Payment for ‘repair of adjacent panels’ among results of latest ‘Who Pays for What, Canada?’ survey
December 18, 2018
Almost two-thirds of Canada collision repair shops are paid “always” or “most of the time” by major insurers when they bill to “repair adjacent panels,” yet about 1-in-4 shops say they have never charged an insurer for this not-included procedure.
That was among the findings of the most recent “Who Pays for What, Canada?” survey, conducted by Collision Advice and CRASH Network.Trainer and consultant Mike Anderson of Collision Advice said he sees repair of damage to adjacent panels – one of two dozen not-included body, frame and mechanical procedures asked about in the survey – as one of the most commonly overlooked items on estimates.
“When a technician removes a damaged welded-in panel for replacement, it is almost always necessary to repair the adjacent panels that were damaged by drilling or grinding during the removal process,” Anderson said. “That damage is unavoidable. After removing a rear body panel, for example, a technician may have to repair the left and right frame rail flanges, the left and right tail light pockets, the floor pan area, and possibly floor or quarter panel extensions. None of that work is included in the other times in the estimating systems.”
More than 200 shops across Canada responded to the survey, one of two different “Who Pays” surveys conducted in Canada in 2018. Of those, 62 percent reported regularly being paid by Intact Group / AXA, for example, to repair adjacent panel damage when it was necessary, yet 27 percent said they’d never billed Intact for the procedure.
The “Who Pays” surveys regularly find that when a shop does not bill for a particular procedure like this one, it is most often because the shop was not aware the procedure was “not-included” or because they had simply never thought to charge for it.
Shops can download a 68-page report with all the survey findings, as well as sign up to participate in the two “Who Pays for What, Canada?” surveys planned for 2019, at https:/
www.crashnetwork.com/whopayscanada.php. The report also includes analysis and resources to help shops better understand and use the information presented.
In addition to asking shops about their billing practices – and insurers’ payment practices – regarding two dozen not-included body, frame and mechanical labour operations, the survey conducted this fall asked about shops’ scanning practices, how they bill for body supplies, and how much training their employees receive.
The next survey, focused on not-included refinish labour procedures, will take place in May of 2019.
Collision Advice (www.CollisionAdvice.com) is an independent training and consulting firm featuring some of the most respected and experienced experts in the collision repair industry. CRASH Network(www.CrashNetwork.com) is a subscription newsletter offering collision industry news and information not available from other sources.