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4 February 2022
New England Automotive Report
CONTENTS
February 2022 • Volume 20, No. 2
DEPARTMENTS
FEATURE STORY
PRESIDENT'S MESSAGE by Kevin Gallerani 6 | Educate and Recruit Your Customers to Advocate for You
NATIONAL NEWS 10 | CREF Opens Applications for 2022 School Benchmark Grants and Student Scholarships 14 | NORTHEAST® Returns: New Englanders Head to New Jersey for Education and Experience by Alana Quartuccio Bonillo LOCAL NEWS 18 | AASP/MA in 2022: A Bright Forecast Lies Ahead by Alana Quartuccio Bonillo
wo
t art
EXECUTIVE DIRECTOR’S MESSAGE by Evangelos “Lucky” Papageorg 8 | Lessons to Be Learned
p
22 | How Do Your Shop’s Experiences Compare? New England Automotive Report’s Inaugural Survey Results Part Two
by Chasidy Rae Sisk
COVER STORY
AASP/MA MEMBER SPOTLIGHT 20 | John W. Furrh Associates by Alana Quartuccio Bonillo LEGAL PERSPECTIVE 36 | Where Is That Appraisal? by James A. Castleman, Esq.
ALSO THIS ISSUE 7 | AASP/MA MEMBER APPLICATION 21 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS
30 | An Exercise in Resilience: From Slim Pickings to Stuffed Shops by Chasidy Rae Sisk
New England Automotive Report
February 2022 5
PRESIDENT’S MESSAGE
KEVIN GALLERANI
Educate and Recruit Your Customers to Advocate for You
By now, shops should understand the importance of education. Ensure that you and your team have the necessary knowledge to safely and properly repair customers’ vehicles by attending collision repair training courses. Pick up the most recent copy of New England Automotive Report so you know what’s going on in the industry. Attend association meetings, watch the most recent ADALB meeting (available on the Members Only section of aaspma.org), and contact your legislators to urge their support of the bills AASP/MA is promoting. But there’s another aspect of education that repairers often neglect: Educating your customer! Let’s be brutally honest – most consumers have no clue what it takes to repair their car, and they have absolutely no idea what repairers go through to make sure their vehicle is safe to drive when it leaves our shops. When customers walk in your door, it’s your job to educate them about what’s going on in the shop and what their rights are as consumers. Detail what you do for them and why researching and following OEM repair procedures is imperative to ensuring their car is properly repaired. Train them on the difference in original parts v. the aftermarket parts that insurers try to push us to use. And then there’s the part that prevents many of us from attempting to educate the customer. We have to let them know that they could have a bill at the end of the repair if their carrier refuses to pay our rates.
STAFF
AASP/MA EXECUTIVE COMMITTEE
PUBLISHER
President Kevin Gallerani
Thomas Greco | thomas@grecopublishing.com
SALES DIRECTOR Alicia Figurelli | alicia@grecopublishing.com
EDITORIAL/CREATIVE COORDINATOR Alana Quartuccio Bonillo | alana@grecopublishing.com
OFFICE MANAGER Donna Greco | donna@grecopublishing.com
PRODUCTION COORDINATOR Joe Greco | joe@grecopublishing.com
MANAGING EDITOR Chasidy Rae Sisk | chasidy@grecopublishing.com
PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963 www.grecopublishing.com
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
AASP/MA PRESIDENT KEVIN GALLERANI is president of Cape Auto Collision Center in Plymouth, MA. He can be reached at (508) 747-0316 or kevin@capeautobody.com.
Vice President Matthew Ciaschini
Treasurer Dana Snowdale
Secretary Gary Cloutier
AASP/MA STATEWIDE DIRECTORS Director At-Large Adam Ioakim
AASP/MA DIRECTORS
Legislative Director At-Large Tom Ricci
ZONE 1 Mike Penacho Dan Wenzel John Studer
ZONE 2 Ray Belsito Joshua Fuller Brenda Lacaire
Affiliate Director Rick Fleming
Affiliate Director Bill Spellane
ZONE 3 Andrew Potter Brian Stone Phil Morin
AASP/MA ADMINISTRATIVE OFFICE AASP/MA Executive Director Evangelos “Lucky” Papageorg
New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright © 2022 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com
6 February 2022
Many customers will better understand our plight when they realize that their car is being repaired by a professional facility that only gets paid around $40 hourly when fixing their lawnmower could easily cost $95 per hour. Customers aren’t the only people who need to learn more about our businesses, though…We should be educating everyone who enters the shop, including the insurers. We should be inviting our local legislators into our shops so we can educate them as well. Every shop in Massachusetts should ask insurance appraisers to negotiate the Labor Rate. Your first step should be to write your appraisal based on your posted Labor Rate. If you don’t, it’s just a “wish” on the wall! Their presence offers a great opportunity to explain why a $40 Labor Rate is unacceptable, and by “unacceptable,” I mean it’s ridiculously low! Here in the Commonwealth, we have the lowest Labor Rate in the country, and something has to give. We can move that needle by giving everyone who crosses our threshold a glimpse into our reality, and I think you might be surprised how easily contentious customers can turn into industry advocates when they understand the challenges we face to simply do what’s right for them and their families.
New England Automotive Report
AASP/MA Administrative Assistant Alana Bonillo
WWW.AASPMA.ORG
Collision Director At-Large Rob DelGallo ZONE 4 Kevin Kyes Jim Marshall Paul Tuscano Affiliate Directors Frank Patterson Jeff White Don Dowling P. O. Box 850210 Braintree, MA 02185 617-574-0741
Membership Application 2022-2023
AASP-MA P.O. BOX 850210 Braintree, MA 02185 Phone: 617-574-0741 Fax: 973-235-1963 Email: admin@aaspma.org
Please complete this form and return to our office via mail, email or fax with your dues payment. Thank You! BUSINESS INFORMATION Massachusetts Shop Registration # __________________
Total number of Staff (Techs, office, Mgrs)________
Company’s Official Name: ________________________________________________________________________________________________ Business Physical Address: _______________________________________________________________________________________________ Business Mailing Address (If Different): ________________________________________________________________________________ Telephone Number: (______)-________-___________ Fax: (______)-________-___________ DUES STRUCTURE. Collision Shop Annual Dues: $495 / 12 Months* PRIMARY BUSINESS CONTACT Name: _______________________________________________________________________________________________________________ Email: _______________________________________________________________________________________________________________
YES � Please list my business as an AASP/MA member in good standing on the AASP/MA website for consumers to consider using for the collision repairs and assistance with the claims process. I understand this is a member benefit (_________ initials Date ___/____/2022) Yes � Please send me information regarding the following MONEY SAVING BENEFITS: � Dental plan � Healthcare plan � Credit card processing � Grant writing/training � Google presence optimization � All five PLEASE ENCLOSE PAYMENT WITH YOUR MEMBERSHIP APPLICATION Check# : _______________ (IF collision shop please note your RS# on the memo line of the check) CC #: ______________________________________________________________________
OR
EXP: ________/___________ CID: _________________
Billing Address: ______________________________________________________________________________________________________________ Name On Card: _____________________________________________ Signature: ____________________________________________________ I hereby make this application for membership with the Alliance of Automotive Service Providers of MA (AASP/MA) for membership dues 2022-2023 as provided for in this contract. *Membership Dues are for a twelve-month period commencing on your anniversary month of membership.
REV 12/21 New England Automotive Report
February 2022 7
EXECUTIVE DIRECTOR’S MESSAGE
Lessons to Be Learned EVANGELOS “LUCKY” PAPAGEORG
A business can no longer survive today using yesterday’s practices. Among these practices are methods of repair, tools and technology, along with practices in billing for services. In addition, there is the need to make consumers aware of what you are facing as a collision repairer. By this, I do not mean complain about how rough you have it (nobody likes a complainer) but rather use examples and comparisons which your collision repair customer can relate to. If you expect to do more than merely survive in the future, you must make the conscious decision as to how you will go about your business today to face the demands being forced upon you tomorrow. Many in the collision repair industry have been developing business plans to not only keep pace with changes but to get ahead and be prepared for what is coming down the road. To do this, many have looked within the collision repair industry to find colleagues and collaborators through educational seminars and programs offered by suppliers and manufacturers. Some have become involved with industry “20 groups” for the purpose of exchanging ideas and techniques which have proven to be successful. Another way we can learn to be successful is to look to other industries and businesses which have set standards for how services are provided and paid for. The most comparable of those industries to collision repair is the mechanical repair industry. Just like the collision repair industry, they are essential to the economic well-being and safety of motorists. Without the expertise of welltrained mechanics, many vehicles would come to a screeching halt – if they could even start in the first place. Every day, consumers pay independent garages or dealerships anywhere between $95 and (in some cases) more than $150 per hour for the repair and maintenance of their vehicles. It begs the question: Why is the work performed by a collision repair shop worth anything less? This is perplexing, especially because, in many instances, the work performed by a collision repairer is much more technical and requires far more expertise. The main reason mechanics are paid properly is because the consumer has been educated and expects to be charged those rates. Not only do consumers expect to be charged those rates per hour, but they also have been taught to expect to pay for additional charges such as hazardous waste removal, recycling fees, etc. And it was a learning experience. The key is those mechanical repair shops did NOT give up! Initially, the consumer did not like it, and yet they continue to take their vehicles in for repairs and maintenance. Over time, most consumers have stopped noticing
8 February 2022
New England Automotive Report
the charges, or if they do notice, they understand and expect that it is part of owning a vehicle. The sad fact is that we, as collision repairers, have failed miserably at educating the consumer for the most part. We have allowed insurers, whose sole purpose is to collect premiums and keep as much money as possible in their coffers, to be the consumer’s sole educator while also playing the part of their “protector.” We have also failed ourselves because, back when we were all supposedly “fat, dumb and happy” (you do remember when that was, right?), we were saving people their deductibles, performing services for “free” and going along to get along. We did a great job then of educating the consumer that there was so much “extra” in an estimate that we could afford to save or even give them back money for the privilege of repairing their vehicle. We did such a great job educating them that, to this day, consumers still ask, “What can you do to save MY deductible, I think it’s $1,000?” If that were not bad enough, there are far too many in the collision industry who still allow insurance appraisers to cost shift to get close to their needed bottom line. Again, we have not learned our lesson. Every time cost shifting is allowed, you think you have won, but all you have successfully accomplished is set yourself up to lose even more in the future. When you trade away a documentable necessary procedure for a little more time over here or even the “ghost” time in a wheel well area, YOU have given the insurance industry WRITTEN PROOF to substantiate their insistence of “We do not pay for that (needed procedure)!” The same goes for the Labor Rate: If you are not writing your estimates and supplements at your posted Labor Rate, your posted Labor Rate is nothing but a number on the wall, and you are failing yourself. You may believe that if an appraiser meets your Labor Rate via a concession line entry or “giving” you a few more hours here or there, you have won, yet actually you are once again failing because you are giving them WRITTEN PROOF. Why do you think it is put on the estimate as a lineitem concession? The reason is because when it comes time for Labor Rate hearings and discussions with legislators, the insurance representatives will be pointing to the “matrix” at the bottom of the estimate that shows an average of approximately $40 dollars (here in Massachusetts) multiplied by the labor hours. That’s the dollar amount they’ll show as paid. They will NOT be pointing up to where you negotiated, for example, $25 more per hour in line-item concessions. continued on pg. 44
[NATIONAL] NEWS
CREF Opens Applications for 2022 School Benchmark Grants and Student Scholarships The ongoing technician shortage poses a problem for many collision repair facilities around the country, and most can agree that the resolution begins with the youth who will become the industry’s future. Unfortunately, many schools’ collision programs are underfunded, while students struggle to pay post-secondary tuition. The Collision Repair Education Foundation (CREF) seeks to alleviate some of those burdens by facilitating the industry’s generosity in the form of its Collision School Career Readiness Benchmark Grants as well as its Student Scholarship awards. In 2021, CREF awarded $329,000 in grants to over 80 schools, recognizing those programs that excel at educating students, but which require additional financial assistance due to constrained school budgets, providing funds to purchase the tools, equipment and supplies necessary to enhance their students’ learning experience and elevate the caliber of their graduates. The 2021 Student Scholarships benefitted 30 students with more than $100,000 awarded in financial assistance to ensure those students are able to continue their education, preparing them to pursue a successful career in body shops around the country.
10 February 2022
New England Automotive Report
Past CREF grant winner Thomas Edison Career and Technical Education High School in Jamaica, New York Applications for CREF’s 2022 School Benchmark Grants and Student Scholarships are now open, with a deadline of March 2, 2022. To apply for a Benchmark Grant or Student Scholarship, or to learn more about supporting CREF’s efforts to promote the industry to future generations, visit CollisionEducationFoundation.org. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
New England Automotive Report
February 2022 11
12 February 2022
New England Automotive Report
New England Automotive Report
February 2022 13
[NATIONAL] NEWS
by Alana Quartuccio Bonillo
Returns: New Englanders Head to New Jersey for Education and Experience
It’s been a long time coming, and the wait is FINALLY over. The NORTHEAST® Automotive Services Show makes its return March 18-20 at the Meadowlands Exposition Center (MEC) in Secaucus, NJ. Presented by AASP/MA’s sister association AASP/ New Jersey, the largest regional automotive show on this side of the country once again promises to deliver the experience, education and equipment that automotive professionals from Massachusetts – and beyond – expect every March. Coming out of the pandemic, this year’s show promises even more than before with new highlights and activities expected to truly make it a can’t-miss opportunity for every collision and automotive repairer! “It’s no secret that our entire industry has had a rough yearplus,” states Alicia Figurelli, vice president of NORTHEAST event managers Thomas Greco Publishing, publishers of New England Automotive Report. “At NORTHEAST 2022, we look forward to not only ushering in a bit of ‘the old days’ of face-to-face business interaction and valuable training attendees have come to expect from our event, but we’re also working on some exciting new things you’ve never seen before at NORTHEAST. Whether it’s exclusive training you can’t get anywhere else, the opportunity to meet an industry icon, win some awesome prizes, lend your voice to some exciting industry initiatives - or hopefully all of the above! - there will be something for everyone at NORTHEAST 2022. We can’t wait!” As in past years, attendees can expect to see over 150 vendors with the latest equipment, technology and tools returning to the MEC for this year’s show along with a healthy offering of educational courses addressing some of the most pressing trends and issues affecting the collision repair world. AASP/MA’s Executive Director Evangelos “Lucky” Papageorg has been making the drive down to NORTHEAST as many times as possible over the past decade. He cites networking and education among the top reasons he attends. “The Leadership Conference always provides a great opportunity to network with professionals in other states, and we’re always able to have a good exchange of ideas.”
On the educational front, Papageorg takes advantage of the various courses available to keep himself up to speed on the latest technology advances. “When ADAS first blew up for example, I needed to get wellversed on the subject, so I often plan to attend courses that deal with emerging technology in order to stay abreast of what is going on with the industry,” he relays. Molly Brodeur (Al Brodeur’s Auto Body; Marlborough) considers NORTHEAST the “SEMA of the East Coast.” Brodeur, who has frequently attended the show over the years, particularly appreciates the great benefit of the show being wholly collision focused. “The latest and greatest equipment, technology and information providers are there. The training, seminars and networking, for me, are the motivators for making the trip to NJ. We’ve all missed each other over the last two years, so having an opportunity to meet up in person with industry peers is really the icing on the cake. The weekend is always packed with the top industry experts, OEMs and so much more. AASP/NJ and Thomas Greco Publishing do an amazing job of pulling together a spectacular show each year, and it’s definitely worth the trip.” Papageorg agrees it is a well-worth-it trip for repairers. “It’s not a huge time commitment as its location makes it possible to attend the show in one day,” recommends Papageorg. “You can leave early in the morning, attend the show and leave after dinner...or you can stay the weekend. It’s not flying to Vegas which is a large time commitment and an expense. You can attend NORTHEAST and gain all it has to offer on just one tank of gas and a few tolls.” “Our goal has always been to provide all stakeholders – from the exhibitors and sponsors to of course the attendees – with a well-rounded experience at NORTHEAST,” adds Figurelli. “For 2022, we remain committed to offering all attendees a tremendous weekend both on and off the show floor.” Pre-registration is now open. To pre-register and to keep up with the latest information and announcements about NORTHEAST 2022, visit aaspnjnortheast.com.
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MASSACHUSETTS
14 February 2022
New England Automotive Report
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New England Automotive Report
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February 2022 17
[LOCAL] NEWS
by Alana Quartuccio Bonillo
AASP/MA in 2022: A Bright Forecast Lies Ahead The forecast for AASP/MA in 2022 is surely looking bright! Despite the challenges of the past two years, the association has managed to emerge from it all with loads of promise and goals for the new year. As 2022 gets underway, initiatives continue in support of the association’s two bills which are currently being reviewed in the House and Senate. Just before the holiday break, HB 4242 (which attempts to move the ADALB from the Division of Insurance to the Division of Occupational Licensure) made it through its first legislative steps favorably and will next be reviewed by the Ways and Means Committee. The Reimbursement Bill House Bill 1111/Senate Bill 709 sets out to establish a minimum competitive prevailing rate of reimbursement to the insured, NOT a rate set and controlled artificially by insurance referral and program contracts and is currently under review.
interact with otherwise, plus it creates a sense of camaraderie and eliminates the feeling that are the ‘only ones.’” Piggybacking off the great feedback received from those who attended the November General Membership Meeting, Papageorg says the regional meetings will be set up in a similar fashion with multiple speakers giving brief presentations on topics so that a lot of information can be covered in one setting. Once again, the association will also host its annual Golf Outing fundraising event this September. This event is the association’s main annual fundraiser. Proceeds raised help the association in all of its efforts on the legislative front and in its day to day work to better the industry and protect and educate consumers. Last year, AASP/MA held one of its most successful Golf Outing events, and due to that success and amazing feedback from all who took part and sponsored, they have decided to
Tremendous team work by members of the association garnered over 90 legislators to join them in supporting both bills. That same energy will be required as next steps come into play in the new year, according to AASP/MA Executive Director Evangelos “Lucky” Papageorg. “A huge year is ahead for us in the legislative arena, and we’ll really need all hands on deck,” Papageorg advises, reminding members to look out for notices about public hearings and to make every effort to attend whether they are held face-to-face or virtually. “It’s important that we really show a huge presence.” Coming off the success of last fall’s General Membership meeting held in Westborough - the first in-person gathering in roughly two years! - AASP/MA now has plans to host quarterly regional General Membership Meetings in 2022. The meetings are planned for March, June, September and November and will take place in different regions of the state. “We are looking to move the meetings around the state so that it can be easier for shops in different areas to attend,” explains Papageorg. “Some may have to travel a little further to attend one or some of the meetings, but another may be much closer to where they are based. This way, we can draw in a variety of people across the state and create networking opportunities. That was the idea with our local chapter meetings which were held in the four different regions of the state; however, those concentrated on the shops in those regions. By having regional meetings, It gives people a chance to meet others they likely would not have a chance to
return to the same location in 2022. This year’s event will be held Wednesday, September 14 at the Heritage Country Club in Charlton. “Based on the great comments we got from the golfers and the support we received from the course staff, who were very helpful in putting it all together, we decided to return for our event this year,” relays the executive director. Participants can look forward to seeing many of the same activities and camaraderie that made last year’s event such a tremendous success, thanks to the support of AASP/MA’s generous sponsors. (If you missed it, be sure to check out coverage of the 2021 Golf Outing in our November 2021 issue at grecopublishing.com.) The Ball Drop contest, which brought much excitement and fun, was a favored new addition last year and is slated to kick off this year’s event. The Putting Contest will return along with other chances to win multiple prizes via Hole-in-One contests, raffle and door prizes and gifts presented during the dinner portion of the event. Rarely does anyone leave the event empty handed. As the year unfolds, even more great things are likely to be unveiled! All are encouraged to look for information on legislative hearings or upcoming events via their email, notices in the bimonthly members-only newsletter Damage Report and in New England Automotive Report each month. Those interested in joining the association can sign up via the application found on page 7 or contact the association at (617) 574-0741.
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
18 February 2022
New England Automotive Report
New England Automotive Report
February 2022 19
[AASP/MA] MEMBER SPOTLIGHT
by Alana Quartuccio Bonillo
John W. Furrh Associates For more than 30 years, John W. Furrh Associates has worked with automotive dealerships to make sure they maintain compliance with the various safety requirements they must meet in order to function and operate safely. The company’s owner and namesake – John W. Furrh – who is still active with the company today, started his career in chemical manufacturing as a field service engineer servicing companies in the metal finishing industry. While dealing with the chemical waste treatment process from a designing, manufacturing and installing standpoint, he developed experience in coordinating OSHA and environmental compliance. Recognizing a need for associated safety requirements, Furrh decided to leave the chemical manufacturing business to launch his own company devoted to improving companies performance and service to clients by making sure they are up to code with all safety and environmental requirements. “We help automotive dealerships stay in compliance with OSHA safety, with EPA rules and laws, with fire protection,” describes Jonathan Mather, technical consultant who also provides training, program management, scheduling and public relations for the Massachusetts-based consulting company. Environmental safety is a big concern as automotive companies use a lot of chemicals and hazardous materials which requires special training to properly work with, ship and dispose of them. John W. Furrh Associates provides training in DOTregulated shipping for hazardous materials such as batteries. In addition to serving Massachusetts and the entire New England area, the company helps clients all the way down the East Coast to Florida, as well as in parts of the Midwest and other areas of the country. In fact, Mather says one of their earliest customer’s facilities were located in California, and the company has been travelling to serve its clients since day one. John W. Furrh Associates also helps guide body shops and dealerships through Resource Conservation and Recoveries Act (RCRA) requirements, an EPA law. “The days of throwing something into a dumpster are long over,” explains Mather. “Everything has a waste stream now; everything has to be recycled, has to be minimized, has to be properly manifested.” Upon starting to work with a dealership or body shop, the John W. Furrh Associates team comes in and performs a site inspection in order to review all the related needs and requirements that must be met. The consultants provide signs, notices and labels by various agencies that should be displayed in 20 February 2022
New England Automotive Report
work areas, such John Furrh as in the waste storage area or battery area, for example. Next comes the training. The team works predominantly with the service department’s employees to train them on things such as the Right to Know Law or Hazard Communication. Most facilities need training in DOT shipping. Mather says they will also work with each facility to develop whatever other programs are necessary. “The problem with OSHA and EPA is things change constantly,” reports Mather. “Their rules are changing; their laws are changing. None of it ever goes away. It just gets added on to. It’s very difficult for a person owning a dealership to keep up. They’ve got enough problems getting their cars out on the lot, hiring salespeople, doing human resources and other stuff. So, it takes a load off their mind that there is a company that is up to date on the regulations, brings that information to them and keeps them in compliance so they don’t get fined or shut down.” Since they work closely with so many dealerships in Massachusetts, John W. Furrh Associates believes it’s important to be a member of AASP/MA. Mather appreciates being part of the association as they’ve met many members who have introduced them to companies they now work with and service. Always looking out for the needs of their clients, John W. Furrh Associates wants businesses to know they also offer forklift training – something that will be a necessity especially for automotive dealerships as more electric vehicles come into play. “Many dealerships are going to have to operate forklifts on site – something they never had to do in the past – to handle the electric vehicles. General Motors is requiring dealerships to have people trained and certified to operate forklifts. As electric vehicles come into the marketplace, they will be looking for forklifts on site to remove batteries off trucks among other things. We provide this training, and that’s something a lot of dealerships may not realize but may want to take advantage of.”
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February 2022 21
[FEATURE] STORY
by Chasidy Rae Sisk
How Do Your Shop’s Experiences Compare?
New England Automotive Report’s Inaugural Survey Results: Part Two Ever-changing technology, attracting new technicians and obtaining the parts needed for repairs poses a problem for many repair facilities. Shops have a plethora of challenges to contend with in their businesses every day, but if you’ve ever wondered how your struggles compare to other shops in Massachusetts, keep reading for Part 2 of the inaugural New England Automotive Report Industry Survey (and if you missed Part 1, be sure to check out the January 2022 edition, available at grecopublishing.com). How do you promote your business to current and potential customers? Word of mouth/referral: 64% Internet (social media/website/ Google/Yelp): 18% Local advertising (cable/radio): 55% None: 21% Similar to responses about attracting new employees, shops in the Commonwealth use a variety of methods for promoting their businesses to current and potential customers. Nearly 40 percent utilize multiple forms of marketing, yet the most common form indicated by survey participants is the good old-fashioned referral. “After 35 years in business, we have a wonderful reputation and following.” “All our work comes through referrals from previous customers because we take the time to explain the complete repair process to them.” How do you feel social media and digital platforms like Yelp have impacted your business? Whether you like it, love it or absolutely abhor it, the fact remains that we are living in the digital age, which means the majority of consumers use online reviews to investigate shops they consider doing business with. Although 18 percent of survey respondents have seen “no noticeable impact” from these platforms, the 22 February 2022
overwhelming majority indicate a favorable effect. “It has a tremendous effect on our business as most younger customers use social media as a tool to make decisions on where to shop,” one participant observed. “Google has had a very positive impact on our business,” another agreed. “Customers reference our rating and reviews as reassuring reasons they chose us.” Several shops expressed reservations related specifically to Yelp. “Some platforms, like Yelp, try to hold you hostage; the more you pay, the higher you go on their list.” Even worse: “Yelp actually tried to extort us years ago when a single person posted a negative review. They locked my account and told me that if I advertised with them, they’d find enough positive reviews to wash it away. I didn’t, so in the past eight years, none of my positive customer reviews have populated to change our one-star rating, yet we are at five stars with Carwise and 4.9 with Google. Yelp is a dishonest company.” Approximately how much do you spend on parts annually? $1-$100,000 per year: 8% $101,000-$500,000 per year: 54% $500,001-$1 million per year: 23% Over $1 million per year: 15% What is the most important factor in determining who you purchase parts and supplies from? Vendors that support AASP/MA and/or the industry: 31% Word of mouth: 0% Directed by insurance company: 4% Price: 46% Relationship with vendor: 92% Quality: 38% Responses to this survey indicated a universal truth: People want to do business with other people. Customer service is the number one reason that shops use a
New England Automotive Report
specific vendor, and along those lines, one respondent specified the importance of “truthfulness, knowledge and reliability.” What is the approximate ratio of OEM to aftermarket parts you use? Less than 25% OEM parts: 4% 25% OEM, 75% Aftermarket: 0% 50% OEM, 50% Aftermarket: 12% 75% OEM, 25% Aftermarket: 69% 100% OEM: 15% In what instances do you use aftermarket parts? The debate about aftermarket parts has been going on for years, yet most shops agree there is a time and place to use them. Exactly when and where that is depends on the individual shop. Several shops indicated that they’ll only use aftermarket parts on older cars that warrant them or in the case of cosmetic repairs (and only with the customer’s approval). The majority of shops noted that their use of aftermarket parts is related to insurer demands and/or the industry’s current challenges with obtaining parts; however, nearly every response included a caveat precluding the use of aftermarket parts on structural components or if it could impact customer safety. “When we cannot get our OEM vendor to come close to price-matching our discount, the customer does not want to pay the difference and the vehicle warrants them.” “Insurance estimates as long as safety and quality is not affected.” “When we cannot secure OEM or recycled, and the customer is ok with aftermarket – as long as it isn’t structural or crash safety related. This happens very rarely so if 99 percent was an option, I would have selected it.” “When it makes sense. The MA CMR does not say ‘cheapest part;’ it states ‘an appropriate part shall be used.’ The insurance industry has made a lot of shops believe it states cheapest.” continued on pg. 26
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[FEATURE] STORY continued from pg. 22 Where do you look first when purchasing parts and services for your shop? New England Automotive Report: 30% Word of mouth: 32% Online: 10% Previously established relationships: 28% How has the COVID-19 pandemic affected your relationship with insurers? Relations with insurers have never been exactly easy, but since the COVID-19 pandemic began two years ago, tensions are higher than ever. Yet, 60 percent of survey participants indicated that they’ve seen little to no change in their interactions with insurers. Several pointed to the delays in settling claims and the increase of administrative burden placed on shops since insurers stopped sending appraisers out to inspect damaged vehicles. “It has made more work for our shop since I’m doing the appraiser’s job.” “It takes two to three times longer to settle claims.” “I’m doing a lot of supplements in-house, but I’m not compensated for my time spent sending estimates and photos, then when they write whatever they want without seeing the vehicle in person, I have to write another email supplement.” One shop owner sees it differently. “It’s great when insurers work remote because we can send them everything they need electronically. Typically, we can move the job faster because it doesn’t take them multiple valuable cycle time days to come out to review and negotiate what we already know and validate is needed. We also get to avoid hearing a bunch of useless information about them individually, their insurance company or about their supervisor who is threatening everyone this week. It’s nice not to have to see them and waste our inexpensive, nonvaluable time.” Along those same lines, another survey participant noted, “It hasn’t – stagnant Labor Rates has.” What aspect of the COVID-19 pandemic has impacted your business the most? Last year, shutdowns due to the pandemic plagued many businesses, but despite most businesses reopening, Massachusetts shops are still experiencing the effects of COVID-19. Insurer issues, customer’s safety concerns and reduced workload were all mentioned, but the two dominating concerns expressed by survey respondents were parts availability (44 percent) and the reduced workforce (24 percent). Have you and/or your employees undergone any training in the past year? Yes: 73% No: 27%
With technology advancements coming at astronomical speed, many surveyed shops took advantage of the lower workload over the past year to attend training. While 45 percent included I-CAR training in their agenda, others trained with OEMs, paint companies and 20 groups. With technology changing more rapidly than ever before, where do you see this industry 10 years from now? It’s impossible to talk about the collision repair industry without discussing rapidly changing technology and how it will affect shops going forward. Survey respondents shared some of their thoughts. “We’ll see fewer shops, and those that survive will have to continually invest in expensive technology.” “We’re going to need to have a degree in electrical engineering and computer science to keep up!” “I live next to a city with over 30 body shops, and probably 90 percent are doing some type of insurance fraud so they can make enough money to pay the bills. The insurance companies don’t care because they pay $40 per hour, and if they cracked down on these horrible shops, there would be less competition, causing their rate to rise. Shops cannot change unless we get more money.” “Shop owners spending more revenue for updated equipment to be compensated at a devalued Labor Rate. Insurance companies having more leverage over referral shops for them to be fed the almighty dollar.” “In Massachusetts, shops are going to go out of business if Labor Rates do not change immediately. I think there will still be shops around, but you will not want them to repair your vehicles as they will not be trained, tooled or equipped correctly because they cannot afford it. Nationally, the outlook is very bad with consolidation and private equity involvement. They do not care about our industry or repairing vehicles properly and safely; they only care about shareholders’ returns, just like the insurance industry. They only care about the return of money, not how they got it.” Close: The industry’s changing constantly, and although it can be overwhelming, it’s nice to know that you’re NOT “the only one!” We hope this information helps your shop identify new strategies for navigating some of the issues you face and make better business decisions as you continue to safely and properly repair vehicles for your customers. Seeing how other shops in your market handle these challenges can be inspiring, and if the industry comes together to take a stand against third-party interference, we’ll be stronger and more effective.
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[COVER] STORY
An Exercise in Resilience:
From Slim Pickings to Stuffed Shops Is it worse to have empty bays…or an overwhelming amount of work? That’s the question that many shops in the Commonwealth have been asking lately as they struggle to keep up with all the cars in need of repairs. After months of attempting to stay busy amidst low repair volumes, the tables have turned – nearly everyone has a full plate, and now they have to figure out how to digest the overabundance of repairs bogging down their facilities. “Our current work in progress is nearly double what we normally carry in traditional circumstances,” says Matthew Ciaschini (Full Tilt Auto Body & Collision; West Hatfield). “This is not to be misconstrued with taking in twice as much work as normal. We’re swamped due to roll-over work from previous weeks, caused by many factors, which leads to an overall work-inprogress (WIP) number that is double our normal inventory, and it continues in perpetuity.” Factory Collision & Restoration’s (Weymouth) current situation is similar. “Compared to last year, our workload has doubled,” according to Rob DelGallo. “We suspect that it’s due to the amount of shops that have closed or gone out of business, whether that’s because of worker shortages, lease changes or just the older shop owners throwing in the towel. Our other lines of work increased as well, but our shop never really slowed down, though we had techs out for various reasons.” According to a recent CRASH Network study, the national average scheduling backlog increased from 1.7 weeks prepandemic to 2.6 weeks in the third quarter of 2021, while the shops reporting no backlog decreased from 57 percent to five percent! “For the past four months, we’ve been busier than we’ve ever been. All four locations are scheduling repairs four weeks out after the initial estimates, which is about two weeks longer than typical, and we haven’t even entered the busy winter season yet,” observes Bobby Cobb (Today’s Collision; Chelsea, Danvers, Malden and Stoneham). “We attribute the higher workload 30 February 2022
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to multiple causes: fewer shops in our area since early 2020, customers choosing to repair vehicles instead of replacing them, traffic returning to our region which increases the likelihood of accidents and OEM certifications. Shops certified by manufacturers are more likely to see an increase in work because we have the proper training and equipment to repair these advanced vehicles.” While some shops are bustling, other facilities are more consistent, though there are a few caveats to that. “Our front office and everyone who performs customerfacing tasks is very busy right now with upfront evaluations, identifying the right customers and answering questions,” notes Josh Fuller (Fuller Auto Body & Collision Center; Auburn). “On the production side, we’re as busy as we can be. We can only repair as many cars as our biggest bottleneck allows, and not surprisingly, our biggest obstruction at the moment is parts sourcing; we won’t even put a car in production until we can verify that we have the majority of required parts on hand. Understanding the type of repair needed and who the insurance company is allows us to manage our process more efficiently as well. We’re being extremely selective about what we put on the floor, and for the first time ever, we’re rejecting work that doesn’t fit into our niche. With our reduced bandwidth and resources, we can’t afford idle time or anything that prevents us from being less than super efficient.” Shop efficiency is a vital component to meeting customer and insurer expectations (and always a challenge), but factors outside repairers’ control restrict their ability to do that. When insurers write insufficient initial estimates – as they frequently do – it inhibits the shop’s ability to order all needed parts up front, further delaying the repair and also increasing the administrative expenses associated with the job. Since writing a thorough, accurate estimate at the beginning of the process would alleviate burdensome tasks and reduce frustrations on all sides of the repair equation, insurers’ repeated failure to do so begs the question:
by Chasidy Rae Sisk
What motivates them to write estimates that require supplements and create delays in returning the customer’s car? “Meeting customers’ deadline expectations has become nearly impossible due to inventory issues,” Ciaschini admits. “We try to load-level our work in progress so that easier jobs can flow through the shop and be repaired in a timely fashion, but when a critical part for the repair is on backorder for two weeks, which is obviously unforeseen at the time of scheduling, most insurers refuse to extend the rental period, though the parts issues should be seen as part of the loss. As a result, customers are shelling out hundreds of dollars in rental fees.” “Customers are faced with the challenge of obtaining car rentals and the need to hold onto those rentals longer and longer,” Cobb adds. “They’re clearly frustrated by the longer wait times, but providing accurate updates along the way is another challenge – weeks can go by without a change in their vehicle’s status as a result of parts delays, but we don’t have a guaranteed ETA of those parts. Even if we’re given an expected delivery date of two weeks and schedule repairs based on that date, the delivery date can change on a daily basis which makes it incredibly difficult to schedule jobs when you don’t have a solid answer as to when the parts will arrive.” When they’re made aware of extended backorders on parts, Today’s Collision has to decide whether or not the vehicle is safe to drive. In some instances, cars have sat on their lot for several months, waiting for a part to arrive, but if the vehicle is driveable, that creates a new dilemma: “If we learn there’s a long wait time on parts needed for a disassembled vehicle, we determine if the vehicle is safe for the customer to continue driving, and if so, we reassemble it and make it safe,” Cobb clarifies. “When the parts arrive, the customer returns the vehicle, and we begin the dismantling process again, so in these cases, we’re doing the same work twice! It also creates additional administrative burdens with keeping track of more vehicles than ever before, and though we’re fortunate enough to have a team that treats our customers like family, customer satisfaction can also be negatively impacted by these delays.” “We like to be able to provide customers with clear and concise answers, but in this environment, those just aren’t available to us,” Fuller laments. “Vehicles are complex, so there’s no such thing as ‘just a bumper’ anymore because all that ADAS underneath keeps consumers safe when they aren’t smart enough to put their phone down while driving, and after an accident, those systems need to be recalibrated so we can verify everything works the way it was designed.” Keeping up with technological changes costs shops money, time and effort, yet many struggle to effectively communicate
"We can only repair as many cars as our biggest bottleneck allows, and not surprisingly, our biggest obstruction at the moment is parts sourcing; we won’t even put a car in production until we can verify that we have the majority of required parts on hand." their needs to insurance company representatives, resulting in an ability to collect proper compensation on the consumer’s behalf for all their hard work. That difficulty is compounded by the fact that insurers are contending with their own challenges, which merely adds to shops’ strife. “There’s a high demand for insurance companies to send a representative out to write both the initial claim and the supplement, but they just don’t have the capacity to handle the current volume of requests,” Cobb points out. “This adds to the delay in processing vehicles through the shop, especially for smaller jobs because, at times, we can be backlogged by larger repairs in progress which are waiting on supplements.” “Insurers are severely understaffed for a lot of obvious reasons,” Fuller agrees. “Because they’re looking to cut costs, they shift their responsibilities onto the customer through things like photo estimating which leads to supplements and increased burdens on the shop as well. Insurers have historically failed to adequately compensate customers and shops for everything that goes into the repair process. Massachusetts collision shops have the lowest Labor Rate in the country as it is, but with the current delays, we’re forced to extend a lot of capital to get vehicles processed weeks before we get paid, so there’s an opportunity cost associated with all of this as well since the money we’re spending isn’t working for us during that time.” The suppressed Labor Rate also results in a reduced reimbursement rate to consumers, which limits consumers’ options of where they take their car for repairs. Ciaschini concurs that the low consumer reimbursement rate is an issue that pervades all aspects of running a successful shop in the Commonwealth: continued on pg. 32 New England Automotive Report
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[COVER] STORY continued from pg. 31 “The insurers are running roughshod over consumers in Massachusetts with extremely low consumer reimbursement rates v. their record-high policy costs. This reimbursement extends much further than the lowest Labor Rate into our paint and material regulations not being followed and consumers losing tremendous amounts of money on replacement transportation costs which should be considered part of their loss. Insurers tell us, ‘It’s the cost of doing business’ when we ask to be reimbursed for our costs, but they show no concern for consumers’ concerns, such as rental reimbursement.” More than a few shops are exasperated by the insurance carriers’ disregard for consumers. “We work for the consumer, not insurers,” DelGallo asserts. “Their demands worsen as shops enroll in programs that serve insurers, not shops; those programs usually don’t even serve the consumer! Insurers will continue taking from our trade as long as those subservient shops give it up. Just because the shop down the street doesn’t perform or bill for weld tests doesn’t mean they should expect me to do it for free, and that’s just one of the neglected operations we fight to get paid for, never mind the discounted Labor Rate they give up. It’s sad to see a handful of shops ruin it for the rest of us.” With so many obstacles in their path to processing the overabundance of workload they’re buried under, shops have been forced to get creative with some tried-but-true methods to clear those hurdles. “We do our best to plan ahead and communicate our repair schedule and potential parts delays to customers as soon as they arrive for an estimate,” Cobb shares. “We pre-order parts and ensure the customer’s vehicle is safe if driveable, and we can also do temporary repairs, such as on a headlight or mirror, to make the vehicle drivable until more permanent repairs can be scheduled. With decades of communication strategies and procedures in place, we’re able to minimize the disruptions, but
we still see the effects of these wait times hitting at different points in the collision process. Finally, we are continuing to grow our talented team of employees because, like every other industry, we need to be prepared should our teams be impacted by things outside of our control.” “We spend endless hours on the phone with insurers every day, trying to fight for our customers’ rights for rental reimbursement, fair total loss settlement, proper repair compensation and more,” Ciaschini describes his shop’s approach. “And all these administrative tasks have a cost, a cost that must be encompassed in labor performed by hard-working technicians in the shop while collecting the lowest Labor Rate in the country.” Fuller feels “fortunate to have an energetic team that’s successful at educating customers and insurance companies about the delays and the dynamics we’re facing so we can collaboratively create effective solutions to fix cars properly. Once we form those relationships and help them understand our endgame, they’re fully on board and see the value in continuing to partner with us.” “This year, we’re going to update some equipment and continue training for I-CAR and manufacturers’ certifications, and the restoration/custom side will grow as well,” DelGallo predicts, expressing his enjoyment at a different kind of burnout. “That part of our business will always be awesome because it’s so fulfilling and enjoyable to see clients smile when they drive away in their dad’s car that we just restored – and sometimes, we get to witness their crazy burnouts too!”
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February 2022 35
[LEGAL] PERSPECTIVE by James A. Castleman, Esq.
Where Is That Appraisal? The insurance appraiser was at your shop two weeks ago, yet you still don’t have his supplement in hand. Maybe the car is sitting on a frame machine, or maybe it is sitting in pieces on the shop floor taking up needed space, or maybe it is just sitting outside in your lot. In any of these situations, your customer is calling every day, wondering what is going on and why they don’t have their repaired vehicle back. How did it get to this, and what can you do about it? The Law Statutes and regulations governing auto damage appraisers set strict time limits on how long an insurance appraiser has to deliver an appraisal to a repair shop and how long an insurance appraiser has to inspect a vehicle when a repair shop requests a supplement. The statute that established the Auto Damage Appraiser Licensing Board (“ADALB”) says, with regard to ALL appraisals, whether original or supplemental: “The appraiser shall leave a legible copy of his appraisal with the repair shop selected to make the repairs at the time he inspects the vehicle, which appraisal shall contain the name of the insurance company ordering it, if any, the insurance file or claim number, the number of the appraiser’s license and the proper identification number of the vehicle being inspected. All unrelated or old damage should be clearly indicated on the appraisal." [Emphasis added.] That statute also indicates: “Every appraiser shall reinspect damaged motor vehicles when supplementary allowances are requested by repair shops within two days of a request.” So, under the statute, if a shop requests a supplement, then the insurance appraiser has only two days to reinspect the vehicle and is required to leave an appraisal with the repair shop at the time of that inspection. Admittedly, there is some leeway allowed by the regulations that the ADALB adopted when interpreting the statute. But that leeway is less than insurers would have you believe and should not really alter the statutory time frames in the vast majority of cases. The ADALB regulation initially adds an additional time restriction, requiring an insurer to assign an appraiser to appraise damage to a motor vehicle within two business days of receipt of a claim. This is for ALL claims, whether made orally or in writing, whether made directly to the insurer or to their agent, whether the insurer ends up covering the claim or not, and whether the insurer assigns a staff appraiser or an independent appraiser. The only exception is for claims of less than $1,500 – but only because the insurer can choose to voluntarily cover these 36 February 2022
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claims without its appraiser preparing an appraisal at all. If the claim is under $1,500 and the insurer wants to have an appraisal prepared, it still must assign the appraiser within two days of receipt of the claim. Critically, the regulation provides: “The appraiser shall mail, fax or electronically transmit the completed appraisal within five business days of the assignment, or at the discretion of the repair shop, shall leave a signed copy of field notes, with the completed appraisal to be mailed or faxed within five business days of the assignment. The repair shop may also require a completed appraisal at the time the vehicle is viewed.” If the shop does require a completed appraisal at the time of inspection by the insurance appraiser, the shop “shall make available desk space, phone facilities, calculator and necessary manuals.” This antiquated requirement still exists, even though almost all appraisals are computerized today and can usually be prepared on the appraiser’s laptop while he or she is standing in front of the damaged car and inspecting it or sitting in their own car in the shop’s parking lot. But, even if the shop does not require that the appraisal be written on the spot, the appraisal STILL must be transmitted to the shop within five days of the claim being assigned to the appraiser, and, if the shop requests it, the appraiser MUST leave a copy of their field notes with the shop at the time of inspection. With regard to requests for supplementary appraisals, “[t] he insurer shall assign an appraiser who shall personally inspect the damaged vehicle within three business days of the receipt of such request. The appraiser shall have the option to leave a completed copy of the supplemental appraisal at the registered repair shop authorized by the insured or leave a signed copy of his or her field notes with the completed supplement to be mailed, faxed, electronically transmitted or hand delivered to the registered repair shop within one business day.” The regulation does make an exception to this rule for supplements, providing: “A reasonable extension of time is permissible when intervening circumstances such as the need for preliminary repairs, severe illness, failure of the parties other than the insurer to communicate or cooperate, or extreme weather conditions make timely inspections of the vehicle and completion of the supplemental appraisal impossible.” Note, however, that the exception applies only if the circumstances make it IMPOSSIBLE to be able to leave the completed appraisal or field notes at the time of inspection or make it IMPOSSIBLE to transmit the completed appraisal by continued on pg. 40
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[LEGAL] PERSPECTIVE continued from pg. 36 the next business day. The general rule is still that the appraisal must be left at the shop at the time of inspection, or the field notes must be left at that time with the actual supplement to be transmitted within one business day. There are elements of the separate Insurance Direct Payment regulations that may seem to give an insurer up to three business days after inspection to decide whether to pay a supplement request. Be aware that no matter what an insurer tries to tell you, nothing in the Direct Payment regulations negates the absolute obligation of the insurance appraiser to meet the timing requirements of the appraisal statute and the ADALB regulations. How do you make insurance appraisers comply with the law? The time limits for inspection of damage and for preparation and delivery of appraisals protect your customers by trying to ensure that insurers do not cause delays in how long a claimant’s vehicle is out of commission. They also protect repair shops by trying to ensure that shop space and frame machines are not tied up for unnecessarily long periods of time. And they protect insurers by helping to limit cycle time and trying to ensure that insurers are not paying substitute transportation expenses for excessive amounts of time. So, what can you do to try to get insurance appraisers to comply with the law? There is no perfect answer, and what you do may depend on the particular situation that you are faced with, the particular insurer or appraiser that you are dealing with or how aggressive you want to be, but following are some suggestions: Start by making it clear to all insurers and to all appraisers that you expect them to comply with the requirements of the ADALB statute and regulations. Conspicuously post a sign in your shop explaining your policy. Let individual appraisers know what your policy is when they come to your shop or when you send them an email. Perhaps prepare a one page written statement of what your policy is, hand it out to individual appraisers and send it to the claims department of all Massachusetts auto insurers. In the document, spell out what the ADALB statute and regulations require for time limits, and make it clear that you expect insurers and appraisers to comply with those time limits. Consider having a sign-in book for all appraisers, with a written copy of your policy next to it, and a check box next to each appraiser’s signature where they acknowledge receipt of a copy of your policy. Do whatever you think is appropriate to get the word out. After giving notice (or even without giving prior notice), start enforcing your policy. When an appraiser comes to your shop, insist that they write their appraisal on the spot if that is what you want, or insist that they leave a complete and legible signed copy of their field notes with their appraisal to follow within one business day. If you know when a claim was called in by your customer (or maybe by you), keep track of when two days are up; 40 February 2022
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then call the insurer and ask what appraiser has been assigned the claim. If five days have passed since the assignment and you do not have an appraisal in-hand, start calling the insurer and the appraiser, insisting that you get the appraisal immediately. Consider charging storage for periods of time that vehicles are sitting at your shop while waiting for an appraisal or supplement beyond the required time limits. If you are going to do this, you will need to include this as part of your storage policy. The Massachusetts Attorney General’s consumer protection auto repair regulations require that your customers must be notified of your storage policies, and you can do this by either conspicuously posting your storage policy in your shop or having it printed on your repair order, which should then be signed by your customer; however, again, you also should give specific notice to all appraisers and insurers. If you have your storage policy posted, point it out to appraisers when they enter your shop. Include it in the notice that you distribute about expecting insurers and appraisers to meet the time limits. Also, make sure that your customers are aware of what your policy is, and let your customers know that you may be looking to them directly if their insurer won’t pay for storage. Give them a copy of the notice that you are giving to appraisers and insurers, tell them what you are doing, post it in your shop, and put it in your repair order. Then, when an appraiser leaves you sitting without an appraisal for a week, call your customer and insist that they contact their insurer directly, confirming that they are getting charged for storage and that they expect the insurer to pay for it. Consider different levels of storage charges, depending on whether a vehicle is sitting on a frame machine, taking up floor space or sitting in your outside storage lot. Insist that insurers pay the extra storage as part of your legitimate charges. If the insurer refuses to pay, keep going up the chain of command to try to collect compensation. Then consider having your customer assign their rights against their insurer to you, and then sue the insurer in small claims court. If you do decide to take matters to court, it is suggested that you start with truly egregious violations of the statute and regulations. Side note: I do have reports of at least a couple of shops being able to collect extra storage from some insurers when they have not complied with the appraisal time limits. Consider filing a complaint with the ADALB against an offending appraiser. If a licensed appraiser does not follow the time limits set by the governing statute and regulations, then they are not following the requirements of their license, and the ADALB can suspend or revoke their license for the violation. I understand that the ADALB has been less than active in taking actions against offending appraisers, but in the right case, they might. If you are going to file a complaint, it would be best to do so against continued on pg. 42
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[LEGAL] PERSPECTIVE continued from pg. 40 an appraiser who has violated the timing requirements multiple times and who has missed deadlines by long periods of time. In ALL cases, carefully document everything! Document when and to whom you have handed out or sent notices of your policy (whether just for seeking enforcement of the law, for charging storage or for whatever your particular policy is). Document when you make a request for a supplement and how you communicate that request, whether by phone or by email, including the date and time of the communication and to whom it is addressed. Document the date and time that an appraiser comes to your shop. Document that you have directly given your notice to that appraiser. Maybe make a notation on your own appraisal that you prepare for purposes of negotiation, as to whom you were dealing with, when you were dealing with them and what you communicated to them. Perhaps ask the appraiser to sign a copy of your appraisal, with your note on it, acknowledging receipt of the document. Put your policy and any follow-up requests for compliance on all of your emails to insurers and appraisers, and keep copies of those emails in your files. Also document whatever responses you get back, whether acknowledging receipt of your communication, promising to come inspect a vehicle – or even improperly replying to your communication by refusing to inspect a vehicle or refusing to deliver an appraisal in a timely manner, or telling you where to
stick your “damn request.” If you are going to start charging for storage, sue an insurer or file a complaint with the ADALB, you need to collect as much complete, accurate documentation as possible if you want to have a chance of success. Conclusion So, where is that supplement, and when are you ever going to get it? If you want to find out, make sure that you accurately know what the law requires as to the timing of damage inspection by insurers and the writing and delivery of appraisals by licensed appraisers. Then decide what the policy is going to be for your shop to enforce those time limits and what you are going to do when they are not met. If you truly and rigorously follow that policy and its implementation, you just may find that you do know where that supplement is and when you are going to get it. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
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.
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42 February 2022
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New England Automotive Report
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February 2022 43
EXECUTIVE DIRECTOR’S MESSAGE continued from pg. 8 EVERYONE knows that the average of $40 per hour does not make any sense at all in this day and age. It makes no more sense today than it did back in 2008 when the last Labor Rate Special Commission determined that the rate was substandard and if insurers did not move the Labor Rate significantly on their own that the legislature should take action. Back to lessons learned. Look around and see what your counterparts in the mechanical field or even in other fields like the medical profession have done. The mechanics charge a price they feel is fair and reasonable to cover their costs and accept the liability for the work they perform, allowing them to stay current with changes in technology in terms of both training and equipment. More importantly, consumers pay it! The medical profession, regardless of what insurance you have or do not have, informs you right up front that any procedures performed, medicines prescribed and the acceptance of their services will result in a bill directly to you for which you are solely responsible, if not paid for in full by insurance. You have to ask yourself, “Am I any different from the mechanic down the street? Am I not the doctor for this vehicle? Am I not the expert in the repair process? Won’t I be held personally
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We, as collision repairers, have failed miserably at educating the consumer. responsible and liable? Am I not worth more than an average of $40 per hour?” You certainly ARE! That is the lesson we must all learn and teach! JOIN AASP/MA NOW, and help to push our legislative bills across the finish line. NOW IS THE TIME! PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
AASP/MA EXECUTIVE DIRECTOR EVANGELOS “LUCKY” PAPAGEORG can be reached at (617) 574-0741 or lucky@aaspma.org.
New England Automotive Report
February 2022 45
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