July 2, 2015—“Who Pays for What,” a recent survey conducted by Collision Advice, found that one-third of collision repair shops nationwide said they have never asked to be paid for “masking the engine compartment” when this “not-included” procedure has been necessary as part of a repair, and yet another third of shops who do seek to be paid for it say they receive that payment “always” or “most of the time.”
“This confirms something I see as I work with shops around the country,” said Mike Anderson of Collision Advice. “On this one procedure alone, for every shop not including this necessary procedure on their estimate, another shop is getting paid for it most if not all of the time.”
More than 980 shops around the country responded to the survey, which asked them to report how often they are paid for 26 refinish-related procedures by the eight largest auto insurers.
From the results of the survey, it is clear that whether or not a repair facility is reimbursed for a particular procedure depends, to some degree, on whether or not the shop negotiates for that operation, according to a release from Collision Advice. Though the survey found that reimbursement frequencies do vary by insurance company, DRP statue and region of the country, it is clear that none of the procedures are universally rejected by insurers.
Anderson said the quarterly surveys help raise awareness of not-included items and operations that shops may be doing but not itemizing on estimates.
“The surveys will help shops understand what these operations are, and whether other shops seek and receive compensation for them—or if they truly are ‘the only one,’” Anderson said.
