Why shops, insurers often disagree on repair plans

By John Yoswick

The Collision Industry Conference (CIC) “Industry Relations Committee” held a panel discussion this summer centered around a fundamental question: Why is there so often a disconnect between auto body shops and insurance companies during the repair planning stage, particularly when it comes to procedures related to advanced driver assistance systems (ADAS)?

Michael Giarrizzo, CEO of DCR Systems, which operates eight collision repair shops under partnerships with dealers in four Eastern states, sees training as the key issue leading to the frequent lack of alignment on repair plans between shops and insurers. Giarrizzo said OEM-certified shops like his continue to get significant amounts of training as vehicle complexity continues to increase, but insurance claims personnel often aren’t getting that ongoing technical training. He equated it to a medical insurer questioning a surgeon.

“Someone handling a medical claim may not have that same level of education [as the doctor], but they have trust in that education,”  Giarrizzo said. “Whether you’re up to speed with it all or not, there’s got to be a trust level in whoever has gone out and invested in the education.”

Ron Reichen of Precision Body & Paint in Oregon agreed that keeping up with vehicle technology is “a challenge for us, and we’re constantly training.” He said collision repairers “trying to get …

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