New England Automotive Report January 2023

COLONIAL NISSAN

104 Mystic Avenue Medford, MA. 02155

Phone Number: 781-395-3025

FAX Number: 781-475-5063

CITY SIDE SUBARU

790 Pleasant Street Belmont, MA 02478

Phone Number: 617-826-5013

FAX Number: 617-489-0733

NORTH END SUBARU

757 Chase Road (Rte 13) Lunenburg, MA 01462

Phone Number: 877-289-0053

FAX Number: 978-582-9843

COLONIAL HONDA OF DARTMOUTH

225 State Road (Rte. 6) Dartmouth, MA. 02747

Parts Direct: 508-997-2919

FAX Number: 508-730-6578

COLONIAL CADILLAC

201 Cambridge Road Woburn, MA. 01801

Phone Number: 781-935-7009

FAX Number: 781-933-7728

NORTH END MAZDA

757 Chase Road Lunenburg, MA. 01462

Phone Number: 800-322-1241

FAX Number: 978-582-9841

COLONIAL FORD OF PLYMOUTH

11 Pilgrim Hill Road Plymouth, MA 02360

Phone Number: 800-233-8109

FAX Number: 508-830-1658

COLONIAL FORD OF MARLBOROUGH

428 Maple Street Marlborough, MA. 01752

Phone Number: 888-460-1125

FAX Number: 508-460-3464

COLONIAL VOLKSWAGEN

89 Turnpike Road (Rte. 9) Westborough, MA 01581

Phone Number: 888-322-6570

FAX Number: 508-616-0445

COLONIAL VOLKSWAGEN OF MEDFORD 162 Mystic Avenue Medford, MA. 02155

Phone Number: 781-475-5200

FAX Number: 781-391-3506

WELLESLEY VOLKSWAGEN

231 Linden Street Wellesley, MA. 02482

Phone Number: 800-228-8344

FAX Number: 781-237-6024

Contact: Dan Bettencourt / Wholesale Parts Manager

COLONIAL SOUTH CHEVROLET

361 State Road (Rte. 6) Dartmouth, MA 02747

Phone Number: 508-996-6266

FAX Number: 508-979-1219

COLONIAL CHEVROLET

171 Great Road Acton, MA 01720

Phone Number: 800-787-2787

FAX Number: 978-263-8587

COLONIAL WEST CHEVROLET

314 John Fitch Highway Fitchburg, MA. 01420

Phone Number: 978-345-5532

FAX Number: 978-345-1152

COLONIAL CHRYSLER

JEEP DODGE-RAM

24 Coolidge Street (Rte. 62) Hudson, MA 01749

Phone Number: 978-568-8000

FAX Number: 978-562-1213

COLONIAL SOUTH CHRYSLER JEEP DODGE-RAM

42 State Road (Rte 6) Dartmouth, MA 02747

Phone Number: 508-984-1900

FAX Number: 508-996-5801

To say that I am very excited about what is in store for the collision repair industry here in Massachusetts in 2023 is an understatement. With the momentum we created on many key and critical issues in 2022, coupled with the attention we have received in the media, both locally and nationally, we are poised to see even more advances and successes than we experienced over the past year. At the forefront of our efforts, we will continue improving the artificially suppressed labor reimbursement rate, coupled with our renewed effort to have the Auto Damage Appraiser’s Licensing Board (ADALB) moved from its insurance industry controlled placement under the Division of Insurance (DOI) to the Division of Occupational Licensure (DOL). Our eyes are laser-focused on having a major impact in 2023.

Our collective voices have had a significant impact on our legislators. Our industry’s plights and concerns have been the topic of many discussions by leadership in both the House and Senate, as well as at the local district level. Legislatively, we have never been so close to passage of bills that would benefit not only collision repairers but our customers as well. Detractors, among which are insurance companies and some shops, will say that since our bills did not pass, we have failed. These are the same individuals who have not been truly engaged and are happy to sit on the sidelines rather than get involved. They have not stayed informed. As AASP/MA, aka the “ALLIANCE,” has steadily increased our membership across the state, there are still those who are resistant or are mired in “learned helplessness.” They are the same individuals who do not realize that ANY increase in the labor reimbursement rate experienced thus far has been a direct result of the efforts of the “ALLIANCE” working together to bring pressure on insurers. All this has been created by AASP/MA members’ efforts.

Yes, some insurers have raised their labor reimbursement rates a “significant” amount, and even the more difficult companies have raised their rates by a “minimal” amount. Most shops find this minimal amount insulting; however, there are still shops out there who continue to accept it as a ceiling of what

P.O. BOX 850210 Braintree, MA 02185

Phone: 617-574-0741 Fax: 973-235-1963 Email: admin@aaspma.org

they can charge. Then, there are those business owners who have chosen not to wait for someone else to remedy their situation. These shops made the independent business decision in 2022 to “break free!” They chose to either never be part of the problem brought on by referral and program contracts, or they have seen that these programs no longer carry the weight they once did with consumers and have weaned themselves off the lists. Consumers have become more and more aware of the insurance industry’s tactics employed for the sole purpose of protecting profit margins with no regard for the safety of their policyholders! Consumers and shops have learned that they are each other’s best and strongest allies in the repair process. Sure, there are those consumers whose overwhelming concern is the bottom line cost of the repair, and you will never be able to change their mind…but do you really want that person as your customer? Wouldn’t you rather have a customer who understands all the issues and liabilities involved in repairing today’s vehicles? Wouldn’t you prefer a customer who can appreciate the fact that their insurance company is collecting 2023 insurance premiums and trying to pay labor reimbursement rates and utilize repair techniques from 20 to 30 years ago? Wouldn’t you rather have a customer who will partner with you to get proper repairs performed and paid for on their vehicle by their insurance company?

I am also excited about the increasing number of calls I have been receiving from shops inquiring about removing themselves from the referral list program. They are also asking for assistance about having discussions with their customers about the potential for “co-pay” on their repairs for the shortfall created by THEIR insurer because of an insufficient labor reimbursement rate and the failure to properly indemnify the insured for ALL needed procedures to restore the vehicle to a safe drivable condition. I was invigorated to see and hear from so many shops from across the state at our November general membership meeting (see page 12 for full coverage.) I was more excited when shops who were not present reached out for the very important information which was shared and discussed at the meeting. The echoing of “BREAKING FREE IN 2023” was truly inspiring.

In 2023, the “ALLIANCE” will continue to build upon the lessons learned and the relationships developed in the legislature, the media and other potential methods of effectively changing our situation for the better. A key part of that plan will be to continue the successful increase in membership. We have just elected a new Board of Directors (BOD). You will see from the names listed on our website (aaspma.org) that we have increased the involvement across the state by adding additional affiliate directors who will be instrumental at the local level. The influence we had on our legislators in the previous legislative session came from the grassroots movement we were able to put into motion. We will be implementing what had been working successfully pre-COVID in the form of local ZONE meetings, coupling them with statewide

general membership meetings similar to the one held this past November. We are sending out a survey to the attendees and to the membership-at-large for input as to what you found beneficial and what types of meetings you would like to see in the future regarding topics and presenters.

We are an “ALLIANCE,” and in order to be successful, we must act as ONE. Your continued support and participation will guarantee seeing our goals become a reality. The “ALLIANCE” can teach you how to present your case to your customer and engage them in the process as an ally, keeping you and the vehicle owner miles ahead of insurers. You will be asking yourself, like so many others already have, “Why did I wait so long to stand up and push back?”

These are and will continue to be exciting times for those who decide to “Break free in '23.” Hit the ground running with the “ALLIANCE.” If you are not a member…JOIN NOW…See page 7 for an application and a list of just a few of the money saving benefits that come with membership.

We are an “ALLIANCE,” and in order to be successful, we must act as ONE. Your continued support and participation will guarantee seeing our goals become a reality.

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©️2023 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks. 10 January 2023 New England Automotive Report

AASP/MA Leads Body Shop Professionals Toward ‘Taking Back Their Business’

“Breaking free in 2023!”

Nearly 100 fired up collision repair professionals representing every corner of the state – illustrating the “allied forces” that truly make up the “Alliance” – shouted this mantra in unison as AASP/MA Executive Director Lucky Papageorg led the way.

The inspiring message set the tone for the Alliance’s November Fall General Membership meeting. Repairers flocked to the auditorium at Assabet Valley Vocational Technical School in Marlborough on a Saturday to soak up the beneficial education and collaboration offered, which focused on the idea of “Taking Back Their Business” in order to “break free in 2023.” The attendance list also included repair professionals from as far as New Jersey and New York.

Repairers took in discussions on how to develop a successful co-pay system led by Jack Lamborghini (Total Care Accident Repair; Raynham), how to use valuable tools such as National AutoBody Research’s “Collision Powerpak” presented by Don Dowling (Marblehead Collision; Marblehead) and other business-building resources that are needed to survive in an industry that is constantly challenged with third-party interference from the insurance industry.

While recent legislative attempts to improve the labor rate did not come through this time around, discussions involved other ways to fight back, regain control and get paid fairly.

Lamborghini gave repairers a lot to think about when it comes to insurer referral programs demonstrating their negative impact on what repairers get paid. “Even if only one shop agrees to a price set by a referral program, it can set the prevailing rate,” an inaccurate price based on little to no data which then devalues the cost it really takes to properly fix today’s vehicles.

He and his business partner Brian Bernard relied on these programs for quite some time but have since completely cut the cord and have not looked back.

The pair walked their fellow repairers through every step they took to sever these insurer agreements and how establishing a

co-pay system to balance-bill their customer has been “life changing.” Their shop only bills at their own posted door rate and “collecting a significant amount from each customer in the form of a co-pay is helping.”

There need not be worry in losing customers if they are treated right, Lamborghini stressed. Keeping them informed of the process helps them see the good care they are receiving…and also opens their eyes to the poor treatment they often encounter from their insurer.

Through customer feedback surveys, he has been pleased to find not one customer has complained about having to pay money out of pocket.

The more shops that adopt this practice, the more insurers – or “the cartel” as Lamborghini likes to refer to them – are likely to “feel pressure.”

“There has never been a better time in our industry to do what we are all about to do,” he noted. “It’s the perfect storm. We all don’t have a full staff, we have more work, and cars are more complex than ever. I will not fix a car for as little as $40 or anything close to that. We owe it to ourselves and those who work for us to get paid fairly and appropriately to do what we do.”

Tools and resources, such as National AutoBody Research’s Variable Rate Survey, can go very far in helping shops get paid what they deserve.

“One of the main reasons we got ahead of where we are with the labor rate is thanks to the information collected on the VRS,” Papageorg suggested regarding small increases which have come about. “These aren’t pie in the sky numbers. When you answer the survey, it has to be with your posted door rate, the rate you use when writing your estimate.”

Dowling shared his experience using NABR’s BillableGenie program. Subscribing shops can submit their estimates to the program which compiles true rates from shops all over the state and country. The collected information is proof of actual market rates as opposed to the misleading prevailing rates set by insurers.

“I don’t work for NABR, but I believe

by Alana Quartuccio Bonillo

Jack Lamborghini

Don Dowling

Rick Starbard

Barrett Smith

in it,” he boasted. “The more we feed to the system, the more it pays out.” Posting door rates via the LaborRateHero.com tool and updating it often has helped lead to some small increases from insurers.

Collision industry consultant and well-known speaker Barrett Smith of Auto Damage Experts gave the featured presentation, “How to Take Back Control of Your Business,” inspiring the auto body shop audience to think outside the box, earn customers’ trust and “reset the switch” to take their business back.

Smith reminded all that they are the experts and therefore it is the shops who should be in control. “You are just as important as a surgeon, doctor, accountant or attorney. You have an immense amount of responsibility to consumers because you are dealing with their safety, their economic well being and the proper restoration of their vehicle.”

When it comes to insurer pushback on fixing cars correctly, in Smith’s eyes, there is only one answer to that: “Do the right thing, the right way and for the right reasons. I encourage you to serve the customer and empathize with them. You should treat your insurance company as a guest on behalf of your customer.”

When the sight of a claims adjuster pulling up to the shop leaves one with anxiety, something is not right. “You should be enjoying your life. You should be enjoying being a business person and providing a viable service to your community. You should not be full of angst because the adjuster pulled up. They don’t control your business, but you are allowing the insurance industry to control you, your business and overall your mental health.”

It’s the customer the shop should focus on. Any high quality shop will “manage the customer’s expectations” by providing a positive experience from the first time a customer visits the website to the moment they arrive at the facility. Being sure to have that customer draw a pleasant picture in their mind of your facility will go a long way. “You have to be able to convince your customer that you have their best interests in mind.”

It can really turn things around.

“If you do everything you possibly can to run your business properly, ethically and morally, insurers will quit messing with you.”

Smith echoed “the perfect storm” Lamborghini predicted earlier in the day.

“They know it’s coming. They know shops are wising up. You can only poke a dog so long before it fights back. Our industry has been poked, prodded and abused for so long; they know it’s coming.”

Another highlight was a panel discussion moderated by Papageorg featuring Rick Starbard (Rick’s Auto Collision; Revere and Auto Damage Appraisers Licensing Board member), Ray Belsito (Arnie’s Auto Body; Charlton and former insurance professional) and Ken Miller (821 Collision; North Haledon, NJ and AASP/NJ Board member) who were joined by Lamborghini and Smith.

Along with audience engagement, the discussion tackled issues caused by the ADALB being housed under the Department of Insurance (DOI) rather than the Department of Occupational Licensure (DOL) as well as the role that effective complaint filing

ADALB Chooses Not to Act

When the Auto Damage Appraiser Licensing Board (ADALB) gathered only a month after its previous meeting, hopes ran high that actions would be taken…but those hopes were dashed as the review of submitted complaints quickly yielded the same pattern that has been seen in previous meetings: Insurance representatives repeatedly voting against regulating appraiser activities, while Chairman Michael Donovan neglected to cast a vote, despite urging to do so.

Either Board member Rick Starbard (Rick’s Auto Collision; Revere) or Board member Bill Johnson (Pleasant Street Auto; South Hadley/Belchertown) submitted motions to move forward on complaint after complaint...while an equally consistent negative vote sounded from Board members Samantha Tracy (Arbella Insurance) and Peter Smith (MAPFRE) in response. As each vote ended in a tie, Donovan announced the motion’s failure.

“When it’s a tie vote and it fails, is this your de facto ‘no’ every time?” Johnson queried. “I think it’s important that you go on record as to what your feelings are with this. If you’re not voting, it’s a ‘no’ I guess because you’re making the motion fail.”

“I defer to the expertise of the experts,” Donovan evaded.

Ultimately, 12 of 15 complaints were dismissed; three others will be revisited in the next session as Starbard ceased putting motions forward, accusing, “This Board chooses not to act!” He also observed that neither Tracy nor Smith ever suggest dismissing complaints; their only activity continues to be rejecting his and

[LOCAL] NEWS

Johnson’s motions. (Be sure to check out grecopublishing.com/ near1222localnews if you missed our Q&A with Starbard in the December 2022 edition of New England Automotive Report!)

During the call for new business, Starbard brought up the need to update educational requirements related to testing and licensing for motor vehicle damage appraisers.

“I’d like to request that the Board reaches out to all instructors for copies of the curriculum taught in classes. I’d also like to create some type of working group, made up of segments from both industries, to discuss the professional development that should be taking place as opposed to appraisers being able to keep the licenses they obtained in 1978 by paying $50 every year, without keeping up with the changes in the industry.”

Other Board members agreed that the topic was “worth exploring” and made plans to discuss further at the next Board meeting.

Although the ADALB scheduled to reconvene on November 30, the meeting was canceled and has been tentatively rescheduled for Tuesday, January 17. Don’t miss the detailed coverage of the October meeting, only available in the December issue of the Damage Report members only newsletter.

AASP/MA members are strongly encouraged to listen to the recording of the October 26 meeting in the Members Only section of aaspma.org for a glimpse into the inner workings of the ADALB. View the meeting agenda at bit.ly/ADALB1022

In Memory of Bob Sheldon

Former shop owner and Massachusetts Auto Body Association president Robert “Bob” Sheldon, age 80, formerly of Leominster, passed away in November 2022 at his home in Port St Lucie, FL, following a lengthy illness.

Sheldon was known as “Mr. Super Fantastic” since that was always his response when anyone asked how he was doing. After graduating high school, he served in the US Navy. Upon his return home in 1969, Sheldon founded Lancaster A1 Auto Body CARSTAR which he owned and operated for over 30 years. During his career, he always gave his best, and he was a particularly dedicated advocate of his beloved collision repair industry.

In addition to serving as president of the Montachusett Auto Body Association and later as president of the Massachusetts Auto Body Association (MABA), Sheldon volunteered his time in many other positions within the organizations as well. As president of his local Rotary club, he received the Paul Harris Fellow award, which is the highest recognition any Rotarian can achieve. Sheldon’s involvement in the CARSTAR Collision network was instrumental during the early stages when it was first introduced, and he later received the Business Man of the Year Award.

Until his retirement in 2000, Sheldon typically spent his time

in the shop or in meetings to support his industry, but when he wasn’t focused on the business, he could be found at the local soup kitchen, helping the less fortunate. During his retirement, he enjoyed traveling the world with his wife, and they were blessed to see many wonderful places together. Sheldon loved spending time with his family, and when he had the chance, he was often located on his boat with a fishing pole in his hand. He will be greatly missed by all who knew him.

He leaves behind Carol, his wife of 56 years, his daughter Kerrie and two grandchildren, Mackenzie and Bailey Ray. Funeral services will be held on January 13 at the Sarasota National Cemetery where Sheldon will be buried with military honors.

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MASSACHUSETTS'

10 TOP

BODY SHOPS

By Alana Quartuccio Bonillo

What does it take to be considered among the best body shops in the Commonwealth? New England Automotive Report went on a mission to find out. We combed the internet, read countless consumer reviews, polled industry members and came up with this list of the Top 10 Body Shops in Massachusetts, presented here in no particular order:

Luzo Auto Body

19 County Street, New Bedford

Since 1967, Luzo’s Auto Body has been serving the New Bedford area with quality service and “timely performance” as one testimonial writer boasts. One Facebook follower says: “I’m beyond happy with the way my car turned out. To add, the customer service is exceptional! From a professional and my own personal experience, A+++. Everything was handled beyond my expectations. I would recommend this place to everyone!” Another reviewer praises the shop’s professionalism and timely manner by stating, “Professional, friendly and finished in a timely manner. I can’t say enough about Luzo Auto...My car looks better than new!!”

Gulino’s Auto Body 1062 Broadway, Revere

According to Gulino’s website, their team of certified technicians have over 80 years combined experience in auto body repair and precision collision work. They strive for “elite service and elite quality.” A Google reviewer writes, “I gave Gulino’s five stars due to the amazing customer service. Kenny kept me updated on my car’s status every step of the way. My car came out perfect. The work was done quickly and efficiently. They are hands down the best auto repair service I have ever had to use.” A Yelp reviewer agrees: “Amazing work and service. Very reliable and friendly. They treat you like they would their family. My family and I have been going to them for years. I recommend them to everyone I know!”

Gulino’s Auto Body

Middlesex Auto Body Co, Inc. 8 Harrison Street, Natick

John’s Collision Restoration 81 Plant Road, Hyannis

John’s Collision has been operating for over 40 years and has built a reputation for quality service based on the multiple reviews floating around on the web. One Google reviewer boasts: “Incredible job well done fixing my door as well as customer service. Timing was quicker than expected, and I know in the future whatever comes my way I can trust them with my vehicle.” A Facebook follower writes, “Perfection on my 2011 E350 Mercedes Benz! She looks brand new!!!”

Wenzel’s Auto Body & Glass 26 Commerce Park Road, Pocasset

Family-run and operated, Wenzel’s Auto Body has been in business for 10 years and counting. With more than 200 reviews on Google alone, the shop is recognized for its “excellent work and friendly customer service.” One Yelp reviewer says, “This is my second time bringing a vehicle to Wenzel’s for damage from an accident. I don’t know how you improve from damn near perfect, but they do – from my first call to them handing me my keys. The level of professionalism is unbeatable!! My car looks great inside and out!! They handled everything for me and assisted with the rental. If I get hit again, guess where I am going.”

This family-owned business, which “believes that our customers need to be treated as family,” has been serving its local community since 1952. As one reviewer posts: “Have been a customer for about 40+ years. From Don Willams to his son, Steve, and grandson, Jeff, best people ever. Their work is impeccable, and they take great pride in their finished product. Would never go to anyone else.” A recent Google reviewer recalls, “I went to the shop to get my car repaired after a minor accident. This was my first experience of getting my car repaired. Jeff and his team were incredibly helpful in helping me navigate through the various processes involved. Jeff answered all my queries about the repair work and kept me regularly updated on the repair status. Highly recommend this place for their amazing service!”

John’s Collision Restoration

Luzo Auto Body Middlesex Auto Body Co, Inc.

Wenzel’s Auto Body & Glass

Total Care Accident Repair

81 Brookside Circle, Raynham

Total Care Accident Repair is known for providing the “total package,” from customer care to cleaning and delivering vehicles back to their customers. One customer who was in their recent care states: “They took care of me every step of the way. They are super knowledgeable, and my vehicle came out perfect. They even detailed my vehicle which I wasn’t expecting and was a really nice personal touch. I would highly recommend their services to family and friends.” Another claims, “From the very first phone call to picking up my car after my services were completed, this place is fantastic! Jack is amazing and always willing to go the extra mile for great service. Could not recommend this place enough! Will definitely be telling friends and family, if they ever need work done.”

Simon’s Auto Body

37 Waverly Street, Framingham

Authentic Auto Body 7 Jeffrey Avenue, Holliston

A relatively new shop established in 2016, the business was launched on the premise that a body shop could be profitable without pushing inferior parts and materials or cutting corners on safety items, thereby making sure people are treated the right way. Their reputation has earned them a whopping 500-plus positive reviews on Google such as this one: “Authentic Auto Body is absolutely amazing to work with! They took care of my brand new car after I got into an accident and brought it back to showroom condition. On top of their high quality work, the level of communication and ease of the whole process was exceptional. They definitely take pride in their quality of work and always have their customer’s back. I would recommend them time and time again! A Facebook reviewer offers, “Authentic Auto Body is the best! The staff are all very friendly and helpful with whatever you may need; they are truly there for their customers. And their new building is beautiful! The waiting room is so inviting and comfortable to sit while you wait for your vehicle to be ready. Highly recommend!”

APC Auto Body 28 Ventura Drive, Dartmouth

More than 100 reviews support APC Auto Body’s claim that the business, established in 1991, has a 98 percent customer satisfaction rating. One happy reviewer on Yelp says, “Al and his team at APC will do the job right…on time and professionally done. From the state of the art facility to his friendly and competent staff, APC is the only place in the Southcoast that will bring your vehicle back better than ever. Five stars!!”

Al Brodeur’s Auto Body 412 South Street, Marlborough

Led by the Freitas family, Simon’s Auto Body strives to keep their customers happy and informed on the entire process from start to finish. As one happy customer writes, “Great service! My wife was in an accident, and they took care of everything for us. Ana was amazing, explaining everything to us and helping throughout the whole process. Thank you Ana.” Another champions the shop for helping them fight their insurer. “Did expert work, but perhaps more importantly, I had a lot of problems with my insurance company (this was my first claim in MA, and the rules are different here). The folks at Simon’s helped me advocate for myself and eventually got my insurance company to cover all of the manufacturer’s recommended repairs – even after they had initially declined some of the work as optional. I would definitely recommend them to a neighbor.”

Run by members of the Brodeur family, this shop has been in business for over 50 years and was recently recognized as Small Business of the Year by its local Chamber of Commerce. One reviewer on Yelp writes: "There are not enough words to say Thank you for a job well done.”

Another writes: “This place is a class act! Every person I talked to there was friendly and kind, and the work done on my car was top notch. You would never even know there was any damage. I received phone calls with updates, and my car was completely detailed when I picked it up. I highly recommend Al Brodeur’s Auto Body to anyone who needs work done on their car!”

APC Auto Body

Simon’s Auto Body

Al Brodeur’s Auto Body

ADAS ALL OVER...

Between rear cameras, blind spot monitors, emergency braking, adaptive cruise control and many other systems, ADAS is everywhere, often lurking beneath the surface of today’s vehicles from bumper to bumper. But like so many things, it’s easy to fall into the pattern of “out of sight, out of mind,” yet ignoring the need to calibrate these important safety features can have catastrophic consequences for your customers…and your business.

For at least the past several decades, collision industry leaders have preached the necessity of pre- and post-repair scans, and their efforts have finally paid off. According to the 2022 “Who Pays for What?” survey on scanning and calibrations, which took place this past fall, 91 percent of shops pre-scan “all” or “most vehicles;” that number increases to 94 percent for post-repair scans, showing vast improvements compared to previous years.

But scans are just the beginning! Calibrations are a whole different animal.

“Scans are a health check; they generate a code if there’s a malfunction, but just because a sensor operates properly doesn’t mean it’s pointing in the right direction,” observed Robert Grieve, host of YouTube’s “Airing of GRIEVEances,” Society of Collision Repair Specialists Treasurer and owner of Nylund’s Collision Center (Denver, CO). “Each system must be separately accessed and then calibrations are performed to ensure values are correct and the system is functioning as intended.”

The majority of modern vehicles contain some sort of ADAS – the Insurance Institute of Highway Safety (IIHS) indicated that 60 percent of registered vehicles on US roadways in 2021 were equipped with at least one ADAS feature, which seems

are the Calibrations? But Where

to be a modest estimate destined to increase with new models being released with more safety features each year. In fact, Globe Newswire reported, “North America had passenger vehicle sales of nearly 16 million units in 2021, with 90 percent of them equipped with at least one form of ADAS.”

Therefore, it stands to reason that the majority of repair orders should contain a line item for calibrations; however, CCC Intelligent Solutions’ 2022 Crash Course Midyear Report indicated fewer than 17 percent of estimates on current year or newer vehicles included an appraisal line for “calibration/reprogram/flash,” while only 7.1 percent of all appraisals included the same line item.

“Almost all present year or newer vehicles are typically equipped with some ADAS technology,” indicated Frank Terlep (OPUS IVS). “Several organizations have data that show a large percentage

of ADAS equipped vehicles that need to be calibrated are not getting calibrated. Other data shows that more than 70 percent of consumers experienced an ADAS-related issue after a windshield replacement and/or a calibration! Sixty to 65 percent of vehicles that should receive a calibration didn’t, so when we ask where the industry sits on this, the numbers speak for themselves…We’re behind!”

Many repairers may be intimidated by the complexity of ADAS calibrations, but no matter how frightening this new technology may be, one thing is certain: It cannot be ignored! Failure to properly calibrate safety systems can lead to unsafe repairs which could result in subsequent accidents and even fatalities. This is

continued from pg. 25

definitely one of those situations where what you DON’T know can severely damage your business and its reputation.

“ADAS systems make the ‘best co-drivers’ due to their ability to process information at a higher rate,” Chuck Olsen (AirPro Diagnostics) noted. “They save lives…but once they are repaired, they have to be repaired the right way in order to do their jobs properly.”

Often, this doesn’t happen due to a “lack of knowledge” and the failure to “properly identify ADAS technologies on vehicles early in the process,” Terlep suggested. Unfortunately, the majority of shops seem to have their heads stuck in the sand, ignoring the tidal waves of technology bearing down on them, but that type of willful ignorance will not protect them if something goes wrong, even if you’re subletting your calibrations.

“When you sublet out your scans or your calibrations, you’re still liable,” Mike Anderson (Collision Advice) stressed. “The contract is between you and the vehicle owner. If you choose to sublet that out, the liability still falls on you.”

“Shops have always been liable for the repairs they perform on a vehicle, so the concept of liability does not change,” Terlep agreed. “Because ADAS technologies typically control a vehicle’s acceleration, steering and braking and there may be no visual indication the ADAS systems/components are inoperative, repairers have to implement new and different repair, quality and validation processes to ensure these systems operate as they should prior to returning a repaired/calibrated vehicle back to its owner.

“At the end of the day, a shop is 100 percent responsible for repairs and/or calibrations and should require the same quality and validation processes and documentation from a sublet calibration provider as if they were performing the services themselves.”

Yet, the cost of getting started in the calibrations business can definitely be prohibitive, providing an explanation of why only 30 percent of collision shops are capable of ADAS component replacement due to complexity, expense or perceived lack of demand. Space, equipment and training require a large investment, which experts estimate to be between $150,000-$250,000.

“More than 80 percent of collision and repair shops don’t have the space to perform calibrations properly,” Terlep lamented. “This means the industry is going to have to create new business models and workflows to properly identify, diagnose, calibrate and validate ADAS equipped vehicles.

“Merely buying a set of calibration targets and a diagnostic tool DOES NOT mean a business is prepared to perform ADAS services and calibrations,” he warned, advising shops to “invest in the three Ts (Tools, Technology and Training) associated with ADAS systems, diagnostics, calibrations and validations. They also need to utilize OE repair procedures on EVERY vehicle! Every shop should have detailed documentation for all aspects of the calibration/validation processes.”

“Getting into the calibration business is definitely challenging,” admitted Greg Peeters (Car ADAS Solutions). “There’s a ton of rules to get the floor, walls and lighting just right. Each manufacturer has their own idiosyncrasy that essentially requires perfection to ensure the accuracy and success rate of your calibrations.”

Peeters identified 12 components to a successful calibration center: market evaluation, pro forma business plan, real estate location assistance, calibration center certification, technician recruitment and screening, technician certification, marketing, proprietary management software, equipment and tools, on-site support, technical support and development and continuous quality control.

“You have to get the right people doing the job,” he stressed the most important puzzle piece.

The right person with the knowledge base needed for this difficult work is the most important – and possibly hardest – asset to come by.

“A calibration technician cannot rely on memorization; they need to constantly be researching and keeping on top of this evolution because things change continuously,” Olsen pointed out. “From a workflow perspective, this work requires a different skill set.”

“A lot of the procedures that need to be done in order to do a proper diagnostic scan aren’t just about hooking up a scan tool,” Anderson agreed. “It really upsets me when people dumb it down and say, ‘I just have my wash rack person do it.’ That’s not right.”

Acknowledging that calibrations are “not easy; it’s a moving target,” Grieve pointed out, “You can have three vehicles of the same year, make and model…yet they’re all equipped differently. That’s why we need one person who is responsible for this part of the process. It’s the new position that shops don’t realize they need. We need to start taking calibrations seriously and assign a specific person to this task. The problem is, you can’t hire this person…you have to grow this person into this new position.”

Grieve has a unique perspective on what’s happening in the industry since his shop frequently performs post-repair inspections. “You cannot even imagine some of the horrific things we see. We always start with a pre-repair scan, and often, we immediately know that the original shop didn’t perform a post-scan because the codes are still there! I get that it’s frustrating because there’s no single place to get all the answers. It’s overwhelming because it’s a moving target, plus there’s all kinds of misinformation out there.”

All this advice may be overwhelming, but ADAS calibrations are not all doom and gloom…There’s definitely a lot of benefits available to shops that adapt to the future and do their due diligence in ensuring that vehicles are restored to their pre-loss condition.

“This is the biggest business opportunity our industry has seen in over 20 years,” Terlep insisted, alluding to his company’s free guide on opening and operating an ADAS business (available at

). He predicted, “The organizations that choose to embrace this opportunity early will be very successful.”

When asked about the positive aspects of performing calibrations, Grieve countered with a question of his own: “How about all the money that you’re NOT getting for fixing the car properly? This industry is very slow to adapt…just look at how long it’s taken us to get to our current acceptance of pre- and post-repair scanning, and we still haven’t fully embraced it.”

Embracing calibrations is even more important since drivers rely heavily on these systems. Imagine a scenario where an automatic brake sensor isn’t properly calibrated and doesn’t stop the car from [backing into an obstacle such as a wall]. Bad enough. But what if the car barrels or backs into a child passing behind the car instead? Catastrophic.

Payment absolutely factors into many shops’ reluctance to embrace the reality of calibrations’ importance today and in the future.

“Insurance companies play a role in this because they routinely deny procedures to get the car fixed properly, but why wouldn’t you make sure the car is as safe as possible to avoid future accidents?” Grieve acknowledged. “They say it’s not reasonable and customary because OTHER shops aren’t doing it, but that doesn’t mean it shouldn’t be done. What would their argument be if everyone WAS performing these necessary calibrations like the OEM requires?”

“People use insurance companies as an excuse. They say, ‘Well, the insurance company won’t pay for it.’ That’s just wrong on multiple levels,” Anderson dismissed these complaints. In fact, the earlier referenced “Who Pays for What?" survey found that 72 percent of shops that negotiate for seat calibration, and 90 percent that negotiate for calibration of other systems, receive payment “always” or “most of the time” by the eight largest national insurers.

And CCC’s 2022 Crash Course Midyear Report showed an average calibration entry of $238…with a maximum fee on a single appraisal of $3,748 for all the required or recommended calibrations on the vehicle!

The secret to getting paid?

“Documentation…Documentation…Documentation…

Repairers need to document every repair as if they were going to court the next day,” Terlep emphasized. “OEM repair procedures are critical. Every calibration file should include what ADAS systems and components are on the vehicle, what triggers a calibration on those components and what calibration and validation processes are required by each vehicle manufacturer!”

And when the insurer still won’t pay, it all boils down to education – for both the shop and the customer.

“Honestly, I think some of it is due to a lack of education; I’ll give some shops the benefit of the doubt,” Anderson offered. “Also, some people aren’t doing it based on the nature of the vehicle or the type of accident it was in. They’ll think, ‘That’s an older vehicle; it

doesn’t have the technology that requires me to do it.’ They may say, ‘The accident wasn’t that bad; I don’t need to do that.’ I can’t believe the industry is still having this discussion. Get over it; it needs to be done. Nobody would question whether they needed a cat scan or an MRI. Imagine you went to the hospital because your leg was hurting you because you fell down. You wouldn’t be asked, ‘Well, did you fall down mildly? Was it a moderate fall? Was it severe?’ You wouldn’t be told, ‘Well, if it was a moderate or severe fall, we’ll pay that for your leg. Did you only fall one step? If so, we won’t X-ray your leg.’ That’s just ludicrous.”

“Unless you’re on a referral program, your contract is with your guest, not the insurance company,” Grieve stressed. “If the insurance company won’t pay for the needed repairs, the guest has to pay for it. We’re not ignoring these highly complex systems by fixing cars any other way. When you’re knowledgeable about why these things are needed and you have the proper documentation, it’s not difficult to educate customers. You don’t want them to get hurt, and they don’t want to jeopardize the safety of themselves and their families either.

“Our job is to keep our guests and future owners of that vehicle safe; there’s no simpler way to put it,” he added. “Whether you’re ignoring calibrations because you don’t understand the consequences or due to a lack of technical knowledge, it doesn’t matter. We’re the professionals, and we have to be professional by doing the right thing.”

Is your shop doing the right thing? All too often, this industry waits to change until something horrible happens. Instead of learning from someone else’s mistakes, maybe it’s time to learn from the knowledge that industry leaders have shared over and over again. It’s time to embrace calibrations, and we want to know where your shop stands. Your information will be kept confidential, but weigh in on this important topic by taking our survey at bit.ly/TGPADASpoll

Scans are a health check; they generate a code if there’s a malfunction, but just because a sensor operates properly doesn’t mean it’s pointing in the right direction.

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Kelly Nissan of Lynnfield

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Kelly Nissan of Woburn 95 Cedar Street Woburn, MA 01801

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As any collision repair shop owner or technician should know, auto manufacturers publish procedures (OEM procedures) that are supposed to be followed when repairing their vehicles. The nature of the procedures run the gamut from merely cosmetic issues to items that are essential for the safety of the vehicle and its passengers. And sometimes, no matter how inconsequential you think a particular repair procedure may seem, it is actually vital to ensure that the vehicle will perform properly and safely.

If a repair shop fails to follow OEM procedures – whether those procedures are required or just “recommended” – it is on the hook for whatever consequences may follow. It could be that nothing noticeable happens…Or it could be that a part just stops working, a paint job fades or chips, a major system unexpectedly fails or the vehicle does not perform as engineered during an accident and someone suffers permanent life-altering injuries or dies.

As analyzed in this column when it was decided in 2017, a key legal case that demonstrated the seriousness of this issue was Seebachan v. John Eagle Collision Center. In that case, a repair shop in Texas used adhesive to bond a roof onto a damaged Honda Fit rather than spot welding it as recommended by Honda in its published procedures. When the car was subsequently involved in an accident, the adhesive bonding altered the structural and fuel protection system of the vehicle, preventing the vehicle from collapsing as intended and designed, which caused damage to the vehicle’s gas tank. As a result, the vehicle caught fire, trapping two people in the vehicle and causing both of them significant and traumatic permanent injuries. The injured people sued the repair shop and were awarded $42 million in damages.

The point is this: If you do not follow OEM procedures, you are taking a huge risk, because you just don’t know what the consequences might be. To paraphrase Clint Eastwood in Dirty Harry, when you don’t follow OEM procedures, you’ve got to ask yourself one question: “Do I feel lucky?” The repair shop in the Seebachan case thought that using adhesives was a satisfactory alternative to spot welding, and that it would cause a stronger bonding of the roof to the car. And, in fact, it did result in a stronger bonding – but with disastrous results.

How do I protect myself?

The best choice: When an auto manufacturer requires or recommends a particular procedure, DO IT! Yes, this seems obvious, but it is not always as easy as it seems. As an example, what do you

do when an insurer refuses to pay you to perform the procedure? Do you have to unfairly absorb the cost? Hopefully not.

If an insurer does not want to pay, make sure you have a hard copy of the manufacturer’s published procedure. Show it to the insurance appraiser. Email it to the insurer with a supplement request. Make it clear to the insurer that you need to get paid to perform the procedure in order to properly repair the vehicle, in order to give your customer what they are entitled to, in order to protect the reputation of your shop, in order to comply with your garage keeper’s liability insurance policy and in order to protect your customer’s – their insured’s – safety.

If the insurer still will not agree to pay for it, educate your customer about what is going on. Try to use it to your advantage: It is your customer’s car, and they probably want to protect its integrity – as well as their own and their family’s safety. Take the time to make sure that your customer knows that their car manufacturer has directed that their car be properly prepared in a particular way and that you believe that the car needs to be fixed that way. See if they will go to bat with their insurer to try to get them to pay for it. See if they will pay out of their own pocket if their insurer still will not budge. Make them aware that their insurer may be sacrificing their safety in order to save a few dollars in claims costs. Or even that their insurer is just not willing to honor the terms of their insurance policy by refusing to agree to pay the true cost to repair your customer’s car to pre-accident condition.

Second choice: Buy a LOT of insurance. You need to have garage keeper’s liability insurance in order to be a registered Massachusetts Motor Vehicle Repair Shop. When you buy it, consider buying more than you think that you need. Of course, you can never really know how much will be enough. Very few (if any) collision repair shops would buy enough insurance to cover the $42 million Seebachan judgment.

And there is other potentially bad news about insurance. As an example, it only covers you for your negligent acts. It will not cover punitive damages that may be awarded for gross negligence or recklessness. It won’t cover damages awarded under the Massachusetts Consumer Protection Act, nor will it cover you if a court finds that you engaged in fraud by not performing a procedure that you knew should be performed. It may not cover you (or at least your liability insurer may balk at being responsible) if it is determined that you knew that you needed to follow the

OEM procedures and intentionally failed to do so – that goes way beyond negligence. And if you do have a claim that the insurer is required to defend and possibly pay, then they are probably going to cancel the policy or refuse to renew it, or at the very least, your rates are going to go through the roof.

Third choice: Disclose to your customer and their insurer in writing that there is a published OEM procedure for the particular repair, that you need to get paid for it and that you intend to deny responsibility for (and hold your customer and their insurer responsible for) any damages resulting from not performing the procedure that they won’t pay for. If possible, get your customer to sign a document in which they acknowledge what you have told them and that they agree to hold you harmless, and try to get their insurer to sign off on it as well – although that will almost certainly never happen. A problem remains with this option; it is not clear whether it actually will work to protect you. After all, you knew what the manufacturer stated should be done, and you are the one who did not do it.

Fourth choice: Consider turning down the job. No one wants to turn down work. But if you are not going to get paid for something that needs to be done to effectuate proper repairs, then maybe it is not worth taking that particular job. How high is the risk? How big is the job, and how much does this particular procedure cost? Is it really worth taking the risk associated with

this repair? You are required to warranty your work. Can you truly warranty this particular job if you do not perform the OEMspecified procedure?

Fifth choice: Make sure that your business is incorporated or is established as a limited liability company (LLC), make sure that all of your real estate interests are transferred out of your name, and ask your lawyer to put your assets into some type of Trust or other entity that will place them beyond the reach of someone making a claim against you. You may never be able to fully protect yourself. If your business is incorporated or is an LLC, you may be protected from personal liability for the negligent actions of your employees. But if you are the person who actually made the decision not to perform a particular OEM procedure or are the person who physically performed the repair, you still may be held personally responsible, no matter what type of entity your business is. If you do not understand this and are not willing to accept it, maybe you should be in a different business.

Sixth choice: When an auto manufacturer requires or recommends a particular procedure, THEN DO IT! Yes, this is a repeat of “The best choice” above. But it is worth repeating, because it is so much better than any of the other choices!

In thinking about this issue, remember that no matter what repairs an insurer is willing to pay for, YOU are responsible for the work that your shop performs – and for the consequences of that work. You – not your customer or their insurer – are the repair professional who knows what is needed to properly repair your customer’s car.

Can you get your customer or their insurer to pay for the OEM procedure? If not and you definitely want the job, is it worth properly making the repair even if no one will pay you for it? The best way to try to protect yourself from the potential consequences of not performing an OEM procedure is to actually perform the procedure.

Part of the problem of not performing an OEM procedure is that you do not know for how long a period of time liability could be found. For most negligence claims, it is necessary for a plaintiff to bring a lawsuit within three years of the negligent act, but that time may be extended to three years from the time that a claimant reasonably should have known about an issue. If you fail to perform an OEM procedure and a part fails or someone is not injured until six years have passed, the time for bringing suit may be extended to three years after the part failure or suffering of the injury, since it may be that the claimant could not have known about the problem repair until the part fails or the personal injury occurs. That means that the claimant could have nine years to bring suit. Do you really want to live with that uncertainty for such a long time?

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from pg. 34

publish required or recommended procedures, whether to make sure that the safety of the vehicle is preserved or whether to just to make sure that cosmetic integrity is preserved. Please do not ignore OEM procedures and also try to make sure that your customers and their insurers know how important those procedures are – and that they need to pay for those procedures to be performed if a car is truly going to be repaired to required pre-accident condition.

Please do not just rely on the possibility of being lucky.

continued from pg. 14

and consumer education can play in helping to make the industry better for all.

Referring to recent incidents at ADALB meetings surrounding reluctance by the seated insurance representatives to hear 100 complaints issued by one shop owner, Papageorg asked Starbard, a seated ADALB member, what can be done to help assist his plight to do things right on behalf of collision shops.

“Bury the Board with complaints and show them there is not just ONE shop owner out there [facing these very same issues],” Starbard stressed, adding the inference ADALB members made during recent meetings.

“The ADALB has to get out from under the DOI. It is nothing more than a country club for insurers. I’ve never been to the roof, but I wouldn’t be surprised to see a swimming pool and a putting green,” Starbard presumed.

Reflecting on the day’s discussions and activities, Papageorg stated, “We set out to tackle a hefty agenda in a fast-paced manner that kept everyone engaged from start to finish. Everyone walked out with new knowledge they can take back to their shops.”

Every shop represented at the event received a thumb drive with vital resources discussed at the meeting to use in their day-to-day business.

AASP/MA is grateful for its sponsors who helped make the event a success: Don Kennett and Long Automotive (Breakfast Sponsors), Crown Collision Solutions (Snack/Beverage Sponsor), PPG, Tiny & Sons Auto Glass and World Insurance Associates (Lunch Sponsors) and Bill Enross/cPrax Internet Marking (Thumb Drive/Key Fob Sponsor).

Instead, always follow OEM procedures, and make sure that vehicle repairs are properly and safely made.

Attorney James Castleman is a managing member of Paster, Rice & Castleman, LLC in Quincy, MA. He can be reached at (617) 472-3424 or at jcastleman@prclawoffice.com

A MESSAGE FROM KEVIN LOMBARD

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Quirk Auto Dealers

115 E Howard St Quincy, MA 02169

Toll Free: 877-707-8475

Balise Ford of Cape Cod

90 High School Rd Ext Hyannis, MA 02601

TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto

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