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Letter to the Editor
Monday November 10
SCRS Publishes Updated Paint and Materials Capping Info
The Society of Collision Repair Specialists (SCRS) has completed an update to its paint and materials capping information. An extension of the association’s ground breaking 1996 study, the report provides a current overview of paint and materials capping policies on a state by state basis. Forty-seven of the 50 State Insurance Departments are included.The goal of the original capping study was to provide written documentation from insurance companies and State Insurance Departments in order to clarify whether or not collision repairers were obligated to accept paint and materials thresholds. The update is positioned firmly in this tradition.
“Policies change as the marketplace changes and keeping our members informed is critical because these practices affect their bottom line,” said SCRS Chairman Lou DiLisio. “Having access to current information allows a collision repair business to better negotiate in good faith.” This year’s Paint and Materials Capping Report is filled with a wealth of content. For starters, it provides a brief history of SCRS’s research to date, including the inquiry letters and workplace scenarios that were sent out to solicit feedback from State Insurance Departments. The significance of this work is recapped in an overview section.
The heart of the report is a matrix that contains key excerpts from each state’s response to SCRS inquiries. This helps clarify every Insurance Department’s position on paint and materials capping in easily digestible bites of information. For example, readers will find that “Auto physical damage policies written in Delaware do not contain a cap for the cost of paint or materials” and that “Wyoming does not have a statute of regulation that addresses this issue.”
The 13-page document finishes with a short analysis of its findings, and suggested strategies for collision repair businesses that perceive they are facing arbitrary capping practices.
“It is our hope that this report and the supporting documentation from each state will enable our members and their insurance partners to successfully negotiate what is fair and reasonable without conflict,” explains SCRS Executive Director Dan Risley.
The 2003 Paint and Material Capping Report will be sent to all current SCRS members. In addition, the response from their individual state Department of Insurance will be made available to them upon request.
“This report gives shop owners a clear idea of where their state governments stand in relation to paint and materials capping practices,” says Chad Sulkala, SCRS National Director. “In the event a shop owner and insurance company representative disagree, this information can help settle matters. It’s right from the desk of the Insurance Commissioner and a great tool for a collision repair business.”
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