Techs dropping Insurance?

[scratchy]

I think State Farm has initiated an unintended backlash. The other WSR outfits in my town are getting away from insurance processing. CASH only!! The way I found this out is that I was on vacation last week. LYNX could not get anyone out to do a repair while I was gone and had to wait for me to get back. It looks like we are the only one left. Thoughts???

[StarQuest]

scratchy,

Here in Michigan, 95% of State Farm-Lynx referrals are cash only now! (unless insured has a "zero" comprehensive deductible). With those you even have to be careful, because if repaired damage doesn't satisfy customer needs or wants, they'll just erase your claim and get it replaced for free! (unfortunately resulting in a backcharge)

I'm surprised no else in your area wouldn't handle their call. That wouldn't happen here...ever!!! If I simply fail to answer phone after 3-4 rings in my area with Lynx, job is lost and 20-40 other mobile repair techs are waiting in line to handle it.

What part of Texas are located? Maybe it's time for me to relocate

[AGSS]

We do our best to sale a prospect on COD basis but upon completion, we give the customer the work order and instructions on submitting the bill themselves if they wish.

As far as networks, I am a member thru ACT only and do not get claims sent to me. However w/s repair is such an easy sell who wants the hassle like StarQuest has mentioned.

'Its only $50! we will be happy to put this on your charge card and you will not have to involve your insurance company!'

[StarQuest]

Chris,

Unfortunately, Savannah, Ga. is nothing like working in the Michigan market area. If it was, I'd be applying the same methods of billing that you have described.

Unemployment in this state currently is the highest in the country and nobody around here is willing to pull any cash or credit out of their pockets whenever they can avoid it!

When CSR's tell customers repair deductible is waived (by most insurances) it's almost impossible to collect upfront from these people and have them bill out. Just doesn't work that way here!

[Onsite]

I had a new State Farm Rep come to my house introducing himself and his services.
So I told him I listened to you and now it's my turn.

[scratchy]

I just want to say that I DO like State Farm's services. I think their move away from repair is causing many techs to move away from insurance processing as a whole. State Farm is approx. 40% of the market so people are figuring why bother doing it at all. Cash 100% and if someone wants their insurance to pick it up they can fool with it themselves. This leaves LYNX and probably some of Safelite dangling. FWIW I don't even see Safelite in our area doing mobile repairs, just replacements. Repairs seem to be in shop only with very limited kinds of chips being considered fixable. The price is 59.95 cash or insurance.

[Glassdoc]

Here's a new twist... NWBR will only pay for one stone shot (via SGC Claims) regardless if there are 2 or 3.. I did job last month for a NWBR insured, called in the claim prior to doinf the work, got the approval.. Arrived at job site and saw there were 2 stone shots. Called for approval, received it verbally. (Expected a new work order to be waiting in the fax machine later n the day) It never arrived so I billed it out for 2 shots on the referral number.. Received the check today for $10.50 less than I billed... Called up NWBR who referred me to SGC and was told they only pay a flat rate now of $63.50..
So, I can now add NWBR customers to "cash only" list..
I think the kicker here is Safelite charges $79.95 in this area to do the 1st shot $10-$15 for each additional.. Yet, we can't charge $73.50 for 2 shots...

[cazador]

As I've written befor, I do the big 3 C's only (cash, check or creditcard), no hastle with Safelight, Lynx or whatever company that takes some money of your profit away. I might loose some business not to go with the networks , but at the same time token I loose a lot of headdaches too ! ACT must be hunting for members, today I received a call if I would like to sign up with them , I requested information half a year ago......!?!

[splitpit]

I can't imagine why one would not work with the insurance networks. They all provide me with a substantial amount of business that I might not otherwise have.

[Glassdoc]

10 years ago, maybe even 5 years ago I may have agreed with you.. I was doing more than $10,000 annually in repairs for Safelite.. Then along came Repair Medics and the steering and price cut throating began.. At that time, i was very good friends with Safelite's East Coast Regional Manager. We discussed several things, one being the profit margin on repairs.. If I did a job say for Erie and billed $65, Safelite would be paid $94 for that repair. Travelers also paid more than $30 above what I charged. Factor in that Safelite charged us $4.00 per invoice for processing and you can see that they were sitting on their butts making a minimum of $35 for every job they dispatched..

As for the referrals today. They are few and far between. And, more often than not Safelite will kick the invoice back because owner's signature is not legible or some other excuse to hold on to your money for another 30 days. You claim they up'd their pricing.. My question is this. Did your business insurance go up in the last 3 years? Are you not paying 3 times as much for gasoline as you did 3 years ago? Is your resins the same price as they were 3 years ago, and did the shipping costs increase dramatically? Does the $5.00 increase really look that good to you to beckon to their terms? I'm thankful to not be running all over the tri county area to see windshields they knew needed to be replaced prior to dispatching it out.. Yes, I still bill out a few insurance jobs.. But, I for one generally send my bills directly to the insurance company vs the networks when I can.. If the customer calls in the claim, I am at the mercy of the networks unless I can get the customer to pay up front.. And 90% of them have no problem paying me up front for my services.. As for Network flat rate pricing.. I don't think so.. I charge what I charge, even if that means the customer pays the difference.