Study: Shops Getting Paid for Total Loss Administrative Fees More Often

Jan. 4, 2022—The rate at which shops are successfully being paid for total loss administrative fees is rising, the latest Who Pays for What? survey results say.

In 2021, a strong majority of shops (72 percent) said they are paid always, or most of the time, when they bill for administrative fees related to processing of total losses. By comparison, when the “ Who Pays for What?” surveys began in 2015, just 46 percent of shops said they were regularly paid a total loss administrative fee when they invoiced for it.

The percentage of shops that say they have never billed for this fee also has declined steadily since 2015. Today, only 11 percent of shops say they never charge a fee to process a total loss, but back in 2015, that figure was 30 percent.

According to the 2021 survey, 74 percent of shops itemize charges (as opposed to charging a flat fee) for total loss processing. In addition to the administrative time, these charges may include moving a non-drivable vehicle, covering the vehicle to protect it from weather, etc.

Back in 2015, 38 percent of shops believed that the top eight largest insurers in the “Who Pays” surveys “never” paid an administrative fee for total losses. Today, only 17 percent still think so.