Shops Squeezed by Rising Costs and Low Pay, Eversman Says in Podcast - BodyShop Business

Shops Squeezed by Rising Costs and Low Pay, Eversman Says in Podcast

Body shops aren’t being paid enough by insurers to cover their soaring costs, industry expert Erica L. Eversman, J.D., says in a hard-hitting new podcast sponsored by Scene Genesis.

State regulators are becoming more concerned that low payments under direct-repair programs practically force some shops to make unsafe repairs, said Eversman, general counsel of the consulting firm Vehicle Information Services, Inc., in Bath, Ohio.

High energy prices have hiked repair shops’ costs, but reimbursements aren’t budging, and shop owners find it hard to invest in new equipment or staff training, Eversman adds. In the long run, squeezing body shops isn’t good for the insurance industry either, she says.

In the podcast, available online at www.sceneexchange.com, Eversman predicts that more body shops will go out of business. Survivors will be those that become more business-oriented.

For more information, visit www.scenegenesis.com.

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