Last updated 2017-06-12

Apply repair allowance

Steps to apply the repair allowance on a vehicle.

When this applies

When pre-existing or unrelated damage exists on a vehicle, the estimator may provide an allowance towards the costs of repairs, replacement or painting of the part(s).

Procedure

  1. Apply the repair allowance to the vehicle damages
    If a part is … Then …
    • repairable with pre-existing damage, and
    • does not require replacement due to the claim related damage
    apply an allowance to repair the claim related damage.
    • repairable with pre-existing damage, and
    • does require replacement due to the claim related damage
    do not apply an allowance to the replaced part or labour which includes paint.
    Note: The customer is not required to contribute to the cost of repairs.
    • non-repairable with pre-existing damage, and
    • does require replacement prior to loss
    apply a repair allowance based on the claim related damage only.
    • pre-existing damage that requires refinishing, and
    • new claim related damage that requires refinishing
    a refinish allowance may apply.

    The estimator determines:

    • whether to apply full Mitchell paint time or an allowance, and
    • applies the appropriate refinish allowance.

    Note: Adjustments to the Mitchell refinish times are done when the estimate is completed. This allows the estimating system to account for any overlaps of refinish times. Net full refinish time would be less the applicable refinish labour deduction.
  2. Discuss any repair allowances with the vehicle owner or their representative.
  3. Create a pre-store line remark Allowance Only, No Supplement Due to Unrelated or Pre-existing damage on the Estimate or Appraisal.