Like others in the industry, Aaron Schulenburg has found that collision repairers are experiencing unprecedented pushback on rates, OEM procedures, and basic elements of the repair process.
“That pushback doesn’t just create operational challenges; it affects consumer safety and erodes trust in the entire claims and repair systems,” said Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS).
Earlier this year, SCRS was seeking relevant content to include in its Repairer Driven Education (RDE) series held during the November SEMA Show in Las Vegas. Schulenburg said the selection committee felt the topic proposed by Tony Adams and Tim Ronak from AkzoNobel — focusing on proper reimbursement — addressed the pressures repairers and their customers face.
“We try to design RDE programming around the issues most directly affecting collision industry businesses, and this is exactly the kind of real-world education RDE is meant to provide,” said Schulenburg.
Customers too often believe insurer’s word is final
The goal was for the presentation, “Developing Your Consumers’ Guide to Fully Reimbursed Auto Claims,” to equip attendees with practical tools to explain the process, coach consumers through the challenges, and empower all involved to document repairs in a way that protects the shop and vehicle owner.
While speaking with body shop owners around the country, Schulenburg has noticed that one of their biggest challenges is when customers are underfunded due to a loss and often assume or are told that the insurance company’s estimate is final and technically accurate.
“Oftentimes, neither is true,” he said. As a result, repair facilities can find themselves having to defend their charges, the repair process, the manufacturer’s instructions, and why the estimate and the repair plan don’t align.
“It’s especially hard when carriers don’t outright deny necessary operations but instead deny them by simply omitting required OEM procedures or work that is essential for a safe, thorough repair,” he noted.
Repairers can get caught in the middle
When customers are underfunded, Schulenburg said, shops are placed in difficult positions. This equates to either doing less than what they know the OEM requires, absorbing unreimbursed costs, or helping customers navigate an appeals or dispute process that most consumers have never gone through before and don’t have the energy to deal with.
On top of that, he said, rising deductibles mean customers are carrying more of the financial burden themselves, so out-of-pocket responsibility is already larger than usual and emotions and frustration are higher.
“Repairers are doing their best to deliver safe repairs, but the lack of insurer alignment with OEM standards increases both financial strain on the consumer and potential liability exposure for shops caught in the middle if unequipped to stand by their process,” he added.
OEM requirements set the standard
According to Schulenburg, repair business owners need to understand that the insurer’s document is not the repair blueprint — the OEM repair procedures are.
“The repairer is the professional with the liability, and courts consistently support that position,” he explained. “Never forget that the owner of the vehicle is ultimately responsible for authorizing the repair.”
His advice is to stay grounded in the OEM standards, document everything, and communicate transparently with the vehicle owner.
When there’s pushback, he suggested requesting denials in writing, comparing the decisions against documented OEM requirements, and providing clear justification for why a procedure is necessary.
“The more unified and consistent the industry is in standardizing adherence to OEM repair instructions, the harder it becomes for improper or incomplete reimbursements to persist,” he emphasized.
Getting customers involved early is key
Autobody News reached out to shops across the country to find out how they are dealing with these challenges.
Casey Dyer, owner of Conn’s Collision in Winchester, IN, said most collision shops are in a similar situation and in a constant tug-of-war with insurance companies on fair compensation for services performed.
“Just ‘charging the customer’ is sometimes easier said than done,” said Dyer.
As an independent shop that focuses on customers, he said Conn’s Collision’s job is to repair cars and make the process as painless and simple as possible.
They’ve done well at keeping the customer informed during the repair process.
“The earlier you get the customer involved, the better,” he said. “Good luck calling the customer two weeks after the car is left because their insurance company did not agree with your supplement. Those are never fun conversations.”
He has found that adhering to OEM recommendations and explaining why something had to be repaired a certain way is also important and helpful.
Communication and documentation
Nick Evola and the team at Auto Beauty Specialists document every procedure completed.Nick Evola, the controller at Auto Beauty Specialists in St. Louis, MO, said his shop experiences insurance carrier rejections daily. As a result, their team uses a range of strategies to help customers who are underfunded due to a loss. These include documenting every procedure completed, taking photos to support all repair operations, and communicating with the vehicle owners and insurance carriers throughout the entire repair process.
“The goal is to provide an accurate explanation of why we request and charge what we do, while making sure it is justified by the OEM guidelines in order to restore the vehicle to the pre-accident condition,” he noted.
At D&B Auto Body, in Sauk Rapids, MN, co-owner Nikki Anderson said they are doing their best to educate customers on what the process looks like, the likely outcome, and the resources available to remedy issues with short payment from insurance companies.
“Our customers are being charged the difference between the bill and what insurance pays,” she said. “As an independent, non-DRP shop, without the benefits of multi-shop, volume discount pricing, it is the only way we will survive.”
Anderson said the more a shop understands the options available to consumers, the better. Having documents to share with them related to the appeal process, rebuttal letters, and denial documentation request templates, such as the toolkit created by Ronak at AkzoNobel, can help empower customers.
In Minnesota, Anderson has found that the insurance commission will not address shops’ concerns. “It only counts if the customers complain, and many of them don’t feel equipped to express their concerns in terms of state statute and regulations,” she said. “They just know they’re upset because the bill wasn’t covered in full minus their deductible.”
She said it would be helpful to learn proven ways to get line items covered so that customers deal with fewer short pays.
Helping customers help themselves
Oscar Moreno at Integrity Auto Collision recommended that shops take steps to make the necessary changes to better assist customers.“Short pays are worse than ever in our industry,” said Oscar Moreno, president of Integrity Auto Collision Center in Fairfield, CA. “We need to do more to bring this critical issue to light.”
Moreno spends a lot of time helping customers obtain fair claim settlements. “I am always looking for ways to bring value to them,” he said.
At Integrity Auto Collision Center, employees focus on educating customers about the repair and claims process. “Although this sometimes results in short pays and customers having to pay out of pocket, we then assist them with filing Department of Insurance complaints.”
With increases in operational costs for shops, total losses, and claims, Moreno recommended that shops make necessary changes to better assist customers.
He suggested that business owners gather their teams and educate themselves on the laws that protect consumer rights in their respective states, so they can pass this information along to their customers.
“Start making changes little by little,” he advised. “A good starting point is to address the insurance companies with the lowest volume of claims at their shop.”
Practice full transparency
Michael Giarrizzo, owner of DCR Systems in Mentor, OH, stressed the importance of understanding the difference between a first-party claim, which involves the insurer and the insured, and a third-party claim, which involves somebody and an insurer.
He also emphasized the benefit of documenting all aspects of the repair to ensure proper reimbursement and mitigate future devaluation of the vehicle.
DCR Systems uses CollisionClarity software, which the company developed in 2023 and is being beta-tested by other collision repair facilities. Giarrizzo explained that CollisionClarity is an electronic storyboard that includes photos, videos, and documentation used during the repair process, along with validation that the repair was completed.
DCR Systems prides itself on ensuring customers receive a safe and proper repair. His advice to shops is to take the time to prepare customers upfront about what to expect during the repair and how to get a claim settled.
“We believe that full transparency in the entire repair process is critical and something that we have to adopt as an industry,” said Giarrizzo. “If we don’t, we’re not sustainable.”
Stacey Phillips Ronak