One of your fleet vehicles was involved
in a collision. Thankfully, everyone
walked away from the scene, but you’ve got a wrecked auto on your hands. Do
you have a process in place so your employee knows exactly whom to contact and what
information to record? Do you have a point
person who understands how to work with
the insurance company? Do you have a relationship with a repair shop that can get the
vehicle back out on the road quickly?
Refining your collision repair process — and
evaluating your service providers — will help
you to quickly get your vehicles out of the pit
stop and moving full speed ahead.
“Knowledge is power,” says Brett Essex,
supervisor of the auto physical damage
department at Westfield Insurance. “Make
sure to read and understand your insurance
policy and know that ultimately you have the
choice in where your vehicle is repaired.”
Smart Business discussed with Essex why
you should set up a repair service process,
how to evaluate shops and how to reduce
your collision expenses.
What’s the average claims expense for a
mid-size fleet?
Statistics show that about 68 percent of
every claim dollar paid by insurers goes
toward auto claims. This means expenses
associated with vehicle accidents play a significant role in business and insurance companies’ budgets. For example, the average
collision repair is around $2,000. For a mid-size fleet of 100 units and about 20 claims per
year, your repair costs would total $40,000.
But collision claims involve much more
than just damaged vehicles. The complete
process includes injuries, property damage,
loss of use, employee downtime and many
other associated costs. So based on the same
mid-size fleet, the total expense could easily
soar to more than $100,000 for just 20 losses.
How can organizations streamline their
repair process?
I believe the greatest asset for every company is to have a single contact person to
coordinate all of the claims and the repairs.
Having a point person makes it easier for
your drivers to know exactly whom to call
and inform of the situation. It also ensures
that the correct insurance contacts and service providers receive notice of the situation.
A designated person facilitates clear communication between the driver, the insurance
carrier and the collision repair shop. Also,
this individual can keep helpful records of
prior service and routine safety checks.
What qualities should companies look for in
a repair shop?
You need to always verify that a facility has
certified technicians to fix your vehicles.
Also, the more you know about how shops
operate, the better you can choose the one
that best fits your needs. If you own a large
fleet or service-type vehicles, turnaround
time is imperative to your bottom line. You
should select a repair facility that can handle
a large volume of work and still ensure quality. Additionally, you should look for shops
that do all of the work in-house. They should
have the proper frame equipment, paint
booth, welding, alignment and mechanical
facilities. Having these capabilities onsite can
reduce the repair cycle time by 25 percent.
How should businesses decide on an auto
facility?
I think we need to look at choosing a collision repair shop differently than we ever
have before. I suggest getting feedback from
your agent and your insurance company who
can suggest shops that provide quality repair
while charging a fair market value. This can
curb poor workmanship, out-of-pocket
expenses and costly time delays.
For companies with fleet vehicles, there’s
too much expense at stake — in both time
and money — to take such a casual
approach. After selecting a few shops that fit
your geographical needs, interview them.
Ask to meet with the management and discuss items like productivity cycle times, warranties and quality assurance. Also, find out
how they measure customer satisfaction,
and speak with satisfied customers. Essential
traits to look for in a shop include efficiency,
quality and competitive pricing. Additionally,
you should take note of their involvement in
the community and their respective industry.
Insurance carriers may already have business relationships with direct repair facilities,
which can help facilitate the claims process.
If these shops meet your needs, you can easily form an effective working relationship
between these facilities, your business and
your insurance carrier.
How can companies dramatically decrease
their repair costs?
Forming an agreement with your preferred
repair shop to use alternative parts can
decrease your costs without compromising
safety. Also, a good preventive maintenance
program can significantly reduce your out-of-pocket expenses by as much as 50 percent.
Regular preventive maintenance also means
your drivers operate safer vehicles. Many
times worn items like tires, brakes and steering parts lead to collision accidents. So maintaining a safe vehicle not only reduces claims
and claims cost but also enhances your bottom line through improved productivity.
BRETT ESSEX is the supervisor for the auto physical damage department at Westfield Insurance. Reach him at (877) 865-1457 or
[email protected]. In business for more than 160 years, Westfield Insurance provides commercial and personal insurance
services to customers in 18 states. Represented by leading independent insurance agencies, the product we offer is peace of mind and
our promise of protection is supported by a commitment to service excellence. For more information, visit www.westfieldinsurance.com.
