QuestionMark, I'll try to keep this simple as best as I can. Everyday (insurance adjusters) estimators peer into their computers to look up labor hrs on a job for a vehicle involved in some type on claim. We all know that what an insurance company pays is less than what a body shop wants or would charge an everyday "Joe Shmoe". My question(s) are "what or where are the guidelines for this practice? What establishes a fair market value price? What backing does an insurance company have to force a body shop to "Burn" a paint job rather than "paint" the entire vehicle. More or less I am looking for some kind of guideline or manual (online or at a library...etc) that insurance companies use to establish what and not what they will pay. Thank you for your time....
AnswerFrank-
This is a very interesting question. I have been retired from the industry for 2 years now- due to issues just like this, and others like it. It became such a daily grind just trying to get paid for the simplest of operations, never mind the most difficult. The insurance companies dictate almost every aspect of the repair, from the rental car to the final sand and polish. Each company utilizes a certain estimating system (ADP, CCC Pathways, or Mitchell) which includes its own database of labor times, parts prices, overlap operations etc. These systems are used to create the estimate. You can only decifer the kind of information I think you are after by consulting the "P Pages" or "List of included operations" for the specific system the estimate is written by. These guides will inform you of what is, or is not included in a given labor time or operation.
I don't think that you will find documentation anywhere for the practices the insurers use for negotiating repairs with shops. They simply wouldn't allow that kind of info to be published. The estimating companies have guidelines in place but they are not always followed, bottom line. I don't know how many times I have argued a point that would seem so simple- and backed up by the guidelines, only to be told "we don't pay for that". It's crazy, but they employ very effective negotiators, teach them to say no, deny this-deny that, often they are people with no experience whatsoever in the collision repair industry or even the knowledge to pin point components on a vehicle. In the shop it often comes down to how hard the management is willing to fight to get paid what they deserve for the repair. Unfortunately, all too often guys are willing to "lay down" because it's brutal to fight day in and day out. Sadly the tactics work sometimes.
"Burning" in the clear on a refinish panel should never be tolerated. It is never acceptable to the paint manufacturer nor will they stand behind it a year or so later when it begins to show through after 10 or so car washes. They are not however obligated to refinish the entire vehicle. They are only responsible to "indemnify" you- or put you back where you were before. Chances are you didn't have a burned in refinsh before so please paint the whole panel. There are certain circumstances where I don't always recommend a full panel refinish however. If this is your issue, feel free to call me 971 226 8113.
Some of my best advice-
Always check your policy to see what rights you have regarding- rental, aftermarket parts, diminished value, betterment. Educate yourself before you negotiate with them.
Choose a good shop and let them do their thing, they know what they are doing, just remember these things take time. Prepare for maybe even twice as long as you might guess.
Choose a good shop that will stand behind the repairs, Body labor and refinish warranties should be lifetime- if it's not, find another shop.
Never let the insurance company see the vehicle at their drive in claims or in your driveway. Tell them what shop is handling the repairs and when they can see it at the shop. If they come out beforehand you can guarantee headaches for everyone involved. A $900 estimate is a poor place for a shop to begin a $5200 repair.
Good Luck Frank! Mark
