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Who is responsible for payment When: You get authorization from an insurance company. You do the job, invoice and they send the check to the policy holder. The insurance co. seems to think that since they wrote a check the matter is solved. When I call and ask for payment they are clueless. I would think they are responsible for payment, but what do i know.
that is just another of the leverage techniques those insurance companies use.
when we didn't sign state farms contract this time, that was the first thing they did pay the customer direct. i have seen some dr. offices that want paid up front, and we've started doing that as well. i have a feeling so much work is steered away from us, i'm not sure how it works, but we haven't lost a job that came in the shop yet, on account of our wanting paid when the work is done.
You have to make sure you get a fax'd confirmation from the network with a dispatch or reference or claim number with your shop listed as the authorized party to do the job. If you get approval from an agent's office don't do the job until the insurance co. pays your insured and they can pay you. When State Farm told us they are paying the insured direct I either got a credit card from the policy holder or they waited til they were sent the check and then paid us at time of work. Unfortunately you can't just send the big insurance com panies b ills, they just forward them to a TPA, and screw you. Or else try NEON.
Q: Is there a network contract where the insurer/network promises IN the contract to PAY the shop anything? No assumptions, (like I did) just the actual wording that the insurer/network promises to pay the shop for work done.
If there isn't, (and I can't find it) is it possible that we have all been fooled into thinking that it was there, just to fool us into thinking hte insurance company is our customer?
I mean, hey, EVERY other business, with the exception of body shops, does business in a totally different way than we do.....it's called Cash, Credit with Prior Approval.
So, if this is the case, and it sounds like it is, then send the customer to collections, but I would first give them every opportunity to pay you what the insurer paid them.
We do this. We extend the courtesy of thirty day credit to customers once insuance coverage is confirmed, to give the insurer the opportunity to process the claim. Interest starts compiling after thirty days, with all allowable service fees by law.
Timely payment laws exist in most states it seems. When consumers see insurers screwing around with payments, well, they aren't happy. But to date, it's never been our company the customer is unhappy with, it's the insurer.
How about it this way: Hal, are you contracting repairs on the customer's vehicle, or are you indemnifying the customer against loss? Is there a promise to PAY the SHOP any money whatsoever in your Safelite administered contract? If so, is there a PROMISE in the shop's copy that Safelite will PAY the shop on your behalf?
If not, why not?
There's more, but I don't want to write a book......
We are behind times,body shops have car and most of mine wait to release paid in full.Even if they have supplement they hold until payment recd.We do mobile or inshop,beleive we are being paid,customer gets check we can only go to small claims court.In N.C. if you do job and customer says my ins. co. will pay,then you try to confirm,they leave your shop the law will tell you small claims court.We had that with a customer who had cc,we dont take them he got ****** and left,we called leo,tough luck.I should have keep keys.