Sell Your Totaled Car to A Salvage Yard. How the Salvage Process Affects Your Customer’s Payout:
The salvage industry is experiencing a dramatic shift. According to Insurance Networking News, “Analysis of vehicle claims data for 2015 to date shows the rate at which vehicles are being totaled versus repaired has risen for the industry.”
The shift is due in part to the recent U.S. recession. As consumer spending cash dwindled, vehicle sales plummeted to match, reaching a 27 year low in the year 2009, better known to some simply as the “nightmare year”.
One of the byproducts of this recession is an increasing number of old-aged vehicles being driven. Since the repair cost to actual cost value (ACV) ratio increases with a vehicle’s age, it is becoming more and more likely that the average vehicle in an accident will end up being totaled rather than repaired.
With the trend shifting evermore towards total losses, auto insurers are re-evaluating the ins and outs of the salvage process. Many are finding new ways to not only streamline what was once thought of simply as an immutable part of the industry but also to maximize gains as well.
One of the major inefficiencies in the salvage process is the number of labor hours required to effectively keep track of what stage a vehicle is in. From the date of loss to the disposal, there are a myriad of man-hour intensive steps and procedures in between.
Getting the insured to sign paperwork, managing lien payoffs, releases, and letters, and handling the EFT payments are just some of the ways auto insurers spend their work hours dealing with the traditional salvage process.
By taking advantage of automated programs to bear the brunt of the labor with regards to these steps, auto insurers stand to save an enormous amount of both time and money.
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.
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.
If you are interested in optimizing your agency’s salvage process and getting the most out of your customers’ total losses, look no further than Salvage PRO, the first ‘salvage vehicle aggregator’ for the auto insurance industry.