Why sign up with insurance??

[jtricer1973]

Hey guys, I have been lurking for about a year and a half and will be getting a kit within about a month to get started. One thing I don't understand is that everyone talks like one of the first things to do is get signed up with the insurance companies, but why. Everyone says that they never get any referrals from them, so if you don't get referrals, and you can pretty much still bill insurance companies, why sign up? What's the benefit? Thanks for your help guys.

Jeremy

[GlassStarz]

If you are on thier list you get paid quickly and your customer isnt told your not a certified shop. with companys like State Farm if you are not with them the customer has to pay you and get reimbursed. Its alot easier to sell a repair if the customer doesnt have to pay out of pocket or submit paperwork to get paid back. The easiest way to get on everyones list is join ACt and if you dont want to keep paying thier charges ater about a year wean yourself off but in the meantime you got on the rite lists.

[jtricer1973]

Thanks GlassStarz

[Sneck]

Believe it or not, in the last 10 years of my part-time windshield repair business - I have only lost one job because I was not set up on an "insurance network". And still today, EVERY customer I have prefers to NOT use insurance and insist on paying for it themselves. As a matter of fact, I would say that about 75% of my customers pay me in CASH, and often times (because of sales tax) the invoice amount I charge is not an even amount, and customers will actually tip me a couple extra bucks to cover gas.

So I believe I am making more money by NOT using insurance. I know there are a lot of techs that do some insurance work, and there are others that do exclusively insurance work and make a very nice living. But in my area and my experience, people just pay out of pocket and most of the time its CASH (and sometimes with a tip to boot!)

Sneck

[GlassStarz]

If you dont bill insurance for 50% or better you are missing 50% of you potential work at least on the cold call stuff. The ones who call you generally have an idea of how they are going to pay before they call. If you are doing outside sales and can sell as well as take insurance you should close 75% or better some of the networks pay $75 for the first chip it would be nuts to take your $45 cash price and go away, wait a couple weeks and get the bigger check

[Glacier Auto Glass]

I have to agree with GlassStarz. I have NEVER made more money doing a cash job than I do by billing insurance. And it is much less headache to work with Insurance if you are signed up.

I recently got into this business, and I was very worried about the "complications" of working with billing insurance. It really is not hard. Do it a few times and you will know it like the back of your hand - it's simple - as long as you are set up to EDI your invoices. Getting set up is easy too and your software provider takes care of them.

I don't need referrals as I am the only gig in town. I live in Alaska in a town of about 6,000 people. In the summer in almost triples. It is still necessary though to be set up with the insurance companies. You can do this for free too. If you want to sign up to get referrals it costs you money. Keep it simple (by using insurance) so you have more time to do the work.

[Sneck]

Glacier Auto Glass...

I use to live in Alaska myself. It was a long long time ago, back in the early to mid 70's. I lived in Eagle River Alaska. I miss the scenery. It was beautiful. Most people have not "really" seen mountains until they have seen them in Alaska.

Anyway...

I guess the main reason why I have not pursued insurance jobs agressively is that I really don't do any cold-calling. My part-time business is just that (part-time). I get pretty much all my business from the lettering on my truck and the one sign I have out in my yard on a busy street.

I probably should pursue the insurance jobs again, at least to give the customer an option. I would be using ACT - so they would get their cut. And when I mentioned earlier that I might be making more money on cash jobs (in my situation at least), I was basing that on an insurance job of $50.00 less A.C.T. fee would only leave me with about $35 profit. But If I charge $40 to $45 and sometimes I get a tip... well it seems like then I would either make the same or more than if it was an insurance job.

But if there are networks that are paying $75 for the first chip as Glasstarz says, then perhaps I better re-think my position???

Sneck

[Adam]

In my opinion , being set up through ACT will drastically increase your overall profit. Keep in mind that it is not just how much you make per repair, but how many repairs you do. It is all based on volumes. If you charge customers cash, you will get paid fast, but it also puts the customer out. When going through insurance companies, the customer pays nothing. Then they tell a friend, who in turn tells a friend, and before you know it you have a booming business.

[Chips_Away_Windshield_Repair]

I'm still confused everyone.
We do about 85% of pretty good business through Lynx and SGC.
Have never had a customer question the statement about us not being a member of networks (my personal quarantee is better) nor a State Farm customer object to paying up front. I tell them the clerk will tell them a check will be cut and mailed same or next day. Two times we've held their check for a week, called to see if they have been paid then deposit.
The clerks are always friendly, courteous to my wife and the customer.
I do tell the customer the main reason for non-membership is I get paid the full $50.00 or whatever without the 15% deduction or the $250.00 cost of joining.
We use EFT with no problems.
Very happy with the situation.
I've asked before, "What am I doing wrong?"

[Chips_Away_Windshield_Repair]

Just a quick note 'bout a tip.
Looked at a previous repair on a motorhome a family bought used in Ohio, he saw a bit of resin reflection on a tiny crack, asked if I could fix.
Checked it real good, someone somewhere had done a good job. Told him he has no problem. He wanted to pay or tip a $20.00.......no way.
He said "I'll take it to your wife"
I told him "I'll let the air out of your tires if you do".
Last night in bed Shirley told me he did however give her $20.00.
Damn hard headed mid-westerners!