Things to know

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PROFESSIONAL - AUTO, TRUCK AND HEAVY EQUIPMENT APPRAISERS

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THINGS YOU SHOULD KNOW

To All CEO’s and Regional Auto Management;
Cutting costs has been an important objective of American companies for centuries. For insurance companies this impetus to reduce costs often leads to lowering the fee paid to independent appraisers under the false premise that less money paid out to these independents will lead directly to a corresponding reduction in the insurance company’s cost. The truth is just the opposite: often an insurance company’s Average Pay-out per claim (“severity”) rises as fees to independent appraisers go down. As a result, the insurance company’s total cost per claim actually increases. The little saved by paying less to an appraisal company is more than wiped out by the extra hundreds, even thousands, of dollars paid out to settle the claim.. Yet, insures will often ignore their escalating settlement costs.
Our mission at the United Adjusters Group LLC is to lower our client’s (insurance companies) settlement expenses. In order to explain how we are able to accomplish our objective, it would be useful to understand first the independent appraisal industry.
The reason’s independent appraisal companies that charge less for their services cause an increase pay-out per claim are varied, but most stem from the fact that the independent appraisal companies hire field appraisers on a sub-contractor basis who are paid anywhere from $25.00-$40.00 per claim for the inspection part of the claim handling process. Yet out of this money field appraisers must pay his/her costs-gasoline, auto maintenance, insurance, tolls, and telephone. When these expenses and others are subtracted from what he/she is paid per claim, there is not much left over as “profit” to pay for personal expenses as well as the cost of living. Because on average field appraisers spend one to two hours per claim: from viewing the car, phone calls, negotiating a settlement, and writing up the estimate, he/she can only see a limited number of cars per week- not enough to make a livable wage, given the little that is profited per claim.
As a result, field appraisers find methods to view more cars. One way is to over-estimate the cost of repairs, which cuts down the time needed to
negotiate. A second method is to quickly inspect as many cars as possible, leaving out obvious damage. This superficial inspection not only takes less time to complete but also leads to more supplements, many of which can be handled either over the phone or by faxed invoice for confirmation. If the field appraiser has a good rapport with the repair shop, invoices collected may not be properly investigated which would protect the insurers from possible fraud. The “benefits” may be shared by both the appraiser and the repairer.
A third way field appraisers increase their income has been reported in the news many times over the years-they sometimes will accept cash from the repair shops in exchange for over-written estimates.
All of these methods of enhancing the field appraiser’s revenue cost insurance companies an enormous amount of money per year, yet insurance companies concentrate primarily on the small savings from reduced appraisal fees. But it is these fees that pay to protect the insurer from poor appraising methods.
The above examples cost the insurance companies billions; however many company representatives continue to look at other facets to cut costs. There are reasons for this as well. Many insurance claims managers become friendly with appraisal company owner and play the exchange game as well. Everyone seems to overlook the obvious because the game is to keep, the claims moving and customers satisfied. More realistic managers look at the larger picture and have a real loyalty to the company and their position. These numbers clearly show which independent Appraisal Company provides the best service and fraud protection.
We at the United Adjusters Group LLC are well aware of the games that are played and the techniques used to play them that are not in the best interest of insurance companies. We are completely focused on our mission to provide the best interest of insurance companies. We are completely focused on our mission to provide the best possible service, which include keeping your settlement expense per claim as low as possible. Our complete understanding of the industry allows us to provide high levels of cost control and fraud protection. Through extensive use of the latest in paperless documentation, data systems, high resolution photography, and up-to-date estimation software, we are able to provide clear, concise, and accurate appraisals which are processed via the latest version of CCC Pathways and submitted in Adobe PDF format. We are also capable of integrating appraisals into alternative systems such a Process Claims, E-Claims, Auto source. Our process is as automated as possible to provide rapid completion
of claims while maintaining accuracy and overall quality and control. This streamlined system facilitates our ability to reduce your claim pay-out and estimating fee by allowing us to monitor the field appraises’ actions.
The technology we employ is second to none in the industry in providing low-cost and efficient estimates that avoid excessive pay-outs. At the same time we have superior conflict resolution skills and are respectful of our customers’ needs and concerns. The United Adjusters’ staff takes pride in our customer service program.
The United Adjusters Group LLC is fully insured, bonded, and certified according to state requirements. Our service area includes the entire state of Connecticut, New York- from eastern Long Island to the Catskill Mountains, and the entire state of New Jersey. Please refer to the coverage maps enclosed for our complete service area.
Our flat rate service fee schedule is also included. No hidden charges such as for tolls travel or phone usage will ever apply.
We will gladly furnish other documents and information upon request.
Please contact us to discuss how we may meet any additional requirements you may have.
Thank you for you interest, and we look forward to hearing from you soon.