New Estimating Model Created to Control Hail Damage Costs

New Estimating Model Created to Control Hail Damage Costs

Risk Point LLC says new model will eliminate what it says has long been a problem in the industry: damage payouts that far exceed the actual cost of repair.

Risk Point, LLC, a provider of insurance for auto dealer inventory, has introduced a new estimating model for hail damage repair as a way to control ever-increasing premiums and deductibles, and to eliminate what it says has long been a problem in the industry: damage payouts that far exceed the actual cost of repair. The company estimates that in 2014 alone, hail damage payouts surpassed the actual cost of repair by at least $250 million.

“We are changing something that has become entrenched in the automotive insurance industry, and which until now, no one has taken the initiative to correct,” said Bryan Wilburn, founder and CEO of Risk Point. “This is a ‘back to basics’ approach in which an insured should not profit from a loss beyond the fair and equitable adjustment of their claim.”

Risk Point says that with improvements in PDR processes and a large increase in the number of PDR vendors, the actual cost to repair a vehicle has dropped substantially. However, it claims the insurance industry has continued to pay losses based on an estimating guide that is more than 10 years old, which has resulted in payouts to dealers of almost twice the amount for which the damage can be repaired.

Risk Point built its new estimating model after conducting a study of actual PDR costs with several national vendors. The result is that PDR vendors will continue to be paid current marketplace rates for actual repair costs, while overpayments to dealers will be eliminated. To ensure dealers are able to obtain repairs at the new matrix cost levels, Risk Point has partnered with a number of national vendors that it says possess the “requisite capabilities and commitment to service to perform and guarantee their work within the new payout structure.”

“Our goal has been to always lead the industry with innovative techniques and processes that provide superior service, fairly priced products, and timely claims payments,” Wilburn said. “While we expected some pushback with this new model, so far no one has argued that the actual repair amount is incorrect, and we believe that eventually other insurance providers will adopt it. Change of this magnitude is never easy, but our goal is to eliminate overpayments and return a measure of price stability to the industry.”

You May Also Like

Compact Auto Body Powered by VIVE Highlights Female Teammates

The Compact Auto Body team is all-female led in an industry that typically has a male lead.

At Compact Auto Body in Matawan, N.J., female empowerment is recognized and celebrated.

The Compact Auto Body team is all-female led in an industry that typically has a male lead. At VIVE Collision and its partner locations, the VIVE values are people, process and passion. Employees that embrace VIVE’s values are offered limitless opportunities for growth and success, no matter what gender they are. Hard work and dedication are the key drivers to unlimited potential. Compact Auto Body powered by VIVE Collision maintains a strong focus on people — because people are at the core of VIVE Collision and its partner locations.

NABC Gifts Refurbished Cargo Van to Ronald McDonald House

The NABC, along with Hertz and Gerber Collision & Glass, recently presented a 2020 Ford El Cargo Van to Ronald McDonald House Charities of Central Ohio.

Register Now for ASE Instructor Conference

Hosted by the ASE Education Foundation, the conference is scheduled for July 17-20 in Concord, N.C., just outside of Charlotte.

CIECA Announces ComCept as New Corporate Member

Founded in 1986 by Glenn Atwell, the company is based out of Seminole, Fla., and has built distribution management solutions for U.S. paint jobbers for almost 40 years.

NABC Opens Nominations for 2023 NABC Awards

The NABC is opening nominations for its 2023 awards, the NABC Changing and Saving Lives Award and the NABC President’s Award.

Other Posts

Classic Collision Adds New Locations in Texas and N.C.

Classic Collision announced the acquisition of David Collision Repair in Georgetown, Texas and CARSTAR Jerry Rhynes Collision in Albemarle, Charlotte and Pineville, N.C.

Top 5 Stories of the Week

A recap of the top five stories on bodyshopbusiness.com during the week of May 15.

Podcasts of the Week

A review of some of the latest podcasts from BodyShop Business.

Consolidator Report

Consolidation news from the week of May 15.