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Allstate Announces ‘Process Changes’ Designed to Improve Network Cycle Time Back on July 11, Allstate Insurance Company announced to its DRP participants that shops will be required to honor completion dates or assume all related costs, expedite estimate and upload completion times, and extend their hours of operation, when necessary, for the convenience of Allstate customers. Now Allstate’s customer service initiative for 2011 has been expanded. The new program requirements were introduced to shops in a series of cycle time web conferences held recently. Those unable to view the web conferences are encouraged by the company to contact their local performance managers.
Allstate is making “several key process changes” within its Good Hands Repair Network that the com-
Tracy Tramm, Allstate Claim Service Manager, announcing process changes via video
pany says are designed to positively impact customer service and cycle time. The announcement comes in the See Allstate Process, Page 38
Shop Owners Share Frustrations Renegotiating Contracts with Information Providers by John Yoswick
The experiences of a number of shop owners around the country serve as a reminder to make sure you always understand the terms of any contract you are signing. Failure to read the fine print—or negotiate clauses for additional rights to end even something as seemingly innocuous as a software contract—have cost some shops tens of thousands of dollars. A shop owner in California, for example, has been disappointed in the response he has received from one of
the Big Three information providers to his requests over the past 18 months to renegotiate his software contract. The shop owner, who asked that his name and the provider’s not be used, said he purchased a complete package—hardware and software—from the provider, but realized shortly after he did so that he did not intend to the use the shop management module of the package. “We’re not a large enough shop to benefit from the time I’d have into using it,” the shop owner said. See Contract Frustration, Page 14
VOL. 29 ISSUE 8 AUGUST 2011
Texas Insurance Commissioner Releases Bulletin Warning Insurers on Steering, etc. Texas Commissioner of Insurance Mike Geeslin has warned auto insurers in a bulletin sent June 20 that some claims settlement practices may be in violation of Texas law. Geeslin’s bulletin says that reports of steering, limiting labor/reimbursement rates, and other potential unfair claim settlement practices continue to be received by his department. In a department bulletin, addressed to insurers writing property casualty insurance for autos, the commissioner repeated his charge that some insurers’ practices may be in violation of the Texas Insurance Code and or the Texas Administrative Code. In a direct address to the issue of steering, Geeslin says that insurers must not “directly or indirectly” re-
quire a claimant to use a specific repair facility or to select a specific facility from a list provided by the insurer. Citing Texas law, Geeslin says suggesting to a consumer that they may be responsible for paying certain repair costs out of pocket if they choose a repair facility that is not on the insurer’s list is an indirect limitation of coverage under their policy and in conflict with the law. The bulletin says that although an insurer is not required to pay more than a reasonable amount for repairs or repair parts, neither the prescribed notice to the consumer nor policy language can suggest that the reasonable amount for repairs or parts be based
REGIONAL ARTICLES in this issue...
See Texas Bulletin Page 6
Investigators Donate to Memorial Fund for Slain LA Investigators .p. 6 Shreveport Man Named LA Auto Dealer of the Year . . . . . . . . . . .p. 6
Entergy to Bring Charging Stations to College Campuses in LA .p. 8
CCAR Honors LA Shop with “GreenLink” Title . . . . . . . . . . . . . . .p. 10
Service King Opens New Shop in Houston, TX . . . . . . . . . . . . . . .p .10
Fiat 500s Do Better in Texas Market Than Predicted . . . . . . . . . .p .12
NATIONAL ARTICLES in this issue...
Groupon Offers First New Car Deal With Detroit Auto Dealership .p. 15
Nissan Researching Solar Charging for Batteries in All-Electric Leaf .p. 20
Hyundai and Kia Both Raise 2011 Sales Forecasts . . . . . . . . . . .p. 22
Chevy Cars Get Highest Brand Share in 20 Years, GM Says . . . .p. 22
COLUMNS in this issue...
Schroeder — Carl Owen’s Paint and Body in Tyler, TX . . . . . . . . . .p. 16 Williams — What Makes A Dealership Distinctive? . . . . . . . . . . .p. 17 Attanasio — Prestige Imports, a BASF Waterborne Advocate . .p. 18 Weaver — How to Keep Your Cool With HVAC Diagnostics . . . .p. 21 Yoswick — State and Federal Governments Consider New Insurance Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p. 28 Insurance Insider — Don’t Become an Insurer’s Puppet . . . . . . .p. 30 Chess — Are Your Repair Methods Ten Years Out of Date? . . . .p. 32 Horn — Devil in the Details: Measuring Metrics Properly . . . . . .p. 36
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