Auto Repair Estimates – What Is An Estimate – Episode 2

What Is an Estimate

Auto Repair Estimates are called different things including, damage report, damage estimate, auto estimate or several other names, but they are all the basically the same thing. However, a damage estimate is more than just a sheet of paper listing the total cost of repair on it. An estimate is a contract or an agreement between two people. Just like with real estate, the owner and buyer must agree on a price and sign a contract of their agreement. A damage estimate is the same way in many ways, as there should be an agreement between the shop and customer and the customer should sign the agreement to authorize the shop to repair the vehicle. One thing that you need to explain to the customer, which is misunderstood many times, is that the total amount is just an estimate. Auto repair estimates do not guarantee the exact amount of the final invoice. There may be hidden damage or many other factors that may change before the car is completed. As an estimator, it’s your job to have excellent communications with the customer. You need to let them know that an estimate is subject to hidden damage. You must also understand that the estimate or signed agreement is only good for items that are written on the estimate. If any additional work is needed, you will need to contact the customer and agree on the new amount. This is called a supplement, which may include additional parts or labor as needed.

Methods Used To Write Estimates
We used to write all auto repair estimates by hand using Mitchell Estimate Guides. This involved writing all of the damage on an estimate and looking in the estimating guide to get all of the parts prices, and labor needed to estimate the job. Computer generated estimates have simplified and taken over the hand written estimates, but when learning how to estimate, I believe it to be crucial to learn all of the basics first, which requires estimating guides, a blank estimate and a pen. Learning to hand write estimates in the foundation of becoming an effective estimator. Just like every house or building must have a strong foundation, an estimator must master the basics first.

The Sequence of an Estimate
Most estimating guides and computer systems are set up with the same sequence. Starting with the front bumper cover and ending with the back bumper. This is important to know as you want to write the estimate in the same order to write a clean sheet. For example, if you are writing an estimate on a car that has damage in the front end, start with the front bumper and move towards the back of the car one part at a time. Bumper cover, front grill, right front fender, etc. Now when you use the guide it will be easy to follow along adding the prices and labor times.

Who Needs Estimators?
Every shop will need someone to write estimates for the customers. Some shops may have more than one estimator. Insurance needs the assistance of estimators as well. When you work for an insurance company writing auto repair estimates your title may be auto estimator or auto appraiser. Visit Donnie-Smith.com for more automotive training. Here is a video explaining the career pathway for an insurance estimator.