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To secure the work, body shops will generally
accept insurance company rates, which can vary from
company to company and by geographic area. They can negotiate
with the adjuster on other points to obtain concessions, however, as was done
by the insured to obtain the settlement charted. Once the insurance company has
approved an estimate, work on the job can proceed and a repair order is
generated echoing the approved amounts. Approval by the insurance company fixes
the amount that will be paid by them and a check or draft is issued to cover
their portion of the liability. In the case of collision, or a finding that
both parties to an accident are at fault, the insurer's payment will be net of
any deductible stated in the policy. Some shops openly advertise that they will
"save your deductible" and others will offer the option
if pressed, or at least offer some concession. This is
generally accomplished by repairing versus replacing or by
installing used or after market parts instead of factory replacements. Other
shops will make no such arrangement and require full payment of any deductible
on delivery of the competed job. This practice however, since it is fairly
common, opens a door to considerable abuse in reporting income when a
deductible is shown as waived in the accounting records, but was actually
collected. An interim step may be taken between the approved
estimate and repair order and the completion of the job. If a complete tear
down was not done before the estimate was made, previously hidden damage may
surface once damaged sections are removed. Parts prices may also have increased
since the last issued Mitchell Manual. When this occurs, the customer or his or
her insurance company must be notified and approval to perform additional
repairs secured. If an insurance company is involved, an adjuster may again be
sent out to inspect the damage, or approval may be given over the phone,
particularly in the case of price increases. In either case, a second
supplemental payment will be issued by the insurer and receipt of this payment
may be delayed some time beyond both the originally approved charges and the
completion of the work. Whereas supplements are not common, neither are they
rare. There should be a new repair order written for the supplement, with payment separately
accounted for, though occasionally only an addendum is made to the existing
file. 5-3 Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Glossary |