auto repair estimates

Auto Repair Estimates – Part 12 – Generating The Estimate

January 30, 2010 by Donnie Smith Leave a Comment

Begin the inspection

Now you know what types of damage there may be and the sequence of predicted damage that may be present, we can begin to write the auto repair estimate. We have all of the customer information, vehicle information, and insurance information recorded on the estimate form. We have asked the driver of the vehicle all of the questions to determine what happened during the accident and any additional information that you may need. Now it is time to start writing the auto repair estimate. First you want to inspect the vehicle looking for all direct and secondary damage.

This may include:

Raising the vehicle up to look underneath the vehicle
Looking inside the passenger compartment, measuring to determine if any frame or unibody damage is present, determine the severity of the damage.
Visual inspect all body gaps for misalignment’s, popped loose spot welds, cracked seam sealer, etc.

Once you have the big picture you can start writing the damage estimate report. Start with the the damage that is near the front of the vehicle first and move backwards. For example, if the door, rocker panel and rear quarter panel are damages, write in that sequence. Most estimating guides and computer estimating systems follow the same sequence, front to back. Record everything that needs repaired or replaced on the estimate. This may require removing parts to determine if there is damage to the parts that we can not see. Open all doors, hoods, and the deck lid. However, if the customer is going to be driving the vehicle after your inspection, you may not want to pry or wedge any parts open to gain access. This may lead to a panel that will not shut properly, which may be a safety hazard. Be sure to explain to the customer your concerns and let them know there will probably be hidden damage upon tear down, which will require a supplement estimate to be generated. As we mentioned in an earlier post, you may consider helping arrange rental or providing a ride for the customer once you have all of the necessary information from them. If you get the customer to go ahead and sign authorization for repairs, you can take your time and thoroughly write a clean estimate, which may require partial tear down. Once you have an auto damage estimate generated, you can consult with the customer and insurance adjuster to determine the next step of action to take.

Auto Repair Estimates – Part 11 – Accident Sequence

January 28, 2010 by Donnie Smith 3 Comments

There are no absolutes when it comes to auto accidents. Although there are some predicted actions that a driver usually makes during an accident. If you are traveling down the road and you see a car coming towards you, what are you going to do? Chances are that you will hit your brakes and/or turn away from the oncoming car or object. That is what most peoples natural response is without thinking about it. If we consider that first action is hitting the brakes, it can help us determine what damage may be present. As you slam on the brakes you transfer the momentum of your car to the front as it goes down. While the front goes down the rear raises higher. When the impact happens it is a safe to assume that the damage will be higher than if the brakes were not applied, which may cause more damage to transfer through the upper part of the vehicle and cause sag damage to the vehicle. However, many people have another response as well. You are normally going to turn your wheel away from the oncoming vehicle. As you do that, your car is now at an angle with the front end down and the rear high when the impact occurs. Now it is safe to assume that the vehicle may have side sway damage as well. If you keep this sequence of reactions in mind as you begin inspecting the vehicle with the 5 zones as mentioned in the previous blog, you will begin to have even a clear idea of what damage may be present and what to look for. This will help you generate a more thorough auto repair estimate.

Auto Estimating – Customer Sales and Service – Lesson 10

January 27, 2010 by Donnie Smith 3 Comments

These lessons are now open to help collision repair students learn from home. I am lifting the Patron fee to access this content during this time, as many schools are closed. However, I do appreciate your support and hope my Patrons continue to support this website and training.

If you would like to help and support this website, then I would greatly appreciate it. For more information visit. www.Patreon.com/CarAddictGarage

LESSON 1 – LESSON 2 – LESSON 3 – LESSON 4 – LESSON 5 – LESSON 6 – LESSON 7 – LESSON 8 – LESSON 9 – LESSON 10

Welcome to Auto Repair Estimating. These lessons are designed to provide you with the basics to Auto Estimating. I hope you enjoy the lesson. Donnie

Unhappy Driver Inspecting Damage After Car Accident

Lesson 10 – Customer Sales and Service

For a repair shop to stay in business, the estimator must make the sale.

“The sale begins when the customer says yes.” ~Harvey MacKay

What This Chapter Covers:

This chapter covers how to create an environment that the customer will feel comfortable in and wants to do business with you, how to sell the job to the customer, and how to provide good customer service.

Why This Is Important:

An estimator must know how to sell the job to the customer to produce revenue for the repair shop and technicians. Once you have a customer, the estimator needs to know how to provide excellent customer service to keep the customer for their future body and paint needs.

Topics Covered In This Chapter Include:

• Making A Good First Impression

• What Customers Want

• Don’t Sell The Wrong Benefits

• Dealing With Angry Customers

• Good Communication

• Methods Of Communication

• Dressing The Part

• Explaining The Process To The Customer

• Don’t Judge Your Customers and Miss Sales

This chapter has been aligned with the following 2013 NATEF/ASE tasks:

•D:1 Acknowledge and/or greet customer/client. HP-I

•D:2 Listen to customer/client; collect information and identify customers/client’s concerns, needs and expectations. HP-I

•D:3 Establish cooperative attitude with customer/client. HP-I

•D:4 Identify yourself to customer/client; offer assistance. HP-I

•D:5 Deal with angry customer/client HP-I

•D:6 Identify customer/client preferred communication method; follow up to keep customer/client informed about parts and the repair process. HP-G

•D:7 Recognize basic claims handling procedures; explain to customer/client. HP-G

•D:8 Project positive attitude and professional appearance. HP-I

•D:9 Provide and review warranty information. HP-I

•D:10 Provide and review technical and consumer protection information. HP-G

•D:11 Estimate and explain duration of out-of-service time. HP-G

•D:12 Apply negotiation skills to obtain a mutual agreement. HP-G

•D:13 Interpret and explain manual or computer-assisted estimate to customer/client. HP-I

Making A Good First Impression

As an estimator, you represent the shop. The estimator is usually the first and main person the customer talks with and deals with during the repair process.

What the customer thinks about the repair shop (good or bad) will highly reflect the way they were greeted by the estimator. People form opinions quickly, so the estimator may only have a brief time to create a positive first impression.

When greeting the customer, introduce yourself and let them know it’s your job to help them during the repair process. The estimator may be accustomed to the repair process and forget that many customers are not familiar with it. This may be their first accident and first time being in this situation. Don’t assume they already know the minor details.

What Do Your Customers Want?

The estimator needs to sell the customer on the benefits, but don’t assume every customer will see the same things as a benefit. For example, we wash the car. That may be a selling point for one customer, but perhaps another customer already knows this service is provided at other body shops. Therefore, they don’t really see that as a benefit that sets your shop apart from the others.

How will you know what motivates your customer? It’s simple. You ask them . . . or sometimes just listen. Many times the customer will want to explain their situation to you. The absolute worst thing you can do is cut them off. Estimators may hear the same stories over and over, but if you will listen closely, the customer may say little things, which are their hot spot. For example, the customer may be quite concerned with how they are going to get to work while their vehicle is being repaired. If you have loaner cars, sell them on providing them with a car. Or they may wonder how you are going to contact the insurance company and rental company for them so they will not have to worry about it. But don’t make this your one and only sales pitch for every customer. Perhaps the customer has four other cars to drive. In that case, a rental car is not going to be a hot spot. So work on selling the benefit to your customers, but if you find a hot spot, make that your focus.

Don’t Sell The Wrong Benefits

I remember one time I wanted to purchase a new computer. I had already done the research and knew exactly what I wanted. I walked into the store with every intention to buy a new Mac computer. A salesman greeted me and asked if he could help. I told him I was interested in a Mac computer. The guy was nice and tried to be helpful and explained how Macs were much more expensive than many of their other computers they had in stock. He explained everything wrong with a Mac and kept suggesting different computers. What he didn’t know, though, is that I was already sold on the MovieMaker program Mac offers, and that was the main reason I wanted the computer.

He did not know because he did not ask. He was trying hard to make a sale, but I had to politely tell him that I was still thinking about it. I left the store a little confused . . . do I want a Mac or not? I thought about it for several days and decided to go ahead and purchase what I had originally intended. Fearing that this salesman may try to sell me something economical, I went to another store to make the purchase. I am sure the salesman sincerely believed that every customer’s biggest concern is the price. While price is important to me, my biggest concern was something else . . . that only a Mac offered.

The key is to ask customers questions and listen carefully. Let them know that you are sincerely concerned about their needs.

Make The Sale Early and Often, But Know When To Stop

Have you ever seen an auto estimator spend a lot of time generating a repair estimate, you know, going through all of these steps. Then when the estimator has it completed, he or she hands it to the customer and says, “If you would like me to schedule this, let me know so that we can order parts.”

I know I’ve seen that, and I’ve done that before. Don’t give them the opportunity to get away. Some repair estimates can consume a lot of time. Try to close the deal. You don’t have to wait until the estimate is completed to ask for the job. In fact, the estimator can ask the customer if they would like to sign the estimate to authorize repairs before inspecting a car. If your repair shop has loaner cars, ask the customer if they would like for you to get them set up with a loaner car or ask the customer if you can contact the insurance company to determine if their policy comes with car rental. There are many creative ways to ask for the job throughout the estimating process.

When the sale has been made . . . stop! Do not think you have to continue to sell every benefit your company has to offer. They are sold, and now they want service. If the customer authorizes the repairs, take your salesman’s cap off and put your customer service cap on.

The Angry Customer

Yes, the estimator will occasionally have to deal with an angry customer. In a perfect world, everyone would look at everything from a positive point of view, but we live in the real world. Every customer you deal with is already upset that they had an accident and have the added stress of dealing with the insurance company and the repair shop. The customer is uncertain of the outcome. How wil they get to work? Is the vehicle going to be the same? Regardless of their attitude, the whole situation is an inconvenience to them.

Most customers will appreciate the stellar customer service you provide for them, but some are not going to be happy regardless of how smooth the process goes. Realize that some people are just that way. Strive to provide the best customer service to them, but don’t take it personally if someone is upset. More than likely, they are upset about the accident and the inconveniences that come with an auto accident. A vehicle represents many people’s second-biggest investment, and an auto accident is stressful.

Some customers just want to vent. They want to share their pain with you. Many times after they get everything out and can see the estimator is concerned about their problems, their attitude will change, and they’ll become much easier to work with.

Good Communication

It is crucial for auto estimators to have good communication skills. The estimator will need these to sell the job to the customer, provide good customer service, and keep the customer, insurance company, and shop manager updated on the repair process.

If you learn that the vehicle is not going to be repaired on the promised date, let the customer know immediately so that they can rearrange their schedule. They may get a little upset, but if they show up on delivery day and then you let them know . . . it’s not going to be pretty. The customer may have made plans to pick up their car and go on a trip or something else, and now they are scrambling to figure out what they are going to do.

Methods Of Communication

To communicate with someone years ago, we had to be face-to-face or call them on the phone. That is not the case today. Nowadays, we can call, text, email, and communicate in many other ways. Everyone has a preferred method to be contacted. Be certain to get the different ways to contact the customer and ask them what they want you to do. One customer may consider texting impersonal and prefer a call. Others may be busy and on the go all the time and prefer a text.

Once the customer tells you their referred method, use it to keep them updated.

Insurance Claims Handling Process

The focus of this chapter is on providing good customer service, but most accidents will include an insurance claim. The estimator needs to have a basic understanding of the claims handling process. Remember that this may be a new experience for the customer, and they may look to the estimator’s expertise for answers.

Dressing The Part

If you are sick and go to a doctor, you would expect to see him or her in a white lab coat. You would expect a police officer to be in uniform, and it seems that a banger should be wearing a suit. My point is that every professional has a specific look, and customers are going to have certain expectations of how estimators present themselves.

Some body shops may have a certain dress code or provide company uniforms. If not, don’t forget to dress like a professional.

Explaining The Process To The Customer

It is the estimator’s job to explain the body and paint warranty the shop offers to their customers, consumer protection information, how long the repairs are expected to take, and the repair estimate.

There are resources and examples of the claims handling process, warranties, and consumer rights on the website for this book. Visit the resource section to learn how to access these resources.

Negotiating Skills

The estimator must have negotiation skills to negotiate with the customer to agree on a mutual agreement and have the customer authorize and sign the estimate or repair order. The estimator may also need to apply negotiating skills when working with an insurance company or adjuster to ensure that the shop is getting paid for all of the necessary operations performed to the vehicle to repair it back to its pre-accident condition.

Don’t Judge Your Customers and Miss Sales

I think we have all been guilty of doing this, but we need to work on it. For instance, we may think a customer is getting an estimate for the insurance company so that they can pocket the money or go to a competitor. We may take a look at the vehicle and determine they will not want to spend the money or don’t have the money to have the repairs performed. For whatever reason, estimators may jump to conclusions at times and believe that this customer is a waste of their time. I am not saying that the estimator should try to capture every job, as some jobs may not align with your repair shop. For instance, your body shop may not perform restoration. The best thing to do in a situation like this is help them find a shop that will perform the work for them.

This reminds me of a story I heard from a man named David Dykes. One morning in 1956 a rough-looking guy walked into a Cadillac dealership in Tennessee. He was poorly dressed in dirty overalls, muddy boots, and was wearing an old hunting cap with his hair sticking out the sides. He walked around the dealership for awhile, but no one came to help him. In the meantime, the salesmen were just standing around watching him. They were waiting for him to leave.

He continued to look at the cars, though, so the manager finally told the newest salesman to ask the bum to leave. Instead, the salesman went over and asked if he could help him. The man asked a few questions about the cars, and the new salesman politely answered the questions. Then he asked, “Do you take cash or checks?” The salesman almost laughed but politely said that they accepted either one.

The fellow said fine. I will take a Cadillac in every color you have in stock. He was Elvis Presley, and the new salesman sold six Cadillacs that day. So, the salesman’s kindness paid off. And perhaps your kindness may pay off too. You may not accidentally sell a repair job to a celebrity as in this story, but you may make a sale. Perhaps the customer was planning to take the car somewhere else to have the repairs made, but with your sales ability, the customer decided to trust you and leave their car with you.

Auto Estimating – Lesson 9 – Vehicle Construction

January 26, 2010 by Donnie Smith 1 Comment

If you would like to help and support this website, then I would greatly appreciate it. For more information visit. www.Patreon.com/CarAddictGarage

LESSON 1 – LESSON 2 – LESSON 3 – LESSON 4 – LESSON 5 – LESSON 6 – LESSON 7 – LESSON 8 – LESSON 9 – LESSON 10

Welcome to Auto Repair Estimating. These lessons are designed to provide you with the basics to Auto Estimating. I hope you enjoy the lesson. Donnie

Auto accident leaving a huge dent in the left front quarter panel.

Lesson 9 – Vehicle Construction

Understanding How Cars Are Made

”It’s a never ending battle of making your cars better and also trying to be better yourself” ~Dale Earnhardt

What This Chapter Covers:

This lesson is going to briefly cover vehicle construction. As an estimator, it is important to know how a vehicle is designed, the different types of frames, and the different metals and composites that are used in modern-day vehicles.

Why This Is Important:

As an estimator, it is important to know how a vehicle is designed, the different types of structures, and the different metals and composites that are used on today’s vehicles.

Topics Covered In This Chapter Include:

• Sections of a Vehicle

• Sides of a Vehicle

• Frame Types: (Body Over Frame, Unibody, Space Frame)

• Crush Zones

This chapter has been aligned with the following 2013 NATEF/ASE tasks:

•C:1 Identify type of vehicle construction (space frame, unibody, body-over-frame). HP-G

•C:2 Recognize the different damage characteristics of space frame, unibody, and body-over-frame vehicles. HP-G

•C:3 Identify impact energy absorbing components. HP-G

Sections Of A Vehicle

There are three basic sections of a vehicle—the front section (from the front windshield area to the front of the vehicle), the center section, also referred to as the passenger compartment (from the front windshield area to the back glass area), and the third area is the rear section (from the back glass to the rear of the vehicle). As an estimator, these are important to know because the front and rear sections are designed with crush zones, which crush and twist to absorb energy from the impact. The center section is designed to be stiff and strong to transfer energy from the accident around the passengers. Most damage from front-end and rear-end collisions is going to be in the front or rear sections of the vehicle.

Sides Of A Vehicle

sides of vehicle.007

The direction we face a car changes, but the sides of a car stay the same.

The car is divided into two sides: right and left. This establishes a centerline of the vehicle, which can be used for measuring. The way to determine which side is which is by sitting in the car facing forward like you are driving the car. Your right hand will be the right side, and your left hand will be the left side. Or, the driver’s side is always the left side, and the passenger side is always the right side. This will be helpful when recording the damaged parts to ensure you have the correct parts and when looking at vehicle specification information.

Frame Types

All of the frames on modern vehicles are designed with crush zones, but there are different types of frames.

Body Over Frame

Body over frame aka full frame, consists of two pieces: the frame and the body. With the body or body parts removed, the motor and suspension are still attached to the frame.

Unibody Structure

Uni means one. For instance, a unicycle has one wheel. So, a unibody means one body. In other words, the entire structure of a unibody vehicle consists of one structure. Actually, there are many pieces welded together, but it is considered one structure.

Mechanical and suspension components and body parts are attached directly to the structure. The body parts help lock and strengthen the structure.

Space Frame

funny car

A funny car is an example of a space frame. The frame is fully supported without the body on it.

Space frames are a type of unibody construction that does not require any of the outer body parts for strength. An example of this would be a funny race car. The funny car is fully functional without the body shell on it. Saturn uses a space frame. The only purpose of the body parts is to cover the structure. The design of the parts may also help with aerodynamics, which will increase fuel mileage.

We have discussed all of the parts of the estimate, customer service, sales, and now we need to briefly discuss vehicle construction. As an estimator, it is important to know how a vehicle is designed, different types of frames, and the different metals and composites that are used in vehicles today.

Crush Zones

Crush zones are built into the vehicle frames and parts to give upon impact. Crush zones crush and slow the vehicle before the sudden stop, much like an impact absorber. As an estimator, this is important to understand, as you do not want to section in a crush zone area, as this may disturb the original integrity of the vehicle. If the vehicle is involved in another accident, it should react the same way as before.

Identifying Crush Zones

Crush zones can be a number of engineered designs. For instance, a crush zone may be an indention in the part, holes, dimples, slots, etc. However, one thing you need to be aware of is that some vehicles are being produced with crush zones you cannot see. This is designed with tailor-welded blanks. The metal is actually rolled thinner in the crush zone areas and thicker in the areas where more strength is required. The only way to determine these types of crush zones is to look at the repair procedures for that specific vehicle.

Auto Estimating – Generating an Estimate – Lesson 8

January 22, 2010 by Donnie Smith 4 Comments

If you would like to help and support this website, then I would greatly appreciate it. For more information visit. www.Patreon.com/CarAddictGarage

LESSON 1 – LESSON 2 – LESSON 3 – LESSON 4 – LESSON 5 – LESSON 6 – LESSON 7 – LESSON 8 – LESSON 9 – LESSON 10

Welcome to Auto Repair Estimating. These lessons are designed to provide you with the basics to Auto Estimating. I hope you enjoy the lesson. Donnie

Broken crashed car on the street

Lesson 8 – Generating an Estimate

Labor Time Allowed In Estimating Guides Are Not Set In Stone

“Any fool can know. The point is to understand” ~Albert Einstein

What This Chapter Covers:

This chapter covers analyzing auto damage and using the information to actually generate the estimate. It also covers what to do if the estimating guide does not provide adequate time for a procedure and how to determine if a vehicle is a total loss.

Why This Is Important:

An estimator must know how to use the information gathered during the inspection to generate an auto estimate. The estimator also needs to know if the vehicle may be considered a total loss.

Topics Covered In This Chapter Include:

• Analyzing The Damage To Complete Inspection

• Generating A Computerized Estimate

• Disputing Estimating Guide Operation Using DEG

• What Is A Total Loss Vehicle?

This chapter has been aligned with the following 2013 NATEF/ASE tasks:

•B:22 Interpret computer-assisted and manually written estimates; verify the information is current. HP-I

•B:23 Identify procedural differences between computer-assisted systems and manually written estimates. HP-G

•B:24 Identify procedures to restore corrosion protection; establish labor values, and material charges. HP-G

•B:25 Determine the cost effectiveness of the repair and determine the approximate vehicle retail, and repair value. HP-G

•B:26 Recognize the differences in estimation procedures when using different information provider systems. HP-G

•B:27 Verify accuracy of estimate compared to the actual repair and replacement operations.

Analyze The Damage and Complete Inspection

Once you have all of the information you need about the accident, you may decide to assist the customer and help them with a rental car or offer to give them a ride back to work or their home. It may not be necessary for the customer to be there while you write the estimate, as it may take time, which many people don’t have.

Now the estimator can perform the thorough inspection, which may include the following:

• Visual inspection of all body gaps for misalignments, popped loose spot welds, cracked seam sealer, etc.

• Raise the hood to inspect the engine compartment.

• Raising the vehicle to inspect underneath the vehicle.

• Measuring to determine if any frame or unibody damage is present and determining the severity of the damage.

• Inspecting mechanical, electrical, and suspension components.

• Looking inside the passenger compartment and at the restraint system and interior components.

• Removing parts to gain access to possible hidden damage.

Starting at the damaged area and following the estimating sequence, inspect each part group before moving to the next group. For example, inspect the front bumper cover. If the bumper cover needs to be removed to inspect the impact absorber and reinforcement bar, then go ahead and remove it. Inspect all of the parts in the bumper section.

When performing the inspection, take photos of the damage. This is where high-quality photos are needed. The photos should tell a story on their own. These photos will be recorded with the claim and may need to be shared with the customer or insurance company.

As the estimator writes a thorough estimate, the vehicle may require disassembly of parts and/or raising the car off the ground to determine the extent of damage. For example, the estimator or a technician may need to remove the front bumper to determine what parts are damaged behind the bumper cover. By inspecting the damage this way, you should have a very thorough estimate when completed. After the inspection is completed and the estimate is generated, call the customer to discuss the repairs needed and the steps necessary to get started.

If an insurance company is involved, you will also want to discuss repairs with them. This will let the insurance company know that the customer has already authorized your shop to perform the repairs.

The main point of this lesson is to write a thorough estimate, as it serves many purposes. With today’s complex vehicles, the days of writing a visual estimate without tear down are gone. Cycle times and the lean process push to eliminate unnecessary work, which includes writing supplements on every vehicle that you work on resulting additional work for the estimator and delay the repairs of the vehicle.

A well-written estimate will also give your technicians a better idea of what all they need to do on the vehicle. The estimate serves many purposes, but a communication tool should be a vital purpose—a communication tool between the repair shop, the customer, the insurance company, and the technician.

Generating Computerized Estimates

Do you remember when businesses started using more computers? I kept hearing how much paperwork was going to be saved and how much easier the computers would make our work. Well, years later, I’m still not fully convinced of that opinion. It seems like we have more forms, files, and paperwork than we ever had before. I keep hearing paperless, but I am not seeing it. I think perhaps that for every item that goes paperless, there are two or three additional things that we must manage.

However, I do like the ways computers work and believe that we keep better records of everything. I think that we did not have a lot of the work before computers because we were not doing it. We really have all of our records at our fingertips even though it seems like a lot of work to manage.

It was painful getting to this point as an estimator. I remember the first computerized estimating system that Mitchell came out with. We had twice the number of estimating guides to pack around, and we still had to flip through the pages to swipe the bar codes. I did not like that system, but they have greatly improved through the years. The systems today make it much easier to write auto repair estimates. I mean, who can’t point and click?

One advantage of computerized auto repair estimates is that there are no errors. An auto estimator can still leave a lot of money on the table by not adding not included operations, but computers have eliminated all of the calculation errors because it calculates the totals for us.

Have you ever lost something? It is pretty hard to misplace an estimate when it is stored in your computer as well. Therefore, computers are more accurate and remove much of human error out of the equation, but this does require more work by backing up and maintaining your computer system.

Most computer estimating systems update their information monthly or weekly. This is a huge benefit, considering how quickly part prices can change. When we used the estimating guides, they were sent out every three months, and they would already be out of date before you received your new copy.

The computer also eliminates a lot of writing. Remember that I said to list each item separately? With a computer system, you may only have to type a few of the operations that are not in the system and you can point and click most of your estimate with ease.

The Internet has also made it possible to work directly with insurance companies. Both the shop and the insurance company can look at the same estimate and view the digital photos online. This was the birth of the Direct Repair Program (DRP). There are mixed emotions about these programs. I am not going to get into that in this book, but I have a video on the resource site that will explain more about the DRP.

Labor Time Allowed In Estimating Guides Are Not Set In Stone

First of all, we call the estimating guide a guide for a reason. The labor times are not necessarily set in stone. If you feel the labor time or other issues with a procedure are not fair, you can dispute the operation.

There is a website for submitting your questions at www.DEGWeb.org. Many times technicians and/or estimators do not feel that the estimating guide or computerized system allows enough time to perform the operation, but they just take it as the gospel, as they do not know how to challenge their concern.

The Problem Will Only Be Corrected If They Know About It

If you truly feel that the guide is not giving you enough labor time, go to the above website and submit your concern, which has caused many changes to be made to the different estimating guides. Estimating software companies will never know there is a problem with their database if we do not let them know.

Think about it. There is a lot of information available when it comes to providing a database that has the labor operations for every vehicle out there. Mistakes will be made in the database, or things may have been overlooked.

The best thing is that if an adjustment is made, it will add the additional time or operation every time any estimator is generating an estimate performing the procedure. If it is changed in the database, insurance companies will pay it with no questions asked.

The bad thing is that there are still many things that are missing. For instance, there may be a make or model that does not have any refinish time when replacing a front rail. Every shop performing this procedure is losing revenue. It then becomes very important to observe the procedures, listen to the technicians, and submit your concerns to DEG. You’re helping the entire collision repair industry if you help make a correction.

For more information about DEG, please visit the resource section of this book.

What Is A Total Loss Vehicle?

A total loss is when the cost to repair the vehicle exceeds a percentage of the actual cash value (ACV).

There are two misconceptions concerning a totaled vehicle. The first is that a vehicle is beyond repair. The second is that the costs to repair the vehicle will exceed the value of the vehicle. While there could be some truth in both statements, neither is entirely correct.

Beyond Repair

Some accidents result in the vehicle being severely damaged and not able to be repaired. You may hear someone ask how bad an accident was and they reply, “It was totaled!” This answer, though, does not tell you much. The replacement of a few parts on an older vehicle not worth much money could total the vehicle. If the vehicle happened to be a 2014 Ford pickup crew cab, however, a lot of damage would be needed before the pickup would be considered totaled.

In most cases, a total loss does not mean the vehicle is beyond repair, but that the cost of the repairs is too high.

Repairs Exceed ACV

This is almost an accurate statement and may be true in some states, but in many states repairs do not have to exceed the ACV, only a percentage of it. For instance, an insurance company may use 70% of the ACV as their percentage, which means that when a vehicle’s damage reaches 70% of the ACV, they classify the vehicle as a total loss.

Actual Cash Value

When a vehicle is bought new, it starts depreciating. The value become less with time and mileage. The insurance adjuster will look at such resources as NADA, Kelly Blue Book, or other reports showing what cars are selling for at local dealerships to determine the value of the vehicle. Another source to help determine the ACV is to look in your local classifieds for the make and model and in similar condition as the totaled vehicle was before the accident.

Salvage Vehicles

Insurance companies issue the vehicle owner the amount of the agreed ACV and then sell the car at auction. The salvage value will vary depending on the value of the parts that can be sold.

What Percentage Totals A Vehicle

There is not one correct answer for this, as insurance companies or states may set different percentages, but 70% is a ballpark figure that I’ve heard many insurance companies use.