You’re an auto claims adjuster. You sit in your office (or let’s be real, a cube) day-in and day-out answering a slew of phone calls from people that aren’t prepared with their claim number, responding to emails from picky claimants that demand OEM parts on their ’07 Cadillac, and in general lamenting the moment another problem claim lands in your lap. And, as luck would have it, a messy claim with an irate customer smacks you across the face before settling on your desk in a flurry of pages.
You dive into the paperwork and with your trained adjuster-eye you can tell this vehicle may be a potential total loss and you need an independent appraisal inspection, stat. But the last thing you want to worry about is some IA firm mucking up an already-troublesome claim. You need to make a choice: Which appraisal company is going to turn Claim #DoubleTrouble into Claim #SmoothSailing?
- Think about your last appraisal assignment – did you have a single point of contact?
Most appraisal companies operate one of two ways – centralized or decentralized operations. Centralizing operations creates a single point of contact (POC) for you to get your questions answered even if you have claims around the country. This is opposed to decentralized operations, which may have you trying to track down an individual appraiser to get an update instead of ringing up your POC to help you out, which means you may be spinning your wheels on a ticking time bomb claim. A centralized point of contact who is available, ready to assist, and knows your company’s material damage (MD) or appraisal guidelines inside and out is in a much better position to help you. Plus, a centralized POC will be able to pool resources to get you what you need.
For example, auto claim adjuster Mary needed a simple fix adding the deductible to an estimate asap, but the appraiser who wrote the initial estimate was out on inspections all day and won’t return to his office until the evening. Mary’s point of contact heard her plea and was able to task her company’s MD department to get the corrected estimate back in Mary’s hands within the hour, instead of waiting until the evening.
- What are Methods of Inspections (MOI) anyways and how do they help me?
MOI is a fancy term that defines the variety of ways you can receive an estimate. You are already familiar with plenty of MOIs. An example would be a Direct Repair Program with repair facilities, so you likely send out requests for standard appraisals to IAs, and you may even be dipping your toes into desk estimating. Smart appraisal companies have an arsenal of MOIs ready to be used. You might only think that IA companies are a one trick pony with one MOI: the traditional “boots on the ground” standard appraisal that occurs with an in-person inspection by a qualified appraiser. And it’s true – the largest appraisal companies will have a nationwide network of appraisers ready to be deployed for inspections at any given moment. But the industry is changing and so are appraisal companies. The most forward-thinking companies will have their cake and eat it too, with their nationwide appraisers and also tech-based MOI solutions ready to be used at any given moment for claims that meet set criteria.
Tech-focused IA companies now have automated photo app MOIs that cut down on cost and cycle time. Long gone are the days you need to send Joe Schmoe 100+ miles into North Dakota to inspect a minor scratch on a door when you can have your customer take photos themselves via an app. These apps are polished and can be branded with your company’s logo making it look like a bona-fide extension of your claims department. And, to nobody’s surprise, a report by JD Powers shows the up-and-coming generations (cough, cough, Millennials) are happier to DIY the photos for their claim rather than meet up with an appraiser.
- Does the appraisal company know your MD guidelines?
This one seems like a no-brainer but is very important to making your appraisal experience as smooth as a Tesla test drive. An appraisal company that knows your material damage guidelines & appraisal requirements in addition to how they apply in different situations makes a world of a difference between a bad appraisal experience and a stellar one. Not only will they write your estimates up to snuff with what your company requires as far as labor rates, parts usage, and other items go (saving you $$ in the long run), they will also be more equipped to iron out sticky situations – especially when it comes to negotiating with repair facilities. Slowly nod your head “yes” if you have ever been caught between an appraiser and a shop trying to battle out a labor rate. Oftentimes appraisers and a repair facility end up in this unending loop of what may be approved or allowed on an estimate. But with rock-solid MD guidelines, this conversation can come to a swift end in your favor.
Innovative appraisal companies also wield an estimate compliance “scrub” that is tailor-made to your MD guidelines. The scrub is like an estimate spell-checker that catches errors or warnings on the estimate before it’s delivered to your inbox. Here’s a tip: ask your appraisal vendor if and how they provide a copy of your guidelines to the appraisers handling your claims. If they stumble or don’t give you an answer, they might not be looking out for your best interest.
- Have you given all pertinent information to the appraiser?
The last step to choosing a good IA company is more about what you provide to them instead of what they can do for you. Surprisingly, many inspection assignments are sent with little to no detail about what the appraiser should be assessing. No facts of loss, no area of damage, or something vague that says “area of damage: all over” is a recipe for an incomplete estimate. Appraisal firms aren’t asking for the complete statement from your insured or claimant, but brief outlines of what happened in the loss are paramount to a good appraisal. Cars on the road these days are rarely in pristine condition. They have prior damage from the time the shopping cart hit their car, or maybe an old collision impact that was never repaired. If the assignment clearly reads “damage to the right side caused when insured driver made unsafe lane change,” then the appraiser will know without a shadow of a doubt that the ding on the left side of this vehicle is clearly unrelated. Oftentimes appraisers consult with the insured or claimant at the time of the inspection about what happened, and if they have nothing to corroborate the tale of events, you may end up with items on the estimate that are not related to the loss.
Yes, appraisal companies know it’s not always the case that they can be spoiled with details about the loss. Sometimes your First Notice of Loss people don’t ask the right questions at the claims inception, or the information is simply not available. But when it is available you should be making every effort to provide the appraiser with as much relevant detail as possible. In the end, your claim will go much smoother when you present that estimate to your customer. Plus, sometimes the facts of loss are too funny not to share! A favorite of mine read: “Facts of Loss: Neighbor’s inflatable Christmas decoration came loose and rolled over top of insured’s vehicle.” Now that’s a scene worth imagining.
About Natalie Barrett
Natalie Barrett started in insurance in 2014 as a phone rep at ACD, a technology-based appraisal company, and was immediately drawn to the dynamics of auto claims. After learning the ropes on the front lines of customer service she worked as a business engagement analyst meeting with nationwide insurance carriers and self-insured companies around the country. She now keeps a steady pulse on insurance trends while ushering in the newest waves of professionals to auto claim and appraisal handling.
Natalie Barrett started in insurance in 2014 as a phone rep at ACD, a technology-based appraisal company, and was immediately drawn to the dynamics of auto claims. After learning the ropes on the front lines of customer service she worked as a business engagement analyst meeting with nationwide insurance carriers and self-insured companies around the country. She now keeps a steady pulse on insurance trends while ushering in the newest waves of professionals to auto claim and appraisal handling.
