Back in 2015, a “Who Pays for What?” survey conducted by Collision Advice and CRASH Network found that less than half (46 percent) of shops that responded said they were paid “always” or “most of the time” when charging such a fee. That percentage grew to 53 percent in 2016 and to 57 percent in 2017. The same survey this past fall found that 59 percent of the more than 500 shops that responded to the question reported regularly being paid an administrative fee for processing total losses.
At the same time, the percentage of shops that said they have never sought such an administrative fee declined from about 30 percent in 2015 to about 25 percent in 2018.
Mike Anderson of Collision Advice said the growing prevalence of total loss administrative fees is not surprising as vehicle technology and insurer-required documentation related to totals continue to make the process more complex and time-consuming.
He said the first of the four 2019 “Who Pays for What?” surveys, which focuses on “not-included” refinish operations, is open now through the end of January at: https://www.surveymonkey.com/r/9TSMPXY
Anderson said the survey, which will take about 15--25 minutes, can be completed by any shop owner, manager or estimator who is 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; only aggregated data is released.
Survey participants receive a report with complete survey findings at no charge. The findings are broken down by region, insurer and DRP vs. non-DRP. The report also includes an analysis and resources to help shops better understand and use the information presented.
The results of previous surveys are also available online at https://www.crashnetwork.com/collisionadvice.