Collision Repair Glossary

Adjusters can be staff adjusters (employed by the carrier) or independent adjusters (hired by the carrier on a per-claim basis). Building relationships with adjusters speeds up supplement approvals and reduces re-inspection requirements. Key to success: submitting clean, well-documented supplements with thorough photos so the adjuster can approve without a physical visit.

Authorizations can be for the initial estimate or for supplements. They have expiration dates - typically 30-90 days. An expired authorization means re-submitting and waiting for approval again. Tracking authorization status and expiration dates is essential for maintaining repair flow. A common shop pain point: the authorization expired, but nobody noticed, and now the repair is delayed.

Common betterment scenarios: new tires replacing worn ones, new battery replacing an old one, or new paint on a panel that was previously faded. Carriers may deduct a percentage based on the age/wear of the original part. Betterment is controversial - customers often don't expect to pay out-of-pocket above their deductible. Shops should explain betterment charges clearly and document the pre-existing condition with photos.

Blending is essential for achieving an invisible repair. Without blending, the repaired panel may look slightly different from adjacent panels due to color drift, metallic orientation, or clear coat differences. Insurance carriers authorize blend time on adjacent panels. It's a common supplement item that shops miss - always check if adjacent panels need blend when writing repair estimates.

CSI scores directly affect DRP standing. Low scores can get a shop removed from a carrier's preferred list. Scores are typically based on post-repair surveys covering: communication quality, repair timeliness, vehicle cleanliness at delivery, and overall satisfaction. Proactive customer updates and portal access are the most effective ways to improve CSI scores without changing repair quality.

Cycle time is the industry's most-watched KPI. Insurance carriers use it for DRP scoring. Customers judge shops by it. Shorter cycle times mean higher throughput and more revenue per bay. National averages vary by region, carrier mix, and severity. High-performing shops target a cycle noticeably shorter than their own baseline. The biggest cycle time killers are parts delays, supplement approval wait times, and communication gaps.

DRP agreements provide steady claim volume in exchange for the shop meeting the carrier's standards on cycle time, CSI scores, and repair quality. DRP shops often receive direct assignments, streamlined supplement approvals, and preferred status. The trade-off is lower labor rates and strict performance requirements. Managing multiple DRP relationships requires careful KPI tracking.

FNOL triggers the entire claims process. It typically includes the policyholder's account of the incident, the date, location, and police report number. For collision shops, the FNOL number is your reference for all communication with the carrier. Getting the FNOL early lets you start tracking the claim before the vehicle even arrives.

Keys-to-keys is the customer's experience of cycle time. It includes all wait times: parts delays, supplement approvals, scheduling gaps, and even the time between 'vehicle ready' notification and actual pickup. Unlike shop cycle time (which may start at repair begin), keys-to-keys captures the full customer experience. Top shops minimize keys-to-keys by scheduling drop-offs strategically and notifying customers immediately when the vehicle is ready.

LKQ parts are sourced from salvage yards and used parts networks. Insurance carriers prefer them because they're cheaper than OEM. The risk: fit issues, hidden damage, and cosmetic imperfections. When using LKQ parts, shops should inspect them thoroughly upon receipt and document any defects. If an LKQ part doesn't meet quality standards, document it and supplement for OEM.

OEM parts guarantee fit, finish, and safety certification. Insurance carriers often try to specify aftermarket (AM) or used/recycled (LKQ) parts to reduce costs. Shops can negotiate for OEM parts by documenting fit issues with alternatives, citing state regulations, or leveraging OEM position statements. OEM parts typically cost 20-60% more than aftermarket equivalents.

Re-inspections are a major cycle time bottleneck. The shop writes a supplement, submits it, and then waits for the adjuster to schedule a visit. Wait times can range from 2-10 business days depending on the carrier and adjuster workload. During this time, the vehicle sits. Thorough photo documentation and detailed supplement narratives can sometimes eliminate the need for a re-inspection, with adjusters approving from photos alone.

Supplements are one of the most operationally complex parts of collision repair. The initial estimate is written from visible damage. Once teardown begins, hidden damage is discovered - bent subframes, wiring harness damage, additional panel work. Each supplement must be documented, submitted to the insurance carrier, and approved before parts can be ordered and work can proceed. Poorly tracked supplements are the #1 source of lost revenue in collision shops.

Teardown is where supplements are born. A skilled technician removes panels, bumper covers, and trim to expose the full extent of the damage. Proper teardown documentation - photos, notes, measurements - is critical for writing accurate supplements that get approved. Shops that rush teardown miss damage. Shops that document it thoroughly capture full repair revenue.

A vehicle is typically declared a total loss when the repair cost exceeds 70-80% of its actual cash value (ACV), though this threshold varies by state. For shops, total losses mean: the repair stops, the customer needs a different resolution, and the shop may only be paid for teardown and storage. Managing total loss charges - teardown, teardown labor, storage, admin fees - is a critical but often overlooked revenue stream.

Touch time is a measure of repair efficiency. A vehicle might have a 10-day cycle time but only 20 hours of touch time. The gap is waiting - for parts, for approvals, for paint booth availability. Improving touch time ratio (touch time ÷ cycle time) is about eliminating wait time, not working faster. Better scheduling, proactive parts ordering, and streamlined supplement approvals all increase touch time ratio.