Writing a quality auto damage appraisal is not rocket science, but in today’s auto claims environment it seems harder than ever for insurance carriers to find independent appraisal firms who will truly provide a detailed and accurate report. More often than not, the average auto appraiser will snap two or three photos, fax over an estimate with all OEM parts, and deliver a report summary of merely one or two sentences. In a perceived effort to reduce costs, many claims managers flock to low fee appraisal firms to reduce upfront office expenses. However, millions of dollars a year are lost through missed opportunities at the point of inspection and poor quality appraisals. Failure to fully incorporate used or aftermarket sources, along with excessive repair times on an estimate, can lead to huge avoidable losses to a claims department.
What then, constitutes a quality appraisal? Top management, auditors, adjusters and appraisers were consulted to outline what they saw as being the key points of a claim’s documentation. Through their input about what information is critical for an appraisal to embody when it reaches their desk, we were able to form
The Super Seven. The Super Seven is an outline of the seven important features that were recognized as being the foundation of a top notch appraisal.
The Super Seven
1. Photographs- A minimum of 8 photographs should be taken, with the philosophy of “more is better.” The photos should tell the story for any appraisal. Thus, make sure all images are professional photos with measurements included. No appraisal should be submitted without quality photos of all four corners of the vehicle, the VIN number, license plate, mileage and several shots of the damage locations from various angles.
2. Proper documentation- Make sure that the claimed vehicle is correctly identified. A vehicle’s make, model and year are not enough. It is important to list all the vehicle’s options and information to ensure an accurate estimate is given on all damages. This is especially important if the vehicle is determined to be a total loss.
3. Document the Known- Write estimates only for visible damage. Do not guess on hidden damage in order to avoid a supplement. Never write an assessment of assumed damage based on a wild guess, if you cannot see the damage you cannot document that it exists. The correct procedure is to document all known damages, and to include statements on what may be damaged, and re inspect after a teardown is completed.4. The rule of three- A solid attempt should be made to contact at least three venders for quality used or recycled parts if appropriate. All attempts and acquired information from the contacted vendors should be documented in the notes of the report. If corresponding parts are available it will increase saving for the client.
5. It’s all in the Details- All too often an appraisal is missing several key pieces of data, because the appraiser didn’t take time to note all details in the appraisal report. Writing a detailed report is the key to a solid appraisal, and it should be the main focus of an appraiser’s job. An appraiser is responsible for including a complete narrative description of the inspection, damage and possible issues that may transpire.
6. Time is Money- Work expediently to get the completed file back to the insurance company as fast as possible. Don’t let a file sit. Every day a file is open it costs the client money and leaves the vehicle owner without resolution. It is the appraiser’s responsibility to return a detailed report to the claim company as soon as it is completed.
7. A total loss- With total losses, there will always be extra documentation that the appraiser will need to remember. An appraiser needs to make sure to secure tow bills, storage fee information, and any other documents that result from the handling or disposal of the vehicle after the accident. This helps the adjuster later when they are resolving the claim.
It is important to always keep in mind that appraisers are the eyes and ears of the insurance carriers. Each photo may assist an adjuster in a liability decision. For others, a detailed narrative may help with a low impact soft tissue evaluation. In a worst case scenario, part of the file or photos may even end up in court. With this much importance bestowed upon independent appraisers, it is imperative that each piece of documentation is taken seriously and done with the utmost quality. In the end it is a lot easier to simply take more photos and be extra thorough on an inspection than it is to go back and explain a situation, after the fact and without evidence. Quality appraisals impact not just the client and the vehicle owner. If appraisers do their job well they help eliminate confusion and questions for everyone that handles a claim file, which in turn keeps the clients happy.
