SCRS Quick Tip video discusses consumer authorization
In a new series of Society of Collision Repair Specialists (SCRS) Quick Tip videos, Sean Preston, managing attorney at Coverall Law, discusses legal issues likely important to collision repair shops.
The first in the series was uploaded to YouTube Thursday and features Barry Dorn of Dorn’s Body and Paint asking Preston about customer authorization versus insurance approval.
“I’ve got a signed repair contract with my customer,” Dorn says about a hypothetical scenario. “Knowing that, do I have to wait for the carrier’s authorization before I proceed with a repair?”
Preston answers, “Not necessarily.”
He added that the best practice is to play well with others. However, the insurer is not authorizing the repair, he said.
The consumer, or vehicle owner, is the one authorizing the repair, he said. He added that the vehicle determines what repairs need to be completed.
“Unless there’s some state law or regulations that apply there, I don’t see why we’re waiting if the customer says, ‘Go ahead and go.’”
Waiting can cause other issues for the consumer, Preston said. For example, rentals can run out, creating more cost and frustration for the consumer.
It is important to document every step of the repair process, he said.
Dorn asked if a shop can move forward with repairs if there are multiple supplements.
Communication with the customer is key, Preston said.
“We do want the customer to be reimbursed,” Preston said. “But the customer is in the driver’s seat.”
Shops should communicate that they plan to complete a safe and proper repair, he said. They should also explain how they are documenting the repair for the insurance company.
Preston said, ultimately, shops have to look at their own state’s laws and regulations.
A press release on the video also holds a disclaimer that the video is for informational purposes only. It is not intended to provide legal advice and should not be relied upon as such.
“Laws and regulations vary by state and individual circumstances,” the release states. “For legal advice regarding a specific situation, consult a qualified attorney licensed in your area.”
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YouTube screenshot of Barry Dorn and Sean Preston.