How it works
Inflation starts with a real loss. The collision happened and the vehicle is damaged, but the claim grows as it passes through the repair chain. Old damage is added to the estimate, labor hours exceed what the repair needs, and new original-manufacturer parts are billed while used or non-original parts are fitted.
Towing and storage are a common source of inflation, with vehicles held at a yard while daily fees accumulate, and rental periods are stretched beyond the repair time. Where an assessor or adjuster works closely with a repairer, estimates can be agreed between them with little challenge. The claimant may be unaware of the arrangement or may share in it.
No single line on the estimate looks unreasonable. The labor rate is within range, the parts exist and the storage days are documented. The inflation shows when the claim is compared with peer claims for the same model, damage type and region, and when one repairer or assessor consistently sits above that range.
Red flags
- Estimate includes damage away from the point of impact or inconsistent with the reported collision
- Original-manufacturer parts billed with no supplier invoice, or fitted parts that do not match what was billed
- Storage days building up at a yard the insured did not choose, with delays in releasing the vehicle
- Supplementary estimates raised after the vehicle is stripped, adding damage not seen at first inspection
- Same assessor approving estimates from the same repairer with few or no adjustments
- Rental period well beyond the repair time recorded on the job card
Signals the engine evaluates
- Claim cost against the peer distribution for the same model, damage area and region
- Labor hours and parts lines compared with the repairer’s own baseline and with peer repairers
- Frequency and size of supplementary estimates by repairer and by assessor
- Towing, storage and rental charges as a share of the claim, against the segment baseline
- Assessor and repairer pairings with consistently low adjustment rates
Investigation and response
- 01Hold the disputed portion of the claim and settle the verified damage where the policy allows
- 02Arrange a re-inspection by an independent assessor before further repair work or release of the vehicle
- 03Request parts invoices, supplier details and photos of fitted parts, and reconcile them to the estimate
- 04Where a repairer or assessor pattern is confirmed, open a provider review and refer to SIU