New England Automotive Report February 2023

COLONIAL NISSAN 104 Mystic Avenue Medford, MA. 02155

Phone Number: 781-395-3025

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

DEPARTMENTS

PRESIDENT'S MESSAGE

6 | Are You Paying Attention?

by Kevin Gallerani

EXECUTIVE DIRECTOR’S MESSAGE

8 | Off to a Great Start by Evangelos

“Lucky” Papageorg

NATIONAL FEATURE

LOCAL NEWS

12 | High Hopes for 2023: AASP/MA is Poised to Break Free with New Blood and Energy

by Alana Quartuccio Bonillo

16 | Hudson Shop Owner Praises Assabet Students as Shining Stars Dream Team

by Chasidy Rae Sisk

18 | AASP/MA Body Shop Wins in Court Against Travelers Insurance

by Alana Quartuccio Bonillo

LEGAL PERSPECTIVE

34 | The December 8, 2022 Division of Standards Notice – What’s It All About?

by James A Castleman, Esq.

ALSO THIS ISSUE

7 | AASP/MA MEMBER APPLICATION

17 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS

20 | Operative Talent: On a Mission to Educate the Public about Collision Careers

by Chasidy Rae Sisk

COVER STORY

25 | Massachusetts Shops Speak Up: NEAR’s 2022 Survey Results

by Chasidy Rae Sisk

PRESIDENT’S MESSAGE

Are You Paying Attention?

KEVIN GALLERANI

Our industry can be a great place to make a career…but it’s definitely complicated and changes all the time. And I mean, ALL. THE.TIME. Collision repair’s movers and shakers are constantly getting into something to move the industry forward – just check out everything AASP/MA did in 2022 (grecopublishing.com/ near1222coverstory)!

The “Alliance” provides our members with as much positive action and all the information we possibly can, but let’s face it: There’s just too much going on for us to be your ONLY source of information about what’s happening in YOUR industry, so I really hope that you’re paying attention to what some other professional groups are working on. Recently, I noticed a few really cool studies that I haven’t heard being talked about nearly enough. Have you seen them yet?

Repairify conducted a study on aftermarket and OEM scan tools, which proved that aftermarket scan tools don’t do the job as well as OEM tools (bit.ly/RDNscan). We all know that; only the OEM scan tool (or an aftermarket version that accesses all OEM repair procedures and is regularly updated) is going to give repairers the right information to repair the car correctly.

Even more impactful for most shops, the Society of Collision Repair Specialists (SCRS) conducted a really great blend study that confirmed what we already knew – that it takes MORE time to blend a panel than it takes to refinish (grecopublishing. com/hd1222cic2022). For years and years, insurers have been paying us half time for blends, and now this study, which paint companies participated in, has confirmed that it’s harder and more time-consuming to blend than to paint. It hasn’t been updated in

STAFF

Thomas Greco | thomas@grecopublishing.com

VICE PRESIDENT/SALES DIRECTOR

Alicia Figurelli | alicia@grecopublishing.com

SALES REPRESENTATIVE

Bill Moore | bill@grecopublishing.com | (201) 209-1989

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.

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Corporate: (973) 667-6922 / FAX: (973) 235-1963 www.grecopublishing.com

the information providers’ systems yet, but none of us should be accepting partial hours on a refinish. We need to always be fighting for the truth as we know it, and this is a great example of that truth finally coming to light.

Flip to page 18 for another awesome example of what happens when shops fight for what’s right. Mike’s Auto Body (Fall River) won an appeal against Travelers Insurance, and the original press release sent out by AASP/MA has been published just about everywhere because it shows that we CAN win. The shop said, “No, enough’s enough,” went to court and won. The judge found the shop’s rates to be justified…Aren’t your rates justified too?

We should all be getting paid what we’re worth, and that includes getting paid on sublets and markups. No other business lends their money out for free. Banks charge us interest. Insurance companies invest premiums to multiply their money. Yet, shops are expected to loan out their money and then fight just to get compensated for it. Does that seem fair to you? It doesn’t to me; in fact, it makes me pretty angry that everyone thinks they’ve got a right to our money and that we shouldn’t be getting paid fairly and reasonably. It’s time WE tell them “enough’s enough,” but we can’t get to that point unless we all understand what’s going on in the industry around us. So, do you understand what’s happening? Are you paying attention?

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.

ZONE 1 Mike Penacho

John Studer

Dan Wenzel

Affiliate Director

Al Correia

Brent Dabrosca

C.J. Ellis

Jimmy Kelsey

AASP/MA Executive Director

ZONE 2

Ray Belsito Brenda Lacaire Tom Ricci ZONE 3

Affiliate Directors

Mike

McColl Rhodes Lisa Russell

Wes Smith

AASP/MA

Administrative Assistant

ZONE 4 Kevin Kyes

Dean Luther

Jeff White

Affiliate Directors

J.R. Force

Simon Frietas

Timothy Harder

Jayce Mitchell

Gregg Tanguay

Scott Varney

Membership Application 2023-2024

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 # __________________

Company’s Official Name:

Business Physical Address:

Business Mailing Address (If Different):

Total number of Staff (Techs, office, Mgrs)________

Telephone Number: ( )- -___________ Fax: ( )- -

DUES STRUCTURE. Collision Shop Annual Dues: $650 / 12 Months*

PRIMARY BUSINESS CONTACT

Name: _________________________________________________

Email: _____________________________________________

As a member in good standing, your shop WILL BE listed on our website Click here � if you do not want your shop listed on our website map for potential customers to find you. If you have any questions about this benefit, call (617) 574-0741, ext. 1.

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) OR

CC #: ______________ EXP: ________/___________ CID: _________________

Billing Address: ____________________________________________________________________________________________________________

Name On Card: _____________________________________________ Signature: _____

Check here � to opt out of auto renewal using this credit card information for future renewal

Note: A 4 percent convenience fee will be charged for membership renewal via credit card transaction

I hereby make this application for membership with the Alliance of Automotive Service Providers of MA (AASP/ MA) for membership dues 2023-2024 as provided for in this contract.

*Membership Dues are for a twelve-month period commencing on your anniversary month of membership.

Off to a Great Start

We have officially kicked off 2023, and the “ALLIANCE” has hit the ground running, building on the great momentum started in 2022! AASP/MA will continue to be the best and loudest advocates for consumers, collision repair shops and affiliated industries, here in Massachusetts. As an Alliance, we still have much to accomplish, and by working together over the last two years, we have proven that we can achieve great things together. We have won many battles along the way and have taken a few licks, but overall, we are moving forward. We closed out the 2022 year strong and are in a greater position as an industry than ever before to make “BREAKING FREE IN ‘23” a reality.

Here are just a couple examples of how we strongly closed out 2022:

• Key legislators whom the Alliance have been educating regarding the issues facing consumers and collision repairers have been elected into the offices of the Governor, Attorney General and the State Auditor. We have the ear of these individuals who have already shown their support and have committed to addressing several of the issues presented to them.

• A shop, through steadfast perseverance and knowing they were in the right, successfully appealed a small claims decision against them (which would have cost them thousands) on fees such as markup, storage and towing, administrative fees and fixture rentals. This gives credence to the longstanding position that they are all part of the cost of repairing a vehicle in this claims process. (Read the full story on page 18).

The recent attempt to stifle and silence the segment of the collision industry who have implemented “co-pay” procedures in their businesses is evidence enough that we have hit a nerve and that insurers are feeling the pressure. (For more on this issue, read Legal Perspective by Jim Castleman on page 34.) Hot on the heels of the Alliance’s “Taking Back Control of Your Business“ seminar in mid-November, the Division of Standards (DOS) issued a “NOTICE” whose only purpose, it would appear, was to intimidate less knowledgeable shops, keeping them from collecting “co-pays” from customers to cover the shortfalls by insurers who are not writing fair and reasonable estimates which properly indemnify their insured when they have had a loss. The actions of the DOS and what precipitated them is continuing to be further scrutinized. The Alliance is pursuing documentation regarding the “numerous consumer complaints” and a request has been submitted through the Freedom of Information Act (FOIA). An excerpt of this request states: "In addition, we are formally requesting, under the Freedom of Information Act, that we be supplied with the list of specific complaints the DOS received prompting the ‘notice.’ The list of complaints requested should include the date received, the source, names of the individual or organization who filed the complaint, the form the complaint was received in (ie: by phone, letter or email), copies of any and all written forms of the complaint or logs used by the DOS to track complaints it has received on this issue.

We also request copies of any and all correspondence, be they responses or inquiries made by the DOS. The request for information includes copies of any research the DOS may have done to vet the voracity of the complaints they have received ‘rapidly over a couple of weeks.’ This request was amended shortly after, as follows: "At this time I would like to amend my request under the FOIA to include a list and contact information, email and/or physical mailing addresses, for all the ‘Motor Vehicle Repair Shops and Motor Vehicle Glass Repair Shops Registered with the Division of Standards’ to whom the notice was sent on December 8, 2022 by the DOS. Please include any other agencies, entities or persons to whom the ‘notice’ correspondence was sent, whether electronically or in hard copy."

At the present time, the DOS has only provided three pieces of documentation from three different insurance companies. The documents were not complaints to the DOS, merely copies of letters from claimants requesting reimbursement for payments the insureds have made out of pocket for complete and proper repairs. These documents were from three different consumers pursuing their right to be made whole again under Part 4 of the Massachusetts Insurance policy “Damage to Someone Else’s Property,” by the three different third party insurers. There is no indication that a consumer complaint was being made against any shop directed to the DOS. The Alliance is viewing this action by the DOS as overt and potentially at the direction or request of insurers or possibly even the Division of Insurance (DOI).

As the new Board of Directors (BOD) takes on the mission of the Alliance, we want to say a heartfelt thank you to those members who will not be returning to the BOD for the January 2023 to December 2024 term. You have made great sacrifices, having given countless hours, energy and money to further the mission of the Alliance. The Alliance and our industry owe each of you a great deal of gratitude for your service over the years. Our slate of candidates for this year’s ballot was among the longest in recent memory. Let’s welcome several new faces to the BOD. In

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High Hopes for 2023: AASP/MA Welcomes New Blood and Energy

It’s 2023, and the Alliance is poised and ready to take action now more than ever before.

The groundwork for much needed change has been put in place over the past year. Now, AASP/MA not only has a strong network of allied collision repairers all across the state but a newly restructured Board of Directors made up of seasoned pros and fresh new blood, all poised and ready to work together to continue their plight.

The association closed out the year with much to be proud of, having garnered strong legislative support for its bills to increase the labor reimbursement rate and to move the ADALB from the suffocation of the Division of Insurance (DOI) to the Division of Occupational Licensure (DOL). In fact, the labor rate bill went farther than any labor rate bill has gone in the past. AASP/MA drew so much attention to the labor rate issue that legislators even supported the bill language as part of the Governor’s Economic Development Bill, but before the end of 2022, it was not pursued further; however, there is a strong sense that this new session will bring the changes needed to ensure consumers’ and collision repairers’ rights are met this time around.

To make this happen, hundreds of auto body professionals in Massachusetts made calls, wrote letters and emails to their local legislators, hosted meet and greets and – likely the most effective of all – took part in a demonstration on Beacon Hill last May showing the world that they will no longer stand for a $40 an hour labor rate.

“We have high hopes to get the labor rate increase done by carrying out the momentum we started over this past year,” shares AASP/MA Executive Director Lucky Papageorg. “And we will continue our efforts to get the ADALB moved away from the DOI to an effective location. Grievances need to be handled as opposed to the ineffective way things have been going in the past.

“Having a consumer voice on the ADALB would be key to that,” he adds, referencing one of the proposed requirements as per their bill.

As the Alliance steps forth into 2023 to “break free” from the constraints that have held them back for far too long, AASP/MA’s Board of Directors is prepared to tackle whatever the year brings.

The results of the recent Board of Directors election held at the end of 2022 brings back many of the familiar faces who have been devoting their time and commitment over the years as well as some new ones who are willing to step into the game and work toward positive change.

The Executive Board includes President Kevin Gallerani (Cape Auto Body & Service; Plymouth), Vice President Matt Ciaschini (Full Tilt Auto Body, Inc.; West Hatfield) and Dana Snowdale (D&S Auto Works; Abington) as Treasurer – all three elected to a second term by their fellow Alliance members. Stepping up from the ranks of affiliate director to director is Don Dowling (Marblehead Collision; Marblehead) who will now serve as Secretary to the Board.

AASP/MA established the affiliate director position as a training ground to develop stronger leadership. These members are active in monthly Board meetings and general membership events and serve on association committees, lending their voice toward the betterment of the collision industry. Dowling’s involvement grew quickly over the past couple years serving on and helping to lead the membership committee.

“I’m up for the challenge of taking on a larger role,” affirms Dowling about elevating his role on the Board. “We, as an industry, need to do as much as possible to make sure we can prosper in this industry. We all have something we are good at, and we need to apply that toward our goals. Together we can, and will, make it happen.”

Each of the four zones that make up AASP/MA are represented by three Board members and a number of affiliate members.

Returning to lead Zone 1 as full fledged Board members are Mike Penacho (Mike’s Auto Body; Fall River), John Studer (Whitman Body Works; Abington) and Dan Wenzel (Wenzel’s Auto Body; Pocasset) who will now also serve as the association’s collision chairman.

Elected as affiliate members for Zone 1 are Al Correia (A.P.C. Auto Body, Inc.; Dartmouth), Brent Dabrosca (Anchor Collision Center; Hyannis), C.J. Ellis (John’s Collision; Hyannis), Jimmy Kelsey (Kelsey’s Auto Body; South Chatham) and Russ Oagles (Five Star Collision; Westport).

Zone 2 sees the return of Ray Belsito (Arnie’s Auto Body; Charton), Brenda Lacaire (Steve’s Collision Center; Sturbridge) and Tom Ricci (Body & Paint Center; Hudson). Belsito has been selected to serve as legislative chair.

Zone 3 will enjoy the return of Gary Cloutier (Cloot’s Auto Body; Westfield), Andrew Potter (North Amherst Motors, Inc.; North Amherst) and Brian Stone (Balise Collision Repair; Springfield) as members of the Board of Directors. Joining them as affiliate directors are Mike Nawrocki (Geno’s Auto Service, Inc.; Chicopee), McColl Rhodes (Nesco Sales, Inc.; Bondsville), Lisa Russell (Bertera Collision Repair Center; W. Springfield) and Wesley Smith (DMS Auto Body & Collision; Chicopee).

Rhodes has been an active member of the association for years. She marched at the 2022 Beacon Hill demonstration, and she regularly attends Alliance general membership meetings. McColl has been watching how hard the association works to help shops, and as she readies for her new role, she hopes she can contribute something back in return.

Although she isn’t certain what exactly she can bring forth at this time, she is happy for the opportunity to serve as one of the young minds coming onboard to be molded and shaped to help the collision repair industry.

Those serving in the affiliate role really can lend a hand as Dowling can attest. ”My time serving on the board has opened my eyes to several issues around the state. It has helped me realize all shops are on the same team. It provided me with relationships that have helped my business grow. So many good things have come from not only being on the board, but as a member of AASP/MA.”

Returning to the Board of Directors for Zone 4 are Kevin Kyes (Today’s Collision Center; Stoneham) and Jeff White (North Andover Auto Body; North Andover). Newly elected as a full-fledged Board of Director is veteran collision repairer Dean Luther (Carlisle Auto Body Co, Inc.; Carlisle).

Luther has 47 years of auto body experience under his belt, and as a former MABA Board member, he is sure to bring tons of knowledge to the Board.

continued on pg. 14

continued from pg.

After all these years of not serving on the Board, he is excited to be back and is so thankful for the warm reception his fellow repairers gave him by selecting him on the ballot.

When he was approached by Papageorg about possibly running for the Board, he really didn’t think he stood a chance. “I told Lucky there was no way in hell I’d get elected,” recalls Luther. “I didn’t think they’d want ‘the old guy.’ I never thought I’d make it to the Board again. When Lucky told me I got in, I was shocked. I thank everyone who voted for me, I really do. So much talent was in the running. I look to their talent as they will be serving in the background, and we do need everyone’s ideas. There is no such thing as a bad idea.”

He commends the Board for all the hard work they have been doing, especially with labor rate issues: “It’s always been a hard issue. I don’t know why we can’t get it through the legislators’ heads. Just looking at what it costs to live in this state alone. We are just behind California. They keep agreeing with the insurers that $40 an hour is fine, but it’s insulting. That is one of the things I’d like to work on. I also really would like to see something be done with the ADALB to make it more effective because the way it is right now is useless. They refuse to take a stand on anything, and when they do, no one listens.”

Rounding out the Board for Zone 4 as affiliate directors are J.R. Force (Repairs Unlimited; Georgetown), Simon Frietas (Simon’s Auto Body; Framingham), Timothy Harder (Gino’s Collision Center; Rowley), Jayce Mitchell (Mitchell’s Auto Body; Tewkesbury), Gregg Tanguay (Marshall’s Auto Body Experts; Billerica) and Scott Varney (Westford Collision, LLC; Westford).

Papageorg is eager about the future and the possibilities that will stem from the addition of new and young Board members.

“I think they will bring great vitality and energy going forward. They are looking to hit the ground running and are excited to be a part of it.”

He thanks those Board members who have returned to continue building upon the foundation they have erected, and he also expresses gratitude to those who decided to step down due to other commitments for all their tireless years of service and devotion to the industry.

“I am grateful to the returning Board members for their time, energy and dedication, and I really look forward to working with them and the new Board. With more people on hand to assist, we have the ability to be even more effective in every zone.”

Dowling also commended the great work of the preceding Board members.

“I think the work the previous board did was great, and some of the leaders from the previous term are back to continue our efforts. The accomplishments we were able to achieve were the most significant changes I have seen in this industry since I started in 1998. We face so many obstacles in our businesses, and then there is this whole other element from insurance companies that handcuff our abilities. Our objective is to not only continue what we have done over the last few years, but to push even harder to ensure this industry will not only stay viable, but flourish.”

by Chasidy Rae Sisk

Hudson Shop Owner Praises Assabet Students as Shining Stars Dream Team

Auto body veterans often voice their fears that collision repair is a dying field with few young people interested in learning to repair cars – and even fewer committed enough to stick with it long enough to actually get into a shop – but if that’s even remotely true, it seems that Tom Ricci (Body and Paint Center; Hudson) has hit the jackpot thanks to what he calls his “Shining Stars Dream Team” from Assabet Valley High School (Marlborough).

“For the first time ever, we have Assabet students from four years in a row who are working in the shop,” Ricci explains that co-op students came to work for him full-time after graduating in 2020, 2021 and 2022, while a current Assabet student is doing a phenomenal job in her current co-op. He quips, “It’s like a UFO… something you may hear about, but you never actually see it.”

Ricci’s oddly good luck began in 2019 with co-op student Garrett Monteiro who came on board full-time after graduating from Assabet in 2020. “He loves doing body work, and he treats his own car immaculately,” Ricci shares. “He also really enjoys riding motorcycles and going fishing.”

advisory committee since the mid-1980s. He currently serves as chairman of both the Program Advisory Committee and the General Advisory Committee. “Over the years, I’ve hired a number of students, and although some are still with us, others go on to college, the Army or different trades.”

Although Ricci claims, “We just have an unusual situation currently where three students who graduated are still with us and haven’t gone on to other adventures because they like doing auto body repairs,” his knowledge about each employee clearly demonstrates that there’s more to this story than sheer dumb luck; it’s about an investment.

Brett Barrett, a 2021 graduate, “loves the Bruins and hates haircuts, so we always tease him about how we’re going to cut his hair,” Ricci chuckles good-naturedly, while observing that 2022 graduate Mike Castro Jr. “loves cars, especially trucks.” Current coop student Brenda Darnobid is “pretty quiet around here, but her favorite sport is field hockey, and I understand she’s pretty aggressive on the field, so I wouldn’t mess around with her.”

Monteiro performs body work and paint prepping, while Barrett works in the dismantling area, processing and scanning damaged vehicles. Castro is a body tech who also performs some paint prepping, and Darnobid has been doing a good job in the paint prepping department, according to Ricci. “They’re all doing a good job, and they all have a great attitude which is even more important.”

Body and Paint Center is no stranger to hiring Assabet graduates; Ricci has been involved with Assabet Valley High School for around 40 years since Arthur Balthazar, the auto collision instructor at the time, reached out to ask if he was interested in hiring a student. “That student worked for me for 40 years, until recently,” recalls Ricci who has been involved with the program’s

“There’s often this perception among shop owners that these kids should know a lot when they come into our shops through their co-op. They want to stick a student in the shop and put them right to work, but in reality, that’s not how it works. In the 40 years since I graduated from vo-tech and started my business, the hours that students spend in the auto collision shop programs have changed, eroded by mandates issued by the Department of Education. We used to spend the whole day in our shop, but now, there’s a certain amount of academics that are required, and that cuts into the hands-on experience that these kids are getting in school.

“We think they’re supposed to know everything when teachers don’t have enough time to teach them all of it,” Ricci continues. “Meanwhile, we also forget how little we knew when we started. Most of us graduated 20, 30 or even 50 years ago, and we’re still learning! So, why do we expect these kids to know everything as soon as they walk in the door? When we set such a high expectation, we get pessimistic about all they don’t know…and that’s discouraging to them as well. We’re setting them up for failure.”

At Body and Paint Center, students participate in a “full-blown mentoring program,” led by past Assabet graduate, John Resendes, who has worked at the shop since 2012. “John excels at mentoring and teaching, so he takes each new student or employee under his wing for several months. That student works side by side with John for months until he feels comfortable allowing them to start working on their own once we’re confident they’ve developed the

continued on pg. 39

The entire team at Body and Paint Center.

Body and Paint Center’s Shining Stars Dream Team (LR: Brenda Darnobid, Mike Castro Jr., Brett Barrett & Garrett Monteiro)

AASP/MA Body Shop Wins in Court Against Travelers Insurance

An auto body shop owner’s win against a major insurance company on an appeal could possibly mean big things for the industry’s future.

A December 13 court decision ruled in favor of an AASP/ MA member shop, Mike’s Auto Body (Fall River), and partnering business, All Day & Night Towing, against Travelers Insurance.

The appeal dismissed a small claims court magistrate ruling that favored Travelers Insurance’s claim, which alleged that Mike’s Auto Body and All Day & Night Towing were engaging in unfair business practices, challenging their rates and other charges.

Mike Penacho, owner of the body shop, wants everyone in the industry to know what he had to face when Travelers Insurance came after them. The initial magistrate ruling in the insurance company’s favor would have cost Penacho roughly $16,000 – three times the amount of damages sought. The insurer was willing to drop it to $15,000 if they didn’t appeal, but Penacho pushed forward, he said.

“I know some guys out there would likely have caved and just paid, but we had to appeal,” lamented Penacho. “It cost me roughly $12,000 to fight, but sometimes you have to decide when it’s right to go to court or not. As my pastor has told me, ‘If you don’t go to battle, you don’t have a shot at victory.’

“I thank my Lord and Savior for helping me out,” he professed, regarding this recent issue and others he’s faced in the past.

“The judge found in our favor, which essentially means that the prior judgments awarded against the body shop and tow company have been vacated, and they do not owe Travelers any money,” reported Jordan J. Rodrigues, the attorney for the two automotive businesses.

In the end, this judge found the shops’ rates to be justified, explained Rodrigues.

“We were vindicated as the judge found our rates to be fair and not unjustified.”

The shops did their work and are entitled to be paid for the services rendered.

“It’s kind of like a David versus Goliath mentality – a billiondollar insurance company putting all this pressure on the small business,” he continued. “A lot of times, these businesses get letters in the mail from insurers requesting refunds or threatening to sue for triple damages and attorney fees. Nine times out of 10, these small shops probably cave and give in. I’d like to think that maybe this win will put the brakes on that practice.”

“This court ruling in favor of Mike’s Auto Body is a positive thing for the collision industry,” said AASP/MA Executive Director Lucky Papageorg, who testified on behalf of Mike’s Auto Body. “It may not set a precedent, but it’s surely something to be optimistic about. Body shops can fight and win.”

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Operative Talent: On a Mission to Educate the Public about Collision Careers

Do you believe that this industry needs to do a better job of educating today’s youth and the general public about the multitude of amazing job opportunities available in the collision industry? You’re not the only one! That’s why the Collision Repair Education Foundation (CREF), BASF and KTL Restorations (Danville, VA) teamed up on Operative Talent, a project focused on attracting future talent to the industry by educating the population as a whole on the ample opportunities, success stories and segments within the collision repair industry.

“We continually discuss the need for more technicians, estimators and other industry professionals, but instead of just thinking about it and talking about it, we’re going to put some actions behind it which will involve everybody in this industry,” shares Brandon Eckenrode, managing director of CREF.

The industry’s technician shortage is a multi-faceted problem, so Operative Talent will take a multi-pronged approach to solving the dilemma with the overall goal of addressing the industry’s aging

workforce by highlighting collision repair as a viable career path. This approach includes engaging students through a vehicle rebuild, which will then be raffled off to raise funds to create public awareness campaigns promoting the industry. Ambitious, yes… but definitely doable with everyone’s help!

Since Operative Talent was first announced at the end of 2021, KTL Restorations has been rebuilding a 1969 Camaro, named “Talent,” but with over three dozen partners from across the country joining together to increase the reach of this impressive initiative, it’s important to realize that this initiative is about a lot more than simply raising funds through raffle ticket sales and generating industry involvement through sponsorship opportunities – Operative Talent also offers an unique opportunity for the next generation of collision repair enthusiasts to get some hands-on exposure to rebuilding a vehicle!

To encourage young people’s interest in this field, students between the ages of 16-23 are invited to participate in the rebuild by applying online. By participating

in rebuilding the classic car and learning a little more about the different career paths available in this diverse industry during the process, students will gain experience and exposure to the awesome opportunities the automotive industry offers…and hopefully uncover a passion that can turn into a fruitful and fulfilling career!

“Cars are cool, and working on them is a lot of fun,” shares Crystal Lawrance of KTL Restorations. “Unfortunately, today’s students don’t often have the chance to get hands-on exposure to this type of work because so many schools have closed their trade programs. We want to showcase the awesome opportunities this industry offers – whether you’re interested in pursuing an automotive career or just want to learn something new, Operative Talent offers a unique experience you’re not able to get anywhere else.”

“We’re passionate about the next generation, but few show enthusiasm for automotive careers because they know nothing about it. No one shows them what’s available…Kids are told they must obtain a four-year degree (and accrue college debt) to be successful, yet the trades offer great opportunities for good-paying jobs,” Lawrance adds. “It’s time to spotlight the many different jobs that exist and drive that knowledge to schools to help educate the future generation about industry careers and to help us find quality talent. If we don’t bridge that gap, there will be no one to repair vehicles or create custom cars in the future.”

“Talent” will ultimately be raffled off at SEMA 2023 to raise funds to finance a national public service campaign showcasing collision career opportunities and generating awareness about the industry as well as a public-facing website to educate the public about the variety of career paths in the industry.

“Our industry has a bad reputation as this greasy, dirty place, but those days are long gone,” Lawrance insists. “It takes many different people with various talents to make up today’s automotive industry. Sure, body work and painting still happens in the back of the shop, but up front, we have

KTL Restorations will guide collision students in rebuilding “Talent," a 1969 Camaro, from the ground up!

estimators, accountants and a whole production team. Suppliers have many roles to fill; just look at BASF! They need chemists to create the beautiful colors we spray on these cars. And we even have positions for social media managers, industry journalists and more!

“We don’t do a great job of educating students or the general public about all the options that are out there,” she continues. “Just because you don’t want to work in a shop, that doesn’t mean there’s not a place for you if you love cars. Automotive professionals don’t all fit in the same box these days…and that’s just the way we like it! So, we’re hoping to introduce students to some of the different ways they might fit in, whether they’re already planning to enter this field or maybe they just want to explore their options.”

The automotive and collision industries have spent years griping about the lack of qualified help entering the workforce, and it’s time to DO something about it!

“We need everyone’s support…from donated parts to raffle ticket sales, we need the entire industry to get behind this effort – to get behind these students, our industry’s future – and help make Operative Talent a success,” Eckenrode urges.

Those interested in educating the public about the multitude of opportunities available within the automotive industry can purchase raffle tickets now at bit.ly/Talent-raffle. And in addition to supporting trade school education, you’ll even get a chance to win the custom-built Camaro these kids will be working on at KTL!

The initiatives funded by the Operative Talent fundraiser will help showcase the industry and its career opportunities to the general public, which will benefit the entire industry. The success of the project relies on the entire industry getting involved and championing the endeavor.

“Operative Talent is amazing,” BASF’s Tina Nelles praises the project. “Attracting new talent is important to our company and the entire collision repair industry. We’ve dedicated efforts to helping by offering internships, increasing scholarships and supporting schools, but the key piece that’s always neglected is outside perception of our industry…We need people talking about this industry in the right

by Chasidy Rae Sisk

ways! By promoting collision repair careers through the website and the PSA campaign, we can ensure that students, as well as their parents, teachers and guidance counselors, understand the variety of opportunities that exist within this industry.”

“This is a full industry effort,” Eckenrode stresses. “And each of you can help determine the success of this operative by getting involved to make Operative Talent the best it can be – by raising funds and donating your time and efforts, we can showcase this industry and ensure it has a bright future!”

And Lawrance hopes that Operative Talent can continue highlighting the industry on a broader scale in the years to come. “We’re talking to different shops around the country, and so many people believe in this project…I hope to see it grow and expand to offer students opportunities in different markets. How many kids can we attract if we just welcome them into this industry in a fun way? How many share the same passion that we do but need help discovering it? This is just the beginning,” she promises.

To support the industry’s future by purchasing raffle tickets, participating in the rebuild as a student or by donating parts, visit OperativeTalent.com

Operative Talent seeks to engage students in a vehicle’s restoration to give them hands-on experience and hopefully inspire a passion for automotive work.

Massachusetts Shops SPEAK UP: NEAR’s 2022 Survey Results

The collision repair industry is filled with changes, challenges and triumphs, yet each shop owner runs his or her own business, leaving many feeling as though they’re on an island all by themselves. It’s easy to feel like you’re “the only one” when you don’t know what’s going on with your peers. But for the second year, the New England Automotive Report Industry Survey provided an opportunity for shops to make their voices heard and reinforce the fact that we’re all in this together.

How many referrals and programs do other shops participate in? How are they educating their customers about the complexity of modern vehicles? Is anybody actually ready to repair electric vehicles?! The answers to these questions and many more fill the following pages, so keep reading to check out the results of the 2022 New England Automotive Report Industry Survey. Thank you to all the shops who participated in this survey. We hope that you find this information enlightening and useful.

by Chasidy Rae Sisk

How long have you been in business?

1-5 years: 5%

6-10 years: 0%

More than 10 years: 95%

Are you on a referral or program?

Referral: 7%

Program: 12%

Both: 17%

No: 64%

If you selected “yes” to being on a referral, how many referrals are you on?

1-5: 80%

6-10: 20%

More than 10: 0%

If you selected “yes” to being on a program, how many programs are you on?

1-5: 92%

6-10: 8%

More than 10: 0%

In last year’s survey, 52 percent of shops responded that they did not participate in any referrals or programs, and given the pressures that insurers place in these situations, it’s no wonder that this number decreased by 12 percent in 2022; however, those that DID participate chose to participate in more referrals and programs than previously reported.

How many employees do you have, including yourself?

1-5: 39%

6-10: 24%

11-20: 27%

More than 20: 10%

What is the age of your oldest employee?

30-40: 2%

41-50: 5%

Over 50: 93%

What is the age of your youngest employee?

18-25: 61%

26-35: 20%

Over 35: 19%

Where do you look to hire new employees?

Word of mouth/referrals: 27%

Online: 37%

Local vocational schools: 29%

Everywhere: 15%

Not searching: 17%

Since last year’s survey, fewer shops are seeking help through word of mouth and referrals (down from 39 percent). Although online searches have decreased by five percent, Indeed remains a common source for employee searches, and one shop owner recommended “targeted social media campaigns” as a viable solution. There’s been an increase in hiring through local vocational schools due to students’ “willingness to learn and ability to be detail-oriented.” In 2021, shops searching “everywhere” tied with shops “not searching” at nine percent, and both of those numbers have risen significantly; however, the “not searching” shop owners were the most vocal in giving their explanations.

"I don't look because most new employees have bad work practices," one owner wrote, while another claimed, "There aren’t any [new employees to hire]. The aptitude and skill level required to work on modern vehicles properly is very hard to find – almost nonexistent. We need to stop thinking we are ‘body men,’ ‘beautifiers’ or ‘auto esthetic experts’ and realize our jobs are more mechanical than mechanics. It’s a paradigm issue. Our trade schools are terribly flawed. Children are being taught a trade that matches five percent of the skill set needed. Until someone realizes things have changed at all levels (even shop ownership), nothing will change!”

What is the annual salary of your lowestlevel employee?

Less than $25,000: 7%

$25,000-$35,000: 29%

$35,001-$45,000: 37%

$45,001-$55,000: 15%

$55,001 or more: 12%

What is the annual salary of your highestlevel employee?

Less than $70,000: 39% $70,000-$85,000: 16%

$85,001-$99,999: 16%

$100,000 or more: 29%

Everywhere you look, prices are on the rise. With one of the highest costs of living in recorded history, shop owners around the Commonwealth are doing their best to help employees survive. Although the amount that shops pay their highest-level employees remained fairly stagnant compared to last year, the highest reported pay was $175,000 while one shop owner indicated that they would pay a highly qualified technician “whatever they want.” On the other side of the equation, 27 percent of shops’ lowestpaid employees earned more than $45,000 in 2022, compared to just 16 percent earning as much in 2021.

Are you familiar with AASP/MA’s legislative agenda for the current session?

Yes: 100%

No: 0%

Do you feel that your customers care about the issues facing the collision repair industry?

Yes: 43%

No: 57%

Fewer survey respondents expressed the belief that consumers care about the industry’s problems:

“Customers act like they care, but at the end of the day, they think we are complainers. They believe it’s part of an act. They don’t understand the estimating. They just see high dollars that look and sound like enough, though it’s not. Too many shop owners are uneducated in business principles, so they don’t understand how they make money; they just keep taking on jobs at a loss and think, ‘Do more, do more, do more.’ That may have worked years ago, but not today. MARGINS matter!”

“They’ll care only if the issue impacts them directly.”

“They won’t care until they start paying for those costs out-of-pocket.”

Other surveyed shop owners expressed faith that customers DO care and insisted that it’s just a matter of educating them.

“They care if we educate them about the possible problems that can arise by failing to adhere to manufacturer recommended procedures.”

“I inform my customers of the situations that we are dealing with relating to the repair of vehicles.”

As an industry, how do you think we can better educate customers?

About half of the surveyed shops agreed that the responsibility for educating customers falls on the shop on a case-bycase basis:

“Just informing customers how little insurance companies are reimbursing them. Some sort of signage in the office showing how much more other industries are charging is an effective tool for us,” suggested one respondent.

Another encourages customers to get involved, “Educate them about suppressed labor reimbursement rates...Customers need to complain to insurance companies, legislators and the Department of Insurance regarding how insurers are taking advantage of customers and body shops in the state of Massachusetts.”

Others suggested that even more can be done, such as the creation of “video content that can be used across social media platforms,” “ads to the consumer about OEM safety” and “better commercials than the insurance industry.”

Several indicated that it all starts with the industry. “Educate ourselves first,” and “Educate our members (and our potential new members) so they can educate their customers” were proposals received.

What do you think is the most pressing issue affecting shops today?

Not surprisingly, nearly 61 percent

of survey respondents indicated that the suppression of the labor rate in Massachusetts has the largest impact on their businesses currently, especially while trying to attract and compensate qualified talent. The workforce shortage ranked as the second most mentioned concern with 18 percent of shops citing its negative influence. Vehicle complexity, shops’ failure to research OEM procedures, liability and insurer interference also negatively impact shops.

One survey participant provided an allencompassing response: “Everything! This industry needs a paradigm shift. Nothing is right. Who said! Think about that? Who said?! Who said we need to use a flawed flat rate system? Who said we need to ‘do more’ production to make money? Who said we need to work for insurers? The answer is the insurance industry! But the insurance industry isn’t running our businesses. Think about one thing – if you were to start from scratch what would our billing look like? Would we repair so many cars at a net loss just because ‘it’s the system’? I understand what I am typing is a little progressive, but take a step back and ask yourself: Do any other trades do jobs at net losses? Do any other trades work on an average with no control over that average? Who in the world would ever come up with this system? Until we change the business, we will never ever change the business. We cannot fix our industry’s challenges until people change their paradigm.”

Are you currently certified/recognized by an OEM to perform collision repairs?

Yes: 40%

No, but I’m working toward it: 30% No, and I do not plan to become certified/recognized: 30%

If you answered that you ARE certified/ recognized by one or more OEMs, please list them below.

Certified shops mentioned over a dozen manufacturers for which they’ve received the necessary training, tools and equipment

to achieve their certification. The most prevalent OEM certifications referenced by survey participants included Honda/Acura, Subaru and Ford.

If you answered that you ARE certified/ recognized by one or more OEMs, what is your incentive to continue with the program?

OEM certification can offer many benefits for shops. Survey participants indicated that the main incentives for maintaining their status with these programs include access to the OEM repair information that allows them to ensure they’re making safe and proper repairs, improved access to parts needed for those repairs and leverage that can be used when billing insurers. The image it presents to consumers is another important incentive for these shops.

“We want the recognition and the training that will set us apart and confirm to our customers that we are the right choice to repair their vehicle,” one shop owner commented.

Unfortunately, others are starting to doubt the value of OEM certification.

“Questioning that myself. Little backup with insurers,” a respondent indicated, and a non-certified shop owner added, “This could be a great system, but until the entire industry wakes up and starts running their businesses independently, none of it matters. It’s just another plaque on the wall (other than the equipment requirements ), and we all know it.”

How do you feel OEM certification programs will impact your business?

My business will be affected in a POSITIVE way: 57%

My business will be affected in a NEGATIVE way: 6%

My business will not be affected: 37%

More than half of survey participants indicated that their businesses will be impacted positively by OEM certification. Those who do not believe their businesses

will be affected offered comments: “I had planned on getting certified in all the OEMs around my area but changed my direction after I realized the actual OEMs and dealers do not care about correct repairs.”

“At this time, for our business, I do not think the return outweighs the investment on becoming certified. In most cases, we would not be paid a higher rate, and we already have more work than we know what to do with. We have an excellent customer base.”

How would you rate your current state of business?

1-3: 17%

4-6: 26%

7-8: 40% 9-10: 17%

Survey respondents rated their current state of business at an average of 6.3. While seven percent of responses indicated business is at its worst (a score of one), 10 percent of respondents gave a “best” score of 10.

Over the past year, have your sales increased, decreased or stayed the same?

Increased: 87%

Decreased: 10%

Stayed the same: 3%

This question elicited one of the largest variances compared to last year. While the number of shops reporting a decrease in sales remained fairly consistent compared to the 11 percent reported in 2021, many shops reported an increase in sales (87 versus 54 percent) in 2022, while the number of shops that did not change significantly dropped from 35 to three percent. So, why did so many shops see an increase in sales? Several typical responses follow.

“People drive like a bunch of nuts.”

“We stopped repairing cars for $40 an hour! Instead, we balance-bill the customer, and we are NOT on any referral programs, so we now have the opportunity to get paid for ALL of the work that we do.”

“Shortages of shops to do the work.”

“Charging a labor rate co-pay and adapting better lean practices.”

“Largest crew we've ever had and increased cost of repairs, plus we started doing ADAS calibrations in-house and balance-billing customers for labor rate differences.”

In your experience, which insurer do you find the most difficult to deal with, and why?

Shop owners identified 10 insurers in response to this question, but the most commonly mentioned carriers were Allstate (28 percent) and Travelers (14 percent). Many shops blame the appraisers’ lack of knowledge and refusal to negotiate for their difficulties.

“Failure to negotiate is the biggest issue. Their appraisers and supervisors are unwilling to concede on any items– parts usage, repair vs. replace, P&M – all of it. As a result, we no longer accept Allstate claims at our shop,” a respondent shared.

Another vented about Travelers: “The appraiser is a complete d!c#. Their parts policy is horrible; they refuse to pay for PPI on parts if you don't attempt to use their vendor from 10 states away, plus they still haven't raised their labor rate. Meanwhile, the higher ups don't give a flying F about any of our concerns.”

Additional insurers who were identified as creating difficulties for shops include Vermont Mutual, GEICO, Hanover, Mapfre, Progressive, State Farm, Liberty Mutual and Arbella; however, nearly 10 percent of survey participants make no differentiation between insurers.

“Let’s list the couple that are okay to deal with; it will be a shorter list,” one repairer quipped, identifying those “okay” insurers as Amica and Arbella.

“They are all dictators and do pretty much what they want to do and pay for,” another repairer agreed. “They don't care about your business survival or if you are eating in a dumpster. All they care about is profit, when the vehicle repairs will be done and how to get out of paying for it at your shop’s expense.”

What is the current labor rate you are being reimbursed by insurers?

Less than $40: 7%

$40-$59: 87%

$60-$79: 17%

$80 or more: 7%

The majority of shops reported a range that included multiple categories listed above, acknowledging that they are reimbursed at higher rates by certain insurers on specific vehicles/repairs, yet 90 percent admitted to receiving less than $50 at least some of the time. What’s the other 10 percent’s secret? A couple spilled:

“The vehicle owners pay us; they chase the rabbit (the insurer).”

“I now deal business to business and set our rate based on that, so we collect a much higher rate than the $43 that insurance companies will pay.”

What do you think your labor rate should be?

Less than $60: 10%

$60-$79: 63%

$80-$99: 20%

$100 or more: 10%

A year of educating shops has made a huge impact in how Commonwealth repairers view their worth. Nearly a quarter of last year’s respondents believed their labor rate should be less than $60, while just 42 percent felt a fairer value could be found in the $60-$79 range. The 2022 survey responses demonstrate a positive shift in beliefs, thanks to AASP/MA’s efforts.

How do you promote your business to current and potential customers?

Word of mouth/referral/reputation: 44%

Internet (social media/website/Google/ Yelp): 23%

Local advertising (cable/radio/ community involvement): 21%

None: 13%

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. Over half of shops utilize multiple forms of marketing, yet the most common form indicated by survey participants is the good old-fashioned referral.

“Word of mouth is still king.”

Others believe community involvement is most effective.

“We give back to local organizations like little league, our local church, sponsorships at golf tournaments, etc. Other than that, we do no real advertising.”

How do you feel social media and digital platforms like Yelp have impacted your business?

A positive impact: 55%

A negative impact: 3%

A mix of both: 10%

No impact: 31%

Although 31 percent of survey respondents do not see social media and online reviews as impactful, most see these resources as useful tools.

“People use reviews as a trust-butverify system. They check online after being referred.”

“Social media is just another way to get your brand out there and give your current and potential customers a taste of who you are and what you do.”

“Most people these days use them to help make decisions. We have had good luck with business exposure by using them.”

Approximately how much do you spend on parts annually?

$1-$100,000 per year: 13%

$101,000-$500,000 per year: 47%

$500,001-$1 million per year: 20%

Over $1 million per year: 20%

What is the most important factor in determining who you purchase parts and supplies from?

Vendors that support AASP/MA and/or the industry: 33%

Word of mouth: 13%

Directed by insurance company: 3%

Price: 53%

Relationship with vendor: 80% Quality: 53%

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 specific vendor, yet the emphasis on quality increased in 2022 from 38 percent in 2021, reflecting the importance of safe and proper repairs.

Where do you look first when purchasing parts and services for your shop?

New England Automotive Report: 13% Word of mouth: 37%

Online: 20%

Previously established relationships: 30% Do you feel that your shop is prepared to repair electric vehicles (EVs)? Why or why not?

Yes, we are prepared: 37% No, we are not: 63%

The EV-evolution is on the horizon, but nearly two-thirds of Commonwealth shops do not feel prepared, though many realize that it’s a necessary next step in advancing their businesses.

“Not yet, but we will get the necessary training,” one said, and another offered, “We are ready to take the necessary steps to be able to safely work on the vehicles.”

A third indicated, “We are getting there. Lots of training to be done and some equipment investments to be made.”

Have you and/or your employees undergone any training in the past year?

Yes: 60% No: 40%

With technology advancements coming at astronomical speed, many surveyed shops took advantage of the lower workload over the past year to attend training. While 59 percent included I-CAR training in their agenda, others obtained welding certifications and trained with OEMs, paint companies and 20 groups.

As a shop owner, do you feel that MSOs (Caliber, ABRA, Crash Champions, etc.) are:

A threat: 17%

Irrelevant: 60%

An opportunity: 23%

With technology changing more rapidly than ever before, where do you see this industry 10 years from now?

It’s no secret that auto body shops are constantly contending with rapidly changing technology, which will play a vital role in shaping the collision repair industry in the future. Survey respondents shared some of their thoughts on what the industry will look like in 2032.

“Those with mechanical aptitude will survive, and those without will not be here.”

“Less repair shops and less employees. Industry age is a factor with very little new people wanting to be in this industry based on compensation rates.”

“We will all need ADAS capability to survive. And EV specific tools like battery removal tools and storage will be a must.”

“Opportunities are available for the facilities who can keep up with the changes, keep recruiting and training new technicians.”

“More shops will specialize in certain vehicle lines and will decline to work on some other vehicles.”

Closing:

Vehicles are evolving quickly…and auto body shops must keep pace if they want to stay in business. Fortunately, shop owners in Massachusetts seem to understand there’s strength in numbers and power in sharing their thoughts. We hope this year’s results help empower you to make the changes necessary in your individual shops to become stronger and forge ahead

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The December 8, 2022 Division of Standards Notice –

What’s It All About?

On December 8, 2022, the Massachusetts Division of Standards (DOS) sent out a notice to all registered motor vehicle repair shops and all registered motor vehicle glass repair shops in Massachusetts, regarding “repair rates.” In the following days, I was contacted by worried and perplexed collision repair shops, all wondering what the notice was about, what prompted it and whether it had been directed to them personally – and if so, WHY? In my experience, and in my opinion, the notice was one of the more bizarre communications that I have ever seen issued by any Massachusetts or federal regulatory agency.

The thrust of the notice was that repair shops should be careful as to what they tell their customers about what they are entitled to collect from their insurers for repairs to their cars. As stated in the notice, “the Division has become aware” that “some repair shops have suggested to customers or potential customers that if a customer pays the repair shop for the difference between the repair shop’s charges and the amount the insurer pays for the repair work, the claimant is entitled to compensation for this difference from the insurer.” The DOS, which regulates all motor vehicle repair and glass repair shops in the state, then threatened (and I think “threatened” is very much the correct term), “Repair shops should be aware that such a suggestion might be false and might subject the repair shop to penalties.”

It appeared to me that the true intent of the notice was to have a chilling effect on any communication that a repair shop has with its customers about their insurers’ obligations regarding repair costs. And, based on the calls and emails that I received, the notice had exactly that effect – even if it was completely uncalled for.

Let’s get a few things straight:

First, yes, it is improper for a repair shop to tell a customer that an insurer MUST pay for all amounts that the shop is charging, whether or not the customer pays the shop the full amount. But, quite frankly, I am unaware of any repair shop that is doing this. No one that I have spoken to in the repair industry is aware of any shop that is doing this, and neither I nor any one that I spoke to is aware of complaints (even false ones) having been made by any customer against any repair shop for doing this – which leads me question how the DOS “has become aware” that any such problem exists.

If a repair shop is making the types of statements alleged in the DOS notice, then shame on that shop, and, indeed, the shop could be subject to discipline if they are doing it. It is true that the amount that an insurer must pay is governed by various statutes and regulations, as well as the actual insurance policy applicable to the claim, all as referenced in the notice, and nowhere is there any language that requires an insurer to pay in all circumstances all charges of any kind being made by a repair shop. But, doesn’t every repair shop in the state already know that?

Second, it is NOT improper for a repair shop to tell a customer that their insurer MIGHT be required to pay for all amounts that the shop is charging, even if the insurer disputes those amounts. In fact, in some instances, an insurer could be found to be engaging in unfair

claims settlement practices if they fail to pay everything that a repair shop is charging for repairs. And if that happens, the insurer could be liable not only for all of the shop’s charges, but also for three times the amount of those charges, as well as the customer’s attorney’s fees incurred for getting the insurer to pay. There actually IS a Massachusetts statute that says that.

The final paragraph of the DOS notice warns that “any suggestion to a repair shop’s customer or potential customer that an insurer has a legal obligation to pay for repair work at whatever rate charged[…] by the repair shop may constitute a false or fraudulent statement.” The same paragraph repeats this warning with regard to claims that “an insurer will or must reimburse the customer for all or a part of the customer’s payment to the repair shop.” All of this is true. But a shop CAN legitimately say that the insurer MIGHT have an obligation to pay for repairs at the shop’s hourly rate, or that the insurer MIGHT have an obligation to reimburse the customer for all or a portion of the shop’s charges. Indeed, that is why there are statutes and regulations which specifically allow a claimant to challenge an insurer’s offer of payment and which specify methods of doing so.

Third, it is NOT improper for a repair shop to bill to, and collect from a customer directly, all of its charges, and to suggest to the customer that they try to get their insurer to pay them the difference between the shop’s charges and the lesser amount that the insurer has offered. In order to do so, as has been explained in detail in my prior Legal Perspective columns in New England Automotive Report, the shop must notify its customer in advance of what it is charging and have the customer agree to those charges. But once that happens, so long as the shop is open and honest about what it is charging, in a manner that the customer understands, then there is a binding and enforceable contract between the shop and its customer for the customer to pay those charges. Not only is the shop then entitled to collect the full amount from their customer, but the shop also will have a statutory garage keeper’s lien on the vehicle they are repairing for collection of those charges.

Fourth, it is improper for an INSURER to suggest to their insureds or to third-party claimants that it is not required to pay the difference between what a repair shop charges and what it has offered. While I have heard numerous allegations of this happening over many years, I am unaware of any notice being issued by any regulatory agency to Massachusetts insurers that they should stop making such statements. As noted in the DOS notice, there are methods for challenging an insurer’s repair payment as being inadequate, whether by arbitration, court proceedings or otherwise – and I am certainly aware of several instances of claimants successfully challenging lowball payments by insurers. Further, similar to the potential punishments that may be meted out for repair shops making misrepresentations and false statements, there are statutes, regulations and established case law that set punishments for insurers making misrepresentations and false statements.

continued on pg. 38

Sarat

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Volkswagen of Hartford

133 Leibert Road

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Direct Parts: 860-543-6012

fax: 860-728-4408

email: ebautista@vwofhartford.com

Balise Volkswagen

525 Quaker Ln.

West Warwick, RI 02893

TOLL FREE: 800-992-6220

FAX: 800-254-3544

wparts@baliseauto.com

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Quirk Auto Dealers

115 E. Howard St. Quincy, MA 02169

Toll Free: 877-707-8475

One Call, One Truck for Eleven Brands!

Mastria Volkwagen

1619 New State Highway

Raynham, MA 02767

Toll Free: 888-581-1146

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fax: 508-802-9966

email: vwparts@mastria.com

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WHERE IS THE NOTICE FROM THE DIVISION OF INSURANCE, OR THE ATTORNEY GENERAL’S CONSUMER PROTECTION DIVISION, OR THE AUTO DAMAGE

APPRAISER LICENSING BOARD (ADALB) TO INSURERS, WARNING THEM AND THEIR APPRAISERS NOT TO ENGAGE IN SUCH CONDUCT? Maybe it is time for some regulatory agency to issue such a notice and to inflict a chilling effect on the insurance industry regarding this type of conduct.

Fifth, there are many things that a repair shop can represent to their customers that may affect what the customer decides to do with regard to payment for repairs, so long as those things are true.

What are some examples – again, if true? (1) “Most other insurers agree to pay the labor rate that we charge (or for this repair or manner of repair), but your insurer does not.” (2) “Your car’s manufacturer has issued a written standard for repair of your vehicle that requires [fill in whatever it is] in order to properly [and safely] repair your car. Most other insurers will pay for that, but your insurer will not.” (3) “In my opinion, it is necessary to [again, fill in whatever it is] in order to make a repair that will make your car safe to drive, but your insurer refuses to pay for it.” (4) “We believe that we perform high quality repairs and that our work is superior to many other repair shops, and we provide a lifetime guarantee of our work. You paid a lot for your car. We may charge a bit more, but we believe that you will be protecting your investment better if you have us repair it.” (5) “In our experience, we have had difficulty negotiating the cost of repair with your insurer, even though we do not have the same problems with most other insurers. If you want us to fix your car, you may need to pay us out

of your own pocket for some of our charges and you may need to argue with your insurer to try to get reimbursed.” (6) Any other true statement that you can think of.

Conclusion

The December 8, 2022 notice from the DOS seems to be quite bizarre from my perspective. What prompted it? Have any repair shops actually engaged in the conduct of which the DOS “has become aware”? If so, where are they? What is the real incentive or purpose for the notice?

Despite the potential chilling nature of the notice, be aware of what conduct you actually can engage in and what conduct you are engaging in – as well as what conduct insurers cannot engage in and what conduct they are engaging in. Also, after having read this column, take a closer look at the notice and realize how many times the DOS steps back its allegations by using qualifying phrases such as shops “may be” engaging in certain improper conduct, without actually saying that they are. Act appropriately when making representations to your customers, but do not be afraid to be honest with them – no matter what their insurers may be telling them.

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

EXECUTIVE DIRECTOR'S MESSAGE

continued from pg. 8

addition, there are other members of the BOD holding the title of affiliate directors. These individuals will be participating and gaining experience to become the future leaders of the Alliance as we continue to grow in number and influence. Affiliate directors will work side by side with fellow BOD members, and will participate in committee work as well as working to promote the importance of the Alliance to prospective shops and encouraging them to join. Please look on page 6 for the list of BOD and Affiliates from your area. Feel free to communicate with them and have your voice heard!

We still have a lot of work ahead of us. We have a great foundation upon which to build. It is a strong foundation which can support you and the entire collision repair industry here in Massachusetts. You have a decision to make. You can sit on the sidelines and watch it happen, or you can JOIN THE “ALLIANCE” and put your foot on the accelerator with the rest of us and MAKE IT HAPPEN. Please see the application on page 7, or go to aaspma.org and click on the green “JOIN NOW” button on the home page.

It’s all part of “BREAKING FREE IN ‘23!”

or lucky@aaspma.org.

[LOCAL] NEWS

continued from pg. 16

skills necessary to perform certain tasks well. Nobody enters the shop, immediately gets cut loose and is expected to fix things.”

That mentality applies to new hires at the shop as well. “For the past three years, we’ve also had a full-blown mentoring program for anyone we bring on board. Delni Peralta has over 20 years’ experience and does a great job of taking brand-new employees, teaching them all about our culture and the way we do business and turning them into body techs that integrate seamlessly into our team.”

“Mentorship of any variety is absolutely an investment, and it’s not cheap,” Ricci acknowledges. “But it’s necessary if we want to employ students and help bring the next generation into our shops… It’s imperative to show these kids that we’re willing to help them learn more because if no one is willing to help them or invest in them, a lot of them will simply give up. And our industry needs them.”

Ricci’s attitude about students comes from a shift that Body and Paint Center made in shop culture years ago. “We realized that it’s about having the right attitude, and these students and graduates fit the bill. They have great outlooks, so we look past the lack of skills they have at this point in their lives. It’s more important that they fit into our culture because that’s the foundation for them wanting to do the job and really stick with it. They all love working on cars, and we’ve realized that we can train for aptitude if we hire someone with the right attitude. We just had to learn to take the right attitude ourselves…and just look at the benefits already: three years of great new hires and a detail-oriented co-op student that will hopefully continue our good fortune!”

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