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VOL. 4 ISSUE 4 JUNE 2013
Florida Shop Owner Files 53 Lawsuits to Counter Short Pays by Insurers
First Southern Automotive Repair Industry Conference Held in Biloxi, MS, April 26–27
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 will recoup court Eddie Quintela costs and attorney’s fees when he wins his cases, plus recover the compensation he
John Mosley with Aaron Schulenburg
by Melanie Anderson
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 See 53 Lawsuits, Page 16
CIC Continues Discussion of Alternatives to Existing Paint and Materials Calculations
See Paint and Materials, Page 13
P.O. BOX 1516, CARLSBAD, CA 92018
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 the current system as “adequate” or “good.”
Change Service Requested
by John Yoswick
The Mississippi Collision Repair Association (MCRA) and the Alabama Automotive Repair Industry Society of Excellence (ALARISE) co-spon-
sored the first Southern Automotive Repair Industry Conference and Exhibition in Biloxi, MS, on April 2627.
Presenters included Aaron Schulenburg of SCRS, Rick Leos with Toyota Motors, Ray Gunder and his attorney Brent Geohagen. The inaugural event was held at the Beau Rivage Casino and Hotel in Biloxi, MS, and kicked off Friday night with a reception and exhibition featuring more than 18 vendors demonstrating their products and services to over 200 attendees from collision repair shops from across the Southeast. “The event can be best described as an unqualified success, both in terms of information presented and the impressive number of attendees from seven states,” said See Southern Conference, Page 28
MID Issues Bulletin to Insurers: Cover, Feather, Prime and Block for Hail Damaged Cars
April saw some unprecedented hail damage due to near record size hailstones in parts of Mississippi, especially metro Jackson, and Louisiana that Autobody News wrote about in our May issue. On May 10, the Mississippi Insurance Department (MID) issued a bulletin to insurers regarding labor and materials associated with feather, prime and block, in particular. MID reinforced a similar bulletin coming from Attorney General Jim Hood on the same subject (see p. 9, this issue) which was issued on April 19. The MID bulletin reads in part: “After the March 18, 2013, severe hailstorms hit the Jackson metropolitan area, an unusually large number of automobile claims were filed with insurance companies. The Mississippi Insurance Department (MID) has received complaints from some policyholders and auto body repair shops concerning issues related to the repair of insured vehicles. Therefore, MID is
issuing this Bulletin to provide insurance companies and their adjusters with information regarding the handling of these automobile claims.” “MID has become aware that there have been issues between adjusters and auto body repair shops regarding specific repairs that are considered necessary by these manuals. Specifically, there have been issues regarding the coverage of feathering, prime and block of damaged vehicles. Currently, this repair is considered necessary by these manuals, and it is the opinion of MID that, when necessary in view of the damage, this is a repair that should be covered by insurance companies.” “Therefore, MID directs insurance companies to inform their adjusters to review billing statements and approve any repairs and charges necessary to indemnify policyholders, including appropriate charges for feathering, prime and block of damSee MID Bulletin, Page 29
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