[LOCAL] NEWS
AASP/MA Members Share Major Body/Mechanical Rate Disparities In March 2020, recent AASP/MA member and long-running no insurance company has reimbursed a consumer our posted rate. mechanical service facility owner Dan Stroscio (DSC Auto; How do we keep purchasing and updating our equipment when we Westborough) expanded his services by opening a second location, can just barely survive?” DSC Auto Body, Inc. in Acton. In addition to unknowingly A former shop owner, Magnant is well versed in the long-term launching a new collision repair business at the start of the most negative effects of the state’s historically frozen reimbursement rate. challenging time in industry history due to COVID-19, Stroscio “Years ago, I asked why shops were not receiving soon became acutely aware of the massive disparity between auto reimbursement from insurers based on the rate of inflation. Nobody body and mechanical rates paid in Massachusetts. could ever give me an answer other than the insurance companies As of this writing, DSC stating that the rates they paid were Auto’s minimum hourly sufficient. I’ve always disagreed mechanical rate is more than with that.” three times the amount insurers DSC applauds AASP/MA’s reimburse consumers at efforts to address shops’ struggles DSC Auto Body. Because his with insurers through the two mechanical rates are based on pieces of legislation it is currently customer pay without insurer pushing at the State House. (Read influence, Stroscio is free to this month’s cover story for more determine what to charge based information.) on his professional expertise “I think AASP/MA’s bills are and preferred methodologies. fantastic and could realistically Currently, he utilizes Shop work,” Magnant says. “The whole Boss Pro automotive shop industry could change for every management software to achieve body shop and consumer in this this objective. state. That would help with so “With our mechanical many problems we’ve had over the service, we charge based on the years. This is the way we really need degree of difficulty with the to go in order to stay in business work, so the rate is on a matrix.” for the future and stay current Unfortunately, economic with changes in technology and freedom of this nature does equipment.” not exist at DSC Auto Body. As AASP/MA continues its Although the shop has push to assist Magnant and other determined a posted hourly repair professionals, he urges reimbursement rate based association members to roll up on what it needs to remain Dan Stroscio (left) and Fred Magnant of DSC Auto Body, Inc. their sleeves and help. He also profitable, it has only received encourages non-members to join. roughly 60 percent of that amount from any one carrier in the state. “If they’re unhappy and complain about everything, then they “Realistically, our posted body reimbursement rate is based on a need to get involved with the association so that they really hear cash estimate to make the shop profitable and be able to put money what is actually happening outside their small world in their body away to purchase equipment and pay what we need to provide for shop. We need to all pull together to make this business stable for our employees,” explains DSC Auto Body Shop Manager Fred the long run.” Magnant. “Unfortunately, we have not been able to get there; so far, PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
12 April 2021
New England Automotive Report
