DALLAS, May 14, 2015 /PRNewswire/ -- Risk Point, LLC, a provider of insurance for auto dealer inventory, has introduced a new estimating model for hail damage repair as a way to control ever increasing premiums and deductibles, and to eliminate what has long been a problem in the industry—damage payouts that far exceed the actual cost of repair. It is estimated that in 2014 alone, hail damage payouts surpassed the actual cost of repair by at least $250 million.
Bryan Wilburn, founder and CEO of Risk Point, says, "We are changing something that has become entrenched in the automotive insurance industry, and which until now, no one has taken the initiative to correct. This is a 'back to basics' approach in which an insured should not profit from a loss beyond the fair and equitable adjustment of their claim."
Approximately 90 percent of hail damage is repairable by paintless dent repair (PDR) methods, which involves removing dents by pressing the metal back into place with specialized skill and tools. PDR has become extremely common in the past decade, and with improvements in PDR processes and a large increase in the number of PDR vendors, the actual cost to repair a vehicle has dropped substantially. However, the insurance industry has continued to pay losses based on an estimating guide that is more than 10 years old. This practice has resulted in payouts to dealers of almost twice the amount for which the damage can be repaired.
Risk Point built its new estimating model after an extensive study of actual PDR costs with several national vendors. The result is that PDR vendors will continue to be paid current marketplace rates for actual repair costs, while overpayments to dealers will be eliminated. To ensure dealers are able to obtain repairs at the new matrix cost levels, Risk Point has partnered with a number of national vendors that possess the requisite capabilities and commitment to service to perform and guarantee their work within the new payout structure.
Wilburn adds, "Our goal has been to always lead the industry with innovative techniques and processes that provide superior service, fairly priced products, and timely claims payments. While we expected some pushback with this new model, so far no one has argued that the actual repair amount is incorrect, and we believe that eventually other insurance providers will adopt it. Change of this magnitude is never easy, but our goal is to eliminate overpayments and return a measure of price stability to the industry."
ABOUT RISK POINT, LLC
Risk Point, LLC provides Auto Dealership Insurance that is dependable and flexible with physical damage coverage for cars, trucks, and motorcycles. Its Dealer Insurance provides Auto Dealer Open Lot Insurance and Auto Dealer Loss Prevention program options. Risk Point is a subsidiary of Risk Theory, LLC. Visit www.riskpoint.com for more information.
SOURCE Risk Point, LLC