If you rent or lease tangible assets, you know fixing damages is just an everyday part of your business. But who pays for those damages? You don’t want those damages to hit your bottom line. However, you don’t want to damage a customer relationship by claiming they caused the damage…especially if you have no proof to back up your words.
Why Damage Claim Recovery Is So Challenging
Plenty of companies want to improve their damage claim recovery, but there are common issues keeping them from doing just that:
- Ineffective recording tools: It’s common to see companies using paper forms to mark down any visible damage. However, paper forms can’t convey the extent of existing damage. This means you never know if an asset was returned in the same shape or with additional damage in the same place.
- Partially digital solutions: Some companies are using digital devices to snap photos of vehicles or other assets at check-in and check-out. This is great for seeing all the damage captured in one camera frame. But, it often means damage may have been missed if it wasn’t snapped.
How Bay Area Auto Rental Drastically Improved Damage Claim Recovery
As an 800-unit commercial vehicle rental business, Bay Area Auto Rental was focused on improving processes to sustain their rapid business growth. The company had quadrupled the size of their fleet over time and needed new systems that would help them continue to scale efficiently and effectively.
They were fully aware that damage claim recovery could have a huge impact on their bottom line. As their Commercial Business Development Manager Marcus Lindsay told us, it was “…a small play that could yield big results.” After all, the company re-sold all of their vehicles. As a result, they knew they would have to fix any pre-existing damage prior to sale. However, it was a question of whether the cost of repairs would be on them or on the customer that caused the damage.
Their original system put the burden of payment predominantly on them. Using paper condition reporting forms, they were frequently left without the documentation they needed to know the extent of damage prior to the rental. They couldn’t bill as many claims as they knew they should be able to, nor could they bill as much for damage costs.
However, after just six months of using Record360, Bay Area Auto Rentals increased their billable claims by 65%. Part of that increase was due to better documentation and another part was due to better damage estimate accuracy which allowed them to increase the amount billed per claim by 55%.
Lindsay attributes the huge improvement to Record360’s mix of photo and video documentation. “The photos are great to capture obvious damage, but the video is the ultimate fail safe. It gives us the power to always look back in time and double check the vehicle’s previous condition. If we missed taking a photo during the first walkaround, we can always go check the video for the evidence we need.”
READY TO DRASTICALLY IMPROVE YOUR DAMAGE CLAIM RECOVERY? Contact us today for a free trial at http://www.record360.com.