More shops billing for destructive weld tests, with fewer paid; latest ‘Who Pays’ survey open
For the second consecutive year, there has been an increase in the percentage of shops saying insurers “never pay” for destructive weld testing, while the percentage of shops that said they are regularly paid for the procedure has declined, according to data from the most recent “Who Pays for What?” survey.
The survey found only 1 in 4 shops that list destructive weld testing on their estimates are actually paid for it on a regular basis, down from 37% two years ago, according to a press release from CRASH Network and Collision Advice, the facilitators of the survey.
It adds that shops responding insurers “never” pay for it has risen from 32% two years ago to 44% this year.
“The lack of reimbursement for it causes me great concern,” said Mike Anderson of Collision Advice, in the release. “It’s a process that needs to be performed for every type of weld being made on the vehicle.”
Comparatively, 10 years ago, more than 80% of shops said they never listed destructive weld testing on their estimates, which Collision Advice and CRASH Network surmise is an indication that few shops were actually doing it.
However, on the most recent survey, that figure dropped to a record low of 31%, “suggesting that more shops are aware of the need to perform these tests, though they continue to struggle with getting paid for the time it takes to do them,” the release states.
“We need to wake up on this one,” Anderson added. “This is a non-negotiable procedure. Every OEM states that we need to do this, and for good reason. It is nearly impossible to tell if the welder settings are correct without first performing destructive test welds.”
He also called for other segments in the industry to help increase the percentage of shops performing weld testing.
“I would challenge the automakers to start selling the weld test coupons with welded-on replacement panels, and I would challenge I-CAR to build more training and videos on this,” Anderson said.
The latest quarterly “Who Pays for What?” survey is now open through the end of the month. Its focus is on “not-included” body labor operations.
Survey participants receive a free report with complete survey findings along with analysis and resources aimed at helping shops better understand and use the information presented.
The survey can be completed in about 15 minutes by anyone familiar with their shop’s billing practices and the payment practices of at least some of the largest national insurers, according to the release. It notes that each shop’s individual responses are held in the strictest confidence; only aggregated data is released.
The results of previous surveys are also available online.
When a repair plan calls for blending the paint into an adjacent panel, but that previously painted panel has surface texture problems, such as “orange peel” or other imperfections, that must be corrected before blending the color or extending the clearcoat, an April CRASH Network press release states.
The time needed to correct these issues may include additional sanding, leveling, or surface refinement beyond the light scuffing typically required for a new, undamaged panel. And in all three estimating systems, that additional labor is not included in standard refinish, blend, or clearcoat operations and must be determined based on the condition of the existing finish that needs to be corrected, according to the release.
Just over 2 in 5 shops itemize the operations on their estimate, and about half of those said they are reimbursed “always” or “most of the time” by the eight largest national insurers.
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