Hammer and Dolly May 2022

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WMABA’s Annual Meeting Tackles Structural Diagnosis

May 2022 Volume 15, No. 5 $5.95

Debate Over Recommended vs. Required Continues

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CONTENTS

A

May 2022

$

24 COVER STORY

-./ BY CHASIDY RAE SISK

WMABA SHOPS RATE INSURERS: 2022 SURVEY RESULTS ARE IN! Repairers review insurance carriers.

WMABA FEATURE 10 IS IT BENT? WMABA LEARNS ABOUT STRUCTURAL DIAGNOSIS AT ANNUAL MEMBERSHIP DINNER BY CHASIDY RAE SISK Local learning, live.

NATIONAL FEATURE 14 OEM REPAIR PROCEDURES: DEBATE OVER RECOMMENDED VERSUS REQUIRED CONTINUES BY CHASIDY RAE SISK OEM representatives share their thoughts.

COLLISION INDUSTRY FOUNDATION UPDATE 20 CIF URGES SUPPORT FOR TECH BURNED IN SHOP ACCIDENT BY JOEL GAUSTEN A call to help an industry member in need.

INDUSTRY ADVICE: ASK MIKE

32 HOW CAN SHOPS AND CONSUMERS BETTER HANDLE TOTAL LOSSES? – PART 2

DEPARTMENTS 4 Editor’s Message 6 Executive Director’s Message 7 WMABA Member Application 17 WMABA Sponsors 28 Around the Industry 34 Advertisers’ Index

Educating the consumer on total losses. May 2022

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EDITOR’S

Chasidy Rae Sisk

302.593.7002 chasidy@grecopublishing.com

MESSAGE

STOP PEEING ON PROGRESS! “We change our behavior when the pain of staying the same becomes greater than the pain of changing.” - Henry Cloud Change is scary. Just ask my chihuahua, Apollo. He’s a rescue that came to live with me and my other four-legged critters at the end of 2020. While we don’t truly know his history, it’s fairly easy to deduce that he didn’t come from the best environment based on some of his behaviors. Patience, love and positive reinforcement – that’s what all the articles recommended. I’ve got plenty of love and often bestow it in the form of belly rubs (positive reinforcement), but I’m a little short on patience. Still, I try my best. And those efforts have yielded vast improvements…He’s less prone to flinching when I reach for him and doesn’t shake as hard when there’s a loud noise, but I can’t seem to break him of his proclivity for cocking his leg and relieving himself on any new item I bring into the house. (Nope, placing things on the counter doesn’t work; he’s a ninja, and scrubbing urine off my counter is worse than simply mopping it up!) I’ve come to the conclusion that it’s the “NEW” aspect that’s creating his reaction; he simply doesn’t deal well with change. Apollo resembles a lot of us in that respect. Does anyone truly like change? People are hardwired to resist change because it also brings fear of the unknown, loss of control and the stress associated with learning and doing something we’ve never done before, in many cases. Unfortunately, this isn’t the type of industry that provides room for that sort of reluctance – technology advances every day. Between hybrid/electric vehicles, ADAS and repair procedures that could be updated daily, repairers need to stay on top of what’s happening, but one of the common concerns shop owners raise during training WMABA OFFICERS

PRESIDENT Steve Krieps steve@gregclineauto.com 304-755-1146 VICE PRESIDENT Rodney Bolton boltonconsulting61@gmail.com 443-386-0086 TREASURER Kris Burton kris@rosslynautobody.com 703-820-1800 SECRETARY Phil Rice phil@ricewoods.com 540-846-6617 IMMEDIATE PAST PRESIDENT Torchy Chandler Torchy Chandler torchy.chandler@gmail.com 410-309-2242

BOARD OF DIRECTORS

Don Beaver (donbeaver3551@gmail.com) 443-235-6668

Bill Hawkins (hawkinswilliamjr@gmail.com) 510-915-2283

Barry Dorn (bdorn@dornsbodyandpaint.com) 804-746-3928

John Shoemaker (john.a.shoemaker@basf.com) 248-763-4375

ADMINISTRATION

EXECUTIVE DIRECTOR Jordan Hendler (jordanhendler@wmaba.com) 804-789-9649 WMABA CORPORATE OFFICE P.O. Box 3157 • Mechanicsville, VA 23116

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sessions is: “How do I get my team to embrace this change?” Don’t sell them on “change;” sell them on progress! Progress requires change, but it’s so much more than that: Progress is change that signifies positive forward movement. People are more likely to change when they can envision the advantage of investing the effort, and as a leader in your organization, you must paint that picture for them. Examine the current system, and explore why it’s flawed or where shortcomings exist. Define the pain points, and help your team understand the deficiencies that you’re hoping to overcome. Educate them on the planned improvement(s), and clearly explain how these changes will benefit the organization. More importantly, identify the value that each individual will enjoy once this new progressive step is enacted. Engage your team in developing an action plan with small steps that move your team in the right direction, toward progress. It’s likely that your more tenured employees exert the most resistance to progress since they have more experience – and are therefore the most likely to have recollections of “trauma” associated with a previous change – so be sure to meet them with a little extra patience and understanding. Whether we like it or not, whether we want to accept it or not, change is inevitable, and few industries experience the continual influx of technological advancements quite like this one. That’s one of the things that makes the automotive and collision world so great… Something new is always happening; we’re constantly faced with CONTINUED ON PG. 31 STAFF PUBLISHER

Thomas Greco thomas@grecopublishing.com

SALES DIRECTOR

Alicia Figurelli alicia@grecopublishing.com

EDITORIAL/CREATIVE COORDINATOR

Alana Quartuccio Bonillo alana@grecopublishing.com

MANAGING EDITOR

Chasidy Rae Sisk chasidy@grecopublishing.com

OFFICE MANAGER

Donna Greco donna@grecopublishing.com

PRODUCTION COORDINATOR

Joe Greco .joe@grecopublishing.com

PUBLISHED BY TGP, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 973-667-6922 FAX 973-235-1963

Reproduction of any portions of this publication is specifically prohibited without written permission from the publisher. The opinions and ideas appearing in this magazine are not necessarily rep­re­sen­ta­tions of TGP Inc. or of the Washington Metropolitan Auto Body Association (WMABA). Copyright © 2022 Thomas Greco Publishing, Inc.­­ Stock Images courtesy of istockphoto.com.


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EXECUTIVE DIRECTOR’S

Survey fatigue? Or skepticism?

MESSAGE

DO YOU REALLY WANT ANOTHER SURVEY? The Shops Rate Insurers survey results (in this issue beginning on page 24) outline the feedback received from a small number of participants from our region. I’m confused as to why we had less participants in this iteration than the last one, and - I’ll say to you here - it was less than the number of people who ask me about or call to complain about insurer relations. This combo leaves me at a loss. I just don’t know what you want us to do, if you don’t want to do this option. What is it about surveys that bugs us so much? Is it we dismiss it as something someone else can do? Is it that we are over-surveyed? I think it’s a far deeper issue. I believe it’s a combination of busyness and skepticism. I know the complications you face daily in shop life, and I also know the inner spirit of conspiracy you all carry around. There’s so many logistics in every part of our life, and we’re constantly bombarded with requests from all fronts. If we get just a coffee, we suddenly get a survey request. Really? For coffee? And God forbid you order food through Door Dash… It’s a lot of surveying, but not a lot of help. Healthy dose of Skepticsm? Adding to the hurdles, you all wear tin foil hats. I say that with my own permanently affixed, so don’t think that’s a judgmental statement. Repairers have every reason to wear this hat, and maybe even proudly. I think skepticism is a healthy trait, and one that can be utilized to problem solve and keep you out of trouble. I wondered if, given current market fluctuations, you weren’t worried that somehow your responses would be made public. They will not, and not ever. This was the perfect opportunity for you to give your proverbial finger to the worst and the thumbs up to the best.

It’s not Ours, it’s Yours This survey was your survey; you asked for it from WMABA. It was for your benefit and information. I don’t see it as the same endeavor as just taking from you your opinion without making it mutually beneficial. This is giving you what you asked for. The next survey we plan will be our Labor Rate survey. I strongly urge you to consider these aspects when requested for your input on matters that affect you so directly and definitively. We want what’s best for our industry, and specifically all the collision repair members we serve!

Jordan Hendler

(804) 789-9649 jordanhendler@wmaba.com

Check the WMABA website and newsletters for regular updates and reports from the Executive Director’s perspective.

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FEATURE Is It Bent? WMABA Learns About Structural Diagnosis at Annual Membership Dinner “Is it bent, and how do you know?” Shawn Hart (Audi) read the title of the structural diagnosis class he was about to teach as he quipped, “Is that a trick question? When we discuss vehicle structure and damage analysis, we first talk about body structure because when a technician seeks to remove one damaged part, they often have to take six other parts off the car in order to remove that one part. I assure you there isn’t a laboratory in Germany where evil engineers are thinking up ways to screw body shops - everything that’s done to the body during production is done for a purpose.” WMABA welcomed Hart for a presentation on “Structural Diagnosis: Is It Bent? How Do You Know?” during its Annual Membership Dinner at PJ Skidoos in Fairfax, VA. The body structure of a vehicle is supposed to do two things: absorb energy and transfer energy, according to Hart. Crumple zones were designed to absorb as much energy as possible, but once that energy reached a point where nothing more could be absorbed, vehicle manufacturers had to find a way to transfer it. “Engineers developed different load paths for that energy to follow, so that it goes around the passenger compartment and not through the passenger compartment,” Hart explained. “Because of these load paths, we get damages in places where people don’t think about, such as a car that was hit in the front and there’s a buckle in the roof. For example, on an Audi A8, the upper rail is part of that load path that helps direct energy up into the A pillar and into the roof, and you’ll see the lower, smaller frame rail transfers that energy into the engine crossmember and down underneath the car, so that energy has someplace to go.” Hart identified several visual cues that can help technicians identify potential structural damage while they’re diagnosing a car, including the appearance of cracked paint or body sealer, stressed and split seams, broken welds, panel tension, bent or broken interior components, NVH (squeaks, rattles and vibrations) and out of spec panel gaps. “You have to have the right tools for the job when we get to the point of measuring things,” Hart stressed. “Those tools are used to more accurately determine where things are broken and bent, but you also need to reference the specifications to double check your work and make sure things are bent or not bent.” While measurements are necessary, they’re pointless

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without the manufacturer’s specifications which are also useful for demonstrating to the customer that the repair was performed properly. “In Audi’s repair procedure manuals, we provide information on measurements which show the different dimensions that can Shawn Hart be checked, but it also gives the technician some additional information they’ll need, like the tolerances on our vehicles when they’re measuring,” Hart said. Vehicles manufactured by Audi have a strict structural tolerance of only two millimeters, and “if it’s outside that dimension in either direction, one of two things is happening on most of Jordan Hendler our cars,” Hart cautioned. “If it’s on the front, either something’s getting cut off and replaced, or straightened, depending on the model.” Hart shared that Audi only permits cold straightening these days, before he dove into some of the precautions that technicians need to take into consideration with modern cars and electrical control modules, especially on hybrid and electric vehicles. “Technicians need to understand how to disconnect the battery because it’s not as simple as ‘disconnect this lead or this lead;’ when you look at our batteries now, they have a lot of leads so you don’t always know which one you need to disconnect,” Hart elaborated. “You may need to follow a procedure to de-energize the battery or the whole system, and it’s important to note that most of our cars now have a secondary 48-volt system. If you disconnect that without de-energizing things, that’ll put you down.” Hart reiterated the importance of reviewing OEM repair procedures before performing any repair, structural or otherwise, and suggested that a valuable resource for this important information is oem1stop.com.


Structural diagnosis, state of the industry and dinner. BY CHASIDY RAE SISK

State of the Industry Prior to Audi’s presentation, WMABA Executive Director Jordan Hendler updated attendees on some of the association’s key initiatives, such as representing its membership at national meetings including the Collision Industry Conference (CIC) and SEMA, and stressed the value of WMABA’s affiliation with national organizations like the Society of Collision Repair Specialists (SCRS) and the Alliance of Automotive Service Providers (AASP). WMABA is also a sponsor of the Database Enhancement Gateway (DEG), a website where “you can submit inquiries about database times and missing operations, parts, numbers, procedures…anything you find wrong with any of the databases, and they’ll go to work for you on it,” Hendler indicated. “Those databases don’t have the budget to conduct time studies, so the only way they know there’s inaccurate information is if you tell them, and DEG is the way to do it - plus you’ll be helping the rest of the industry.” Referencing WMABA’s consumer document (available for download at wmaba.com/consumer-information), Hendler encouraged use of this association-provided resource that can be used to educate consumers on proper repairs. Addressing some of the biggest industry news of 20212022, Hendler discussed challenges related to Labor Rates, paint

and materials increases, the technician shortage and parts supply issues. “The pandemic has exposed a lot of the issues in our industry, but it’s also been an opportunity for change to happen. If there was ever a time to understand WAYS TO KEEP YOUR what constitutes your Labor Rate FAMILY SAFE AFTER AN ACCIDENT - the cost of materials, training, retooling, equipment - it’s now. You need to do the research.” Hendler encouraged WMABA’s consumer attendees to “look outside your document is available at four walls and have conversations wmaba.com/ with other people around this consumerinformation. room about what they do in their shop and vice versa. I understand that you typically see yourselves as competitors, but I promise you that you are not - you’re colleagues, and this is the perfect time for each of you to recalibrate whatever it is in your business that can put you in a position to do better and be more profitable in the future.” H&D

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NATIONAL

FEATURE OEM Repair Procedures:

Debate Over Recommended vs. Required Continues “Review and follow the OEM repair procedures on every car, for every reason, every time.” The instructions sound simple enough, yet collision repair shops often encounter challenges in regards to insurer reimbursement, largely based on which of two simple words the vehicle manufacturer opted to use: required or recommended. Since “required” translates into “essential or indispensable,” repairers experience less pushback when performing those procedures, but what about “recommended,” a word that merely means “advised or suggested”? For many, this subtle shift in semantics grants permission to skip a process, but industry leaders disagree and have expressed the opinion that the two words are synonymous when it comes to repair procedures. A position statement from the Society of Collision Repair Specialists (SCRS) indicates, “It remains SCRS’ position that if an OEM documents a repair procedure as required, recommended or otherwise necessary as a result of damage or repair, that those published procedures would be the standard of repair until such time the documentation changes. Disregarding a documented procedure that is made available to the industry creates undue

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and avoidable liability on the repair facility performing the repair.” So, does that mean the shop could be liable for neglecting to follow an OEM recommendation? If a shop neglects to follow a “recommended” repair

procedure and legal action is pursued, the judge and jury will definitely understand why the shop didn’t follow that process…right?! Most likely, that assumption would be wrong. On multiple occasions, AkzoNobel’s


Do you need to follow that process, or is it merely a suggestion? BY CHASIDY RAE SISK

Tim Ronak has stressed that the term “recommended” OEM procedures will be considered the same as “required” if a subsequent accident lands a shop in court over this issue, and he’s not alone. “Consider it a requirement whether they’ve used that word or not,” attorney Erica Eversman (Vehicle Information Services) has said many times, observing that OEMs use the verbiage in question “for legal reasons, [but] you can pretty well equate that with a standard.” Well, that doesn’t create any confusion whatsoever, right? It seems imperative to find out what the OEMs say since they’re the ones who manufactured the vehicle, wrote the repair procedures

and indicated whether they are required or recommended. “One word explains the difference between recommended and required: lawyers,” according to Mark Allen (Audi). “All of us - manufacturers, insurers and body shops - have to function within the framework and legal constructs we’re given.” Allen went on to explain that Audi and Volkswagen develop repair procedures while their vehicles are being prototyped and during production by crash testing and repairing them in order to develop the service information they issue to the industry. “We’ll take a Lamborghini valued at

nearly half a million dollars and run it into a wall, so we can repair and document it. Then, we recrash it so we can validate the repairs. Audi does this work to demonstrate a repeatable outcome and in order to provide documented tools, equipment and consumables. Basically, the idea is ‘if you follow this process, this is the outcome you can expect;’ however, we function in a system that allows people to exert their own opinions into the process to conduct a repair that may look good to the naked eye of an undereducated consumer, but there’s been no validation of the process. “So, we can only make a recommendation to avoid conflicts with individuals’ freedoms and interpretations,” Allen continued. “But realistically, from a manufacturers’ standpoint, if we’re saying we ‘recommend’ this, that recommendation is coming from a better understanding of the vehicle structure, the materials used and the process of reconstruction than a mere opinion of ‘I can just do it this way.’” John Willis of General Motors (GM) made a similar observation: “For collision repair procedures, General Motors does not make distinctions between recommended and required. Our viewpoint is we do what is necessary to perform a safe and proper repair. Our customers and their safety are at the center of everything we do. GM publishes the appropriate procedures to restore vehicles back to the condition as designed for repair shops. “To support technicians in their effort to provide safe and proper repairs, GM also provides ADAS-support documents to help repairers identify when calibration is required and regularly improves inspection documents,” Krueger added. CONTINUED ON PG. 16 May 2022

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NATIONAL FEATURE CONTINUED FROM PG. 15

“We’ve also developed more detailed content for procedures to show precise repair requirements, including 3D-shaded graphics and embedded videos, and we continuously coordinate with industry-supporting organizations, such as I-CAR and DEG, to ensure all this information is readily accessible.” Other manufacturers seem to take the same stance. “Recommended procedures are those that we feel should be done to ensure the best outcome, but they have other alternatives or possible processes that would catch any missed items,” explained Benito Cid (Mercedes-Benz), offering an example related to pre- and post-repair scans. “We recommend a pre-scan on every vehicle involved in an accident, but we require a post scan. The pre-scan would help in catching any possible damage that is not visible (i.e. electronic damage, deployed seat belt buckles, sensors, etc.), which improves the initial estimate and likely the cycle time of the repair.

It sounds like “recommended” actually means required, but if that’s the case, it seems that OEMs could avoid confusion by simply clarifying the matter. Why aren’t all repair procedures identified as required? It can even catch pre-existing conditions to ensure they are not included as part of the current loss/damage estimate. Ultimately, the post scan is what would ensure the customer is back in a safe vehicle. “Unfortunately, by not doing a pre-scan, if a problem is found in the post scan, there is likely a delay in completing the vehicle and a high likelihood that multiple post scans will need to be completed as the vehicle needs to be given a clean bill of health before it is returned to the customer,” he added, clarifying, “The post scan must show no issues to ensure the issue was corrected.” It sounds like “recommended” actually means required, but if that’s the case, it seems that OEMs could avoid confusion by simply clarifying the matter. Why aren’t all repair procedures identified as required? “Great question!” Allen quipped. “Entities exist that claim to do research and present alternative ways to do repairs, but I’ve

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personally witnessed several such situations where the vehicle structure didn’t perform to the same level as it would have by following the suggested repair. The concern is often related to the cost of our tried-and-true process compared to the option being proposed. Unfortunately, nothing says that repairers have to follow OEM recommended procedures.” But should they? “Yes, recommended procedures should be done. Ultimately, it is to the benefit of the customer and could save the insurance carriers rental costs by catching potential issues early,” Cid expressed. “Mercedes-Benz constantly reviews and evaluates our stance on these issues based on industry feedback. We have and will change and adapt as needed, based on what’s best for our customers to be put back into a safely and properly repaired vehicle.” Allen agreed. “From my perspective, following and documenting the recommended procedures gives the shop something to fall back on. OEM procedures aren’t opinions or some sort of black magic; they are tested processes that we’ve developed based on factual data and evidence. Repair procedures are developed from a point of research that includes understanding the vehicle structure and how it was engineered, not simply because someone thinks it’ll work.” Hammer & Dolly also reached out to five insurance companies (State Farm, Allstate, Farmers, Progressive and Liberty Mutual) to ask, “From an insurer standpoint, what’s the difference between OEM-recommended repair procedures and OEM-required procedures, and why are these viewed differently despite many collision experts indicating that both ‘recommended’ and ‘required’ procedures should be considered the standard of repair?” None of the insurers responded to our query. “There’s a disconnect between the estimating and repair processes at times,” Allen offered another kernel of wisdom. “Some materials are sacrificial and designed to conserve or redirect energy. Part of understanding the repair is understanding facts about the vehicle like this, but the end goal is to protect the customer and ensure they’re safe for as long as they’re driving that vehicle.” H&D

Executive Director’s Thoughts It’s been said in so many meetings I’ve attended that recommended and required will be the same in the courtroom. While the day-to-day operation or negotiations of repair are made “easier” by being dismissive to the difference, if you’re ever called into question you will certainly lose out. If you think the insurer is on the hook for any of it, you’re absolutely wrong. -Jordan Hendler


WMABA THANKS

YOU

WMABA thanks their generous supporters of the

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COLLISION INDUSTRY FOUNDATION

UPDATE

CIF Urges Support for Tech Burned in Shop Accident

BY JOEL GAUSTEN

The Collision Industry Foundation (CIF) is urging members of the auto body field to do all they can to help Bryan Miller, an Ohio-based technician and painter who is recovering from a devastating in-shop accident that burned over 70 percent of his body and nearly ended his life. Last September, Miller was working on a motorcycle at Elite Auto Body, Cycle and Sales in Bethel, OH when it backfired and triggered a chain reaction that resulted in the shop going up in flames. Trapped inside his work area for several minutes, he caught on fire before forcing his way through a window. Once outside, he watched the building burn as his body was overcome by the agonizing trauma. “The only way I could keep myself from passing out was to scream,” he recalls. Thankfully, a man and woman on a motorcycle soon spotted him and stopped to offer assistance. As Miller remembers, it took 30 minutes for medical personnel to arrive on the scene and another 30 Miller prior to the September shop accident that burned over 70 percent minutes for a helicopter to arrive of his body. to transport him to the hospital. He remained conscious the entire time. Miller’s experience caught the attention of CIF, which has been working hard to bring him a sense of hope and encouragement during this difficult time. At a recent Collision Industry Conference (CIC) in Phoenix, the 150-plus industry leaders in attendance did a virtual shout-out to Miller to show him their support. (A video of this virtual shout-out can be viewed at https://tinyurl.com/25hrcck2.) Although he survived the event, Miller was left with mostly thirddegree burns covering the majority of his body. He also endured a near-fatal case of pneumonia while in the hospital. Six months ─ and multiple surgeries and skin grafts ─ later, he lives in constant pain that he describes as “background noise that’s normal.” Lotion needs to be applied to his body on a constant basis to keep his scars moist. “I have to wake up and basically stretch myself back to some kind of normal mobility. I get tight again every night; it’s like wearing a shirt that’s too small for you.” After leaving the hospital, Miller received constant care by his fiancée, Kassi Nellett, who spent five hours a day changing his dressings. Unfortunately, an infection in his wounds prompted his transfer to the Daniel Drake Center for Post-Acute Care in Cincinnati, where he still resides. Shortly after the holidays, he contracted

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COVID-19. Thankfully now recovered from the virus, he hopes to leave the Daniel Drake Center within the next few weeks and move in with his father in Batavia, Ohio. He expects it will take at least another year for him to regain full mobility and for his scars to settle down. Michael Quinn, CIF Board president and president of AirPro Diagnostics, urges his collision industry peers to support Miller in his recovery and hopeful return to the automotive world. “Bryan’s incredible story is one of survival The CIF urges support and fighting back. We as an industry have an for Miller in his obligation to help our own, and we ask you to continued recovery. dig deep to aid CIF in helping Bryan and his fiancée to start again. This is not a one-time donation or effort; CIF is committed to following Bryan through rehab and getting him the training and tooling necessary to work his way back to a shop. On a recent call with CIF, Bryan called us his new best friends. We are honored to know him, and we are committed to helping him rebuild his career in this industry.” Miller’s many needs include (but are not limited to) funds to aid him in securing permanent housing, tools to replace the ones he lost in the fire and education/direction in regard to new professional opportunities (estimating, parts, etc.) that could accommodate his physical condition as he works towards his desired return to painting and bodywork. Miller, who recently celebrated his 32nd birthday, is quick to express his deep gratitude to his industry friends for everything they have done for him thus far. “I would really like to thank everyone who is and will be involved in making all these amazing things happen for me in such a dark time. It is truly a blessing, and I don’t know if I would even be able to get back in the industry without your assistance.” Tax Deductible donations can be made at collisionindustryfoundation.org/donate. Use “general donation” and specify that your donation is for Bryan Miller. For more information, please call (855) 4CIFAID (toll free) or (804) 427-6982 (direct). Joel Gausten has been covering the national collision repair/automotive service industry since 2000. He can be reached at gaustenbooks@gmail.com. H&D


May 2022

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May 2022


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April 2022

23


COVER STORY

WMABA SHOPS RATE INSURERS: 2022 SURVEY RESULTS ARE IN! Shops’ interactions with insurers serve as a constant source of consternation and contempt for many repairers, but consumers are often the ones who truly get the short end of the stick in these dealings. As part of its ongoing efforts to create and provide consumer-driven resources, tools and information to help the collision repair industry at-large, WMABA launched its second bi-annual Shops Rate Insurers Survey earlier this year in an effort to understand how claims are being handled in the Mid-Atlantic region. “The 2022 WMABA Shops Rate Insurers Survey is intended as an informational resource, as anecdotal results a shop can review or share with their customers,” explains WMABA Executive Director Jordan Hendler. “We surveyed our entire membership region, and while we didn’t have enough responses for the results to be statistically valid, we received some interesting insights that should be useful to get people thinking and to start a conversation.” Using a score of 1 to 5, with 1 being the lowest and 5 being the highest, survey participants were asked to anonymously rate the behavior of 22 insurance companies in several categories: shop relations/claims handling, customer experience, insurer knowledge base, overall fairness and insurer payment for proper procedures. CONTINUED ON PG. 26

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May 2022


Find out who’s the best…and the worst! BY CHASIDY RAE SISK

SHOP RELATIONS CLAIMS HANDLING On a scale from 1-5 (1 the lowest, 5 the highest), how would you rate the insurer on communications, professionalism and handling of claims’ processes?

CUSTOMER EXPERIENCE On a scale from 1-5 (1 the lowest, 5 the highest), how would you rate the insurer on your perception of the customer experience with the claims process, such as how informed they are, knowledgeable of their policy or having to negotiate the repair?

INSURER KNOWLEDGE-BASE On a scale from 1-5 (1 the lowest, 5 the highest), how would you rate the insurer on their knowledge of repair procedures, and accuracy of their estimates for repair?

The 2022 WMABA Shops Rate Insurers Survey is intended as an informational resource, as anecdotal results a shop can review or share with their customers. May 2022

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COVER STORY CONTINUED FROM PG. 24

Erie Auto Insurance ranked first in all categories with a combined score of 21.27 out of 25, compared to its previous 17.28, showing the largest increase (3.99) in overall score of all insurers. Amica came in second with a combined score of 16.43, remaining fairly consistent with the 2019 results when the positions of these two companies were comparable, with the exception of their scores for payment for proper procedures and knowledge base when Amica took the lead. Shops’ lowest scores in all categories went to Allstate this year, giving them a combined score of 9.37, while Liberty Mutual, with an overall score of 9.84, ranked 21st in four of the five categories; State Farm stole the second-toworst place prize for customer experience. In 2019, the good-enough neighbor ranked ninth in customer experience but took third place in claims handling and came in fourth in the other three categories. This year, their results were vastly different in all categories - although State Farm ranked 15th in knowledge base, their scores were the third lowest on the remaining three topics for a combined ranking decrease of 72 spots between all categories. The insurer’s previous overall score of 13.87 dropped to 9.98, making them one of three insurers to score less than 10 in total. “It’s not a surprise to me that State Farm’s score has gone down significantly,” Hendler opined. “Given that many of the shop and consumer calls or emails to our office in the category of insurance complaints are specifically this company, it should be noted they were once the company that shops wanted to work with, and now they’ve become one of the worst. That goes for the customer experience as well. Whatever prioritizations they have made in their claims department, it has clearly changed.” Conversely, MAPFRE North America, Hanover Insurance and Nationwide saw significant improvements according to survey participants, increasing their overall scores by 2.22, 1.63 and 1.6 respectively. Many respondents utilized the comments section to vent their frustrations about insurer short pays, virtual estimates and reimbursement rates failing to keep pace with rising costs and

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OVERALL FAIRNESS On a scale from 1-5 (1 the lowest, 5 the highest), how would you rate the insurer on your perception of fairness of the overall process dealing with the particular company and their personnel?

INSURER PAYMENT FOR PROPER PROCEDURES On a scale from 1-5 (1 the lowest, 5 the highest), how would you rate the insurer on their payment for recommended, required or proper repair procedures deemed necessary to bring vehicle to OEM specifications?


Several Survey respondents shared additional comments. Here are some highlights: “Progressive, GEICO and State Farm short pays are higher than ever, and they refuse to budge. I’m getting burnt out on arguing non-stop about how to fix a car with people who aren’t capable of changing a tire, so I’m passing the short pays along to the customer in most cases.” “The common comment from insurers of ‘That’s the price of doing business’ is getting old. Materials have gone up substantially, and the insurance companies have not addressed this issue.” “Insurance companies need to be held to a higher standard as their regular course of business involves ripping off their customers. They knowingly deny proper repairs and ignore OE position statements. It’s disgusting.” “Insurance companies are not up to date with proper repair procedures. They are still living in the 1900s. Also, the insureds have no idea of the amount of items that their cheap insurance won’t pay for until they have a claim. Cheap insurance is just that…CHEAP!”

inflation. “The delays in the estimating process, disagreements over proper repairs and even labor and material rates have elevated to a critical point,” Hendler added. “There is only one way to avoid the hassle of the claims process, which is to bill the vehicle owner directly. If you’re not willing to do that, then still submitting the proper repair estimate shouldn’t be as cumbersome as it has become. What’s proper to fix the vehicle, as documented by the repair bill, should not ensue a continued back and forth that further delays the repair.” WMABA debuted its insurer survey in December 2018 (results can be found in the May 2019 issue of Hammer & Dolly, available at bit.ly/ins1819). The data collected this year provides a good resource for consumers seeking more knowledge about these carriers and their practices, and survey results are an effective tool for starting conversations with customers who can also use the information to help them in the policy-buying process. WMABA

“Insurance companies have used virtual estimates to cut the labor times on every estimate. No matter how many pictures you send, they will always say they can’t see that much damage. In the days before virtual, you could show the adjuster and feel the damage. Insurance companies are using uneducated adjusters to cut something on every line on every estimate and then lock the estimate without going over the changes with the shop. One particular insurance program has gone from one of the best to one of the worst over the last three years since they went to virtual estimates.” “It amazes me that shops know more about auto insurance policies than those working in the auto insurance claims profession.” “State Farm and Allstate routinely take several weeks to process supplements. They do not communicate with the shop regarding changes to supplements and frequently refuse coverage for manufacturer-required procedures.”

anticipates that the information collected on approximately two dozen carriers will also be beneficial when approaching consumer protection agencies regarding inappropriate insurer behaviors in the future. By identifying the specific market tactics individual insurers use in their market, WMABA plans to use the information to demonstrate the repair industry’s perceptions about those practices to carriers and hopes to engage in meaningful dialogue that will hopefully improve shops’ relationships with local carriers.

*This survey is not considered statistically valid and is for informational purposes only. WMABA hopes future participation increases to show more relevant market data that is statistically relevant. H&D May 2022

27


AROUND THE INDUSTRY

We’re so proud!

TGP SENIOR VICE PRESIDENT ALICIA FIGURELLI HONORED AMONG WOMEN’S INDUSTRY NETWORK’S 2022 MOST INFLUENTIAL WOMEN Thomas Greco Publishing is proud to announce that Senior Vice President Alicia Figurelli was selected as a recipient of the Women’s Industry Network’s (WIN) 2022 Most Influential Women (MIW). The MIW awards honor the women whose career achievements have enhanced the collision repair industry. “Alicia has been dedicated to this industry for the past two decades, and she always goes above and beyond her duties,” shared Thomas Greco, president of Thomas Greco Publishing. “She is selfless, generous and determined, all characteristics she applies to her involvement in everything she does. We are proud of her and excited to see her efforts recognized by a national organization like WIN.” “I respect all the amazing work WIN does to promote and elevate women in the industry, and to be considered worthy of such an honor, to be recognized in the company of so many exceptional women, is simply amazing,” Figurelli expressed. Thomas Greco Publishing represents a variety of automotive repair trade associations including the Alliance of Automotive Service Providers of New Jersey (AASP/NJ), the Alliance of Automotive Service Providers of Massachusetts (AASP/MA), the Alliance of Automotive Service Providers of Minnesota (AASP-MN), the Washington Metropolitan Auto Body Association (WMABA) and the

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Auto Body Association of Texas (ABAT). In addition to Figurelli, this year’s honorees include Allison Boever (Repairify), Shirin Hezar (Caliber Collision), Jennifer Hubbard (CCC), Samantha Kita (Gerber), Debbie Menz (Axalta) and Micki Woods (Micki Woods Marketing Genius Alicia Figurelli for Body Shops). “These seven sensational ladies have made a huge impact on the collision repair industry through their dedication to excellence, commitment to their communities and investment in the future through their willingness to mentor other women,” says Rachel Hinson, MIW committee chair. “Your exemplary journeys show young ladies that anything is possible when you put in the work. We can’t wait to celebrate you at the Conference!” Since the MIW awards were established in 1999, over 100 inspiring women have been recognized for their visionary leadership and commitment to excellence. WIN will celebrate the achievements of this year’s seven MIWs during its 2022 Annual Conference, scheduled for May 2-4, 2022 in Greenville, SC and online. For more information about WIN or the Most Influential Women award, visit womensindustrynetwork.com. To learn more about Greco Publishing, visit grecopublishing.com. H&D


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Co-celebrating decades of creating chemistry between two industry leaders

Here’s to 235 years of combined service excellence This year, as Albert Kemperle Inc. celebrates its 80th anniversary, BASF also celebrates its 155th anniversary. We are proud of our decades of partnership with BASF and years of serving the auto paint and body industry together. Kemperle’s founders would be proud of this relationship and the growth their company has experienced because of it. Today, as we look forward to many more decades of service to our customers, we find ourselves filled with gratitude. The creativity, hard work, and sense of responsibility of the people working for our two companies have made us what we are today. Thank you for your many years of loyalty.

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EDITOR’S MESSAGE CONTINUED FROM PG. 4 opportunities to learn, grow and progress into a newer, stronger industry. Refusing to move forward leaves us stuck in the past, unable to step into the future and ultimately creates more, harder work in the long run. We simply need to understand the benefits of embracing progress – and the detriments of pissing all over it. I wish such simple logic was similarly applicable for teaching Apollo about the benefits of progress, but he’s not a rational human being; he even marks dog food delivery boxes. Way to pee in your own Cheerios, Apollo. Damn chihuahua. H&D

May 2022

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INDUSTRY

ADVICE

ASK MIKE:

How Can Shops and Consumers Better Handle Total Losses? – Part 2 This month, we “ASK MIKE” to share his thoughts in the second part of a two-part conversation on how shops and consumers can better handle total losses. Last month, Mike offered his perspectives on what shops could consider in terms of labor and billing for total loss vehicles. This month, he explores how the consumer can get involved if they disagree with their insurer’s total loss valuation of their vehicle. We at Hammer & Dolly hope you find the following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a future issue. Hammer & Dolly: Last month, we talked about the shop side of total losses. Now, let’s talk about how consumers could be more informed and involved. Some consumers may not agree with the valuation they receive from their insurer. What kind of conversation could a shop have with its customers to help them better understand the situation and what they can do about it? Obviously, shops can’t offer legal advice, but are there general points or resources that they can pass along to their consumers? Mike Anderson: Some shop owners and managers are very in tune with how to support a customer in determining the valuation of a total loss, but it may not be in most owners’ or managers’ knowledge basis. As I mentioned last time, shops could find a third-party professional – like Robert McDorman of Auto Claim

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Specialists and John Walczuk of ZB Negotiations – to provide that service to your customer. If you don’t know somebody like that, maybe you could suggest to the customer that they go to a dealership and locate a used car that would be comparable to theirs by year and see what the value is. They may want to look for ‘certified pre-owned’ vehicles, which would give them a better valuation. There are other considerations when a shop is assisting a consumer with this. For example, does a valuation offered from a third-party insurance carrier include the taxes on the vehicle? What about the title or tag transfer fees? Did the vehicle owner have to get a state inspection or an emissions inspection? These are things to keep in mind when determining what’s included – and not included – in that total loss valuation. H&D: Technology in automobiles is always accelerating. What shops are dealing with right now in terms of ADAS is just one example. Have you seen that have a major impact on total losses? MA: I was recently with a bunch of shops in Ohio, and they told me they’ve had insurance companies total loss vehicles at 50 percent of the vehicle’s value. It’s very important to know what the total loss threshold is for your state. Some states say that the repair of supplemental restraint systems (SRS) comes off the value of the vehicle, and I know of another state that removes paint labor and materials from the estimate before a valuation takes place. H&D: The Appraisal Clause is available in several states as an option for consumers. As you know, it’s a pretty


Total loss considerations to keep in mind.

straightforward process: If an insurer and a policyholder disagree on the amount of a loss the insurer is willing to pay to settle a claim, either side can demand an appraisal of the loss. Each party selects a competent and impartial appraiser, while an umpire is also selected. The umpire reviews the actual case value and amount of loss submitted by the parties and reaches a binding decision on the amount of loss. Generally speaking, what are your thoughts on the Appraisal Clause as something that a customer can utilize to get what they’re owed? MA: There are some insurers in some states that are doing away with that in their policy language, but it’s really the only option for a consumer to resolve their disagreements between the shop of their choice and their insurer. It’s the only thing they have without legal action, which most consumers don’t have the money or desire to pursue. It’s important for consumers to look at their state and understand which carriers offer that in their language and which ones do not. Some insurers have removed the Appraisal Clause or Right to Appraisal, and that doesn’t benefit consumers because they then don’t have that option for resolving a dispute if one occurs. H&D Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com).

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