The Game Has Changed

by Ken Miller, AASP/NJ President

There was a time when the “game” of insurance claims followed a familiar script: a vehicle was damaged, a shop prepared an estimate, and a negotiation took place behind the scenes between the repairer and the insurer.

It was not always perfect, but there was at least an understanding that both sides would engage, discuss the scope of repair and work toward a resolution that – usually – resulted in a reasonably complete repair for the customer.

That game has changed.

Today, many repairers find themselves negotiating in an environment where negotiation, in the traditional sense, no longer exists. The process has been replaced with predetermined positions, templated responses and “take it or leave it” offers that bear little resemblance to the actual requirements of a complete, safe and proper repair. In many cases, the idea that two parties will collaborate to arrive at a fair repair plan has been replaced with a system designed to control cost first and justify it later.

What makes this shift more consequential is not just the change in insurer behavior but the fact that these conversations can no longer happen in the shadows. For years, shops often attempted to shield their customers from the friction of the claims process, working behind the scenes to negotiate supplements, justify procedures and secure payment. That model is no longer sustainable. When insurers disengage from good faith negotiation, the burden does not disappear. It simply shifts, and too often, it shifts directly onto the consumer.

Customers are being presented with incomplete repairs, the use of alternative parts that may not meet manufacturer standards, or out of pocket expenses they never anticipated. At the same time, many are unaware that critical operations tied to safety systems, calibrations or structural integrity may have been omitted or challenged. The vehicle may look repaired, but the question that too often goes unasked is whether it has truly been restored to its pre-loss condition.

This is where the role of the repairer must evolve.

Shops can no longer operate as silent intermediaries attempting to reconcile two opposing positions behind closed doors. Transparency is no longer optional. If an insurer refuses to pay for a required procedure, the customer must understand what that procedure is, why it matters and what the consequences are if it is not performed. If there is a gap between what is required to repair the vehicle properly and what the insurer is willing to pay, that gap must be clearly communicated, documented and addressed with the vehicle owner involved in the decision-making process.

This shift is uncomfortable for many. It changes long standing habits and forces difficult conversations. But avoiding those conversations does not protect the customer. In fact, it often does the opposite. When a repair is completed based on what was paid rather than what was required, the risk does not stay with the insurer. It follows the vehicle, and ultimately, it follows the repairer.

The business model itself must also adapt. Shops that continue to rely on insurer-driven workflows, informal negotiations and undocumented concessions will find it increasingly difficult to operate profitably while maintaining repair quality. The modern repair environment demands a disciplined approach that starts with a complete and accurate repair plan, grounded in manufacturer procedures and supported by thorough documentation. It requires consistent customer communication, clear authorizations and a willingness to stand behind the work being performed, even when it is challenged.

This is not about creating conflict. It is about redefining roles. The insurer is responsible for its obligations under the policy. The repairer is responsible for the quality and safety of the repair. The customer has the right to understand both.

Those who recognize this shift and adjust accordingly will be positioned to lead. They will build trust with their customers, differentiate themselves in a crowded market and reinforce the value of proper repairs in an era where that value is too often questioned. Those who do not may find themselves caught between shrinking margins, increasing liability and a customer base that is beginning to ask harder questions.

The rules of the game have changed. The question now is whether the industry is willing to change with them.

Want more? Check out the April 2026 issue of New Jersey Automotive!