New England Automotive Report April 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 | What Are You Going to Do Differently?

by Kevin Gallerani

EXECUTIVE DIRECTOR’S MESSAGE

8 | Need More Proof?

by Evangelos “Lucky” Papageorg

LOCAL NEWS

12 | ADALB Meetings: An Exercise in Frustration

NATIONAL NEWS

16 | DEG Reboot Enhances Security and Increases Efficiency

by Chasidy Rae Sisk

34 | They’re Suing Me! What Should I Do?

by James A Castleman, Esq.

ALSO THIS ISSUE

24 | Keeping Collision Repair Alive: Vo-tech Instructors Reflect on State of the Industry

by Alana Quartuccio Bonillo

COVER STORY

30 | Why Should YOU Care About AASP/MA’s Reimbursement Rate and ADALB Reform Bills?

by Chasidy Rae Sisk

What Are You Going to Do Differently?

KEVIN GALLERANI

Our industry keeps changing – year by year, month by month, week by week and even day by day. But as shop owners, we often get stuck remaining stagnant and never updating our businesses to keep pace with the times. That’s one sure-fire way to fail our employees and ourselves!

As everything changes around us, we also need to make some changes. We need to do things differently…in every area of our businesses. So, what are you going to do differently this year compared to last year?

When’s the last time you evaluated your storage rates or your labor reimbursement rates to make sure everything you do is taken into consideration? You cannot base labor rates off what you’re told they should be. Each shop needs to calculate their overhead expenses and the cost of doing business to determine the amount you should be getting paid. And that’s a calculation that savvy business owners make quarterly (or even more often) so they can adjust their door prices.

Have you increased your rates lately to keep up with increasing costs to ensure that your profit levels remain consistent? Between inflation and the changes in the business that require constant investments, it’s easy to allow our profits to slip, but we cannot afford to do that. Understand what affects your profitability and do what’s necessary to maintain it so you can continue to invest in your business as the industry continues to advance.

We’re going to need to buy new tools and equipment as we contend with advancing vehicle technology, including electric vehicles, ADAS and calibrations. Have you spent time and money

STAFF

PUBLISHER

Thomas Greco | thomas@grecopublishing.com

VICE PRESIDENT/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

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to acquire OEM certifications? And if so, did you adjust your rates to account for that?

Vehicles are advancing, our industry is advancing, and our businesses need to change too. We cannot continue doing the same thing year after year. It’s time to try something different –whether that means buying new tools, trying new technologies or implementing self-pay or co-pay options because you can no longer accept the insanity of $40 an hour.

If you’ve been doing the same thing today that you have been doing for the past 10 years, you’re doing something wrong. Failing to grow with the business is probably one of the biggest problems I see in this industry, but change doesn’t have to be scary! Trying something new each year will allow you to grow your business, and it’s okay to start with a small experiment and expand from there. You don’t have to do everything at once, but making small, incremental changes can make a huge impact. Flip through New England Automotive Report each month for little ideas that you can implement, and just pick something each quarter that you can try. Then, build off that. One small step at a time leads to major improvement when you stay consistent. Start by joining and attending AASP-MA meetings and seminars. So, let me ask again: what are YOU going to start doing differently right away?

ZONE

John Studer

Dan Wenzel

Affiliate Director

Al Correia

Brent Dabrosca

C.J. Ellis

Jimmy Kelsey

Russ

AASP/MA Executive Director

Evangelos “Lucky” Papageorg

Affiliate

ZONE 4 Kevin Kyes

Dean Luther

Jeff White

Affiliate Directors

J.R. Force

Simon Frietas

Jayce Mitchell

Gregg Tanguay

Scott Varney

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.

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.

Need More Proof?

Some of you may be aware that AASP/MA’s (aka the “ALLIANCE”) position statement regarding referral and program contracts reads in part: “AASP/MA is a pro-consumer association representing all collision repairers and mechanical shops, regardless of insurance affiliation. However, it is our firm belief that the restrictive and suppressive insurance referral and ‘program’ contracts are a detriment to our industry and could create a liability risk for vehicle owners and collision repairers.” Insurers are so fearful of losing this restrictive and suppressive control, they have resorted to intimidation and propaganda techniques, evidence of which can be found in the recent “NOTICE” issued by the Division of Standards (DOS) and several memos which have been sent to agents statewide by several insurers.

The recent DOS NOTICE and the insurer memos are proof that the “ALLIANCE’s” efforts are creating a difference and causing a huge stir. The DOS NOTICE and the insurers’ memos are also proof positive that the “ALLIANCE’s” position statement is more than just speculation or conjecture. Referral and program relationships are, without a doubt, a detriment to our industry and could create a liability risk to vehicle owners and collision repairers.

If you are a collision repairer or are in the glass replacement industry, you are well aware of the December 8 DOS NOTICE of which the sole purpose was an attempt to squash the rising number of collision shops who have been “breaking free in ‘23.” It is aimed at collision repairers who are making the independent business decision to start charging a co-pay to cover the rising cost of repairing today’s vehicles. A significant number of those shops, in order to implement a co-pay policy, have removed themselves from the “restrictive and suppressive insurance referral and ‘program’ contracts.” These shops have said enough is enough! These shops have realized that to properly serve their customers, they cannot continue to serve two masters. These shops have realized that the most important person in the repair process is the vehicle owner. Additionally, these shops have realized that the

vehicle owners truly understand who the “villain” is in the process. Collision repairers have learned that in order to be quality repairers, they must be able to keep pace with training and equipment upgrades. They must be able to pay competitive wages to retain current employees and entice new blood into this great and exciting industry. Not just competitive wages in our industry, but competitive wages with other industries that will keep young potential talent from going to work at places like Amazon or UPS. Collision repairers have learned that they no longer have to fear insurers by being up front with their customers and being honest about the need to charge more than what their “profit centric” insurers are willing to reimburse. These shops are letting their customers know they may have recourse against the insurer for not properly indemnifying them. Insurers will find it more and more challenging to justify their position, especially when they are dealing with a customer who has been educated by a collision repairer.

Further proof that the insurers are feeling the pressure can be found in recent memos they have sent to their agents on how to fight back against the co-pay trend. The memos to their agents show how heavily they rely on the referral/program shops to set the rates of reimbursement. One insurer tells their agents, “We are here to help. There are hundreds of shops that we partner with approximately 400 shops to do repair work at the agreed-to rate.” That’s correct, “approximately 400 shops” are setting the rate for the remaining 1,200-plus collision shops. The insurer goes on to quote excerpts from the DOS NOTICE, which states that it is illegal to charge a co-pay and suggests that an insurance company “MAY” have an obligation to reimburse the vehicle owner. The circumstances under which the DOS was “compelled” to write their “NOTICE” continues to be investigated by the “ALLIANCE.”

The fact remains that if charging a co-pay was indeed an illegal practice, where would the medical profession be today? Just like the medical professionals, it is key that you do inform your customer that regardless of their insurer’s willingness to negotiate “all costs” associated with the repair of the vehicle in a fair and reasonable manner, there may be a balance remaining at the end requiring a co-pay. Again, it comes down to education. Does your customer want to go to a shop which has agreed to “partner” with an insurance company, possibly compromising that vehicle owner and their rights in the repair process?

One insurer is even more threatening in their approach, blatantly trying to steer customers by the use of threatening “facts.” The insurer basically states if the vehicle owner goes to a non-“partnering” shop and delays occur, the insurer is going to terminate the rental coverage. It would appear that because the non-“partnering” shop causes a delay due to addressing potential issues with the way the insurer is insisting the vehicle be repaired,

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ADALB Meetings: An Exercise in Frustration

It took from July 2022 until January 2023 for the Auto Damage Appraiser Licensing Board (ADALB) to complete its review of 100 complaints filed against licensed appraisers by a single auto body shop owner, who is also a licensed appraiser. Ultimately, the Board voted to move forward with 15 of the complaints, and on February 16, the ADALB’s meeting focused on identifying what “moving forward” actually means.

“Under the complaint procedures, when it says ‘move to the next step,’ you have two possible steps,” explained Attorney Michael Powers, identifying a change in the guidelines that was made November 18, 2020. “One is to notify the appraiser with a copy of the complaint and request that they send a written response which waives their appearance before the Board. Number two is you just notify the appraiser to appear before the Board.”

The ADALB agreed to cast a single vote to move forward in the same manner for all the involved complaints, and Board member Bill Johnson (Pleasant Street Auto; South Hadley/Belchertown) made a motion to move forward with option two: asking the appraisers in question to appear

before the Board. A tied vote, with Johnson and Board member Rick Starbard (Rick’s Auto Collision; Revere) in favor while the insurance representatives dissented, required Chairman Michael Donovan to break the tie. In accordance with his previous votes, he voted in opposition to the automotive professionals.

After a motion to give the appraisers the option to respond in writing, made by Samantha Tracy (Arbella Insurance), passed with a three-to-one vote, Attorney Powers promised to send the notifications “very soon” to allow the respondents a chance to respond in writing or request an appearance before the Board.

Another important matter on the meeting agenda was the introduction of two bills filed in the Massachusetts Legislature that relate specifically to the ADALB. House Docket 2860, sponsored by AASP/ MA, would move the ADALB from the Division of Insurance to the Division of Occupational Licensure, while House Docket 3310 would eliminate the ADALB completely, placing licensure back into the hands of the Commissioner of Insurance (flip to page 30 for a more detailed look at the ensuing conversation as well as some

details about these bills.)

When the meeting opened for “other business,” Johnson came forward with an inquiry he had received from a shop owner, who has recently encountered an appraiser who refuses to sign in to the shop. The shop owner sought assurances that he would not be in violation of 212 CMR 2.00 or any other regulations if he declines to give the appraiser access to the shop. The Board confirmed that sign-in procedures by a registered repair shop were voted to be permissible as of November 17, 1994, and Powers offered to send an official notice to the shop owner who posed the question.

The ADALB was scheduled to reconvene on March 16. Don’t miss the detailed coverage of the February and March meetings, only available in the April issue of the Damage Report members only newsletter.

AASP/MA members are strongly encouraged to listen to the recording of the February 16 meeting in the Members Only section of aaspma.org for a glimpse into the inner workings of the ADALB. View the meeting agenda at bit.ly/ADALB0223.

Co-celebrating decades of creating chemistry between two industry leaders

Here’s to 241 years of combined service excellence

This year, as Albert Kemperle Inc. celebrates its 83rd anniversary, BASF also celebrates its 158th anniversary. We are proud of our decades of partnership with BASF and years of serving the auto paint and body industry together. Kemperle’s founders would be proud of this relationship and the growth their company has experienced because of it.

Today, as we look forward to many more decades of service to our customers, we find ourselves filled with gratitude. The creativity, hard work, and sense of responsibility of the people working for our two companies have made us what we are today. Thank you for your many years of loyalty.

After 52 years in business, NICKOLE AUTO BODY is...

by Chasidy Rae Sisk

DEG Reboot Enhances Security and Increases Efficiency

As anyone who works in an auto body shop can certainly attest, the operations identified by information providers (IPs), such as Audatex, CCC and Mitchell, are much more likely to be “estimates” of the time and requirements actually affiliated with certain procedures than the detailed repair plans written in today’s facilities. For 15 years, the Database Enhancement Gateway (DEG) has been helping the collision repair industry improve the quality, accuracy and standardization of their repair blueprints – with over 20,000 inquiries submitted through the end of last year.

Suffice it to say that the DEG is powerful, yet because it is funded and managed by the Society of Collision Repair Specialists (SCRS) and the Alliance of Automotive Service Providers (AASP), along with additional donors/sponsors, this resource is offered FREE to the industry, allowing users to provide feedback that is used to improve the quality of information in the IP databases…and if that wasn’t already an amazing feat, degweb.org saw a significant reboot earlier this year, designed to enhance security, increase userfriendliness and advance analytic capabilities.

“The entire website is completely refreshed with a new look and feel,” according to DEG Administrator Danny Gredinberg. “It has been mobile-optimized to encourage more users to utilize the free resource. Phoenix Solutions Group stepped up to the plate and not only built a new main website but also completely rebuilt the database from scratch, making it faster, easier to use and more visually appealing, all while maintaining the existing database and without losing any information.”

Nick Schoolcraft (Phoenix Solutions Group) shared highlights about the updated site. “Security has been enhanced, and the ability to input inquiries will be much faster and more user-friendly,” he promised. “Users will be able to dive deeper into each individual query, plus we increased the overall speed of the website, leveraged mobility so it will be usable on mobile devices and updated the structure of the database to improve the reporting feature.”

The primary goal of the redesign was security enhancement, ensuring the new website would provide the highest possible level of security while also improving the user experience. “We invested in enhanced security measures that don’t slow loading times or make the user experience cumbersome,” Schoolcraft explained. “By taking these extra precautions, we’ve been able to make sure visitors get the best possible experience while keeping their data secure. With the enhanced security measures in place and faster load times, visitors can feel good that DEG is doing its part to keep its data safe.”

“Phoenix Solutions Group’s top priority was ensuring the security of the data we receive cannot be accessed by anyone since that information can be sensitive,” Gredinberg added. “Each user that accesses the information only has a certain level of access, depending on their assigned permissions, for the specific information necessary to complete their review of the inquiry and database.”

Most users are familiar with the DEG from the perspective of submitting questions for clarification from the IPs, and often, those inquiries result in changes to the databases. In fact, 60 percent of the inquiries submitted in 2022 resulted in a net change. “That’s the power of what the DEG does,” SCRS Board member Barry Dorn (Dorn’s Body & Paint; Mechanicsville, VA) noted. “It provides a way for us to collaboratively push the boulder up the hill together.”

While inquiries are still input through a webform, the process has been revamped to provide an updated look while also being updated to work seamlessly with all web browsers, whereas it worked best with Google Chrome prior to the reboot. Optimizing the site to make it more accessible on tablets and mobile devices was another top priority. “A fundamental component of the redesign was to make sure visitors had a seamless experience across all devices, from desktop and laptop computers to tablets and mobile phones,” according to Schoolcraft. “We wanted the site, as well as database inquiries, to be effortlessly consumed by visitors on any device.”

“We hope this will encourage additional use straight from the shop floor,” Gredinberg added. “You can quickly add attachments (photos, videos and various documents) right on the spot to streamline the inquiry process.”

Users can also expect improved search results and filtering options for vehicle-specific information when searching the database, allowing for streamlined workflows as well as advanced data and analytical capabilities.

“Visitors of the site will see improved search functionality as well as a much faster, responsive and intuitive experience,” Schoolcraft promised.

Lastly, the Estimators’ Toolbox portion of the website has been expanded to provide even more estimating tips, easy access to SCRS’ Quick Tips videos, OEM repair information, links to vehicle owners manuals and much more to help keep today’s collision repair professional informed with all the data they need right at their fingertips.

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Keeping Collision Repair Alive: Vo-tech Instructors Reflect on State of the Industry

Challenging. Difficult. Concerning. Unfortunately, these negative words are used all too often when describing the future of the collision repair industry based on the lack of new talent signing up to give an auto body career a shot. It really can “take a village” to get young men and women started in a collision repair career. That’s why education is so very important.

Vocational training is key to opening the door to these careers. It’s where most collision professionals got their start. Thankfully, there are a number of experienced auto body pros who have devoted their own careers to showing young people the tools, resources and training they need to be successful in a trade that tragically falls victim to insurer-controlled labor rates, making it difficult to earn good wages and sending many to pursue other career paths. So, what does it take to encourage and motivate young people into a field that needs new blood as shops across the country feel the burden of a technician shortage that isn’t easing up anytime soon?

We asked three collision repair instructors – Bill Collins (Southeast Regional Vocational Technical High School; South Easton), Dwight Seaman (Blue Hills Regional Technical School; Canton) and Ken Stukonis (Assabet Valley Regional Technical High School; Marlborough) to weigh in on the challenges and impacts they face as they work to educate the industry’s future workers.

New England Automotive Report: How long have you been a collision instructor, and how has vo-tech education changed during that time?

Bill Collins: I've been teaching for about 19 years now. I’d say the biggest change is the students who come in don’t have any background working with tools. So, kids nowadays have a very basic, limited knowledge. As far as everything else, I’d say education is kind of the same, with the exception, of course, being the technology that has changed in the vehicles we fix today.

Dwight Seaman: I’ve been teaching for a little bit more than 20 years. What’s changed? Technology has changed, and therefore programs have changed. We now have cars that drive on their own, so we have to keep up with the technology.

Ken Stukonis: This is my 24th year at the school, and I am also a graduate. I graduated in 1986 and came back later to teach. From

the time I started teaching, it really hasn't changed a ton. There is more of a demand on academics than there was in the past. There are a lot more technical features in our trade now that the kids are actually very good with. It's not as much about coming in to grind every day. A lot of the kids have skills in different areas and may be geared toward estimating, measuring systems or different things like mixing paints, which utilize computer-based programs.

NEAR: How do the number of students enrolled in collision repair programs presently compare to the past?

BC: It fluctuates. We’ve seen the program full and we’ve also seen it die down to having just a few enrolled. We are currently back to a point where we have a lot of students involved, and it’s definitely on an uptick. I think some of the students who come into the program don't really know what it involves, but once they try out some of the equipment and processes, they have a better understanding and are able to see there is an opportunity to be creative that they didn’t think was possible in this trade.

DS: It's kind of been a wrestling match, to be honest with you. Of all of my years here, one year will be strong, another will be weak. It's kind of a difficult trade. There are a lot of different areas one has to be good at. There's a lot of places that you can go – you can be a painter’s helper, you can be just a frame guy, you can be just a plastic bumper cover repair person. But in reality, the person who makes the money is somebody who can do all of those things. So, there's a lot to know in collision repair, whereas in a lot of the other trades, you don't have to have all that expertise. So, kids can be a little overwhelmed at what it takes to become a collision repair professional.

KS: The technology side is attractive for students, and I think we're attracting more. We get a lot of kids who just really want to work when they get here now. The way society is today, kids aren’t building forts or working with their hands as much until they come to a school like this, so they are a bit behind with tool terminology unlike past generations who took wrenches to their bikes and took things apart. So, kids today start off at more of a basic point. I don’t think it’s a bad thing at all, just the way society is nowadays.

NEAR: What are your biggest challenges when it comes to attracting more people into the industry? What is your school doing to try to increase awareness of the program and attract/ retain students?

BC: We do what is called an exploratory program where students can come through and explore all the programs at the school. It’s really up to the program and the instructors to create the “wow” factor for the students and the time we have to do so is limited. We really have one or two days to try to capture their attention. Having limited time doesn’t really give us a chance to show students what we do in auto body. We aren’t able to have them do a project that they can take home and have some pride in. In order for them to have something completed, the process would take more than one or two days.

DS: My wrestling match is with the labor rate. People can go into a trade similar to ours, like the electrical field, and make $28-$30 an hour one year out whereas with collision repair, they start out at $18, and it takes a while to work up to more. The schools can’t really can't do anything. It’s the industry, and there’s not anything that the school can really do to help with that.

KS: We’re actually always fighting this kind of a stigma of what an auto collision shop is. Shops are not dirty, filthy environments with Uncle Jim smoking cigarettes in the corner. Now, shops are upgraded with great venting systems, sanding is done with vac systems, everything's done in prep areas. I think people are more surprised by the technology that is in this trade. But the problem in our industry is that most go to a body shop once every 10 years. People don’t stroll into body shops until they have been in an accident, so a lot of people just really don't know what we do. So, collision repair is kind of unknown when kids come through our shop, and I think that works to our strengths. We always attract a good number of students. We have 16 new freshmen. We bumped up this year from 14 to 16 as we had many that were first picks. It’s not an easy trade. The money is always tight and I can probably go on for hours about the labor rate. But when you talk about employability, our kids are going to go out there and get minimum wage when they can work at a store at the mall for the same, but this is more fun.

It’s also tough to get the industry to accept younger kids

coming into it. We are lucky to have a great advisory board and a lot of our students are able to go work for those shops, but it can be tough if we try to branch out beyond that. They expect so much from kids, and they are only here for 1,500 hours. Students aged 13, 14 and 15 aren’t thinking about what they want to do for the rest of their lives, but by the time they are in their junior and senior years, they can make the decision about pursuing this trade as a career. It’s about making sure they are in the right situation and the right job. And shops have to realize they are getting someone with entry-level skills coming through their door. They won’t be able to paint a car or use the frame machine, but they know how to hold a paint gun and do the basics. They won’t be able to make a shop $1,000 in their first week, so that’s the kind of understanding we need to have about the students when they first get out there.

NEAR: What hurdles are you facing as an instructor (ie. budget/ supplies/equipment/etc)?

BC: We are actually in decent shape. We are pretty good with supplies and budget. We try to stay up to date with the newest technology, and that technology can get very expensive. So, we do have to spread things out through the years and try and get what we can when we can, as the budget allows, and we've been actually pretty good with that. So, knock on wood, hopefully moving forward, that won't be an issue. Our administration supports us, so I have no complaints.

DS: I can't complain as we’re doing very well. The staff at the school takes care of our class very well. Constant changes and updates in technology is one weakness, but we have ADAS equipment, frontend machines and thensome. For a little shop, there isn’t much we don’t have, but there has been an increase in supplies that we need, such as tape, clear coat and body filler which has gone up likely 100 percent since pre-COVID where my budget has gone up about three percent. So, getting those supplies can be difficult.

KS: We are pretty lucky in that area and have everything we need; we have a decent enough budget. Sometimes it's tough though, and thankfully, the Collision Repair Education Foundation has been great with giving us miscellaneous supplies. It’s great as items like

continued on pg. 26

plastic filler, sandpaper and dispensable items that we waste daily can really eat up our budget. It’s a big help because kids are here to learn, so they are going to go through supplies. We also apply for CREF grants and over the past six years, we've gotten over $100,000 worth of equipment from them.

NEAR: How can body shops get involved with local vo-techs to ensure there’s a future workforce pipeline, and how does the industry’s involvement impact student morale?

BC: Almost all schools have industry members on their advisory board which can be helpful by providing a place for a field trip where the students can visit their shop and see what a working shop is really like. I’ve had them come in as guest speakers to talk to the students about what goes on in their shops. There’s also the possibility of career fairs or getting students to be considered for employment at these shops. Just supporting us can go a long way. Some advisory members bring me plastic bumpers which we use for plastic repair training. It’s very valuable because it can be very expensive for us to purchase parts, so we're happy to receive these donations. We’ve also talked to advisory board members about getting vehicles we can work on. The market for used cars has gone way up, and it’s difficult to get usable vehicles for training.

Seeing and hearing about the industry from others has a different impact on them as it provides students with a different perspective over what they get from their instructors. They're seeing the technicians actually working on these vehicles, and they're seeing the actual processes be used in a real life scenario. So, I think that really boosts their morale, as they can see work being done in the shops, and when they come back to the classroom, they have a better understanding of why we do things.

DS: Industry professionals can get on advisory boards or possibly teach a continuing education class. They can donate vehicles to be worked on, or if they have any parts lying around at the shop or tools they may have purchased but don’t use, the schools can certainly use them…unless it’s junk; we don’t want that. They can also really help out by hiring the students and pairing them up with somebody who has a good attitude about the career to teach them. You don’t want them to work with some grumpy technician who doesn’t want anything to do with the industry. You want to pair them with someone who can be a role model and is happy and excited about working on vehicles and fixing them to pre-loss condition versus putting a Band-aid and a bit of bubble gum to say they did a good job and beat the time. That’s not what I’m looking for. I’m looking for people who actually want to go about it the right way. There needs to be some type of internship to get kids instilled into the industry. No one should have to go in without some type of mentorship to get training.

KS: Being part of an advisory board is a great option. We have had many advisory board members come in and speak to the students. We instructors are with the students 30 hours a week. We become like their parents, so hearing from others is great. They will listen to them. Also, being willing to take the students in and mentor them once they leave the school is incredibly important.

NEAR: What role does the public’s perception of the collision repair industry play in the future of vo-tech education, and how can correcting this help solve the workforce shortage?

BC: That’s a tough one. People have cars, they get into accidents and take the car to the body shops to get fixed, and they go through insurance and they don’t actually see the process and the people who do the work. They drop off the car, the work is completed, they get their car back and hopefully are happy with the results. The other problem is obviously that the body shops are just not getting paid what they need to get paid thanks to the insurance companies. It's really hard to attract entry-level technicians, when their peer students could be down the street working at a fast food place. Not that that is a bad thing, but they are making the same amount of money or more by working there when entry-level techs have to be at it for a couple of years before they actually start making good money. I think that trickles back to the insurance companies and how tough it is for the body shops to get paid for the job that they do. Technicians could be looked at like doctors. Doctors know the human body and the specific information to “repair” it. It’s the same thing with the vehicles, and with the technology today’s cars have, it's even more important they are repaired correctly. To attract young technicians, pay is going to have to go along with it. So when it comes to public perception, I wish the public could understand that it's not just getting your car fixed. There's a lot more to it, and I don't think anybody realizes that.

DS: I think the perception of the industry is underwritten by the insurance companies. Our school is registered as a repair shop. We teach the students about appraisals and negotiating. Every single time we write an estimate, it is triple what the insurance company estimates. We put in for $3,000, and they claim it’s $1,000. So, automatically we look like thieves. We are not thieves. We are the professionals; we know how to repair cars. The perception needs to be changed right up front by taking the authority that the insurance companies have away and putting it back where it belongs. Let the body shops do what they are supposed to do. We look like the bad guys because we have to collect from the consumer. Why do we have to be the bad guys? But the consumer doesn’t understand. Most only get into an accident once in a lifetime.

KS: I think the public is unaware of what we do. There is so much

technology and skill involved. We teach a small part, but once they get into the industry, there is so much more – people drive their families in their cars, and those cars need to be brought back to pre-accident condition. I don't think a lot of people understand how a car is supposed to collapse in an accident or that certain things need to be welded, riveted or glued. There are a lot of different technologies that need to be in place, and few people are aware of what has to be done. It’s a good profession, and people need to have their cars fixed. When you look around, there are body shops everywhere. It’s a great trade, and hopefully, we can get more kids to have a little bit more passion toward it and have great success in it.

The instructors have spoken. The solution to many of the issues surrounding attracting new blood lies in the hands of the body shops. It really does “take a village” so to speak. Volunteering time on school advisory boards, donating supplies or taking a chance on a young aspiring worker are all steps toward keeping the collision repair trade alive and welcoming to the next generation. MASSACHUSETTS

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Why Should YOU Care About AASP/MA’s Reimbursement Rate and ADALB Reform Bills?

We get it…you’re busy running a business and making sure that your customers’ vehicles are repaired safely and properly to pre-accident condition, so you just don’t have the time to get involved with politics and the government. You’ve read AASP/ MA Executive Director Lucky Papageorg’s messages and past features in New England Automotive Report about the Alliance’s attempts to reform the Auto Damage Appraiser Licensing Board (ADALB) through House Bill 262 (formerly HD 2860) and efforts to establish a minimum labor reimbursement rate via House Bill 1035 (formerly HD1950), which now have new bill numbers since they’ve been assigned to committees, but perhaps you’re still having a hard time understanding how these matters impact your business directly. After all, you’ve got plenty to worry about, so why not let the legislators handle the legislation while you focus on fixing the cars?

Because they don’t know what they don’t know! Legislators don’t understand what it takes to fix today’s complex vehicles, but repairers certainly do, and that’s why it’s so important for the Massachusetts auto body community to come together to take a stand to support their customers and thereby the collision repair industry as a whole. The current pieces of legislation each include the same language proposed in the prior session.

In the last legislative session, the association garnered impressive bipartisan support for both bills in the House and Senate – and their current iterations are anticipated to follow suit – but that would not have been (and will not be) possible without collision repair professionals coming forward to contact their legislators and provide testimony when the time came. The time is coming soon, so for now, it’s imperative that every shop learn how these bills can impact their day-to-day operations…

“An Act relative to the licensure of appraisers” (HB 262) seeks to move the ADALB from the Division of Insurance to the Division of Occupational Licensure, require term limits for members and add two consumer representatives. Sponsored by Representative Tackey Chan (D-Norfolk) and Senator Paul R. Feeney (D-Bristol), this bill has already garnered support from over 40 state representatives (as of early March) who recognize the conflict of interest inherent in allowing insurers to govern insurance companies’ behaviors, and it has been referred to the Joint Committee on Consumer Protection and Professional Licensure. (Download the full text of HB 262 at bit.ly/ NEARhd2860.)

As noted on page 12, HD 262 attracted attention at the most recent ADALB meeting where Board member Bill Johnson (Pleasant Street Auto; South Hadley/Belchertown) advocated for the relocation by recalling his time serving on the Real Estate Appraisers Licensing Board.

“Things ran fairly smoothly over there. They have their own investigators and metrics of integrity where violators were punished. There was definitely more support than we seem to get here.”

Attorney Michael Powers noted that two pieces of proposed

by Chasidy Rae Sisk

legislation have been introduced which, “if enacted by the legislature and signed into law by the governor, would mean we will no longer be meeting here. One creates a brand new Board, and the other bill abolishes the ADALB completely.”

While the current ADALB is far from perfect, things could definitely change for the worse if House Bill 1005 were to be signed into law! The legislation, sponsored by Representative Michael Finn (D-Hampden) and referred to the Joint Committee on Financial Services, seeks to rewrite Chapter 26, section 8G of the Massachusetts General Laws to eliminate the ADALB completely and return responsibility for appraiser licensure back to the Insurance Commissioner (read the full text at bit.ly/NEARhd3310).

“One can argue whether the Board should be housed under the DOI or under the Division of Occupational Licensure, but I think we can all agree that eliminating the Board entirely is not good; it’s just bad legislation, period,” Johnson observed.

When the ADALB representatives were asked to share their opinions, Board member Samanatha Tracy (Arbella Insurance) prevaricated, noting that it was her first time reading it and that “I’m not sure, as a Board member, that my personal opinion is relevant.”

Rick Starbard (Rick’s Auto Collision; Revere) took a different stance: “If this thing gets to see the light of day in a hearing and our opinions are solicited, I have no problem saying I’m opposed to it, and I would have no problem going to the statehouse to speak in opposition if they hold hearings on it.”

Board member Peter Smith (MAPFRE) expressed concern about the Board’s authority when it comes to supporting or opposing legislation, but he also indicated his affinity for the paragraph in HB 1005 “relative to the disagreement on the cost of repair; that language is very similar to neighboring New England states.”

The language in question reads as follows:

“Under Massachusetts law, you are always entitled to use the repair shop or facility of your choice. Unfortunately, we have been unable to agree on price with the facility you have chosen. In this situation, our payment for repair cost may be limited to the price available from a recognized and conveniently located repair shop or facility registered by the Division of Standards, that is willing and able to repair the damaged motor vehicle within a reasonable time. You may be responsible for the difference between our payment and the price charged to you by the facility you have chosen. Upon your request, we will furnish the name of a repair shop reasonably convenient to you that is able to repair your vehicle for the price in your appraisal.”

“I disagree,” Starbard immediately dissented, calling the verbiage in question “the most dangerous part. It basically allows for the lowest common denominator of the collision industry to set the rate and pay out on a job…It’s pretty much allowing anybody with a hammer and a spray gun to be the deciding factor over the charges of a professional, certified, trained or equipped

facility. I think the current policy is fairly clear that when both appraisers cannot come together and reach an agreement that you invoke the Appraisal Clause and seek arbitration, but this [proposed legislation] is absolutely dangerous and unsafe. This is something that impacts all of us, and we need to keep an eye on it. And those who are opposed should make sure they voice that opposition.”

Still not convinced that you have any reason to be concerned about the ADALB?

Well, AASP/MA’s other proposed legislation, “An Act to establish minimum reimbursement rate to insurance claimants” (House Bill 1035), will ABSOLUTELY have an impact on every collision repair shop (and the owner’s bank account) if passed! The current average of $40 hourly rate that insurers reimburse claimants at obviously falls short of covering all the costs that go into fixing today’s vehicles, which grow more technically advanced every year (and sometimes more often, it seems)! Once again sponsored by Representative James K. Hawkins (D-Bristol) and with over 30 co-sponsors as of early March, the goal of this important legislation is to increase the existing rate AND require annual adjustments based on the Consumer Price Index. It has been referred to the Joint Committee on Financial Services. (Download the full text of HB 1035 at bit.ly/NEARhd1950.)

“We received strong support in the last session, and we’re looking to grow that support this year,” stressed Papageorg. “As soon as our bills get assigned to committee, we’ll have the chance to give testimony, and that’s when the real work starts. We’re going to need every shop in the Commonwealth to take just a few minutes to help explain how these initiatives benefit the consumers who are their constituents. We refuse to be pacified by insignificant increases that create the potential for unsafe repairs. Massachusetts drivers deserve better, and we’re going to continue fighting until our legislators do the right thing and pass legislation to protect our roadways…and we’re going to need the entire industry to come together to help us make that push and make progress. We CAN get this legislation passed this session, but we need YOUR help to do it.”

“We are excited to see the number of legislators who have already co-sponsored our bills in the current session,” added AASP/MA Lobbyist Guy Glodis. “We are building upon the momentum and the great bipartisan support we received in the last session. We look forward to working with the legislature to bring both of these consumer protection bills to fruition in this current session. The hard work and continued support of the AASP-MA membership will be key to our success.”

Be sure to email admin@aaspma.org to sign up for notifications from AASP/MA to make sure you don’t miss the call to arms when it goes out. The association can’t effect the change the industry needs without your help – but collision repairers come together, nothing can stop their momentum and passion!

They’re Suing Me! What Should I Do?

An unknown person walks into your office with an envelope in his hand and casually asks: “Is this XYZ Auto Body Repair Shop?” You tell them that they have the right place, and they hand you the envelope. “What’s this?” you say. “Well, I’m a deputy sheriff, and I’m serving you with a lawsuit,” they reply. Then they say, “Have a good day,” walk out the door and drive away. You take a look inside the envelope and see that there is a document labeled “Summons” attached to another document with an official looking heading, entitled “Complaint.” Alternatively, you may receive a small claims statement by certified mail or have it given to you by a constable. Or you come to your shop one morning to find an envelope taped to your front door with a summons and complaint inside.

However it has happened, you have received official notice that you have been sued. So, now what do you do? This is what you should do and also perhaps what you already should have done.

1. First, call your lawyer! This may seem obvious. After all, that’s what lawyers do: they represent clients, particularly clients who are being sued. If your car is damaged in an accident, you call your collision repair shop; if you are being sued, you call your lawyer.

It is also important that you call your lawyer as soon as possible, since there is a time within which you need to respond to the documents that have been served to you. You probably need to send a timely response by filing a written answer to the complaint with the court in which the suit was filed. This is usually within 20 days after being served but can be different, particularly for a small claims matter.

Your lawyer will know what to do and how soon you need to do it. They will know what needs to be filed as a response and how to prepare and file a response with the court, as well as how to serve it to the person who sued you (or their lawyer). But they will also need time to gather information and prepare a response. Do not let those documents just sit on your desk for a couple of weeks. Call your lawyer immediately!

Do not try to handle this on your own, no matter how minor you might think the claim may be. Do not try to call the person who is suing you or their lawyer. Call a professional who can advise you about how serious the matter may seem and what you should do about it. Your lawyer can tell you if they think you actually may be able to handle it on your own if, for instance, it is a small claims matter and their legal fees may be more than the plaintiff is

suing you for. They can tell you if it is the type of case that may be covered by your garage keeper liability insurance and whether your insurer may be obligated to provide you with a defense. They can tell you if they are the proper person to represent you in the matter and how much they will charge you for their representation. They can advise if you need a specialist to defend you in this particular type of matter.

2. Call your insurer. You paid the premiums, and now it is your insurer’s turn to give you what you paid for. If the claim is based on work that you have done to a car (whether someone got hurt because of a claim that the work was negligently done, or the car that you repaired has since fallen apart, or the wheel fell off and the car hit another car, etc.), or based on someone getting injured on your shop’s property, or based on damage done to someone else’s property, then your insurer may be obligated to defend you, supply you with and pay for a lawyer to represent you, and pay any settlement of the claim or court judgment rendered against you.

Please understand that not all claims are covered by insurance. If you didn’t pay the parts supplier who is suing you for nonpayment, your insurer isn’t going to help you. When you made that first call to your own lawyer, your lawyer should have been able to tell you if the claim you are being sued for is likely to be covered by your insurer. If your lawyer told you that the claim will be covered by insurance, or even that there is a slight chance that it may be covered by insurance, then make sure that you call your insurer and give them notice of the claim. You are better off submitting a questionable claim than regretting later that you did not give your insurer proper notice.

Also understand that you are likely to have a deductible amount that you will be responsible for paying. Further, depending on the coverage limits that you have purchased, the insurance you have may not be enough to pay the whole claim. And some insurance policies include defense costs over and above the policy limits, while others do not. What does your particular policy say?

Even further, there may be situations in which your insurer is responsible for only part of the claim if it is a “mixed” claim. As an example, if the lawsuit that has been brought against you is based on negligently repairing a vehicle, as well as not doing the work that you contracted for with your customer, and with a Chapter 93A consumer protection multiple damages claim tacked on, then the insurer might be on the hook for the negligence claim but maybe not for the contract part of the claim or the multiple

continued on pg. 38

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[LEGAL] PERSPECTIVE

continued from pg. 34

damages consumer protection claim. Again, your own lawyer may be able to advise you as to where you stand on these issues. And you may need to have your own lawyer represent you on those parts of the claim.

As with your lawyer, it is important to notify your insurer as soon as possible. If the insurer is going to provide you with a defense and a lawyer, then they need to have time to notify their chosen defense lawyer, and that lawyer needs time to prepare and file an answer to the complaint that was served on you. Also, your insurance policy requires that you give your insurer timely notice as a condition of their coverage, and the insurer may be able to deny coverage if they do not get timely notice of the claim. They need time to gather information, research the facts and decide how to best defend the claim. Don’t worry that your premium might go up; it is more important that you comply with the policy’s notice requirements, so that you make sure that the insurer won’t have an excuse to decline coverage.

3. Gather all the information that you can that is relevant to the claim. Do you have a repair file with all of the paperwork related to the claim? Do you have a signed repair order? Do you have your appraisals and any insurance appraisals? Parts invoices? Emails with your customer, with their insurer and with your parts suppliers? Applicable OEM repair procedures? Tow slips? Storage records? Records of telephone calls? A final bill? Copies of notices posted in

your shop regarding your labor rate, storage policy and rates, etc.? Make sure that you talk to the employees who were involved with repair of the car and see what they remember about it. Did they do what they were supposed to do? Were there particular problems with this job? Was there old damage? Prior defective repairs? What do they know?

Whatever it is, make sure that you collect that information to share with your own lawyer and with your insurer. Your lawyer and your insurer need as much information as possible, and both need to know the TRUTH about what happened in order to evaluate the claim against you and provide you with a proper defense. They do not want to be surprised by something negative that you forgot or neglected to tell them. If you did screw up and you know it, make sure that you tell them. In the end, it is likely to cost you less out of your own pocket if your lawyer and your insurer are made aware of what really happened – whether what happened is good or bad.

4. Be aware of what you already should have done. You are in a business, and it is the type of business that can cause disastrous injuries or monetary loss if you do something wrong. Because of this, you should have done as much as possible to protect yourself, your family and your assets against legal claims:

(a) Did you buy enough insurance? You need to have garage keeper’s liability insurance. Make sure that you have purchased a policy with plenty of coverage, not just the bare minimum. Make sure that you know what the policy limits are and what your deductible is. Make sure you know what types of claims may be excluded from coverage. Do you have any special endorsements that include additional coverages? Did you buy cyber security coverage – which can be important these days?

In addition to garage keeper’s liability, do you have other types of insurance? Do you have workers’ compensation coverage? If you own the land on which your shop is located, do you have separate coverage for the real estate, liability, property damage, fire coverage, etc.?

You have a business and also personal assets that you want to protect. Insurance can go a long way to do that.

(b) Have you incorporated your business or formed a limited liability company as the entity under which to run your business? If you own the land on which your business is located, have you formed a separate entity to own the real estate? All of these things can protect you, your family and your personal assets from claims against your business. If you have not done these things, it is time to talk to your lawyer – again, as soon as possible – before a claim is made against you, not afterward when it will be too late.

(c) Have you engaged in estate planning that possibly can protect assets by transferring them to members of your family or to other entities that can protect them from claims against your business? Perhaps you should have a trust, or perhaps you should be engaging in a plan of regular gifting to members of your family. Once more, talk to your lawyer to make sure you have a plan that meets your particular circumstances.

continued on pg. 40

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[LEGAL] PERSPECTIVE

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(d) Do you have business documents in place that can protect you? Do you have a repair order that meets the requirements of the Attorney General’s consumer protection regulations? How about your final bills? Do you have a written warranty that may be able to limit your liability if something goes wrong with a repair? Do you have a form for a customer to sign that releases you from liability if the customer refuses to authorize certain repairs? Do not take these things lightly; they are as important to your business as your frame machine and your paint booth.

Conclusion

No one wants to get sued. But if you do get sued, make sure that you take the proper actions to ensure you do the right things to protect yourself. And also make sure that you already have done what was proper to protect yourself, your business, your other assets and your family.

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

that the ensuing punishment is loss of rental. The blatant attempts at intimidation are brought on as a result of the continued pressure the insurers are feeling from consumers and collision repair shops who are indeed “breaking free in ‘23.”

One only has to ask their customer, “Would you prefer to go to a collision shop because that is where your ‘profit centric’ insurance wants you to go, a shop which has elected to make the rate work, or would you rather go to a shop that stays up to date with technology, training, equipment and paying their skilled technicians fairly?” It would be the same as going to a doctor who has elected not to charge you a co-pay but who is also years behind in the current technology, new methods, modern tools and continuing education available to make you well.

The ALLIANCE will continue to “strive to advance the industry through education, regulatory enforcement and legislation to dismantle the control and influence insurers have on the consumers and OUR industry.”

The only thing to determine is: Are you part of the problem or part of the solution? What more proof do you need? The answer is clear. If you are “partnering” with an insurer, for whatever reason, they are using you to hold down an entire industry and to shortchange vehicle owners.

I hope I have struck a nerve. I am happy to discuss these issues with you. More importantly, if you want to take steps to join the growing number of shops “breaking free in ‘23,” the “ALLIANCE” IS here to help. (See the application on page 7.)

MASSACHUSETTS