New 'Who Pays for What' Survey Asks About Not-Included Body Labor Billing, Insurer Payment Practices

New ‘Who Pays for What’ Survey Asks About Not-Included Body Labor Billing, Insurer Payment Practices

The current survey, being conducted for the first time, focuses on about two dozen not-included body labor operations, asking shops how frequently they are paid for each of the operations by the eight largest auto insurers in the country.

The series of four different “Who Pays for What?” surveys continues in April with an all-new survey asking shops about “not-included” body labor operations. The survey is open through the end of April, and can be accessed by clicking here.

The series of four different surveys each year are conducted by CRASH Network and Collision Advice. Newly released data from the “Who Pays for What?” refinish-related survey earlier this year shows that of shops that have never asked to be paid for the additional labor time involved to match the original OEM texture of chip/gravel guard, more than 82 percent said they either were not aware it was a “not-included” operation or just never thought to charge for it. Indeed, any extra steps taken for this operation are not-included in the estimating database times because not every situation requires it, yet it regularly must be done.

Of the shops that do bill for extra labor time when they need it, the survey found that the eight largest insurers reimburse them “always” or “most of the time” in nearly 40 percent of the cases, across all six regions of the country.

“Participating in the surveys can be a good reminder to shops of not-included operations like this that they are doing it so they can decide whether to include them as line items on their estimates,” said Mike Anderson of Collision Advice.

Each of the four surveys explores a different area of shop operations. Previous surveys examined “Who Pays for What?” in terms of structural/frame and mechanical operations, aluminum repair and refinish operations.

The current survey, being conducted for the first time, focuses on about two dozen not-included body labor operations, asking shops how frequently they are paid for each of the operations by the eight largest auto insurers in the country.

Survey participants will receive a 60-page report with complete survey findings broken down by region, insurer and DRP vs. non-DRP, at no charge. The report also includes analysis and resources to help shops better understand and use the information presented.

Anderson said the survey, which will take about 15-30 minutes, should be completed by the shop owner, manager, or estimator who is most familiar with the shop’s billing practices and the payment practices of the largest national insurers. Each shop’s individual responses are held in the strictest confidence and are not released in any way; only cumulative data is released.

The results of previous surveys are also available online.

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