COVER STORY

by Joel Gausten THE TECHNOLOGY TUG OF WAR

OEMs are actively pushing for their procedures to be embraced as the standard of repair in this industry, but are insurers doing what they should to provide proper compensation to those facilities that are committed to restoring a damaged vehicle to manufacturer specifications? If some of the experiences recently shared by members of AASP-MN are any indication, the answer to that question is a resounding and encouraging “YES!”

“We don’t have much pushback on OEM procedures – not like we used to,” observes Jake Moser, general manager of Hopkins Auto Body in Hopkins. “Even two years ago, there was a lot more pushback on it. But as of now, insurance companies have gotten a lot better in terms of realizing that this is what the manufacturers need from us. Once it’s in writing with those guys, [insurers] don’t really have a leg to stand on or push back on doing it correctly.”

Moser views this positive development as the direct result of actions taken by dedicated members of the state’s automotive community.

“We have a pretty strong association up here. [AASP-MN] put in the work to let the insurance companies know we’re on top of it, and then the body shops in general are just kind of standing up and saying, ‘This is what the manufacturers are saying. This is what we’ve got to do.’ As more of us put our foot down, then [insurers] understand that this is what needs to happen for these cars to be properly repaired. There are big liabilities for us not to repair them correctly.” For Mike Matteson, co-owner of Century Avenue Collision in North St. Paul, successfully negotiating for payment for the OEM-recommended/ required procedures he performs – even from his DRP

partners – comes down to educating insurers. A regular user of OEM websites, he makes sure to have the information necessary to back up his repair methods if/when he’s challenged by the other side.

“We usually don’t get into too many situations where they don’t pay. I’ve been at this for 35 years here at this location, so we have a good standing. A lot of insurance companies know that we do our homework. There are times when I have to argue over the phone with people who get hired by insurance companies who have no clue how to fix cars. My biggest complaint is having to dig deep to prove to them that something needs to be done and they need to look at the procedures. We hate doing that, but we have to every once in a while. We stand our ground; if there is a procedure that needs to be done, we fight for it. We’ve been able to prove our point enough that no one’s really stood their ground against us in a long time.”

Aaron Rolfsrud, who oversees operations for Master Collision Group’s five locations in the state, has had similar success in getting paid for doing things the OEM way. He is particularly firm in utilizing OEM recommendations and requirements at the BMW-certified Master Collision shop in Bloomington, where technicians access the necessary repair procedures for that automaker’s vehicles via their VINs. In his mind, this method provides stronger documentation than general position statements, which he notes are not always acknowledged by carriers.

“Sometimes, the insurance companies are not accepting the position statements because they’re too broad in scope or they’re not entirely up to date. They might be a year or two old.”

As shops continue to push for adequate payment for proper repairs, it is critical for them to ensure that the estimating systems accurately reflect the time it takes to perform them. This is where the Database Enhancement Gateway (DEG) comes in. Launched in 2007 and co-funded by AASP National and the Society of Collision Repair Specialists (SCRS)*, the DEG is a free online service that addresses labor time questions and other database inaccuracies brought forth by end-users of Audatex, Mitchell and CCC. As of January 2021, the DEG had resolved nearly 17,000 inquiries from shops, insurers and other interindustry personnel. A complete history of all inquiries is available at degweb.org. According to DEG Administrator Danny Gredinberg, the service has led to considerable clarification on P-Page language and assisted repairers in better identifying and confirming not-included items.

“Any inquiry can be submitted for any operation to be double-checked, verified and potentially increased. Every operation counts, especially with some shops seeing a slowdown in vehicles due to COVID-19. They’ve had to capture opportunities in each job, and they’ve also had more time to reach out to the DEG as questions arise. More than ever, associations, suppliers and even the Information Providers are funneling people through the DEG so that they can get answers or resolutions through the system.”

As an example of how useful the DEG can be for repairers seeking clarity (and perhaps more realistic labor times) on the shop floor, DEG inquiry #17435 submitted last December on a 2009 Audi A5 Coupe resulted in the estimated refinish time applied to the uniside assembly increasing from 4.5 hours to 6.4 hours in CCC. Additionally, the estimated refinish time applied to the aperture panel for that vehicle in CCC changed from 1.8 hours to 3.2 hours.

Of course, no discussion about OEM procedures would be complete without a mention of scanning. Jesse Jacobson, vice president of Heppner’s Auto Body & Glass’ five Minnesota locations, got on board early with implementing the procedure at his facilities.

“We started with a basic aftermarket tool at all the locations and basically said, ‘Whether we’re getting paid for it or not, we’re going to scan every car that comes in.’”

This decision proved to be correct – and potentially life-saving – when a scan on a rebuilt vehicle that arrived at Heppner’s revealed the absence of an airbag. This is just one example of the dangers and liabilities that can be avoided by adhering to what manufacturers require and recommend for their vehicles.