“At PDA, we’ve reduced average cycle time for automobiles to 2.0 business days and 2.7 calendar days,” said Tom Dolfay, CEO of PDA. “We’re pleased with the improvement, but want to continue to ensure a unique value proposition backed by solid metrics.”
One method to quantify cycle time is to examine the length of time replacement vehicles are rented to insurance customers. According to Enterprise Rent-A-Car the U.S. average Length of Rental (LOR) rose in 2015 to 11.5 days, up 0.3 days from 2014 and 0.8 days from 2010. The average cost to rent a car per-day is $30. At this rate, insurance companies are paying roughly $345 before taxes and fees for drivers to rent a car for 11.5 days. If an insurance company has 1,200 rentals with customers and they’re able to reduce the appraisal time by two days, they can cut two rental days and ultimately save $36,000.
“The longer it takes an appraiser to complete an estimate, the greater the LOR. An appraiser should have the lowest cycle time possible so they’re not slowing the process of closing a claim. Customer satisfaction is higher when cars are repaired faster. Not only does faster cycle time contribute to customer retention, it supports cost containment of insurance premiums,” Dolfay said.
One way that PDA keeps cycle times low is by writing estimates at the vehicle instead of back in their office at the end of the day or the following day. When PDA’s virtual estimating tool PDA Xpress is used, time is cut even more. Sixty percent of PDA Xpress estimates are completed in less than 45 minutes, even with a three-hour guarantee.
PDA has also developed a photo tool that is tied into the company’s franchise management system (FMS). The technology allows appraisers to use their smart device to take the appropriate photos required by PDA and their customers. The appraiser uploads them directly into the PDA FMS.
To learn more about PDA and how to obtain faster cycle times, visit www.pdacorporation.com.