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CIC Continues Discussion of Alternatives to Existing Paint and Materials Calculations by John Yoswick
A consultant whose study indicated that the vast majority of the industry finds the current way that paint and materials compensation is calculated is a poor methodology is now saying more accurate and fair calculation systems exist, are being used by some shops and are being accepted by some insurance companies. “The most important message here is that by properly presenting itemization and documentation using a paint material calculation system, we are actually able to resolve these
conflicts,” consultant Steve Lanza of Richfield Associates said at the Collision Industry Conference (CIC) held in Phoenix in April. Lanza’s firm in 2012 released its findings that compensation for paint and materials has not kept pace with increases in the costs of these products, and that 64 out of 68 industry participants interviewed think the current way paint and materials compensation is calculated is a poor methodology. Only four people (including representatives of three repairer operations and one estimating system provider) rated See Paint and Materials, Page 24
Florida Shop Owner Files 53 Lawsuits to Counter Short Pays by Insurers
See 53 Lawsuits, Page 3
P.O. BOX 1516, CARLSBAD, CA 92018
In Delray Beach, FL, Eddie Quintela, 42, owner and operator of Collision Concepts, recently spent $10,450 on filing fees for 53 separate lawsuits against insurers for short pays. Quintela says he’s not worried about the money. He Eddie Quintela will recoup court costs and attorney’s fees when he wins his cases, plus recover the compensation he should have received in the first place for properly repairing
the vehicles. To date, he and his customers have won every single case they’ve filed against insurers. According to Quintela, his plan to get insurers to pay for underpayments is pretty simple and easy to do. “If we cannot get an agreed price with an insurance company to properly repair a vehicle, we engage the customer,” said Quintela. “We give our customers a couple of options: 1) they can pay the difference, or 2) the customer can sign an Assignment of Benefits or Assignment of Proceeds and I will go after the insurance company on their behalf. I’ll step into
Change Service Requested
by Melanie Anderson
VOL. 1 ISSUE 10 JUNE 2013
NMBSA Sponsored Legislation Introduced in Michigan House of Representatives Sue Allor, board member with the Northern Michigan Body Shop Association, recently announced big news to her group: legislation the association has been working on for the past two years was introduced in the Michigan House of Representatives on April 30. HB 4635 is focused on consumer protection and safety to ensure that repair of a damaged vehicle is performed according to manufacturer specifications and guidelines without interference and/or control of the reSue Allor pair process by an insurer focused on reducing costs through the use of parts not approved
by the vehicle manufacturer. Automotive manufacturers have indicated use of parts not specified by the manufacturer could result in serious harm to the vehicle occupants in the event of a crash. “A huge ‘thank you’ goes out to Representative Greg MacMaster, sponsor of this bill, along with Representatives Peter Pettalia, Anthony G. Forlini, Rick Outman, Michael D. McCready, Al Pscholka, and Dale W. Zorn who are co-sponsors,” said Allor. “This is just the start,” added Allor. “It’s taken us quite a while to get to this point and there is much more work to do.” Allor urges the NMBSA membership to talk to their friends and relatives about the bill and the benefits it has to the consumer. See NMBSA Legislation, Page 28
DEG Received 1,300 Inquiries in 2012, Up 30%, Expects 1,500 Claims This Year In 2012, the Database Enhancement Gateway (DEG) received more than 1,300 inquiries, an increase of approximately 30% from the previous two years, DEG Administrator Arthur Harris reported. This year, DEG expects to receive more than 1,500 inquiries. The DEG was built to help address individual estimating database issues on specific vehicles. As a free service, those who use estimate systems may submit inquiries to the DEG when they encounter questions or concerns relative to estimating data. The DEG acts as a go-between for shops and information providers— CCC, Mitchell and Audatex—to improve the quality and accuracy of the data used to generate collision repair estimates and to provide feedback to information providers. As an advocate, the DEG will process all submitted database inquiries to information providers until
a conclusion is reached. All issues and responses are posted on the website and visible to all. Through feedback by repairers, the DEG can help fix footnotes, inaccurate labor times, missing parts, incorrect part numbers, and substrate identification. Upon receiving an inquiry, Harris said the question is posted on their website and forwarded to the information provider within 24 hours. Many inquiries are resolved and responded to within 2-3 days, depending on the complexity of the inquiry and responsiveness of the information provider. Response times are posted directly on the website database for clear transparency into the process times for each of the three information providers. The DEG database is a valuable tool for the collision repair industry as it provides valuable feedback on missing, unclear or potentially inaccurate data within the estimate systems, HarSee DEG Received, Page 19
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