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John Yoswick

John YoswickJohn Yoswick is a freelance automotive writer based in Portland, Oregon, who has been writing about the collision industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com).


He can be contacted at john@crashnetwork.com 

Thursday, 04 October 2018 16:25

Retro News: Stats From 20 Years Ago Indicate Shop Labor Rates Haven’t Kept Up With Inflation

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Index

One scenario posed on the survey was a shop that installs a non-certified, non-OEM part because the certified part---which is what the insurer requires---was not readily available, and the shop didn’t want to harm its cycle time. About 92 percent of those surveyed found this “unacceptable.”

 

But if the shop disclosed to both the insurer and vehicle owner that a non-certified part was used because a certified part wasn’t available locally, 83 percent of those surveyed found it acceptable.

 

About 93 percent felt it was unacceptable for a shop to order a non-OEM part, return it and supplement for an OEM part claiming poor fit without first trying the non-OEM part. When the situation was changed to the shop returning a part without trying it, but installing the OEM part while absorbing the price difference, only 37 percent thought this was unacceptable.

 

A large majority said it was consumer deception and an unfair claims practice for an independent appraiser to leave needed items off of estimates at the request of the insurer because the customer may choose to not repair the vehicle. But what if the vehicle was repaired and the omitted items were added? More than half (57 percent) still felt this practice was problematic.

 

About one-third of those completing the survey were collision repairers and another 17 percent were insurers. The other half represented other segments of the industry, including the automakers and industry vendors.

 

– As reported in Collision Repair Industry INSIGHT.

 

10 Years Ago in the Collision Repair Industry (November 2008)

 

At the Collision Industry Conference (CIC) in Las Vegas, the “Business Management Committee” shared responses it received from several insurers about what the committee calls a “complete repair plan.”

 

Designed to reduce the need for supplements (the committee estimates that it costs about $700 for shops and insurers to create or process a single supplement), the plan essentially involves a shop disassembling a damaged vehicle to determine virtually all of the parts and procedures needed, allowing for one estimate and one parts order without the need, in most cases, for a supplement.


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