Question about Insurance companies paying body shops

[maxwinedog]

Generally speaking how much do you think body shops make from insurance companies paying them doing collision repairs? do they get full reimbursement? Im guessing they probably make more dealing with insurance companies as opposed to individuals who are negotiating a deal paying out of their own pocket?

[realazy]

I've heard the opposite actually, especially large insurance companies with a lot of claims. Some insurance companies have a set rate for labor that they would pay.

For example, when we brought in our vehicle for a hail damage quote, the insurance company would only pay $10/dent where as the going rate is around $40/dent. The same goes for any kind of labor, paint, bodywork, etc. The large insurance companies have more leveraging power due to the amount of claims they have. Often times they have "approved" or "recommended" bodyshops and when you bring it somewhere else more expensive, they will only pay up to a certain maximum amount set by the appraiser.

[maxwinedog]

Originally posted by realazy
I've heard the opposite actually, especially large insurance companies with a lot of claims. Some insurance companies have a set rate for labor that they would pay.

For example, when we brought in our vehicle for a hail damage quote, the insurance company would only pay $10/dent where as the going rate is around $40/dent. The same goes for any kind of labor, paint, bodywork, etc. The large insurance companies have more leveraging power due to the amount of claims they have. Often times they have "approved" or "recommended" bodyshops and when you bring it somewhere else more expensive, they will only pay up to a certain maximum amount set by the appraiser.

Oh so who takes the loss then on the remaining cost? The shops?

[AllGoNoShow]

Not so much loss as you find the shitty shops with impossible insurance companies taking care of the claim, they just cut corners and make the vehicle owner miserable in some cases. The better insurance companies pay out a little more and all body shops understand that insurance does not pay the same hourly rate a walk in customer would and they have allowed for that in their rates and business plan.

Normally they won't make as much off an insurance claim but the insurance company be refer more business their way and may end up fixing other damage while the vehicle is in the shop which would be billed out at normal pricing.

[2002civic]

Originally posted by maxwinedog


Oh so who takes the loss then on the remaining cost? The shops?

or the customer if he wants a certain shop to do the work, but won't budge on their price.