That is nice you throw the appraisal in the trash. Let's place a nice twist on this. Say joe consumer needs some autobody work done on his vehicle that he will pay for out of pocket -- no insurance companies involved. He should 100% trust the guy at the autobody shop (or mechanic for that matter) that whatever is written on the "estimate" as final. We all know that autobody shops and mechanics are the most ethical profession around, and we should never questions and always accept their estimates and labor rates. <---- seriously?!!!! A licensed appraiser can only write for visual damage. If the vehice is broken down in front of him he can keep writing. You find more damage, you call for a supplemental appraisal. This isn't rocket science.
Like I said, there are good appraisers out there, that simply write and agree with the shop's opinion. Many simply copy the shop's sheet! Just like if I know the appriser is good, I will input the same lines on my sheet and double check everything...in most states the estimate has to be on the shop's letterhead for a proper repair authorization...of course this is not always obeyed.
An insurance guy calling a mechanical or body shop unethical? Pot? Kettle? Let's not go there! I think most consumers are able to shop around and find a shop they are comfortable with, mechanical or body.....in fact, I have a feeling these insurance company "labor surveys" are what keeps the rates down and the fraud up! Body rates are lets say $38...and mechanical at the same deaership might be $80...why is this? Most guys I know set their own rates and have no troubles getting paid...profit is a good thing!
Spend one day with a contracted appraiser, and he can tell you about the sleaze of the sleaze with regard to shops and mechanics. The insurance carrier I worked for had many dealers on their preferred list, and those dealers accepted industry standard rate for repairs (which 6 years ago was $32/hour for domestic vehicles). An appraiser that copies the estimate of an autobody shop should lose his license, and I would have no problem making that call.
There is a reason why insurance premiums are so high.
Six years ago my shop rate was $50 in a small midwest town and the PCP set by State Farm was $48...how can you do work for $32 an hour and still pay your help.....I would of liked to inspected some of those repairs and see just what all those shops were really doing for their "insurance partners"....I love to audit final bills!
So now you want to blame body shops for insurance premiums being high? Whatever. Did you ever think the value of the cars have gone up on top of the risk?
The appraiser would copy my estimate as a guide, as my estimates were always very complete...its easier to input the numeric codes of each line (I had both ADP and Mitchell) then to try and figure out your handwritten notes when they got back to the office....I would have it all torn down so they could verify, etc....
I simply charged for what we repaired and did not charge for what we did not do....
If a customer can't trust the shop without an adjuster with them, why would they want to take the car there for repairs?
I think I would have laughed myself sick if I got a a/b shop demanding $50/hour for labor (as would the appraiser). The shops in MA actually all took that rate, again it was a few years back and I am sure it has increased since then
Six years ago in MA appraisers had a nice computer program on their laptops which would require them to designate the area of the vehicle damaged and the program would spit out the repair list, search and locate the parts and pricing, and provide a generous allotment for labor time to repair the vehicle. No need to take any estimate from an autobody shop, no matter how detailed it was thanks. I guess the appraisers in IL still travel around in a horse and buggy too.
I am glad you are an honest autobody shop, however autobody shops are hardly strong armed to be on insurance carrier's preferred list, they don't even have to apply.....and if you feel that the insurance carrier uses mob tactics then pick up the phone and call their boss -- your state's insurance commissioner, who I can assure you is most unforgiving for carriers who process claims in bad faith and in an unethical manner.
It's alot higher then $50 now.
Laugh all you want...shops in Bloomington, IL (You know the home of State Farm, and others) are way above that as well now....what do you pay an electrical contractor, or plumbing contractor...ever taken a car to a mechanical shop?
It's all about Body Shop owners taking back control and running the shops like a business. Appraisers used to write "funny times" to make up for the low rate, but if you have never wrote an estimate, you would not know about this and the other things I am talking about.
As far as your comment about adjusters being back in the "horse and buggy days" once again you simply have no clue...these were guys from Crawford and Company, PDA and others, that had many cars to inspect in one day...and it was easier to write the sheet from the office then to fumble with a laptop in the car especially with the sun glare. On top of there is a little more to it then a computer that just "spits out" a repair list....LOL
Yes, there is an application process for more then one insurance company DRP (direct repair program) out there....I'm just not finding alot of truth within your posts. In fact I know several guys from the MABA (MA Auto Body Association) that might enjoy reading your posts! In fact, last I checked Direct Repair Programs were still not legal in MA....so I am not sure what "insurance shops" you are talking about....
http://www.massautobody.org/
Again, RIF. I never said or inferred that MA has insurance shops. We provide a list of preferred shops, the claimant uses one on the list or not. They sign direct payment, we pay them directly.
From you link:
Preferred or referral repair shops represent the insurance company in both negotiations and the repair of the vehicle. They contract with insurance companies regarding the repairs, the costs and the repair procedures. The insurance company sets the rules and the repair shop simply follows them to keep the insurance company's costs down. But the cost reduction has to come from somewhere. It may affect the quality and thoroughness of the repair service and/or the quality and condition of the parts used. You have paid your insurance premiums with the expectation of receiving safe and proper repairs – not cheap repairs.
HAHAHAHAHAHA. This is the biggest crock of scare tactic bullshit I have ever read. The autobody shop does not work
for the insurance carrier, and never at any time bows to them. To be on the preferred list they agree to 1) repair vehicles in a timely fashion; 2) do it for the appraisal amount (meaning no hidden bullshit costs that an insurance carrier would never pay, gee -- an autobody shop would never do anything unethical would they in pricing....) and 3) the vehicles they repair must pass pretty strict standards when the carrier reinspects them (which they do). This is a business. They want a lot business from accidents, then they become a preferred shop. No one is twisting their arm, and if they choose to "make up" profit by doing a piss poor job then they won't be staying on the preferred shop list long as their repairs will not pass reinspection AND the work there is guaranteed by the carrier, and the insurance carrier would not be too pleased with paying appraisals twice.
Hmmm, Crawford and Company is an independent appraisal firm -- I thought you said these are all insurance carrier hacks? I am so confused. They carbon copy an estimate then they should lose their license, and you should be reporting them. You, or someone in your shop, should be a licensed appraiser also. Play with fire long enough, screw over the wrong person, and then you risk kissing it goodbye.
From your state's insurance commissioner's site:
May I Choose My Own Repair Shop?
Yes. You are not required to use your company's suggested repair shop. However, if your repair shop charges more than the company's suggested shop, you may have to pay the difference.
Can My Insurance Company Deduct for "Betterment"?
Yes. If your vehicle is being repaired with newer parts, your company doesn't have to pay for the "betterment." For example, if your vehicle's muffler is five years old, your insurance company would have to replace it with a five-year old muffler. If a five-year old muffler can't be found, the repair shop could use a new muffler, but you'd have to pay the difference.
Can My Insurance Company Deduct for Things Like Unrepaired Damage or Rust?
Yes. Your insurance company may deduct an unlimited amount from the value if your vehicle has old, unrepaired collision damages. They may also deduct an additional amount up to $500.00 for wear and tear, missing parts and rust. Your company must itemize and specify the dollar amounts of those deductions.
Do I Have to Accept Replacement Crash Parts?
No. Although insurance companies aren't required to use original equipment manufacturer (OEM) replacement parts, such as GM or Ford, you have the final choice of which parts will be used to fix your vehicle. However, if your company wants to use non-OEM parts, and you request more expensive OEM parts, you may have to pay the difference.
http://www.idfpr.com/DOI/autoinsurance/auto_own_claim.aspOh my. I guess everyone is out to screw the poor autobody shop and claimant aren't they?