February 1999 Editor's Page
Snow... Snow... Snow...

Snow, snow and more snow. That was the situation across a good portion of the country in January as some of the worst storms in many years left their mark across the northern sections of the U.S. Now, in late January, it’s warmed up and the snow has started to melt, and most importantly collision repairers are seeing blossoming backlogs of work.

It’s been three years since the collision repair industry has seen any increases in first quarter volume due to winter weather. The past two winters have seen moderate declines in claims in the first quarter due to the lack of stormy weather. The sole saving grace during the past two year, for collision repairers anyway, has been their ability to get more dollars per job, partially offsetting the decline in claims frequency.

Once the first quarter numbers for claims frequency are in, we may have to revise our forecast for the size of the U.S. collision repair market upward for 1999.

The results from our annual Who Pays for What? Survey appear in this issue beginning on the cover page. Though last year’s survey saw little change in P-page reimbursement rates versus 1997’s survey, this year’s results show some interesting changes- notably State Farm’s apparent willingness to pay for more non-included P-page procedures as line items on estimates.

In the past most State Farm adjusters have maintained that the company didn’t pay for this or that item, it being a part of the shop’s overhead. Therefore, it was included in the shop’s labor rate calculation. State Farm is working to change this situation. This move brings State Farm more in line with industry recommendations, such as those promulgated by the Collision Industry Conference’s Write-It-Right committee, and other insurers who realize that many shops are being reimbursed for these procedures whether or not they appear as separate charges. The CIC Write-It-Right committee should be commended for their efforts to date, and the continuing effort to promote accurate estimating.

Also of note, our friends in the Canadian collision repair industry have taken the first steps to create a CIC of their own to provide a forum to address their specific concerns. The group, the Canadian Collision Industry Forum (CCIF) will hold their first meeting in Edmonton on March 27 in conjunction with the I-CAR Canada national meeting. For more information, see the news article on page 9 of this issue.