As an insurance agency or vehicle claims processing company it’s never been more important to start cutting costs; and there’s no better place to begin than your salvage process.
Here are the top 5 ways your agency’s current salvage process is hurting your bottom line:
Holding costs can be run into the $1000’s per vehicle costing money and tying up operating capital. Just as a more efficient factory can offer lower prices to its customers, an insurance agency that takes the time to streamline its processes is better equipped to provide more competitive rates with lower deductibles and premiums. What’s more, a salvage process that runs more efficiently can reduce the cycle time as well, giving your clients the money they need to recover from their loss even quicker. By investing in services that finally make it possible to streamline and capitalize on the salvage process, auto insurers are in a better position than ever to maximize gains from the trend of rising total loss rates.
Using the Same Vendor:
Another commonly under-utilized tactic with regard to the salvage process is using more than one salvage vendor. Similar to how separate markets can value the same item differently, salvage auction vendors often have their own unique rates for various vehicles. Up until recently, taking advantage of these niche markets was difficult due to the complexity of managing the various vendors. There are now, however, products on the market that effectively navigate these differences, passing on the savings to the auto insurers and ensuring they get the best price possible for each piece of salvage.
Keeping the Salvage Process In-House:
Keeping your agency’s processes within your organization instead of hiring out to professional services may be the right move but execution can still be poor. A complete software system for salvage vehicle handling exists that was designed by salvage experts. Keep your systems is house by utilizing a top salvage management system like SalvagePRO™.
Legacy Systems vs. Upgrading:
Adapting to change can be a tricky process for any company. But hesitating to take advantage of the vast improvements in automation based on fear of “growing pains” alone can be crippling. Besides the obvious labor benefits involved, by choosing the right software you’ll also gain access to and take advantage of expert industry knowledge, earning you more from each salvage sale.
Lack of Visibility:
The salvage process especially has been largely thought of as a type of “black hole”; insurers rarely get the kind of transparency and accountability they need to make informed decisions and identify problems before they start costing money. Having systems in place to provide more visibility in this area can help prevent issues from happening entirely, saving you money down the line.
Each state has different titling laws and processes as well as varying procedures when it comes to the salvage process. Large and small insurers alike are spending a surprising number of man-hours learning state differences alone. SalvagePRO™ from Vemark has titling expertise in house with it’s multi-state titling platform, saving time and effort for the insurer. “For example, getting the proper documentation to sell the vehicle from the owner and processing through the state where you have 50 different state laws to navigate should be a simple, automated procedure. Instead, it is riddled with issues… SalvagePRO™ also handles all insurance side reporting with the federal government, NICB and with state title laws through integrations and automation, removing the thousands of labor hours a month this process currently takes.” “It will end up being cheaper (and less problematic) to use automated systems that operate according to these individual differences.”
Want to Maximize Your Agencies Salvage Gains?
If you would like to reduce salvage costs and ensure your insurance agency is getting the most out of its totaled vehicles, look no further than SalvagePRO™, the first ‘salvage vehicle aggregator’ for the auto insurance industry.
You can find more information at SalvagePRO™ or you can contact us directly at 877.392.6276 or email@example.com.