Plain-English definitions for every term in the collision repair and insurance claims world. Built for new admin staff, estimators coming from other software, and shop owners who inherited the business from someone else. 14-day free trial, no credit card required.
FNOL (First Notice of Loss): the initial report filed with the carrier when a vehicle is damaged. The FNOL number is your reference for all carrier communication. Claim number: assigned by the carrier after FNOL. Every supplement, photo, and email goes on this number. Deductible: the customer's out-of-pocket amount before insurance pays. Collect it at drop-off. Authorization: formal carrier approval to proceed with repairs at a specific dollar amount. Track expiration dates. Supplement: an additional estimate written after teardown when hidden damage is found. Supplements are where most shops lose money. Adjuster: the carrier's representative who reviews estimates and approves supplements. DRP (Direct Repair Program): a carrier partnership that steers claims directly to your shop. Total loss: when repair cost exceeds roughly 70 to 80 percent of the vehicle's ACV. LKQ (Like Kind and Quality): used OEM parts sourced from salvage. OEM: original equipment manufacturer parts. Aftermarket: non-OEM replacement parts.
Cycle time: total days from keys-in to keys-out. The industry average is 10 to 14 days. High performers target 7 to 9 days. DRP scorecards measure this directly. Touch time: actual technician hours on the car, as opposed to calendar days. A car with a 10-day cycle time might have only 20 hours of touch time. The gap is waiting: for parts, approvals, paint booth. Severity: average repair order dollar amount per claim. Higher severity means more complex work. Throughput: claims completed per month per bay. CSI (Customer Satisfaction Index): customer satisfaction score measured by the carrier. Low CSI can cost you DRP status. Keys-in/keys-out: the moment the car arrives and the moment the customer picks it up. The exact start and end of the cycle.
Teardown: disassembling a vehicle to find hidden damage not visible on the initial estimate. Every supplement starts with a good teardown. R&I (Remove and Install): removing a part to repair what is underneath, then reinstalling it. Blend: painting adjacent panels so color matches the repaired panel. ADAS (Advanced Driver Assistance Systems): cameras, radar, and sensors that must be recalibrated after certain repairs. Calibration costs are a frequent supplement item carriers push back on. Seam sealer: applied at panel seams for water and noise protection. Frequently missed in estimates. Labor op: a specific repair operation line item on the estimate. Softened labor ops (reducing time below OEM spec) are a common claim audit finding. OEM position statement: the manufacturer's documented instructions for a repair procedure, used to justify supplement line items to adjusters.
Carriers and adjusters use precise language. An adjuster who sees a supplement that says 'fixed the dent' will push back. A supplement that says 'R&I rear quarter inner structure, OEM refinish to blend per Mitchell Time Guide' gets approved. The shop that knows the vocabulary writes better supplements, argues better rebuttals, and closes fewer claims short. Claimory AI reads your estimates and flags line items where the terminology or documentation is weak, before the supplement goes to the carrier.
A supplement is an additional estimate written after teardown, when hidden damage is found that was not visible in the initial estimate. Supplements must be submitted to the carrier and approved before parts are ordered. Poorly tracked supplements are the number one source of lost revenue in collision shops.
Cycle time is the total number of days from when a vehicle arrives (keys-in) to when the customer picks it up (keys-out). The industry average is 10 to 14 days. DRP carriers score shops on cycle time directly. Every extra day costs the carrier rental exposure and costs your shop bay throughput. Claimory tracks cycle time per claim and flags outliers before they become DRP scorecard problems.
DRP stands for Direct Repair Program. It is a partnership between a collision shop and an insurance carrier where the carrier steers claims directly to your shop. In exchange, the shop agrees to cycle time targets, CSI score floors, and photo compliance standards. Missing these can cost you DRP status.
OEM (Original Equipment Manufacturer) parts come from the vehicle's maker. Aftermarket parts are non-OEM replacements, usually cheaper. LKQ (Like Kind and Quality) are used OEM parts from salvage vehicles. Carriers often push for aftermarket or LKQ to reduce claim costs. Shops can write OEM justifications citing safety or fit-and-finish requirements.
ADAS stands for Advanced Driver Assistance Systems: radar, cameras, and sensors that power features like automatic braking and lane assist. After certain repairs, these systems must be recalibrated per OEM specs. Carriers often push back on ADAS calibration costs. The Claimory AI drawer can pull the OEM position statement for your specific vehicle and use it as supplement documentation.