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Vol. 37 / Issue 8 / August 2019
VT Auto Shop Owner Scores Victory in Campaign Against Short-Pay by Insurers
Speakers at Southern CAA Meeting Discuss “The New Battleground”
by Alan J. Keays, VTDigger.org
by Victoria Antonelli
The Vermont Supreme Court has sided with a body shop in its latest legal challenge to a national insurance company over claims the firm failed to pay enough to cover needed repairs to vehicles that had been in collisions. The case has been working its way through the state’s legal system for about four years, starting in 2015 when Parker’s Classic Auto Works of Rutland brought suit against Nationwide Mutual Insurance Co., which is based in Ohio.
Mike Parker, the repair shop’s owner, said Monday he recently got a call from his attorney, Robert McClallen of Rutland, letting him know of the high court’s ruling. “I was like finally, ‘Hallelujah,’” Parker said. The suit against Nationwide was brought by Parker’s on behalf of consumers in instances where the insurer refused to pay the full amount of the repairs the shop made to vehicles. It’s a practice known as short-pay. The Nationwide lawsuit is part of an ongoing campaign by Parker’s See Short-Pay By Insurers, Page 12
SCRS Event Discussion on Insurance Regulation, Workforce Development by John Yoswick
Body shop associations and automakers increased efforts this year to get state legislation that would mandate
the use of OEM repair procedures for collision repair claims. Since these efforts, insurance regulators in some states have shared written statements
relative to any such obligation on insurers. Insurance regulatory agencies in about half of all states have responded to a letter the Society of Collision Repair Specialists (SCRS) sent out last year asking, among other things, if anything in their state “holds insurers and insurance policies sold in your state accountable to recognize manufacturer documented procedures as a basis for settling claims.” During a SCRS event earlier this year, the association’s Aaron Schulenburg said the written responses See SCRS Event Discussion, Page 44
Scott Simmons from Collision Advice was the first speaker. SimSeveral prominent industry members mons has conducted 50 education took the podium on May 2 to edu- courses already this year and is on cate the southern California Auto- track to complete 70 before 2020, body Association (CAA) attendees he said. During his trainings, Simon the importance of implementing mons stresses the importance of OEM standards—the latest operating from a “negotivehicle technology from ation and cultural change perspective.” manufacturers—and I-CAR “The purpose of my porupdates that prepare technition is to get shops to rethink cians for the future. their approach to training as The evening began with well as how they approach a meet and greet and Italiantheir thought process for nestyle dinner at Craftsman Scott Simmons of gotiations,” he said. Collision in Long Beach, CollisionAdvice Simmons asked the audiCA. Later on around 7 p.m., Melanie Allan, chapter president and ence, “Do we agree that what we’re vice president of business develop- working on is the same as five years ment & sales at Craftsman Collision, ago, last year or even last month?” The crowd of 50 attendees anread the antitrust laws and led the Pledge of Allegiance. See “The New Battleground”, Page 23
Uncertain Times for U.S. Auto Industry by Dave Leggett, just-auto
A new Edmunds report says 2019 has been a year of contrasts for automakers as they struggle to find a new normal amid rising interest rates, waning demand, dramatic growth in the used market and uncertain government policies. “Automakers are fighting a war on multiple fronts right now: Old cars are piling up on dealer lots, a glut of affordable off-lease vehicles are luring shoppers into the used market and even with the Fed anticipated to lower rates in July, higher interest rates are here to stay,” said Jeremy Acevedo, Edmunds’ manager of industry analysis. “Strong economic indicators such as consumer confidence and low unemployment are keeping sales at historically elevated levels, but automakers have also been relying too heavily on fleet
sales to keep these numbers up which isn’t a sustainable model.” According to Edmunds data, new vehicle sales are down 2.4% year-over-year through May and Edmunds analysts maintain their forecast that 16.9 million new vehicles will be sold in 2019. In addition to a deeper dive into sales figures, the Midyear Report also reveals: A strong economy is propping up what could be an even weaker auto market. Unemployment is at 3.6% - the lowest it’s been since 1969. Consumer sentiment is at its highest level of 2019. Elevated inventory levels are setting the stage for attractive deals this summer. Even though inventory dipped below 4 million units in May, analysts say this is still too high given current demand. Interest rates are making it more expensive for auSee Uncertain Times, Page 20
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