

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