The Art Of Negotiation: Body Shops And Insurance Adjusters

Negotiating with insurance adjusters is a common yet challenging task for body shop owners. It requires a careful balance of people skills and preparation to achieve a favourable outcome for both parties. While some owners dread the idea of negotiating, others have mastered the art and established a reputation for fairness and professionalism.

The key to successful negotiations lies in understanding the adjuster's perspective. Adjusters often carry heavy workloads and deal with emotional customers and angry shop owners. Their primary goal is to keep costs down for the insurance company, ensuring that everyone can obtain the necessary coverage without driving the insurance industry out of business. Recognising their challenges can help shift your mindset from confrontation to collaboration.

Preparation is also crucial. Knowing the exact cost of repairs and having a detailed estimate ready is essential. This includes documenting all necessary procedures, parts, and labour costs involved in the repair process. Being able to present a well-organised and accurate assessment of the required repairs will make your case stronger and more convincing to the adjuster.

Additionally, building positive relationships with adjusters is advantageous. Having a designated person at the shop who is friendly, upbeat, and calm during negotiations can make the adjuster's job easier. Returning phone calls promptly, welcoming them to the shop, and having the necessary paperwork ready are simple yet effective ways to build a positive rapport. Staying with the adjuster during the appraisal, giving them your full attention, and being open to their suggestions are also good practices.

Remember, negotiation is a two-way street. Considering the needs of your customers while acknowledging the insurance company's need to control costs can lead to less stressful and more productive negotiations. Flexibility and a willingness to compromise can go a long way in achieving a mutually beneficial outcome.

Body shops must negotiate with insurance adjusters, but it needn't be confrontational

Negotiating with insurance adjusters is a fact of life for owners of collision repair shops. While some shop owners dread the thought, others have perfected their methods and built a reputation for fairness and organisation, making this daily activity much more manageable.

Preparation skills

First and foremost, preparation is key. Shop owners should know exactly how much each job is costing them. This means keeping a close track of the cost of parts, materials and labour, and preparing a blueprint of a vehicle's damage by dismantling the affected area. Owners should also document every operation involved in the repair of the vehicle, paying special attention to the procedure pages for the different estimating systems. It's important to be aware of what procedures may not be included in the initial labour estimate and be prepared to show why these additional procedures are necessary.

When it comes to materials, itemising the cost of each material to be used is recommended. Many paint manufacturers offer software that will provide precise costs for various jobs. Finally, prepare a detailed estimate in a logical fashion, keeping related procedures and costs together. While time-consuming, this preparation will make your job easier when the adjuster arrives and allow you to order parts and track costs more efficiently.

People skills

Once you're face to face with the insurance adjuster, your people skills come into play. Building a reputation for being fair and reasonable is crucial. Demonstrating how your estimate was put together will make the adjuster more likely to accept your assessments. On the other hand, repeatedly asking for more than is fair and reasonable will lead to adjusters coming to your shop prepared to do battle, making your job more difficult.

It's helpful to keep track of your dealings with each adjuster and insurance company. Business management software can be used to compare results by adjuster, so you know in advance how much preparation is needed and what areas to concentrate on.

If you do your homework, research the job, write a detailed and fair estimate, and try to be reasonable, but you still can't agree on a fair repair cost, that's where your preparation comes in. Being prepared will enable you to demonstrate why the procedures and materials you've itemised are necessary. You can also ask the adjuster where their authority ends and what's out of their hands. If something is beyond the adjuster's control, ask who can make the decision on that area.

Negotiation skills

Negotiating with an adjuster may be more of an exercise in people skills than anything else. Most people prefer working with someone they get along with, so do what you can to make the negotiation process as pleasant and hassle-free as possible. If you view it as a daily battle, that's exactly what it'll be.

Remember, insurance adjusters are human too. They often have demanding workloads and thankless jobs, dealing with emotional customers and angry shop owners. Their bosses expect them to keep costs down so that everyone can get the coverage they need and the insurance industry can stay afloat. Building positive relationships and having efficient policies in place for dealing with claims adjusters are key to successful negotiations.

Pick the right person to manage claim negotiations and keep it consistent. Having a go-to person at the shop will make the adjuster's life easier. This person should be naturally friendly, upbeat and able to work calmly with people even when there is a disagreement. Build a positive relationship by returning phone calls promptly, welcoming adjusters to the shop, and having all the necessary paperwork ready. Stay with the adjuster during the appraisal and give them your full attention. Try to be flexible and open-minded, and do not belittle them for their cost-saving suggestions, even if they seem absurd. There is always a nice way to explain why an idea won't work. Remember, negotiations and compromises are a two-way street.

Shop policies

Having written policies or guidelines in place that outline how different processes are handled will give your shop consistency and make it more efficient. This can also lead to better negotiations and more efficiency, which adjusters will appreciate. Here are some things to consider when building your policy:

• Start with good estimating procedures that validate repair costs.
• Know under what circumstances a reinspection would be required.
• Know what supplements or items of proof will always be required by the insurance company so you can have these ready.
• Keep a reference sheet on what each adjuster or company needs and what their preferences are.
• Give early notice of additional damages.
• During reinspections, be prepared with documentation and test results.
• Ask the adjuster for their feedback—they might have good ideas, and even if not, it shows you are open to suggestions and makes them feel part of your team.
• Give credits back on parts and labour when warranted to build trust.
• Make detailed supplement packages for your adjuster.
• Have a consistent follow-up process in place.

Changing your mindset, being prepared and having a consistent procedure for handling negotiations can make your life easier. It can lead to better prices and better service for your customers, resulting in word-of-mouth referrals from happy clients and satisfied adjusters who know they can count on your shop for a fair deal.

Pick a skilled negotiator to manage claims, build a positive relationship with adjusters

Picking a skilled negotiator to manage claims and build a positive relationship with adjusters is crucial for achieving a favourable outcome in the claims process. Here are some insights to guide your selection:

Understanding the Role of a Claims Adjuster

Claims adjusters are hired by insurance companies to investigate and evaluate insurance claims. They assess the validity of a claim, determine the extent of damage and liability, and decide on the compensation amount. While they represent the interests of the insurance company, skilled adjusters also need to build rapport and positive relationships with claimants.

Traits of a Skilled Negotiator

When selecting a negotiator to manage claims, look for the following traits:

• Empathy: The ability to see things from the claimant's perspective is essential. Empathy helps build trust and rapport, allowing the negotiator to understand the claimant's needs, priorities, and concerns.
• Analytical Skills: Strong analytical skills enable negotiators to review documentation, examine evidence, and make informed decisions. They can assess the validity of a claim, determine compensation, and identify potential issues.
• Communication Skills: Effective communication is key. The negotiator should be able to ask the right questions, listen actively, and convey complex information clearly. Building rapport and explaining policies in a concise and understandable manner are vital for positive relationships.
• Time Management: Managing multiple claims simultaneously requires excellent time management skills. The negotiator should be able to prioritize tasks and meet deadlines, ensuring efficient claims processing.
• Negotiation Techniques: The negotiator must be able to resolve disputes fairly by understanding the needs of all parties. They should aim for solutions that satisfy everyone, minimizing costs and avoiding unnecessary legal expenses.
• Attention to Detail: A keen eye for detail is crucial for reviewing documentation and identifying potential inconsistencies, mistakes, or omissions that can impact the claim outcome.
• Stress Management: The claims process can be stressful, so the negotiator should have strategies to manage pressure and maintain a calm and professional demeanour.

Tips for Negotiating with Adjusters

When negotiating with insurance adjusters, keep the following in mind:

• Preparation: Know the true value of your claim before negotiations. Gather supporting evidence, such as records, documentation, and witness statements, to strengthen your position.
• Listen and Mirror: Active listening and mirroring techniques help build rapport and understand the adjuster's perspective.
• Ask Questions: Prepare a list of questions in advance to gather information and encourage the adjuster to speak. This can provide insights into their position and help identify unreasonable or untenable arguments.
• Seek Commitment to Facts: Ensure commitment to the facts that form the basis of your claim valuation. For example, if your claim includes substantial economic damages, seek acknowledgment and agreement on those damages.
• Know Your Bottom Line: Determine your minimum acceptable settlement amount and do not let yourself be talked into anything less.
• Beware of the First Offer: Insurance companies often start with low settlement offers. Do not feel pressured to accept; instead, ask for justification and be prepared to counter with a higher amount.
• Get Offers in Writing: Ensure any settlement offers are provided in writing to prevent potential denial or renegotiation later.
• Read the Fine Print: Pay close attention to the details in authorization forms and other documents. Insurance companies may include clauses that give them unlimited access to your medical records or allow them to dispute claims based on pre-existing conditions.
• Consider Legal Representation: If negotiations become challenging or complex, consider hiring a personal injury attorney. They can provide valuable expertise in negotiating with insurance companies and ensure your rights are protected.

Prepare: know repair costs, have paperwork ready, and stay with the adjuster

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Be flexible, open-minded, and polite, but also challenge where necessary

Being flexible, open-minded, and polite, but also knowing when to challenge is a delicate balance. It requires a willingness to adapt, consider other perspectives, and remain respectful, while also having the courage to question and speak up when necessary. Here are some thoughts on each of these qualities and how they can be applied:

Flexibility:

Flexibility is a vital skill in both personal and professional life. It refers to the ability to adjust to changes without creating stress or drama. Accepting that change is inevitable is an important first step towards becoming more flexible. This means embracing new experiences and being open to unexpected events with a sense of calmness and adaptability. For example, if your company suddenly asks you to switch to night shifts, flexibility will help you make this change smoothly without it affecting your performance. Flexibility can also be shown in your willingness to learn new skills, take on additional responsibilities, and adapt to unique work environments and colleagues.

Open-mindedness:

Open-mindedness is the ability to consider and contemplate differing views and opinions without getting emotionally charged or attached to your own beliefs. It requires intellectual humility and a willingness to admit you might be wrong. Open-minded people are receptive to new ideas, fresh perspectives, and changing information, showing a willingness to unlearn, relearn, and adjust their beliefs. This doesn't mean they change their opinions easily, but rather that they are open to altering their opinions based on new understandings and alternative possibilities. For example, visionaries like Oprah Winfrey and Elon Musk are known for their open-mindedness, as they are always eager to hear new and innovative ideas that challenge their thinking, and they are not afraid to admit when they are wrong.

Politeness:

Politeness is about being aware of and respecting the feelings of others. It involves using common sense and behaving appropriately, taking into account cultural differences. Greeting people appropriately, making small talk, remembering personal details about others, and using manners ("please" and "thank you") are all examples of being polite. Being polite also means respecting others' time, listening attentively without interrupting, avoiding gossip, and dressing appropriately for the situation. Politeness improves relationships, builds respect and rapport, boosts self-esteem, and enhances communication skills.

Knowing when to challenge:

While being flexible, open-minded, and polite are important, there are times when it is necessary to challenge. This involves respectfully questioning ideas, opinions, or situations that you disagree with or that you believe could be improved. Before challenging, take a moment to pause and thoughtfully consider your response. This allows you to respond in a calm and respectful manner, showing that you have listened and are seeking to understand. When challenging, ask clarifying questions, seek to learn, and remain open to alternative viewpoints. This balance between being receptive and knowing when to speak up is essential for personal growth and building genuine connections with others.

In conclusion, being flexible, open-minded, and polite, but also knowing when to challenge, is a delicate balance that requires self-awareness, adaptability, and a willingness to consider and respect the perspectives of others. These qualities can improve relationships, enhance communication, and lead to personal and professional growth.

Have consistent, efficient policies in place for dealing with adjusters

Having consistent, efficient policies in place for dealing with adjusters is key to ensuring fair and smooth negotiations. Here are some strategies to achieve this:

• Pick the right person for the job: Choose an individual who is naturally friendly, upbeat, and able to remain calm when dealing with people, even during disagreements. Consistency in the person handling claim negotiations is also important.
• Build positive relationships: Train your staff to be polite, professional, and responsive when dealing with adjusters. Promptly return their phone calls, welcome them to your shop, and have all the necessary paperwork ready. Accompany them during the appraisal, giving them your full attention.
• Stay informed: Ensure your staff is knowledgeable about insurance policies, claim procedures, and negotiation tactics. They should be able to reference relevant databases, provide accurate estimates, and be prepared to defend their assessments.
• Be flexible: Be open to alternative repair suggestions from adjusters, even if they seem absurd. Explain politely why an idea won't work instead of belittling them. Remember that negotiations are a two-way street.
• Maintain detailed records: Keep a reference sheet for each adjuster, noting their preferences, requirements, and past interactions. This will help your staff anticipate their needs and improve the efficiency of the negotiation process.
• Provide timely follow-up: Implement a consistent follow-up process to ensure prompt responses to adjusters' requests and inquiries. This will demonstrate your professionalism and respect for their time.
• Offer credits when warranted: Occasionally giving credits back on parts and labor can build trust with adjusters and foster a positive working relationship.
• Prepare detailed supplement packages: When requesting supplements, provide adjusters with a comprehensive package that includes copies of relevant estimates, repair orders, parts invoices, and other supporting documentation. This demonstrates your organization and helps streamline the negotiation process.
• Foster a positive work environment: Adjusters often have demanding jobs and heavy workloads. By creating a positive and supportive work environment for your staff, you can help them effectively manage stress and maintain a professional attitude when dealing with adjusters.

Frequently asked questions