These are the same things that our industry has accepted from the insurance companies. Why? We provided excellent service, produced quality repairs at an agreed upon price - all in a timely manner. The contract was fulfilled with our client (remember that line). So the question remains why are we not getting paid when the car is picked up?

While there is no absolute solution to this problem, there are alternatives that can help maintain your non-DRP accounts receivable to zero over thirty days. If you have a good office staff and your estimators are good at getting approvals from the customer while making good notes, this should be a snap!

First of all, always remember that your contract is with your customer, not the insurance company. The agreed-upon price for repairs is authorized by the insurance company, but as your paperwork reflects, the owner is responsible for payment. The customer must be notified up front that when the job is complete, payment is due in full when the vehicle is picked up. Payment in full is the customer's responsibility.

A lot of you are probably thinking, "That's going to scare my customer away." It is incumbent upon you to explain to them that if the insurance company has accepted liability, they will pay the bill. Let them know that the checks are going to be sent to them directly and to be on the lookout for them.

When the adjuster comes out to negotiate the repairs, explain that the check is to be sent to the customer and not to your shop. Don't freak out! Remember, the contract is with the customer, who is responsible for payment. Call your customer and go over the estimate and amount. Get approval and remind the customer to bring that check in when the vehicle is completed.

Some of you may be saying, "That sounds great but what if I need a last minute part or a part price increases?" Handle this situation as soon as possible with the vehicle owner. Follow the same procedures as above, but when you call the customer present the option of paying the supplemental amount, since a check will be coming from the insurance company. The other option is for the customer to wait for the check and, when it arrives, pick up the vehicle.

The story gets good

How many of you have called the insurance company to find out where payment is and they tell you those famous words: "The check is in the mail." Oh yeah and I love you too! This prompts you to call your customer and explain that you cannot release the vehicle until you receive payment. The customer in turn calls the insurance company and starts demanding that your shop be paid. The insurance company tells your client: "We don't understand why they are holding your car hostage, we told them that we were going to pay them." Your customer then calls you back and starts screaming at you to give them their car as the insurance company said they were going to pay you! Anybody getting nauseous yet?