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Insurance Company Approved Shop?


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Has being approved by an insurance company made a difference to your bottom line? I had a vehicle towed in recently and the customer's insurance company was to pay for the work done. About a day or two later an insurance adjuster showed up to the shop, gave an inspection and approved our location. The caveat was that the invoice he eventually submitted was a complete lowball. I'm wondering if it was that particular company (small and regional) or would a major insurance company provide a more realistic approved quote?

Also, do you guys think it's worth it to request to be on all area insurance companies list of approved shops in the long run?

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  • 4 weeks later...


When I owne my body sho[ it was a good thing as I wrote and submitted the estimates and got paid off that.  We were able to start repairs fast and things went through the shop quiclly. Then an inspector would hand pick a few final repaired vehicles to go and reinspect to ensure all that was paid for was done. That worked well, then they started hiring outside adjusters / or hiring their own and then it turned bad. Seemed to me they must have been paid a commission to low ball all repairs. No way to make any money, they tied up the shop waiting for them to come inspect, or come back for additional missed repairs. Demanding repairs that were not the best for the customer or the vehicle. I kicked them out of my shop and actually made more money without them. Things might have changed, but it would be up to you to give it a try and see if they are worst, or  better. 

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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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