How Insurance Adjusters Determine Collision Repair Estimates
When insurance adjusters assess vehicle damage for collision repair estimates, their primary focus is on controlling costs rather than ensuring restoration quality. According to Royal Collision, an independent auto body shop, adjusters evaluate claims based on four main criteria: alignment of documented damage with the accident report, consistency of labor hours with industry standards, feasibility of using aftermarket parts instead of original equipment manufacturer (OEM) components, and the possibility of repairing rather than replacing damaged panels.
This evaluation process often begins with a visual inspection or a desk estimate, which may overlook hidden structural damage, internal issues triggered by airbag deployment, or fault codes logged in the vehicle’s computer post-impact. On newer vehicles, these overlooked aspects can account for the bulk of repair costs. A 2018 study by the Insurance Institute for Highway Safety highlighted safety concerns when insurers opt for non-OEM parts, as some aftermarket crash parts fail to meet the crashworthiness standards of OEM components.
When a shop's repair assessment exceeds the adjuster’s initial estimate, the discrepancy is managed through a supplement—an amended claim supported by detailed findings from disassembly, diagnostic scans, photos, and manufacturer repair guidelines. California regulations mandate that insurers must address correctly submitted supplements. Furthermore, California law under Insurance Code Section 758.5 grants vehicle owners the freedom to choose their repair facility, preventing insurers from penalizing claimants who select an independent shop over a preferred provider list.
Ryan Oeftering, owner of Royal Collision, emphasizes that "the first estimate is a starting point, not the final answer." Royal Collision meticulously documents any additional damage missed in initial estimates using photos, OEM procedures, and scan data, relieving customers from managing insurer communications. Without Direct Repair Program agreements, Royal Collision bases its repair decisions independently of insurer cost constraints, with about 95% of their customers only paying the deductible, even for repairs requiring OEM parts and specific manufacturer procedures.
Industry professionals and consumer advocates recommend confirming the use of specific parts, determining who will handle insurer communications, and ensuring the shop provides a written warranty before authorizing repairs. Although insurers do not provide warranties on repairs, Royal Collision guarantees its work with a Limited Lifetime Warranty. Vehicle owners dissatisfied with an initial estimate are not obligated to accept it or use a shop from an insurer’s preferred list, as California allows drivers the legal right to choose any licensed repair facility.
For independent evaluation and claim process management, Riverside residents can contact Royal Collision for assistance. Since 2015, they have specialized in newer-model vehicle repairs and insurance claims without adhering to insurer cost control agreements, using OEM parts and ensuring adherence to manufacturer repair procedures. This independence ensures that Royal Collision maintains high repair standards, prioritizing vehicle safety and quality over mere cost considerations.