Adding parts and labor

How to Add Parts and Labor to Your Claims

Properly documenting parts and labor is crucial for claim approval. This guide will help you accurately add all necessary information.

Adding Parts to a Claim

Step 1: Access the Parts Section

In your claim form, navigate to the "Parts & Labor" section. Click "Add Part" to begin.

Step 2: Enter Part Information

For each part, you'll need to provide:

• Part Number: Use the exact OEM or aftermarket part number
• Part Description: Clear description (e.g., "Water Pump Assembly")
• Quantity: How many units are needed
• Unit Price: Current retail price per unit
• Total Price: Automatically calculated (Quantity × Unit Price)

Step 3: Specify Part Source

Indicate where you'll source the part:

• OEM: Original Equipment Manufacturer parts
• Aftermarket: Third-party manufacturer parts
• Remanufactured: Rebuilt/refurbished parts

Step 4: Add Multiple Parts

For complex repairs requiring multiple parts:

1. Click "Add Another Part" after entering the first part
2. Repeat the process for each additional part
3. Group related parts under the same complaint when possible

Documenting Labor

Labor Time Standards

Use industry-standard labor guides for time estimates:

• Mitchell On-Demand
• AllData
• Motor Age
• Chilton

Labor Categories

Break down labor by operation type:

• Diagnostic: Time spent diagnosing the issue
• Removal & Installation: R&I time for the repair
• Testing: Post-repair verification and testing
• Additional Operations: Any extra work required

Calculating Labor Hours

For each labor operation, specify:

• Operation Description: What work is being performed
• Hours: Time required (use decimal format, e.g., 2.5 hours)
• Labor Rate: Your hourly rate for this type of work
• Total: Automatically calculated (Hours × Rate)

Best Practices for Parts & Labor

Part Numbers

• Double-check all part numbers before submitting
• Include manufacturer prefix when applicable
• Verify supersession numbers for discontinued parts
• Note if using interchange numbers

Pricing

• Use current retail pricing
• Update prices if parts have been on backorder
• Include core charges separately when applicable
• Note any supplier discounts or markups

Labor Documentation

• Reference the labor guide used
• Document any additional time needed (explain why)
• Include overlap/concurrent operations when applicable
• Be realistic with time estimates

Common Mistakes to Avoid

• Using incorrect or outdated part numbers
• Not specifying part quantity
• Inflating labor hours beyond standard times
• Missing required related parts (gaskets, seals, fluids)
• Not documenting diagnostic time
• Forgetting to include shop supplies

Special Situations

Backordered Parts

If a part is on backorder:

• Note the backorder status in the claim
• Provide estimated availability date
• Include alternate part options if available

Used or Salvage Parts

When using used parts:

• Clearly mark the part as "Used" or "Salvage"
• Provide warranty information
• Document source and condition
• Get approval before proceeding

Sublet Work

If subcontracting any work:

• Identify the operation being sublet
• Provide sublet vendor information
• Include sublet pricing quote
• Explain why sublet is necessary

Quick Tips