Northeastern Norrtheastern Edition E d i t i on Connecticut Delaware Maine Maryland Massachusetts New Hampshire
New Jersey New York Pennsylvania Rhode Island Vermont
35
YEARS
www.autobodynews.com ww ww.autobodynews.com
Gauging What Lies Ahead for the Collision Industry in 2017 Based on the Events of 2016 by John Yoswick
As another new year begins, the collision industry can expect more big changes in terms of vehicle technology, repair requirements, judicial and regulatory actions, state and federal legislation, and insurer involvement in the claims process. Here’s a look at some of what’s in store for the coming 12 months. Changes in insurance industry regulation. Look for insurers to see a Trump presidency and Republicancontrolled Congress as an opportunity to scale back federal regulation of the insurance industry.
The National Association of Professional Insurance Agents (PIA), for example, has already urged that the Federal Insurance Office (FIO), established following the Great Reces-
Happy a NEW Year
See Car Vandalized, Page 33
P.O. BOX 1516, CARLSBAD, CA 92018
‘Go Home’ was found keyed into the side of the family car. The hood was also defaced. Credit: Western Mass News.
hate crime. Now, a local auto body shop is getting involved. That family lives in West Springfield on a normally quiet street, and they said that they’ve never had any issues since they moved to town five years ago. After going through this devastating event, they’re getting to know the kindness of some of their neighbors. The Santiago family woke up on the morning of November 17 and saw the words ‘Trump’ and ‘Go home’ keyed into their car.
Change Service Requested
A Massachusetts family turned to Western Mass News for help after they said that they were victims of a
they repeal the FIO,” Jon Gentile, PIA’s vice president of government relations, said. “Doing so would reaffirm that regulation of insurance should continue to be the responsibility of the states.” But Matthew Josefowicz, president of a Boston-based insurance technology consulting firm, cautioned that such reductions in federal oversight of insurers could embolden some state attorneys general and insurance commissioners, resulting in insurers “dealing with aggressive state regulators.” That could be good news for colSee Ahead to 2017, Page 12
Springfield, MA, Maaco Shop Helps Veteran’s Family Whose Car Was Vandalized by Samara Abramson, WesternMassNews.com
sion, be scrapped. “With Congress poised to significantly roll back key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, we ask that
VOL. 7 ISSUE 10 JANUARY 2017
NJ, NY & PA Collision Repair Shops Face Labor Rate Reductions Due to State Farm’s Rezoning
NY State to now utilizing a flat rate of $28 that further reduces the policyIn July 2015, State Farm announced holder/claimant’s recovery. We are reits intention to make “market refine- ceiving complaints that with these ments” by refining market boundaries changes often come the refusal by used to determine prevailing compet- State Farm adjusters to negotiate the itive prices to serve our customers and claims in good faith with shops of to better align with government-defined varying capabilities and expertise.” State Farm’s redefinition market areas,” State Farm of parts of NJ, NY and PA Spokesman Justin Tomczak was based on Census Bureau stated at the time. Core-Based Statistical Areas State Farm’s changed (CBSA), and Tomczak conapproach in determining prefirmed that State Farm had vailing competitive prices in ceased using labor rate surcertain metropolitan areas veys to deduce the market has resulted in decreased Ed Kizenberger rate in these areas with callabor rates in certain parts of file photo culations now being based NJ and NY with some collision repair facilities receiving $15–16 on analysis of the cost of vehicle reless per hour. pairs for insurance work, excluding Ed Kizenberger, Executive Di- DRP repairs. These four divisions inrector of the Auto Body Craftsman’s clude the Dutchess/Putnam Division, Guild (ABCG) and the Long Island Nassau/ Suffolk Division, Newark NJ Auto Body Repairmen’s Association and PA Division, and NYC, Jersey (LIABRA), noted, “In our current City and White Plains Division. Areas of Long Island and NYC market area, State Farm estimates show a labor rate reduction from $65 have reported decreases of $15–16 in to $49 per hour. These estimates also hourly labor rates; this loss must be show the change from using a paint passed on to the customer, considered cost estimating system approved by See NE Labor Rates, Page 28 by Chasidy Rae Sisk
Presorted Standard US Postage PAID San Bernardino, CA Permit #2244