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Posts Tagged ‘claims’

Addressing HD Wheel Masking & Painting at the Shop Level – Issues and Remedies

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When painting a truck, bus, or trailer, repairers shouldn’t forget to paint the wheels. If the vehicle needs paint, chances are the wheels do too. While wheel preparation for the painting process is similar to the preparations for the cab, body, and chassis, there is one unique, taxing issue in wheel preparation: wheel masking.

The Issue
Traditional wheel masking is very time consuming, as one has to manually tape around each tire, hub, and lug nut. In the past, there were no “wheel masking templates” on the market, so repairers would have to spend time trying to fabricate them. Usually this has been done by cutting cardboard, which is flat and never fits, or by using excessive amounts of tape and paper.

The Remedy
A wheel masking system of pre-formed, reusable plastic maskers that cuts time and labor, and provides a professional finish with minimal clean-up now exists. This solution is known as “Tire Mask”. These wheel masking templates are available in many popular fleet wheel sizes (17.5″, 19.5″, 22.5″, 24.5″) and contour to each tire, wheel + rim component. In addition, Tire Mask users can trim or use extra tape for a custom fit. Each masker is reusable up to 20 times, and “Hubb Capps” last forever. The use of Tire Masks can reduce masking and clean-up by approximately 90%. Freshly painted wheels can drastically improve fleet appearances, while increasing resale value and decreasing DOT fines associated with neglect.

Useful Tips for the Road Ahead
When painting wheels remember, “The better the prep, the better the finish”.
Remove rust and be sure your lugs are properly torqued before painting, as this helps to avoid fresh paint in between the mating surfaces.
Follow FMCSA (DOT) Statute § 393.205 regarding wheels
Follow OSHA guidelines for painting, and the 3.5 mil paint thickness as recommended by the TMC.
As always, safety first.

To ensure the wheel masking process goes smoothly, TM Products, LLC. created a demonstration video for users to view.
For more information on Tire Mask you may visit, www.tiremask.com

A Look at Commercial Collision Claim Trends

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To aid those weathering the uncertainties of how 2021 will impact the commercial collision industry, we at PPG are sharing some benchmarking insights and trends, compiled from our ADJUSTRITE ® Commercial Estimating system, from 2018 thru 2020— including both insurance and shop estimates from the United States and Canada. For all metrics, except severity, the information excludes known total losses.

Severity trends reflect an industry experiencing increased complexity or
year-over-year increases.
In contrast to the approximate 4.7% increase in claim severity from 2018 to 2019, excluding total losses, there was a 2.7% increase from 2019 to 2020. The average claim severity in 2020 was $8,620.
(For all estimates including total losses, there was a 10.4% increase in severity in 2020, compared to 2019, with an average claim severity of $10,288.)

Total parts’ dollars also showed year-over-year increases. For 2018 to 2019, the average total parts’ dollars increased 3.3%. There was a 2.9% increase for 2019 to 2020.

Average total parts ‘dollars per estimate in 2020 was approximately $4,120. Total labor dollars also saw increases year-over-year.

 

 

 

From 2018 to 2019, total labor dollars increased 6.3%, and there was a 3.7% increase in 2020, over 2019. Table 1 provides a 3-year view of sales mix percentages.


Table 1:
Sales Mix Percent for CY 2018 – CY 2020

 

 

With labor dollar increases outpacing others, it is critical to review the labor mix percentages over the past three years, which averaged 61.8% body, 3.5% frame, 10.7% mechanical, 0.2% miscellaneous and 23.8% paint.

The 3-year trend saw a move of less paint and body to more mechanical and miscellaneous labor percentages. Table 2 provides a view of each year.

Table 2: Labor Mix Percent for CY 2018 —CY 2020

94.0% of estimates with body labor. The 3-year average percentages of estimates for each labor type were as follows:

    • 7.9% with frame labor
    • 23.9% with mechanical labor
    • 1.2% with miscellaneous labor
    • 71.0% with paint labor.

From 2019 to 2020, there were increases in estimates with frame and mechanical labor, and a decline in estimates with paint, body, and miscellaneous labor. Table 3 provides a view of each year.

Table 3: Percent of Estimates with Each Labor Type for CY 2018—CY 2020
Table 4:
Average Labor Dollars for CY 2018—CY 2020
A review of the 3-year trend for average labor dollars shows that all labor types experienced a year over year increase except frame and mechanical labor dollars. Frame labor dollars were flat from 2018 to 2019, however were down 5.4% from in 2020. Mechanical labor dollars increased in 2019 over the previous year, however remained flat in 2020. Miscellaneous labor dollars saw a double- digit increase of 11.5% from 2019 to 2020. Table 4 provides a view of each year.


In the parts count category, the 3-year average for number of parts per estimate is 23, with OEM parts used 95.5% of the time. When comparing average parts dollars for 2020, the OEM average part cost was $247—recycled parts was $1,433, and aftermarket new was $335. The split between repair and replace labor dollars in 2019 and 2020 amounted to 42% for repair and 58% for replace. “Front” was the most often flagged primary impact area in 2020, followed by “Right Front” then “Left Front.”

The 3-year average for sublet dollars per estimate is $711, with the average down 1.5% in 2020. From 2018 to 2020, paint and material dollars showed year over year increases of 6.6% and 5.2% respectively. Average paint and material dollars per estimate in 2020 numbered $547. Average shop supplies per estimate in 2020 was $168, an increase of 6.2% over 2019.There was a larger increase in shop supplies in 2019, over 2018.

Since 2018, the total supplement amount per estimate has continued to rise, increasing by 8.2% in 2019 and 34.8% in 2020. The average total supplement cost was approximately $3,800 in 2020 The percent of estimates with supplements increased from 25.9% in2018 to almost 28% in 2019. Last year saw that percentage drop to 24.2%, with 71.9% of those estimates having only have one supplement. Supplement dollars represented 33 – 34% of severity in 2018 and 2019, while 2020 saw that number increase to 44%.

 

Thank you for allowing us to provide you with insights compiled from our AdjustRite Commercial Estimating system. All of us at PPG Industries wish you the best of success in 2021! If you have any questions regarding our commercial estimating system, feel free to contact Ryan Woolfenden, PPG marketing manager, commercial programs, at woolfenden@ppg.com.

About AdjustRite:
The AdjustRite ® Commercial Estimating system is an industry-leading platform in the medium-to-heavy-duty equipment repair and claims industry. The system is a Web-based, fully mobile application, driven by a comprehensive database of commercial vehicles and equipment including: tractors, trailers, trucks, boxes, motor coaches, RVs, and buses. To learn more about the AdjustRite Commercial Estimating System, visit www.adjustrite.com .

SCA Appraisal Sending Free PPE and Speeding Appraiser Pay in Advance of COVID-19 Spikes

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Burbank, CA – In anticipation of an accelerating spike in COVID-19 cases and in the interest of safety for its nearly 800 franchise and network appraisers, SCA appraisal has launched a second round of up to $25,000 of complimentary COVID-19 PPE directly to field appraisers as an effort to mitigate potential exposure to COVID-19 and mitigate any possible exposure to clients.  Additionally, SCA is accelerating pay to appraisers and increasing the frequency of payments to help assist with any financial challenges associated with potential shutdowns.

“As a society and as businesses, we learned a lot about the impact of CVID-19 spikes and related shutdowns throughout 2020.  SCA wants to ensure we are doing all we can to promote safety and assist with financial stability in the event the increased COVID-19 cases being reported nationally translate into further business disruption.”, says Timothy Davis, Jr., president of SCA Appraisal.  “Nothing is more important to us here at SCA than our people, our franchise network and our clients’ vehicle owners.  The PPE and accelerated compensation is our small way of cementing the commitment to the industry that SCA has proudly-served for over 40 years.”

“For our franchise and network partners, getting them paid is more important now than ever and SCA has committed resources to expediting these payments.”, states Monica Warner, CFO.  “We know times may have been tight for some in the industry and we are proud to be able to extend payments faster than ever.”

Additional information regarding this program can be obtained by visiting SCA’s dedicated website at:  http://sca.claims/ppe

For inquiries:
Phil Langley
plangley@sca-appraisal.com / 214-914-0187

SCA Appraisal Launches Dedicated Department of Insurance (“DOI”) Re-inspection Unit: Names Jose Hermida Unit Leader

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Burbank, CA – In response to the growing demand of insurance carrier clients for Department of Insurance “(DOI”) re-inspections and regulatory compliance, SCA Appraisal has launched a newly-formed DOI Customer Success Unit.  Most SCA clients know Jose Hermida as he has been servicing SCA clients for over 20 years and is a client favorite. Jose will be leading the new DOI- CSU program.

“The regulatory environment in some states is becoming ever more complex and compliance is critical for our clients.  The establishment of a dedicated unit ensures that compliance.” says Tim Davis, President of SCA Appraisal.  “Being able to meet the unique needs of our clients in specifically-regulated markets with the DOI program further illustrates our evolution from an independent appraisal company to an integrated appraisal company.”

Clients will have three program options within the DOI program.  Specific vehicles can be assigned for re-inspection.  A selection of vehicles can be made by SCA based on geography and claim count.  Or, clients can opt for a fully-managed program that uses rental car logs to identify re-inspection opportunities in order to meet compliance.  In all cases SCA provides the necessary re-inspections and supplemental reporting.

In business since 1979, with franchise and supplier resources in all 50 states, SCA is a leading provider of private passenger auto, specialty, heavy equipment and financial services appraisals.  For more information, or to request a demonstration, please contact ClientServices@sca-appraisal.com.

SCA Appraisal Launches Customized Client Care Program

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SCA Appraisal Launches Customized Client Care:  Appoints Monica Diaz Senior Director of Customer Success, Lucano Figueroa, Yesenia Barreto & Amye Chow Customer Success Managers

Burbank, CA – To meet the evolving needs of its customers across a variety of industries, SCA Appraisal has implemented a Customer Success division and has re-allocated and added resources to specifically support clients across various markets. 

Monica Diaz has been appointed Senior Director of Customer Success and will be accountable for end-to-end delivery to clients across three unique markets: insurance, third-party administrators, and financial services/government.

“Our industry has experienced a lot of change over the 41 years we have been in business.  However, perhaps the most profound change has been our clients’ requests for company-specific requirements that leverage their own unique brands and identities” states Tim Davis, Jr., President of SCA Appraisal. “The IA space has long had a reputation for a one-size fits all approach, that is not acceptable at SCA. We are investing in our clients’ success and when they are successful, we are successful.”

Lucano Figueroa, an 18-year veteran of SCA will lead the Financial Services/Government group.  Yesenia Barreto, brings her 13 years with SCA to lead the Third-Party Administrators group.  Amye Chow, with SCA since 2011 leads the Insurance group. 

“All aspects of a claim will be handled by a vertically-integrated team that is familiar with our clients’ business objectives and processes.” says Monica Diaz.  “We know we are an extension of our clients’ claims resources and we are aligned accordingly. Customers will see industry-leading service.”

In business since 1979, with franchise and supplier resources in all 50 states, SCA is a leading provider of private passenger auto, specialty, heavy equipment and financial services appraisals.  For more information, or to request a demonstration, please contact ClientServices@sca-appraisal.com

SCA Distributes Over $30,000 Worth of PPE Appraiser Safety Kits Free to Industry

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Burbank, CA – In a period of 10 days, SCA Appraisal has delivered 550 Appraiser Safety Kits at no cost to members of the industry including independent appraisal suppliers, SCA franchise owners and even competitors.  “The COVID-19 pandemic has impacted our entire industry and we wanted to do something to give back to those folks who make it happen every day,” says Tim Davis, Jr., president of SCA Appraisal. “We put out notice via social media about the kits and within 5 days we had requests for over 500. https://www.facebook.com/scaappraisal/videos/542225729776383/?d=n

“I am proud of how our team mobilized to get them out within days and the testimonials have flooded my inbox.”  

Each kit contains PPE including gloves, masks, and sanitizer spray with a value of over $65. “I contract with several Appraisal Companies and no one stepped up to bat to help keep us safe the way SCA did!  Not only did I receive increased compensation & bonuses for putting myself into harm’s way, but they also sent me the supplies I needed and could not get anywhere locally,” wrote Leo Slosser of West Coast Appraisers. “Thank you SCA for the awesome masks, gloves, wipes & sanitizer you sent me!  I was getting worried I would not be able to find anymore and BOOM! Delivered.”

Another appraiser, Jimmy Wessel of Tulsa, OK sent a note after receiving the PPE. “During COVID SCA provided quick and proper guidance to protect the employee, shops, & owners we deal with on a daily basis. Trying to locate items locally was a nightmare. In an unprecedented time SCA was able to communicate to us not only the procedures, but provide the masks, gloves, & sanitizer we very much needed.”

As a leading independent appraisal company, SCA is committed to the well-being of its franchise and supplier network, which includes the safety of appraisers, vehicle owners and shop personnel.  “As a franchise owner for over 10 years, SCA has always provided exceptional support.  SCA once again showed their appreciation by not only providing “COVID Relief Compensation”, but also by sending personal safety kits.  They really do care and that’s why I’ll always be loyal to SCA. “, says Elizabeth Muradyan, SCA franchisee.

For inquiries: Clientservices@sca-appraisal.com

Property Damage Appraisers Launches Specialty/Heavy Equipment Same-Day Service

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Property Damage Appraisers, Inc. (PDA), the nation’s leading independent damage estimating firm, provides clients with the fastest damage estimate turnaround times in the industry. In 2018, PDA began guaranteeing Same-Day and Next-Day Service for standard auto claims. Now, the firm is proud to announce that it will be expanding the Same-Day Service offering with Specialty/Heavy Equipment Same-Day Service.

“PDA’s expedited Same-Day Service guarantee has helped our clients deliver outstanding automotive damage estimating services to their customers,” said CEO Tom Dolfay. “With the launch of Specialty/Heavy Equipment Same-Day Service, we are helping our client’s customers minimize business interruption and downtime costs, and get back to business without needing to rent heavy or specialty equipment or store damaged pieces.”

With Specialty/Heavy Equipment Same-Day Service, client’s customers can receive same-day service on everything from tractor trailers, emergency vehicles, busses, construction equipment, farming equipment, yachts, aircraft and every other type of specialty equipment.

PDA’s Same-Day Service is the result of a multi-year effort to improve efficiencies and reduce the time it takes to deliver damage estimates across the company’s national team of more than 650 local appraisers. PDA is the leader in providing fast, accurate estimates for all kinds of equipment and property damage, completing nearly 420,000 damage estimates a year.

“Our clients and their customers expect fast service and we’ve been aggressive in adopting and implementing new technologies to help our clients meet those expectations,” said Dolfay. “Every minute of downtime can cost a company thousands of dollars, especially for expensive heavy and specialty equipment. PDA’s Specialty/Heavy Equipment Same-Day Service minimizes time and productivity loss by delivering fast, efficient and accurate damage estimates on all types of mission-critical equipment.”

When a Specialty/Heavy Equipment Same-Day Service assignment is received PDA’s proprietary National Optimizer technology utilizes data analytics to dispatch the closest qualified appraiser to the damaged equipment. This technology coupled with PDA’s National Optimizer Team ensures PDA is on-site within 24 hours. Since launching last year, the National Optimizer has expanded PDA’s ability to build on industry-leading cycle times and estimating services on a national scale, and now offer Specialty/Heavy Equipment Same-Day Service.

ABOUT PROPERTY DAMAGE APPRAISERS, INC.
Property Damage Appraisers, Inc. (PDA), the nationwide leading independent damage appraisal firm, is revolutionizing the industry by providing consistent quality products at speeds never experienced before across the United States, including guaranteed Same-Day Service, using a combination of technology and human expertise. PDA completes over 420,000 estimates a year for heavy equipment, over-the-road truck, specialty equipment, auto, RV, boat, motorcycle and property damage through our national team of more than 650 local appraisers in more than 250 offices. Established in 1963, PDA’s corporate headquarters is in Fort Worth, Texas.