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A comprehensive overview of state farm's auto repair processes, including competitive bidding, pricing, and the use of non-original equipment parts. It outlines key concepts such as pcps (prevailing competitive prices), select service program, paintless dent repair (pdr), and icar (inter industry conference on auto collision repair). The document also discusses the determination of repair costs, the use of estimating guides, and the importance of quality repairs.
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Competitive Bids - ✔✔The competitive bid process requires that two or more repairers submit competitive estimates or "bids" for a specific repair job. The amount of the low, complete bid is generally considered to be the "competitive" price and is used as the basis for settlement. In all cases, the vehicle owner selects the facility that will perform repairs. PCPs - ✔✔State Farm uses a continuous survey that gives repairers the opportunity to provide information online. The repairer information is used to determine labor rates and material pricing levels that reflect prevailing prices in that area. PCPs are determined by analyzing information provided by repairers that meet the Equipment/Capabilities Criteria listed on the Repair Facility Survey form Select Service Program - ✔✔In some market areas, repairers have been selected to participate in State Farm's Select Service Program. The program is designed to enhance claim service, increase efficiency, and afford
customers an opportunity to select qualified repairers to inspect and estimate vehicle damage Paintless Dent repair - ✔✔Paintless Dent Repair (PDR) is an industry recognized repair process that involves the removal of hail dents or other types of damage from metal exterior surface panels without disturbing the vehicle's finish. In most cases, this procedure involves the use of specialized tools to apply pressure to the backside of the panel to remove surface imperfections. Other techniques may be used to repair damage from the topside of the panel, depending on the size and location of the damage. By using either of these techniques, the technician is able to restore panel appearance which eliminates the need for refinishing the panel's surface area. The PDR process is often used to repair hail damage or other similar dents that occur when an outer panel strikes (or is struck by) an object that has not compromised the finish of the panel. Since the outer finish of the panel has not been disturbed, it eliminates the refinishing process and may allow for repairs to be completed in a more timely and cost effective manner. ICAR - ✔✔Inter Industry Conference on Auto Collision Repair.
Freight Charges - ✔✔Similarly, if freight charges are submitted to State Farm for payment, payment should normally be resisted. Freight charges are not considered as part of actual repair costs and are generally aligned with an expense a repairer or dealership may incur as a result of operating the repair facility business. If a circumstance arises that may warrant additional consideration, local management should contact their assigned Estimatics consultant. Minimum Cost - ✔✔Establishing minimum costs or authority levels can provide a realistic measure of repair costs for items such as the number of hours allowed for a complete refinish job, material costs, or similar items. Publication of survey information - ✔✔We will not knowingly violate that confidentiality by publicizing individual survey data to persons outside our organization Claims Summary - ✔✔State Farm will pay claims based upon reasonable, competitive prices for repairs necessary to
repair the vehicle in a quality manner. The policy contract and law of dam ages will assist us in determining whether certain operations are payable Non original equipment and recycled parts - ✔✔State Farm promises satisfaction to the vehicle owner when new non
original equipment and/or recycled parts are specified on an estimate that is written or approved by State Farm or a Select Service repair facility. The State Farm promise of satisfaction relative to non
Non-OEM Delay - ✔✔No unusual delay must occur as a result of considering non-original equipment and/or recycled parts for use in repairs If Non-OEM and Recycled parts are used in estimates - ✔✔The vehicle owner should be notified when the prices of non-original equipment and/or recycled parts are included in the estimate as outlined in CPG 2700 - 275 If The non-OEM part is included on the list of suspended parts and not requested by the vehicle owner - ✔✔The estimate should not include such part (Part Does not have to be certified) (page 22) If the Vehicle owner requests a non-OEM part that is currently under suspension - ✔✔the estimate may include such part pursuant to certification requirements if the part is within one of the four categories requiring certification and CAPA or NSF has developed a certification standard.(In the absence of a certified part being available, a non-certified part may be used if requested by the vehicle owner.)
If there are other non suspended non-OEM parts available - ✔✔the estimate may include such part pursuant to certification requirements if the part is within one of the four categories requiring certification and CAPA or NSF has developed a certification standard.(In the absence of a certified part being available, a non-certified part may be used if requested by the vehicle owner.)