Question: How Are Insurance Repairs Paid?



Answer: Insurance companies compensate auto shops based on time guides. For instance, if you have to replace a bumper and the time guide says that a bumper replacement takes two hours, the insurance company will pay the shop for two hours at the industry rate for the geographic region. In some cases the time guides are inaccurate, but rather than argue with the insurance company I contact the organization that sets the standards for that labor. They love that kind of feedback because most auto shops will not take the time to contact them or they don't think to call them. On several occasions I have helped change the time guide for a service and repair and was able to receive more adequate compensation.



Answered by: German Formula


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