If you are an auto adjuster or damage appraiser, you might call it by various other names, but you know the stress and anxiety the situation can bring. It all starts on a “relaxing” friday morning as you begin to entertain thoughts of what you are going to do friday night or over the weekend. You daydream for a few minutes and WHAM!! The phone rings with a distraught vehicle owner on the phone. The vehicle owner begins to explain that their repair facility whom they chose to fix their vehicle is done repairing the car and it is ready to be picked up by the owner this friday afternoon. The repar shop however won’t let the vehicle go unless they get paid exactly what they want. Usually it involves the shop stating they have a “supplement” which they “tried all week” to get the insurance company adjuster and appraiser to finalize yet nobody would call them back.
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As an adjuster, the anxiety ridden voice of the vehicle owner and frantic nature of the situation can lead to a cascade of events in which the blame is passed around like a hot potato leaving the insurance carrier little choice but to either pay exactly the amount the repair shop wants so the owner can pick up their car. In some instances the carrier may take a stand and advise the shop they will not pay the additional amount leaving the shop to deal with the vehicle owner directly for the “additional” amount
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The “hostage” situation usually revolves around these key issues:
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1. A repair shop will call stating they have a supplement but do not have parts invoices to substantiate the differences in parts prices yet. When asked to fax the invoices, they agree to earlier in the week but do not end up doing so until 3:30 on a friday afternoon giving the field appraiser no time to review while still demanding full payment otherwise the vehicle owner’s car will be held over the weekend.
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2. A shop will call with a very large supplement and advise the insurance carrier or appraiser about it only after 80% or more of the vehicle has already been repaired. This usually happens when the vehicle being repaired would have totalled out had the shop called earlier allowing the field appraiser time to inspect before going forward with repairs. At this point the shop will want repairs covered that may have already been done, but cannot be fully verified.
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3. The repairer will come up with a last minute supplement even after an agreed price with the shop and appraiser. The vehicle will usually be completed and owner standing by ready to pick up their vehicle but the shop will not release unless supplement is covered.
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How can one avoid such stressful situations? The answer is simple. Document, Document, Document.
1. When a shop says they have a supplement and it requires verification of hidden damage. Get out there ASAP and photograph and confirm in person.
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2. If a shop states they need to fax you final paperwork. Advise them of the correct contact numbers and fax numbers and make them read back to you as confirmation and then document in your notes. It’s also a good idea to utilize a efax type system which documents every incoming fax to document when faxes are received. It’s easy for a shop to claim they faxed paperwork and turn around and blame the adjuster or appraiser.
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3. Make a note of how busy the shop appears. Many times repair shops may overbook jobs and attempt to juggle repairs and utilize the carrier or appraiser as the scapegoat with the vehicle owner to cover for their mistakes. Be proactive and request the documentation from the shop that you need to move the process along. That way you cover yourself.
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4. Lay the groundwork with the shop at your first inspection. Be upfront and tell them that you deal with documentation and facts. You want to work with them to accurately assess the damage and ensure the owner’s vehicle is put back into pre accident condition and every repair must be documented. Any reputable shop will be more than happy to document every operation and part that is needed.
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5. Lastly, when you have all of your ducks in a row and documentation in order you can rest assured you did your job correctly and no matter how hectic the situation may seem, you can confidently reveal every step you did to do your job correctly to all parties who get involved. Problems happen when phone calls are not returned and files are not documented. Remember, if it’s not documented, it never happened.
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*** Side Note ***
Recently with a tougher economy and more shops fighting for fewer vehicles that need repair, some shops will repair vehicles that would otherwise be deemed total losses had the insurer discovered about the situation sooner. As touched upon earlier, a shop may repair a vehicle and be nearly 75 to 80% completed with the job and only then call the auto damage appraiser or insurer advising of supplemental damage. At that point the carrier is now committed to repairing the vehicle. This is why it is very important for auto damage appraisers to really be alert and write accurate initial estimates and describe what the possible hidden damage may entail and give adjusters good documentation to ensure steps are taken to lessen these kinds of situations.
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Lastly, it must be noted that a majority of the repair facilities are hard working and honest. These examples are by no means what occurs in a majority of daily situations. It is the small few who operate this way which cause problems for all of the people involved who are just trying to do a good job.
