As service departments respond to demand surges driven by post-pandemic driving trends and an aging vehicle fleet, many face mounting pressure to deliver quick turnarounds while maintaining quality and compliance.
At the same time, the industry is increasingly incorporating tech into their vehicle diagnostics and repair processes, and many shops still grapple with time-consuming administrative tasks that create bottlenecks in their service delivery. Fortunately, emerging digital solutions offer new ways to streamline these operations, reduce costs, and protect your business.
Automated Insurance Verification: A Rising Trend
Auto service departments typically don’t need the same robust F&I teams as dealerships and lenders, but it’s still an important part of the business for many. Particularly for those who provide loaners to customers during repairs, checking drivers licenses and verifying auto insurance is a necessary step in mitigating risk.
Like dealerships, many auto shops tend to rely on manual processes for these steps— reviewing IDs, examining policy documents, and calling carriers. This approach is not only time-consuming but also prone to errors and fraud. Fortunately, recent advances in the insurance tech landscape have changed the game for service providers.
Auto services are increasingly adopting modern solutions to improve accuracy and efficiency across administrative tasks. Between the time it takes to collect and review documents by hand, along with the chance of oversight in manual processes, many are finding new tech a worthwhile investment.
Applications like CheckMy Driver help auto service providers automate these necessary steps in their process to cut wait times, improve operational efficiency, and reduce human error. This is the next evolution in insurance verification software, going beyond tech that enables businesses to digitally access their customers’ policy documents.
CheckMy Driver also includes a built-in ID authentication tool, which adds an extra layer of security and reliability to the verification process. By automatically validating customer identities alongside insurance information, shops can vet their customers before sending them off with a loaner vehicle.
How Auto Service Shops Can Leverage Solutions Like CheckMy Driver
For many auto service providers, digitization is still in its beginning phases. However, early movers are already seeing major benefits from verification technology.
Streamlined administrative workflow
Automated verification streamlines the check-in process, reducing wait times and improving overall efficiency. Customers can provide their information digitally through a secure application, which is then verified in real-time. This not only speeds up the process but also enhances accuracy.
A faster, smoother check-in process leads to happier customers. According to a recent customer experience report, two-thirds of consumers say that speed is as important as price. Streamlining your customer-facing operations demonstrates that you value their time, which can lead to increased satisfaction and loyalty.
Reduced labor costs
By eliminating the need for staff to manually call insurance carriers or analyze documents, you can significantly reduce labor costs. This frees up your team to focus on more value-added tasks, potentially reducing the need for overtime or additional hires.
Risk mitigation
While there are significant business advantages to offering loaner vehicles or financing options, they can also expose you to additional risk. Whether you’re lending money or cars, when you trust customers with your assets, you need to factor potential loss into your business model.
That’s not to mention the risk of falling victim to fraud or theft. As a high-ticket industry, the auto sector is often a target of criminal activity. In fact, after a 98% increase in synthetic fraud attempts in 2023, analysts estimate that the auto industry faces $7.9 billion in annual risk exposure due to synthetic fraud alone.
Fortunately, automated verification systems are highly thorough, especially when compared to manual methods. CheckMy ID performs over 100 algorithmic checks on the ID’s barcode to verify authenticity. By cross-referencing multiple data points in real-time, these systems can flag suspicious activity that might be missed by human eyes.
Combined with insurance verification, this ensures that your customers aren’t just providing accurate information, but they also have active and adequate insurance to protect your vehicle.
Upgrade Your Verification Process
As the auto servicing industry continues to evolve, embracing digital solutions like automated insurance verification will become increasingly crucial. By streamlining operations, improving customer experience, and mitigating risks, these technologies offer a competitive edge in a challenging market.
Don’t let your business fall behind. Talk to our team about how automated verification can fast-track your service and drive your auto shop towards a more efficient, profitable future.