Network and paperwork confusion!

[maxima]

I have been reading this forum for about 1 week and have waded threw 40% of the posts.

How can somone recieve payment from a Ins. company if the Ins. company requires that you be in business for 1 year before filing claims?

Why would someone get liability ins. if they could not recieve payment from a Ins. company?

How much is the lynx network annually? Per claim?

If the Lynx network costs $ then why do people insist using them?

True or False / Lynx and Ins. companies steal your business after attermpting to file a claim and give it to other WSR companies that are owned by Lynx?

Why do you have to register with individual Ins. companies if your registered with Lynx?

What does Lynx really do for a person?

Thanks,
Chris

[chip-gone]

Maxima,

I'm new to the business myself. I'll give you my experience with the 2 major networks.

I've done exactly 2 customer jobs thus far in my short career as a WSR tech. Both have been insurance billed. One was billed through Lynx, the other is being billed through Safelite.

The first was a State Farm job (referral from Lynx, yes they do happen). I joined Lynx as soon as I got my business license, as they do NOT have the 1 yr requirement. My billing experience with them was without incident. They charged 7.50 to process my invoice by fax. Next time, I will try EDI through DataTranz to cut down this fee. My first (only!) experience from Lynx was positive. In terms of registering w/ individual ins comps, Allstate & State Farm have add'l forms to fill out, but it's really no big deal. Lynx includes these w/ your signup kit.

My second job was a Farmers' claim through Safelite. My customer contacted the Farmers' glass line & was given the option of using a Safelite shop, or a shop of their preference. The customer specified my shop. They (Safelite) then contacted me, asked if I would accept their pricing structure, then approved the claim. I only did the repair on Friday, so I haven't been paid yet. I am not a member of the Safelite network, but am working on it. Their documentation states that you need to be in business for 1 yr before you'll be considered for affiliation. Obviously, you do not need to be in business for 1 yr to bill them, just to join the network.

My suggestion: Join Lynx ASAP. My billing experience was positive & they sent me a "free" (no marketing) customer out of the blue.

In terms of steering, I've not seen any evidence so far. Bear in mind that I've only had 1 experience w/ each network though.

In terms of insurance, you need it to join ANY network. Unless you have nothing to lose, I'd recommend liability for ANY business. At the minimum, you're providing protection to your customers.

I'm glad that my first two jobs were insurance jobs. I'm no longer intimidated by the process.

[maxima]

Thanks for the reply.

Really good examples of what to do from getting referals, But what is to happen when you find the customer, The customer does'nt find you.

Your to find out the Ins. Provider? Find out what there pricing structure is? Find out if they (The Customer) has the appropriate Ins.?

Then what? do the repair, Give the customer a invoice and send their Ins. company a copy of the invoice or Lynx and wait for payment? But like you said you have to of signed up and paid for lynx or safelite before hand, Plus have Liability coverage???

Urrghh! this is frustrating.

Thanks,
Chris

[chip-gone]

Sorry I wasn't clear. My second example was a customer that I found, NOT a network referral. I asked him to call the glass hotline listed on his Farmers insurance card & specify my shop as the one he wanted to use. The rep on the hotline verified coverage w/ the customer. Only then did Safelite (Farmers' network) call me to work out pricing. This was after the CUSTOMER had requested my shop. Again, I'm NOT signed up with Safelite yet.

I'd be hesitant to do a repair until coverage had been verified & I'd spoken w/ the network rep, but some of the more experienced techs may feel differently. Once you've been approved to do the work, the network will fax you a dispatch w/ instructions for submitting your invoice after the repair is done. Do the repair & give a copy of the invoice (you're using multi-part forms for your invoices, right?) to the customer. Make sure your invoice has the necessary info on it (specified on the dispatch). Follow the instructions for submitting it, & you'll get your check through the mail.

I view the liability insurance as a necessary cost of doing business. I would not do any repairs without it. I do not know if Lynx/Safelite require liab insurance for repairs done by non-network shops.

I signed up with Lynx in August 2003, one month after my training in Eugene. I do not remember sending them any money to do so, but I'll double check my records.

[maxima]

In order:

1. find the customer
2. Call their Ins. Company to confirm coverage
3. Call the network for pricing negotiations & instructions for submitting a invoice

4. make the repair
5. fax the network the invoice
6. wait for payment

Is this the correct order?

Thanks,
Chris

[Dave M]

#2 can be eliminated. Some insurance companies REQUIRE the insured to call in the claim. I have yet to lose a customer, via a network because of steering. Once contact is made with a customer who needs a repair make it very clear that if he or she wants you for the job they MUST tell their ins. agent or network.
Now, please don't misunderstand! I feel safe to assume I have lost customers to steering but only when the insured has called their agent or claims dept. directly. I have no control over a customer until personal contact has been made either in person or by phone.
When a customer first calls me and asks about a repair I have a routine of questions I ask and then explain my repair guarantee. Usually by this time the customer wants to know what I charge. "If you have comprehensive insurance and were covered at the time of damage, the repair should cost you nothing."
Customers love hearing this because chances are they were not aware the repair would be "free". I thoroughly explain the ins. process and usually get the job.
I'm in Maine and 99.9% of comp. deductibles are waived. May be different in your state.

[maxima]

Thanks, That was very easy to understand. You made that very clear!

Regarding #3 :

Do I make the call on site with the customer standing in front of me or once I get home? I would'nt think the customer would not have the patience for me to call and discuss pricing and paperwork.

Also, I would like to make my pricing structure to the maximum a Ins. company will pay out all while making it FREE to the customer.

For Example:
What if A Insurance company will only pay a maximum of $55.00. Because they base it on the lowest rate in my area. So I would want to setup my pricing structure like this:

If my price is $35.00 for the 1st ding, And $10 additional for other dings up to 2 more dings. Total $55.00

Or Assuming the majority of people have just 1 ding. I would want to structure my price like this:

$45.00 forthe 1st ding, And $5.00 for any additional up to 2. Thus maximizing my profits.

Thanks,
Chris

[glassdoctor]

Ins. companies set their pricing for repairs, including 2nd and 3rd chips. State Farm, for example pays $50/10/10. So, when you find a State Farm customer (30% of all cars), you know to charge that if you want to stay in their guidlines. Many ins. companies pay $60 for first chip and $10-20 for second and third. The cheapest I know of is $45/10/10. The highest is $60/20/20.

To make sure you don't "under charge" a job, you could do a couple things....

When you call an insurance company or network...

1. Simply ask what they pay for the first, and any additional. It shouldn't be a secret. If they hesitate, just say you didn't what to cause a problem by overcharging their insured.

2. Just tell them your normal price is $60/20/20. If they don't pay that much, they will tell you their price structure, and you can accept that price. And, if they say "we only pay $59.95" (as many safelite companies do) they mean exactly that. I had a bill written up at $60.00 and they said I would have to change it to $59.95 for them to accept it. That $.05 was a big deal to them I guess. That's how stupid the system is. But $59.95 is a lot of money to make in a few minutes.

[maxima]

Precisely, You answered my queston very well. Thanks!

So it seems as if you have a ratio for State farm Ins., (30%) of cars?
This is a interesting statistic, Is this opinion or fact?

My state requires that everybody have Car ins. so......I guess that means I will always have to file a claim with Ins. Companies. Can you give me an example of an instance where the customer would pay cash?

Oh! nevermind my state requires Ins., But not comprehensive!! Ahh I see..... So what percentage of people do you think have Comprehensive Ins.?

For the customers that don't have Comp. I would suspect that you lower the rate signifigantly for them? I would!

Thanks,
Chris

[mafsu]

Why would you lower your rate significantly for people who don't have comprehensive ins.? Your rate for a repair is still only a quarter of what a windshield would cost. If you are making good repairs don't undersell yourself.