The Insurance Company Owes the Collision Center Nothing

by Chad Kiffe, ABAT Board Member

Times are tough. Business has slowed down for most over the past 12 to 18 months.

The COVID hangover is gone, and we find ourselves being challenged for labor procedures that once were considered a norm. Industry experts are telling us this may go on for another 18 months or more. Instead of looking at this as a negative situation, our industry should look at this as an opportunity for positive change. It’s a perfect time to evaluate what we believe in and what we want our reputation to be known for, what is important and what is best for our customer. It’s time that our industry solidifies and focuses on what needs to be done versus what is allowed by the insurance company.

Today is a time to take back our industry and to stand up to the challenges that we face daily. We must remember who the customer is, and who is ultimately paying for the repairs. Insurance companies owe the collision center nothing. Once we understand this and start operating our businesses with this philosophy, positive change will slowly evolve. The practice of engaging with the customer to explain the repair is more apparent now than ever before. Insurance companies are circling the wagons and crunching the numbers while making unprecedented profits at the customer’s expense. Insurance companies are using AI to evaluate our data to normalize what should be reimbursed. Have you ever been told that your charges are not “usual or customary”? If you haven’t, then this article may not be of value to you – or maybe it will enlighten you to evaluate your business practices.

The vehicle itself is becoming increasingly complex while also driving up the cost of repairs. Never in our industry has the evidence and the support to repair a vehicle correctly been so clearly documented and at our fingertips. Factory OEM repair procedures are plentiful, and AI tools are making these procedures easier to find. Most insurance programs focus on cycle time and severity. One key component that is missing in their programs is a focus on safety. Safety is what every collision center’s focus should be. Consider the complexity of the vehicles we are repairing, and the level of technology built into these vehicles. Then consider what can happen if these vehicles are not repaired correctly and how that can affect our customers. Ask yourself: Did repairing the vehicle fast and cheap align with our customer’s best interest?

We must address these challenges with our customers while also standing by our customers when their reimbursements are being denied. We are the experts and the people trained to repair these vehicles. Why do we allow the insurance industry to tell us how to repair a vehicle while at the same time under-indemnifying their customer? Do they know better than we do? In the past, if you could provide documentation that proved an operation was necessary, then the customer would be reimbursed by their insurer. Today, it is about whether most collision centers charge for it. Divide and conquer can best be described as what has happened to our industry, at the expense of the customers’ safety. Ask yourself, is it easier to go along to get along, versus pushing back for what’s right? This may explain why we are where we are as an industry. Who is defending the consumer when monetary profits are being put in front of their safety and the quality of their repairs? Do you think the owner of a collision center who made safety concessions that ultimately cost them their business would do it again? It’s time we as an industry step up and take back our industry that we have put so much time and effort into.

So how do we take back our industry, you ask? One customer at a time. Our customers deserve it and they need strong shops to push back and defend their interests. We must know our business inside and out. We must train our staff to understand what they are asking for, and how to support it when challenged. While business has slowed, we must take the time to regroup and focus on training and making changes to the culture in our front offices. We must consult with our customers and explain the repairs. What does the OEM say is required or not required to do? What is the insurance reimbursing for, versus what the OEM is stating should be done?

We need to give our customer options and explain to them what is considered safety-related and what is cosmetic. We must never compromise on safety as an industry, no matter what the insurance approves. Ultimately, this may lead to charging the customer if the liable insurance refuses to reimburse them. Customers who value quality and safe repairs will understand. To help them understand, we need to consult with them. We need to explain to them what is being approved and what is being denied. We must be willing to get our customers and the insurance company on the phone or in-person to discuss what is being denied and why.

Transparency is vital to make positive changes in our industry. Consult with your customers and ask them to participate in a conference call with the insurance adjuster. This is a step in pushing back that most collision centers do not do. If this was easy, all collision centers would do it. Our customers need the collision center to be their advocate for safe and proper repairs. Collision centers must align themselves with the customers’ best interests versus the insurance companies. Once a collision center does this, then that is when positive change will begin for both that collision center and the collision industry. Once a collision center doesn’t allow an insurance company to motivate repairs and instead focuses on safe and proper repairs, our customers will benefit. This is how we make positive changes and take back our industry. Remember: The insurance company owes the customer, not the collision center.

The Auto Body Association of Texas originated from such principles written above. Burl Richards started this association because he was tired of hearing, “You are the only one!” If you are struggling with your business and need help, we would strongly recommend attending an ABAT event or joining an ABAT webinar. ABAT is a group of members that value safe and proper repairs. ABAT, along with its members, were instrumental in pushing for a law that required the Right to Appraisal to be put back into every home and auto insurance policy written in Texas that passed in 2025. One of the biggest benefits of joining ABAT is the networking that you will find with like-minded individuals focused on learning and practicing safe and quality repairs. You will realize really fast that you are NOT “the only one!” It’s time to focus on your shop and your responsibility to your customer. There is no better time than the present to push back for positive change. The insurance company owes us nothing! 

Want more? Check out the June 2026 issue of Texas Automotive!