The Insurance Side of Collision Repair
Insurance work makes up the majority of revenue for most collision repair shops. But dealing with insurance companies — approvals, supplements, adjuster visits, and payment timelines — can be one of the most frustrating parts of running a shop.
Here are practical tips to make the insurance side of your business run smoother.
Document Everything From Day One
Take thorough photos during teardown. Document every piece of damage, every panel that needs work, every part that needs replacement. The more documentation you have, the stronger your position when negotiating supplements and the faster approvals come through.
Write Complete Initial Estimates
An incomplete first estimate leads to multiple supplements, which leads to delays. Take the time to do a thorough teardown and write a complete estimate upfront. Yes, it takes more time on day one, but it saves days of back-and-forth with adjusters.
Track Claim Details on Every Work Order
For every insurance job, record the insurance company, policy number, claim number, adjuster name and contact info, deductible amount, and authorization status. Having all this information in one place — instead of scattered across emails and sticky notes — prevents mistakes and speeds up communication.
Follow Up on Supplements Promptly
When you discover additional damage during repairs, document it immediately with photos and write the supplement the same day. The longer you wait to submit supplements, the longer you wait for authorization, and the longer the vehicle sits in your shop.
Separate Insurance and Customer Portions on Invoices
Clear invoicing builds trust with both insurance companies and customers. Show the insurance portion and customer deductible as separate line items. This avoids confusion and disputes at pickup time.
Keep a Record of Payment Timelines
Track when you submit invoices and when you receive payment from each insurance company. Over time, you will identify which companies pay quickly and which ones drag their feet. This data helps you plan cash flow and decide which DRP programs are worth your time.
Build Relationships With Adjusters
Adjusters are people too. The shops that have good working relationships with adjusters tend to get faster approvals and fewer disputes. Be professional, provide thorough documentation, and communicate promptly. A reputation for fair, well-documented estimates goes a long way.