My last day at NACE

The last day of NACE, it has been a busy week with one class left, a quick walk of the convention floor and then the airport.

My last class as How to Build Bulletproof Estimates, it was facilitated by Peter Kennedy from Collex Collision Experts, Inc.  As we went through the material I found the name of the course was a little different than the course content.  The course was really how to created and document an estimate to get it through the insurance company.   Peter presented some good tips on what insurance adjusters were looking for, what is important and what isn't, and gave a little insight on virtual reviews.  He said one of the important things we need to remember is an insurance appraiser is generally over loaded, never feels like they are caught up, has to deal with internal audits as well as CSI complaints.    Understanding the adjuster and their goals is paramount to having them on your side.  Their goals are

• Accuracy
• Efficiency
• Manage Cost of Repair
• Customer Satisfaction
• Demonstrate his ability to improve performance
• Build Relationships

Who would have thought building relationships was one of their goals! 

By understanding the insurance appraisers goals a shop can win them over by making their job easier, by making their job easier your negotiations with them will be easier and you will be rewarded by fully paid supplements.

Accuracy:  Creating complete damage appraisals with each line item supported by pictures and notes.  The thought should be that in a review six months from now the line item, line notes and pictures would support the repair.  One of the first thing an insurance appraiser looks for is all the admin data.   How many of you submit a supplement with just the customer's name and the rest blank?

Efficiency:  Creating a damage appraisal that looks the same every time.  If the insurance appraiser does not have to search through your estimate to find what he is looking for he will be much happier about approving it.  If you give the appraiser three estimates to review and they all look the same imagine how happy he would be.

Manage the Cost of Repairs:  This is sometimes tricky but if you are making sure you are using the most cost effective methods to  to repair the vehicle you will be in good shape.  Document your parts searches so they know you looked, make sure you try their vendor to compare, price match parts when possible and communicate through notes why you made the decision.  If you document your decision you will seldom be questioned.

CSI:  If your CSI is good, their CSI is good.  If you keep your customer happy, you are keeping their customer happy.  Pretty simple process!

Improving Performance:  The insurance adjuster is graded on your shop performance.  If after all his efforts you stay mediocre, you will probably not be on his best side.  He will have to justify why you are still on the program and without your improvement you will lose.  Ask them about diagnostic reviews, if you have a low spot or maybe two ask them how you can get your score up.  Making them part of the solution will ensure you make the correct adjustments.

Building Relationships:  Insurance adjusters are looking for people that work with them.  If you continually work against them you will lose quickly.  Peter wasn't suggesting you give in to them, but work with them in achieving their goals.  It is a win-win situation.  You need cars to repair and they need people to fix them.  Look for the common ground that will make your arrangement fit both of your goals.

The last thing Peter hit on was virtual reviews.  Insurance companies are using them more and more.  The best way to get by a virtual review is through good documentation, quality pictures and accurate line items.  Answer their questions before they ask them and you will be making positive steps in passing the review.  Leave them with questions and your supplemnet and payment will have to wait for a manual review.  I always tell people to write an estimate like your mother would understand it, I think that is all Peter is trying to tell us also.

All in all NACE was a great show, I talked to people I converse with all the time on line or through blogs.  I saw new equipment, updated programs and had conversations with shop owners, managers and techs learning different ways they tackled today's problems.  I travel quite a bit, but it probably would have taken a year of traveling to meet up with all the people I saw in four days.  The trip was well worth the time and money it took to get there, I also was able to receive my Accreditied Automotive Manager diploma from AMI through their graduation program.  NACE will be help in New Orleans next October, look into it and make plans to go.