Allstate last month gave its Good Hands Repair Network collision centers a comprehensive directive on scanning, describing the charges it’ll reimburse and the tools and thought process it’d like them to experience the operation.
The nation’s No. 4 auto insurer also told shops it had been “working on preferred pricing with a scanning vendor which will provide additional advantages to our GHRN network,” based on a duplicate from the Jan. 11 memo obtained by Repairer Driven News. Allstate said hello would have more information to share later.
The Jan. 11 memo brings up a few of the key considerations that have arisen as the collision industry has explored and embraced the operation in the last five years.
We put several questions to the insurer seeking clarification on various aspects of the memo. The insurer replied to all of them with the following statement Friday.
Deciding to scan
Allstate told its Good Hands direct repair program shops Jan. 11 it expects these to make “case by case” decisions on scanning customer vehicles. It said it expects the collision repairers to use “up-to-date quality scanning equipment” for that work.
Allstate said it would cover a cumulative 1.0 hours of mechanical labor to perform the diagnostic checks on vehicles pre and post a repair.
“Allstate pays .5 hours mechanical rate for any Pre-Scan when necessary and .5 mechanical rate for a Post-Scan,” the memo states.
Virtually every major OEM needs a vehicle diagnostic check sooner or later or another inside a collision repair, with lots of spelling out they need pre-repair scans done in addition to post-vehicle scans.
Collision skillfully developed have described both scans as a best practice or SOP. The pre-scan helps a shop ID all damage in advance rather than be surprised, and it also can help some insurance company separate pre- and post-loss damage. and the post-scan ensuring the vehicle has been properly restored before delivery.
The potential to conduct diagnostics while using OBD-II port alone goes back a lot more than two decades, and scanning may be possible on vehicles even older than that. Thus, OEMs can and do explicitly require scans on vehicles far over the age of the average model done by body shops — or perhaps the average vehicle totaled by insurers .
“Good Hands Repair Network repair facilities should evaluate the have to perform vehicle scanning operations on a situational basis when it's essential to properly repair customer’s vehicles,” Allstate wrote Jan. 11. “The choice for scanning should take into consideration vehicle age, extent of damage, advanced driver assist system equipment , Airbag system deployment and if indicated, by a vehicle specific OEM repair procedure.”
Scan tools
OEMs typically require their own scan tools for use. Some also approve collision repairers’ use of the asTech, a third-party device which connects an automobile in a shop to numerous OEM scan tools asTech keeps remotely. Some automakers also allow certain third-party scan tools — but those devices should be running that automaker’s licensed official, current scan software, something possible through standards like the SAE J-2534 framework.
General Motors provides a good illustration of an automaker which has studied and permitted the type of variety described in the last paragraph. As of December 2021, the OEM says certified shops can use either an OEM tool; the asTech; or even the J-2534 setups from Mitchell, Drew Technologies and AirPro.
None of these setups are the same as a third-party device which licenses OEM information but incorporates it right into a third-party scan tool operating system. To our knowledge, no OEM has approved these third-party tool, third-party software combinations for collision repair.
“Allstate Insurance expects our Good Hands Repair Network facilities to have up-to-date quality scanning equipment,” Allstate wrote. “This equipment ought to be capable of scanning most vehicles makes/models and include OE licensed data capabilities for multiple vehicle brands.”
Allstate didn’t respond specifically to an inquiry as to what it meant by “licensed data capabilities,” given the among the two software options discussed above.
The insurer gave its DRP shops an alternative choice too.
“If your GHRN repair facility cannot scan an automobile utilizing their own vehicle scanning equipment because of the vehicle’s design or special advanced technology features, a third-party remote scanning service provider might be utilized at a charge of as much as $125.00 and .5 hours body rate in the place of the standard pre/post scanning allowable labor rates,” Allstate wrote. “Operations unable to be completed by the repair facility, such as diagnostic services, system or equipment calibrations, reprogramming, initializations, along with other services ought to be charged in a competitive cost.”
For just a little context, here’s pricing details from some of the major remote and mobile services providers serving the body shops:
The remote scan provider asTech charges $50 per pre-scan and $50 per post-scan under its new pricing announced last year. If either scan finds anything or another “diagnostic service” is required, asTech adds another $69.95 . It’s rare that scans are completely clean, based on one Montana repairer’s research of vehicles reaching his shop.
AirPro’s “‘Round trip’ is around $165.00,” AirPro President Michael Quinn wrote in an email.
Drew Technologies, a subsidiary of Opus IVS, said hello has two collision repair remote scanning and support options, DriveCrash and ScanSafe. Drew Technologies business development V . p . Bob Augustine said Fridy the company’s remote services really are a la carte, but he couldn’t reveal pricing because of some customers’ confidentiality agreements.
Mitchell’s remote scan feature, offered through a Drew partnership, carry a $50 list price for a domestic or Asian vehicle, based on auto physical damage solutions repair sales and service Vice President Jack Rozint. The feature runs $100 for European or premium vehicles, Rozint said. Merely clearing codes runs $25 list .
LKQ United states sales and marketing V . p . Terry Fortner he couldn’t provide a uniform price for Elitek, LKQ’s mobile services provider with capabilities including scanning. He said it varies based on market factors.
“If scanning costs exceed the dollar amounts outlined in this document, documentation is required and expenses subject to review,” Allstate wrote. “If shop mark-up is roofed within the vendor scanning cost no additional markup should be added to the estimate.”
Allstate didn’t respond specifically to a question why a shop’s labor could be switched from mechanical to body labor were it to use a remote provider.
Technically, Allstate’s policyholders and third-party claimants are the ones who actually owe an appearance shop for a repair, with Allstate then reimbursing them under the the insured’s policy. Direct repair programs such as the Good Hands Repair Network agree to provide pricing concessions in exchange for insurer referral volume.
We obviously don’t understand what those discounted rates are, and it’s feasible for a DRP’s rates to vary market-by-market. But for some extra context, the average hour of mechanical labor available on a CCC estimate in 2021 cost $89.91, based on the 2021 “Quick studies.” The average hour of body labor cost $51.45.
What’s a scan?
“Operations unable to be completed by the repair facility, for example diagnostic services, system or equipment calibrations, reprogramming, initializations, along with other services ought to be charged at a competitive cost,” Allstate wrote within the memo.
Allstate didn’t specifically reply to an issue how it defined a scan and which operations were included within the 0.5-hour labor times.
Two collision repair entities have recently explored this topic. Audatex has started to feature extremely short scanning times which define a “scan” extremely narrowly.
“Audatex Pre and Post Scan labor allowances include here we are at connecting the scan tool, reading any DTCs if applicable, clearing any DTCs if applicable, and disconnecting the scan tool,” Audatex has told the Database Enhancement Gateway.
The information provider also assumes the repairer is using OEM scan tools or tools running the official OEM software with the SAE J-2534 standard.
The Automotive Service Association described work on a likewise narrow definition inside a presentation towards the January CIC. Inside a Feb. 9 media briefing, ASA Collision Division Director Mike LeVasseur discussed the most recent rough draft.
It defined scanning as “a mechanical operation” of hooking “a professional diagnostic scan tool” right into a port such as the OBD-II interface to retrieve all DTCs, based on LeVasseur.
“That’s it,” LeVasseur said. “That’s the definition of scanning. It’s basically one sentence.”
The latest draft says labor hours and expenses really are a “reasonable and necessary amount” that may vary based on the vehicle and scan tool.
Finally, he said the present draft defines a qualified scan tool as something which can identify all ECUs and all sorts of diagnostic trouble codes. Additionally, it should be an OEM tool or running OEM software with the SAE J-2534 standard, he explained.
