New England Automotive Report May 2017

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MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Serving the New England Collision and Mechanical Repair Industry

May 2017 U.S.A. $5.95

PLUS: Major ADALB Advisory Ruling Saving Lives in Marlborough Rethinking Rekeying

www.grecopublishing.com

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May 2017 • Volume 15, No. 5

CONTENTS

DEPARTMENTS PRESIDENT’S MESSAGE by Molly Brodeur 8 | A Wealthy of Information LOCAL NEWS by Joel Gausten 18 | AASP/MA President Named Business Person of the Year 20 | ADALB Issues Crucial Photo Estimating Advisory Ruling 22 | AASP/MA Member Shop Brings Extrication Training to Marlborough NATIONAL NEWS by Nick Fernandes 27 | AASP/MA Community Supports NORTHEAST® 2017 TECHNICAL FEATURE by Larry Montanez III, CDA 37 | Thoughts on Rekeying Estimates: Part 1 of 2 LEGAL PERSPECTIVE by James Castleman, Esq. 41 | Using Arbitration to Settle Total Loss Disputes ASK MIKE 44 | What Do I Do When an Insurer Won’t Pay Me for What I Want or Need?

MEET THE BOARD by Nick Fernandes 50 | Frank Patterson

ALSO THIS ISSUE 10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR 13 | TRAINING OPPORTUNITIES: I-CAR CALENDAR OF EVENTS 13 | 2017 AASP/MA ANNUAL GOLF OUTING ANNOUNCEMENT 14 | AASP/MA SPONSORS 15 | 2017 AASP/MA BBQ WITH THE BOARD ANNOUNCEMENT 51 | AASP/MA MEMBERSHIP APPLICATION 52 | AASP/MA CLASSIFIED FORM

COVER STORY 33 PUT IT IN WRITING:

A GUIDE TO INSURER DISPUTES & ADALB COMPLAINTS

by Joel Gausten

53 | FOR SALE 53 | INDEX OF ADVERTISERS New England Automotive Report

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PRESIDENT’S MESSAGE

A WEALTH OF INFORMATION MOLLY BRODEUR

At AASP/MA, much of our mission as an association is focused on ensuring that collision repair professionals throughout Massachusetts and beyond are informed, educated and aware of changes coming to the industry.

As your president, I want to make sure our members and readers are also aware of the vast amount of information currently available to shop professionals no further away than your own computer or mobile device.

Collision Hub is a terrific resource for video coverage of issues impacting repairers and important industry events. Repair University, a video series hosted by Collision Hub, provides training on refinish, body repair, operations management, estimating and human resources learning tracks. They also host live, interactive training videos on a subscription basis of only $30 for an entire year’s worth of training. For more information, visit collisionhub.com.

The Society of Collision Repair Specialists (SCRS) has also recently launched a free video series with repair information and updates from their Education N

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Committee for the industry at large. To learn more or to find out how you can receive notifications when these videos are released, visit scrs.com.

At a time when our repair processes are changing in the blink of an eye, it’s so valuable to have experts providing accurate tips and information that can be used by any member of the shop staff. In our facility, we set up the projector and screen, buy a few pizzas and treat our techs to an hour of video training per week. We call it “Tech Wednesday” and just like that, we’re able to share viewpoints and critical information from industryleading speakers with our staff. It’s that easy.

I encourage you to check out both of these video training resources and see how you can make them a part of your shop culture. There’s no such thing as too much information, especially when it’s this good!

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA PRESIDENT MOLLY BRODEUR is the Chief Operating Officer of Al Brodeur's Auto Body in Marlborough, MA. She can be reached at (508) 485-1082 or molly@albrodeur.com.

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AUT M TIVE STAFF

AASP/MA EXECUTIVE COMMITTEE PRESIDENT

PUBLISHER

CREATIVE DIRECTOR

Thomas Greco (thomas@grecopublishing.com)

Lea Velocci (lea@grecopublishing.com)

SALES DIRECTOR

EDITORIAL ASSISTANT

VICE PRESIDENT

Alicia Figurelli (alicia@grecopublishing.com)

Nick Fernandes (nick@grecopublishing.com)

Adam Ioakim

EDITORIAL DIRECTOR

PRODUCTION

SECRETARY

Joel Gausten (joel@grecopublishing.com)

Donna Greco (donna@grecopublishing.com)

Molly Brodeur

Ray Belsito, Jr. TREASURER

PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963

Kevin Gallerani IMMEDIATE PAST PRESIDENT Paul Hendricks

AASP/MA STATEWIDE DIRECTORS COLLISION DIRECTOR Rick Starbard www.grecopublishing.com New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright © 2017 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com

AASP/MA DIRECTORS Darlene Andrade Matthew Ciaschini

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Gary Cloutier

AASP/MA EXECUTIVE DIRECTOR

Alex Falzone

Jillian M. Bukhenik 12 Post Office Square, 6th Floor Boston, MA 02109 Phone: (617) 574-0741 Fax: (617) 695-0173 Email: jzywien@aaspma.org

Joshua Fuller Kevin Kyes Peter Langone

WWW.AASPMA.ORG

Frank Patterson Mike Penacho

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A MESSAGE FROM THE EXECUTIVE DIRECTOR

OUR INDUSTRY SOLDIERS JILLIAN BUKHENIK

Dear Members,

As you are aware, it takes an army to keep this association running. One of our most important soldiers is you. Your participation and continued support not only strengthens our voice in the Commonwealth, but also furthers our shared mission of building the success of the collision repair industry.

As soldiers of the association, you are our boots on the ground. Our body shops are interacting daily with fellow appraisers, shop owners, vendors and suppliers to the industry. How many of you are sharing all the successes of AASP/MA? How many of you are encouraging your fellow shop owners to attend a meeting or join the association? How many of you are encouraging your vendors to support the organization you belong to?

I want you to be proud of this organization and our work on behalf of the industry. In 2017 alone, AASP/MA has done the following: 212 CMR Proposed Language: AASP/MA encouraged the Auto Damage Appraiser Licensing Board (ADALB) to submit a letter to the Governor requesting an update on the proposed changes to 212 CMR. As you may recall, the Board submitted their final recommendations to the Division of Insurance. From there, the proposed language changes were sent to the Governor for his review.

Legislative Matters: For the second time in the association’s history, AASP/MA has filed five legislative initiatives, including a redrafted version of our Labor Rate legislation. Over the next few months, we will be meeting with legislators relative to our Labor Rate Bill and continuing to push this initiative. A complete list of our bills is included on our website at aaspma.org.

New Educational Opportunities: After surveying our membership, we determined the subject matters that are most important to members. Following SEMA last year, there was quite a bit of talk regarding pre- and post-repair scanning. We secured a nationally recognized speaker, who participated in an expert panel at SEMA, to speak to Massachusetts shops. In addition, a discount service offer was provided to members of the association as a result of this presentation. With the approval of the

ADALB’s new complaint process, the association presented a Statewide Meeting in March on how to put down the phone and file a complete complaint to the ADALB. New Community-Building Events: Members expressed an interest in hosting events that fostered member-tomember relationships. This year, we have brought back the BBQ and the Clambake. These popular events will continue to build and strengthen our community of collision repair shops.

ADALB Complaints: AASP/MA has been instrumental in assisting members in filing complaints against appraisers before the ADALB. In fact, the ADALB issued their first Order to Show Cause against an appraiser earlier this year. We continue to work with the Board to educate and protect appraisers in the Commonwealth.

Attorney General’s Office: At the time of this writing, we have scheduled a meeting with the Attorney General’s staff to discuss a host of items, including pre-and post-repair scanning and adherence to the safety inspection sticker removal law (among other pertinent items). We expect to report back to the membership on the results of this important meeting.

We are doing so much to improve the lives of our member shops and build the success of the collision repair industry in the Commonwealth. I would encourage our members to help us bolster our success by continuing to spread our message and encourage your fellow shop owners to join us. We are the only association in the Commonwealth advocating on your behalf, and we need your grassroots efforts to continue our work.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Sincerely,

Jillian Bukhenik

AASP/MA EXECUTIVE DIRECTOR JILLIAN BUKHENIK (formerly Jillian Zywien) has been a senior account executive at Lynch Associates for over eight years.

She can be reached at (617) 574-0741 or via email at jzywien@aaspma.org.

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in Massachusetts

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SAVE THE DATE AASP/MA ANNUAL GOLF OUTING July 19, 2017

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Where: Blackstone National Golf Club 227 Putnam Hill Road Sutton, MA 01590 Time: 11:30AM: Lunch for Golfers ONLY 12PM: Shotgun Start 5PM: Dinner & Award Ceremony Pricing: Single Golfer: $150 Foursome: $600 Dinner Only: $60 Please go to AASPMA.org to find out more information on registration and sponsorship opportunities!

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AASP/MA ASKS YOU TO PLEASE SUPPORT OUR SPONSORS!

AASP/MA NEWSLETTER SPONSOR

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Contact AASP/MA at (617) 574-0741 / jzywien@aaspma.org for information on becoming an AASP/MA sponsor!

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2017 AASP/MA BBQ

With the Board Friday, May 19, 2017 SAC Park 438 Lake St. Shrewsbury, MA 5PM – 10PM

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DINNER, DJ, GAMES, RAFFLES & MORE! To purchase tickets or to become a sponsor (or if you would like more information),

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[LOCAL] NEWS

Photos by Marlborough Regional Chamber of Commerce

AASP/MA PRESIdENt Named Business Person of the Year The Marlborough Regional Chamber of Commerce works to strengthen the standing of area businesses, so it came as no surprise when they recently honored AASP/MA member Al Brodeur’s Auto Body for their years of success in the community.

In addition to the shop receiving the “MRCC 25th Award” for 25 years of service to the Chamber, Al Brodeur’s COO Molly Brodeur was named MRCC Business Person of the Year. The awards were presented during the Chamber’s annual Business Awards Recognition Dinner at the Best Western Royal Plaza Hotel in Marlborough.

Brodeur, who is currently serving her first year of her three-year term on the MRCC’s Board of Directors, has derived tremendous benefits from her ongoing participation in the group.

“I like the Chamber because it’s a great opportunity for small businesses and big businesses to be in the same room together. You also have an opportunity to meet the newcomers who are coming into your city or town and get yourself in front of people who have lots of employees coming to the area who are going to be needing services.”

She admits that her selection as Business Person of the Year took her by surprise.

“After I got over the shock of getting the phone call, I had time to really think about it, and it was really an honor. To me, it was really a testament to the amazing people we have working for our company. To me, [the award] is about having the best business. It’s only because you have great people that you can get an award like this. I know that if I need to leave for a Board meeting or an industry event, the shop is going to run the way that it needs to. We have great people steering the ship; we’re really fortunate to have our staff.”

Considering the shop’s long history and list of accomplishments, what would be the best advice

AASP/MA’s Molly Brodeur receives the Business Person of the Year Award from the Marlborough Regional Chamber of Commerce. Left to right: Senator Jamie Eldridge, Susanne Morreale Leeber, Molly Brodeur, Mike Pascarella, Mayor Arthur Vigeant.

Al Brodeur’s Auto Body is honored for 25 years of service to the Marlborough Regional Chamber of Commerce. Left to right: Susanne Morreale Leeber, Ernie Houle, Lawrence Santilli, Maureen Greulich, Molly Brodeur, Phil Baldwin, Al Brodeur Brodeur would offer someone looking to establish their own business in Marlborough?

“The best thing that they can do is stay true to themselves,” she replies. “You should not alter your moral compass just because you are operating a business. Doing what you believe is the right thing to do and treating people right is, in my opinion, the few elements of a recipe of success. If you take care of other people, provide the service that you say you’re going to provide and make sure you have really good people around you, you’re going to be fine.”

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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[LOCAL] NEWS

AdALB ISSUES CRUCIAL Photo EStIMAtINg

AdvISoRy RULINg At their April 12 meeting at the Division of Insurance in Boston, the Auto Damage Appraiser Licensing Board (ADALB) voted to issue an official Advisory Ruling regarding the acceptable use of photos and/or videos in the appraisal process.

The Advisory Ruling discussion began at the Board’s meeting last January, when ADALB member Bill Johnson (Pleasant Street Auto Body/Hampshire Towing, South Hadley) asked if it would be appropriate for the Board to issue a statement reminding all licensed appraisers in the Commonwealth that Massachusetts regulations state that if they are performing a desk appraisal using a photograph and note a safety item that needs replacing, they are to perform a personal inspection of that vehicle.

Johnson’s suggestion was in response to concerns brought forth by AASP/MA executive team member Peter D’Agostino on behalf of a consumer who had contacted the association. Following an accident, the customer used a cell phone app to photograph their car, which appeared to have a damaged headlight only. A desk appraiser wrote an estimate for $2,300 with a $1,000 deductible without advising the consumer of the state law relative to the inspection sticker removal requirement. After driving the vehicle for two days, the consumer noticed his vehicle was driving improperly and took it to a body shop. An inspection at the repair facility revealed that the automobile was in need of a full front suspension replacement that required a $2,500 insurance company supplement. This brought the total repair up to $4,800.

After considerable discussion and a slight amendment to Johnson’s submitted text, ADALB Chairman Cox broke the tie vote between the collision repair and insurance representatives on the Board in favor of issuing the Ruling. The final, unedited Ruling (available online at tinyurl.com/kjbuvs4) is as follows:

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April 12, 2017 TO ALL CONCERNED PARTIES Re: Advisory Ruling 2017-1 The Auto Damage Appraiser Licensing Board (ADALB or Board) is authorized to oversee all motor vehicle damage appraisers in the Commonwealth of Massachusetts pursuant to M.G.L. c. 26, § 8G and 212 CMR 2.00 et seq., “The Appraisal and Repair of Damaged Motor Vehicles”, as promulgated by the ADALB. Pursuant to its authority the ADALB is authorized to issue licenses to all motor vehicle damage appraisers in the Commonwealth (licensed appraisers or appraiser) 212 CMR 2.02, regulate the manner of conducting motor vehicle damage appraisals 212 CMR 2.04, and to issue Advisory Rulings pursuant to 212 CMR 2.01 (3) and M.G.L. c. 30A, § 8. It is the intention of the ADALB to issue an Advisory Ruling consistent with 212 CMR 2.00 and M.G.L. c. 26, § 8G to be followed by licensed appraisers.

Pursuant to its authority, the ADALB voted by a majority vote at the Board’s meeting held on April 12, 2017, to adopt this Advisory Ruling.

ADVISORY RULING The Auto Damage Appraiser Licensing Board has passed a motion declaring, if during the review of photographs or video submitted by a consumer for a claim that falls below the $1,500 damage threshold, (212 CMR 2.04 (1)(a) mandates a written appraisal of motor vehicle damage in excess of $1,500 less any deductible) the appraiser determines that a motor vehicle is or may be damaged such that: (a) it may no longer meet the safety standards established by the registrar of motor vehicles under section seven A of chapter ninety; or (b) it may no longer comply with the motor vehicle emission standards established by the commissioner of the department of environmental protection under section 142M of chapter one hundred and eleven, the appraiser may not conclude the appraisal based on the photographs or video, but shall continue the appraisal by conducting a personal inspection of the damaged motor vehicle. Furthermore, the appraiser shall immediately notify the owner of the damaged motor vehicle that the vehicle may be unsafe to drive and/or in violation of the emission standards.

This Advisory Ruling shall be effective upon posting on the Auto Damage Appraiser Licensing Board public website. Failure to comply with this ruling could result in fines and penalties as provided for by law.

For the ADALB, ____________________ Michael D. Powers, Esq. Legal Counsel to the Board

In other ADALB news, the Board continues to investigate Access General Insurance Adjusters LLC, a Georgia-based company that is currently writing appraisals for claims in the Commonwealth without venturing into the state to view the vehicles in question (“ADALB Targets Unlicensed Appraisal Service,” NEAR April 2017). Board member Joseph Coyne, Jr. noted that he was able to confirm that Occidental is one of the carriers currently utilizing the service. The Board expects to have more findings to present at their May meeting. Videos of the April 12 meeting and other past ADALB events are available in the Members Only section of aaspma.org.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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[LOCAL] NEWS

AASP/MA MEMBER ShoP BRiNgS

ExtRICAtIoN tRAININg

to MARlBoRough Last month, the team at Al Brodeur’s Auto Body in Marlborough hosted more than a dozen local firefighters for a special First Responder Emergency Extrication (F.R.E.E.) training event at their facility. Held in collaboration with the National Auto Body Council (NABC), the Saturday morning gathering included a classroom presentation and outdoor demonstration on three vehicles donated by State Farm and provided by Copart in North Billerica.

Instructors Ed Asheigh and David Giberti (both of Industrial Protection Services, LLC.) provided attendees with an in-depth overview of critical technologies impacting current-model vehicles (including air bags for knees and seatbelts) and how these developments affect extrication procedures. The presentation also included hands-on demos of various rescue equipment from Holmatro, with attendees getting a chance to try these items out for themselves on the available automobiles.

Instructor Ed Asheigh (far left) helped train and educate firefighters on how to better succeed in post-accident extrication.

After adding towing to their services in 2014, Al Brodeur’s Auto Body saw a need to bring updated extrication information to those who work to save people’s lives.

“We’ve been living and working in Marlborough my whole life,” explains AASP/MA President Molly Brodeur, the shop’s COO. “Now that we do towing, we are at scenes of accidents with first responders on a pretty regular basis. When I found out about NABC’s F.R.E.E., I thought it would be a really nice way for us to give back to the first responder community in Marlborough.”

In her mind, the shop’s F.R.E.E. course could not have come at a better time.

“Fire departments are stretched thin. I feel like anything that we can do that could potentially be helpful to them, we should be doing it. Having to extricate people from vehicles is not something they have to do all the time. However, vehicle technology has changed so

Firefighters, industry trainers and repair pros gather for automotive rescue training.

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dramatically that having some new information about the things they will be faced with when they’re at a scene is important. They have a patient in the car, and it’s a very dangerous situation. How are they going to approach that and keep yourself and the patient in the vehicle safe at the same time? It’s no different than what we’re trying to do as repairers in making sure that we’re repairing the car properly so that if it’s in an accident, it behaves the way the manufacturer designed it to behave.”

Brodeur added that several first responders told her that they were surprised when they arrived at accident scenes and certain safety components failed to deploy. She has a good idea why this might be the case.

“Due to the nature of the accident, those items should have worked. Why didn’t they? The first thing I think of is, ‘Was that car involved in a prior loss? Did everything get fixed properly? Were the systems checked?’ Because not every single device in your car has some sort of light that illuminates on the dash, you really don’t know. I feel like they’re facing the same kinds of challenges, in a different way, that we face.”

A longtime NABC member who hosted a Recycled Rides event with the organization in 2012, Al Brodeur’s Auto Body was thrilled to work with them again in offering F.R.E.E. to the local community.

“The reason why I love the National Auto Body Council is because their whole mission is to elevate professionalism in the collision industry,” Brodeur says.

“Also, through their pre-packaged programs, they help shops elevate themselves in their own community so that these businesses can be viewed as a good community partner.”

For more information on the National Auto Body Council, visit autobodycouncil.org.

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26 May 2017

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[NATIONAL] NEWS

by Nick Fernandes

AASP/MA CoMMuNitY SuPPoRtS

NoRthEASt® 2017

Various AASP/MA members took advantage of their close distance to the 40th Annual NORTHEAST Automotive Services Show in Secaucus, New Jersey last month as they spent three days at the Meadowlands Exposition Center attending classes and speaking to vendors on the exhibition floor.

Among the pleased New England visitors was AASP/MA Board member Mike Penacho (Mike’s Auto Body, Fall River), who has been making the annual trip for 12 years to purchase new products for his shop such as spray booths and frame machines. This time around, he bought an Accudraft spray booth. “[At NORTHEAST], you deal directly with the people who own the product, you get a face to face and you get a better deal.”

The Massachusetts shop owner spoke highly of the show’s exhibition floor, which he wished he could have seen more of.

“It’s a great show for that reason, but I didn’t get a chance to see every booth because I just didn’t have the time.”

Former AASP/MA President and current Collision Director Rick Starbard attended NORTHEAST for the 17th time this year, participating in the “AASP/NJ’s Path to Certification: The Shop Owner’s Perspective” panel and attending many of the event’s classes.

“The people who I sat on the panel with are great guys in the industry and have done an excellent job running their own businesses. The discussion was great; it touched on all types of OEM certification, from everyday cars to some of the unique Euro vehicles and Teslas.”

Starbard added that OEM certification was the “hot topic” of NORTHEAST 2017.

“There were so many seminars going on and so many were related to that topic. I think it was probably the best place for a shop considering OEM certification to spend a weekend and get some education on it.”

Another highlight for Starbard was watching AASP/New Jersey Collision Chairman Jerry McNee copresent “Open Your Eyes…And You WILL Become a Game Changer,” a seminar that focused on strategies to improve a body shop. Starbard enjoyed hearing business management tips from such a successful industry pro.

“I love attending his seminars. He’s just such a ball of energy and a great manager who likes to share what makes him successful.”

New England Automotive Report Technical Writer Larry Montanez offered straight talk on rekeying, measuring and other topics during NORTHEAST 2017.

Starbard also commented on the show’s evolvement in recent years, saying that in its 40th year, NORTHEAST blows away NACE and is less stressful than SEMA. “It’s the most fun trade show to attend. It just took on a whole new life once they moved it to the Meadowlands and year after year it just continues to grow.”

Kevin Lombard – who attended NORTHEAST as a representative of Pro Spot as well as his own company, Lombard Equipment – says that a high volume of repairers are seeking knowledge at the moment, which drew crowds to the exhibition floor and his booth.

“In the 20 years I’ve been attending the show, I’ve seen highs and lows – and we’re definitely at a high right now.”

Lombard adds that he benefits from NORTHEAST as the result of more and more New England-area repair professionals attending since its expansion.

“A lot of people from our area have been going down to New Jersey for NORTHEAST.” Superare Marketing co-owner Peter Abdelmaseh – who has attended the show for about 15 years – made his NORTHEAST debut as a vendor this year in addition to presenting two seminars (“Stop Playing by the Appraiser’s Rules!” and “Set Your Own Prices and Make Them Stick!”) with his business partner, former New Hampshire shop owner Tony Lombardozzi.

“The show has always been great,” Abdelmaseh says.

“Since we’ve picked up several new clients as attendees in the last year or so, we figured we might want to widen out our audience a bit more.”

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[NATIONAL] NEWS

Writer Larry Montanez. The talk For his first year as a presenprimarily pertained to dealings ter and vendor, the former with insurers and getting fair AASP/MA executive director compensation for as many servwas pleased with the level of inices as possible. terest in his product.

AASP/MA Collision Director Rick Starbard offered his professional perspectives on being a “He tells you how to make “Our booth traffic was very multi-OEM-certified shop owner. sure you’re getting paid and strong, and we also made lots of gave very good points on how contacts at the seminars. People to negotiate with an insurance company.” seemed to be generally interested in what we’re doing.”

AASP/MA Vice President Adam Ioakim believes Abdelmaseh particularly noticed that attendees have NORTHEAST has all the resources that an industry profesbeen traveling to NORTHEAST from further distances (insional could want, making it a great alternative for those cluding the Midwest and the South) in recent years.

“We saw a very diverse group. It seems to be widening who can’t make it out to Las Vegas for SEMA. “It has all the training, education and vendors that you out geographically.” need. It’s easy access and it’s concise.”

Dan Lamontagne (White Lightning Auto Body, He adds that NORTHEAST makes the industry more Williamsburg) attended NORTHEAST for the fourth aware of trends and available education. straight year and learned something valuable in each class “The show does a great job of addressing those and he attended. He said that its resources and close proximity providing the content of what’s relevant and necessary in to the area make it a show that is necessary for New Engthe industry.” land shop owners and vendors to attend.

Another major moment for Ioakim was Montanez and “It’s a three-and-a-half-hour drive, so as a business Jake Rodenroth’s Car-o-Liner-facilitated presentation owner, it’s a no-brainer to go. I got to see the latest and (“Proper & Accurate Blueprinting with Pre-Scan/Pre-Meagreatest technology, talk to people about it, touch it and sure”), where the two collision repair veterans discussed look at it.”

Lamontagne made sure he attended the “‘Who Pays for the importance of pre-scanning and pre-measuring while Car-o-Liner representative Anthony Cetani demonstrated What?’ Survey Results” seminar by Mike Anderson of Colhow to measure a car in front of a crowded audience. lision Advice. The shop owner learned about him last year “The hands-on approach was fantastic. It gets you out and has since attended every “Who Pays for What?” sesof that classroom environment.” sion, learning how how to make more money from his reAASP/MA’s experiences at NORTHEAST 2017 prove pairs each time. that the show remains a must-attend gathering for industry “As much as I thought I was getting paid for, I found more services to charge for that I never even thought of.” professionals throughout the region.

Lamontagne also took a lot away from the “Take Back Your Business from the Rekey Process” session presented by instructor and New England Automotive Report Technical MASSACHUSETTS

BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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SARAT FORD LINCOLN MERCURY 245 SPRINGFIELD ST. AGAWAM, MA 01001 413-786-0430 FAX:413-789-3715 www.saratford.com

© 2017, Ford Motor Company 30 May 2017 New England Automotive Report

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It Takes Genuine Honda Collision Repair Parts To Achieve a Genuine Honda Fit. Honda collision repair parts are engineered and manufactured to Honda standards.

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Lundgren Honda of Auburn 525 Washington Street Auburn, MA 01501 Toll Free: 800-777-2044 FAX: 508-721-0872 e-mail:pmccarthy@lhonda.com www.lhonda.com

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[COVER] STORY

by Joel Gausten

PUT IT IN WRITING: A guide to insurer

Disputes & ADAlB Complaints The phone is not your friend.

Documentation is everything.

The two sentences above comprise the words that every AASP/MA member who attended the association’s March 28 Statewide Meeting had in their minds after experiencing “Put Down the Phone,” a special presentation by Collision Director Rick Starbard and executive team member Peter D’Agostino. Held at the Greater Lawrence Technical High School in Andover, the evening discussion explored the importance of shops properly documenting payment and procedural disputes with insurance appraisers and/or supervisors during the repair process.

Additionally, the meeting provided insight into how shops can successfully navigate the complaint process for the Auto Damage Appraiser Licensing Board (ADALB).

A longtime Massachusetts shop owner as well as a current member of the ADALB, Starbard made it clear right from the beginning of his talk that getting into a verbal altercation with an insurance representative is never the correct way to go.

“You can have all the conversations in the world and spend all week on the phone, and it means nothing because it doesn’t document anything. More important than that, the

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arguments, no yelling back conversations that we have and forth. The Lexus [with carriers] – whether it’s position statement on face to face, in your office or remanufactured wheels on the phone – insulate the states that use ‘can result in customer from the situation, injury or death.’ How do and they don’t know what’s you think the customer with going on. Then, you’ve got young kids feels when they the insurance company see [the insurer] is going to calling your customer.” put a wheel on their car that Starbard reasoned that a may cause injury or death?” better way for shops to At that point, the conduct themselves in these consumer joined the situations would be for aaspma.org conversation. them to utilize the “She jumped in and information and technology mass.gov/courts/case-legal-res/ said, ‘I expect my car to be readily available to them – law-lib/laws-by-source/cmr/ repaired according to the and most of all, get the way the manufacturer customer involved in the 200-299cmr/212cmr.html recommended.’ Within an communications you have hour, I got a call from the with their insurer. This mass.gov/ocabr/docs/doi/legalappraiser’s supervisor, who means accessing and using hearings/211-133.pdf said to put the OEM parts applicable state regulations on the car…There were no or OEM procedural malegislature.gov/Laws/ raised voices and no documents and/or position GeneralLaws/PartI/TitleII/ screaming and yelling. statements and cc’ing the Chapter26/Section8G There was no buying customer in emails with [aftermarket] parts to see if insurance personnel. To mass.gov/ocabr/licensee/ they fit and tying the car up. offer an example, he shared license-types/insurance/individualThis was handled in such a a recent story of a damaged short amount of time. Not Lexus SUV that arrived at and-business-entity-licensing/ only did the supervisor call his facility needing a fender, mvda/motor-vehicle-damageme, but he called the wheel, door and door skin. appraisers/ customer to reassure her An insurance appraiser that they were going to pay wrote an estimate for an oem1stop.com/position-statements to repair her car properly.” aftermarket fender and a Later in his remanufactured wheel presentation, Starbard suggested that sending properly while also refusing to pay for Starbard’s pre- and postrepair scanning charges. This prompted Starbard to write worded emails to insurers could also improve other issues. an informal email to the appraiser, stating that the Lexus “If you have insurance companies that are giving had under 23,000 miles and that the use of aftermarket you a hard time on coming out in a timely fashion on and remanufactured items would likely delay repairs something, email a supplement request and add, ‘If you and drive up overall costs. Additionally, the note stated fail to appear to see this vehicle in 48 hours, we will the need for a door skin that would be picked up on the assume that you wish to proceed with our appraisal supplement and stressed the need for appropriate scans. according to the expedited supplement.’”

The email also included Lexus’ position statements He noted that he has received positive feedback from regarding remanufactured wheels and scanning. The several shop owners who have found success utilizing appraiser replied by telling Starbard to use aftermarket this method. since the vehicle had more than 20,000 miles. That’s “If it’s one of those companies that says, ‘It’s going to when things got very interesting. take us over a week to get out’ and they really are that “That immediately prompted a little more formal backed up, they’ll send an independent. But they’ll move email; on this one, I cc’d the customer,” Starbard explained. “Not only did I cc the customer, but I used the on it.”

Starbard offered a number of critical online links Lexus position statement to support my position – no

IMPORTANT WEBSITES

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AASP/MA Collision Director Rick Starbard explored different ways to address payment or procedural disagreements with insurers.

(listed on the previous page) that shops can use to help them better handle insurer disputes. These included resources on Massachusetts laws and regulations.

“We’re always quick to say we need to make a law or change the regulation, but we have all the stuff in the world. We just have to start using it to our advantage.”

Perhaps most significantly, improved documentation will allow a shop to prepare a better case if and when a disagreement gets so bad that a complaint with the ADALB is necessary.

“You’ve created that paper trail; you’ve created that documentation so that if you do in fact find that you have to file that complaint, you’ve got everything right there. You can literally file a complaint in minutes.”

To add further insight into the ADALB complaint process, D’Agostino offered the analogy that filing a complaint is similar to someone reporting a hit-and-run accident to the police. You can’t just tell the authorities that a car hit another car; you need to note the color/styles of the vehicles, plate numbers, the time and location of the crash and anything else that can help paint a clear picture of the event.

“Try not to editorialize. Don’t offer your opinion; nobody cares what it is. What they care about is what that document [the appraisal] says and what transpired.”

If the ADALB determines that there is enough information presented to pursue a complaint, they will then take on the role of prosecutor and continue to gather evidence and work to negotiate a settlement between the two parties. If mediation fails, the Board then becomes the judge (with an outside prosecutor then assigned) and ultimately decides the fate of the case.

AASP/MA’s Peter D’Agostino offered insight into the ADALB complaint process.

“They actually fill every role, but they have to meet some markers along the way,” he said.

D’Agostino noted there have been complaints where the ADALB has voted to move forward against the appraiser and the supervisor based on the information presented. But to make sure a complaint actually moves forward, it has to be put together in the right way – and this means compiling and citing the best resources to state your case.

“Don’t accept what you think to be true,” he said.

“Look it up.”

Additionally, he stressed that a shop that files a complaint may not ever know the level of punishment – if any – that will will be given to the offending appraiser, much like a citizen is never contacted by a prosecutor to discuss the fine given to a hit-and-run driver. It might also take a long time for the ADALB to contact the complainant if testimony is necessary.

“Send [the complaint] and forget it. You may be called in a year and a half to two years, [but] that [investigation and review] process is going to continue to move along.”

Ultimately, the Statewide Meeting reiterated the fact that success or failure in addressing issues with carriers is based on the work the shop is willing to put in to make things right.

“This [meeting] isn’t about us solving your problems,” Starbard said. “It’s a self-help seminar on the things that we can do to make it easier to run our businesses.”

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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[TECHNICAL] FEATURE

by Larry Montanez III, CDA

thoUghtS oN REKEyINg EStIMAtES: PARt 1 oF 2 Rekeying is the process of manually copying an estimate originally written by an insurance company or authorized insurer photo estimating service into the collision facility’s estimating system. Generally, a customer service representative (CSR) or estimator at the facility will copy the original insurer estimate into their system, which could be different than the one the facility uses. The Big Three (CCC, Mitchell and Audatex) all have their differences, but with some practice and understanding of labor hours, operations, overlap and the P-Pages, the estimates can be matched in labor hours to the dollar. In some cases, a manually inputted line (line adjustment) may be needed to make the actual dollar amount equal. This line adjustment is generally needed for taxed and non-taxed item/operation differences between systems.

This process is not only tedious and time-consuming, but it requires skill to be able to check the math and make each line match. Each line must be inputted one by one, then labor hours in each category must be matched exactly. Additionally, replacement costs, materials and sublet charges must be matched. The copied (or rekeyed) estimate is “locked” and a supplement can now be created, utilizing the matched insurer’s estimate.

Now, there may be some of you wondering why this needs to be done. To be honest, there are really only a few scenarios where this process would be advantageous, and it is my opinion that only one is acceptable.

SCENARIOS There are three scenarios when the rekeying of an estimate occurs. In all of them, the estimating systems may or may not be the same (but they are different most of the time).

SCENARiO #1: “ThE DRivE-iN ESTiMATE” A customer walks in with an estimate from the insurance company (and many times, they have the check). This estimate was most likely written at a DRP shop, at the customer’s home/job or at the insurer drive-in claim facility. (In the past two years, it may also have been written via an independent third-party photo estimating service and based on a customer taking photos and an estimate being written off those images.) Once the customer signs all the paperwork and leaves the vehicle at the facility for repairs, someone there rekeys the estimate into their estimating system.

Now, a supplement can be created on the rekeyed copy of the insurer estimate so that any and all the changes and/or additional items will have an “S1” in the column. This makes the changes easily recognizable.

SCENARiO #2: “LivE iN-PERSON FiRST WRiTE” This would occur when the facility did not write its own damage report (estimate) prior to the insurance adjuster arriving there. (Maybe the facility did not write a damage report because they didn’t have time, they forgot or they never do it.) A staff/ field appraiser or independent

appraiser inspects the vehicle at the shop, the facility estimator negotiates the repairs with the appraiser and the appraiser writes their estimate and hands the CSR or estimator a copy.

(Sometimes they send it by email or fax.) This in-person scenario is generally the most popular reason to rekey an estimate. Again, someone at the shop rekeys the estimate into the facility’s estimating system. Now a supplement can be created, with S1s denoting all changes.

SCENARiO #3: “LivE iNPERSON” In this scenario, the repair facility did the proper procedure and the vehicle was washed, photographed,

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[TECHNICAL] FEATURE scanned, partially disassembled and pre-measured. The damage report (estimate) was written, and all part prices were checked during the blueprinting/triage. A staff/field appraiser or independent appraiser inspected the vehicle at the shop, the facility’s damage assessor negotiated the repairs with the appraiser, the appraiser wrote their estimate and handed the CSR or estimator a copy. (Sometimes they send it by email or fax.) This in-person scenario is generally the second most popular reason to rekey an estimate. This time, there are choices for the shop: Someone at the facility rekeys the estimate into the facility’s estimating system. This person creates a supplement and adds in all the operations, materials, notincluded items and any deficiencies. The S1 denotes all changes.

Someone at the facility “back-keys” the estimate into the facility’s estimating system. Back-keying is the process of taking your estimate and removing all the operations, materials or procedures not on the insurance estimate, then locking the estimate. You would create a supplement and add back in all the deleted items. Once again, the S1 denotes all changes.

In all three scenarios, the insurance company estimates were rekeyed. Who benefited from this? How much did it cost you to rekey? Think about the time spent on this when you could have been doing something more productive.

Now ask yourself, after rekeying the estimate and creating Supplement 1, how successful were the supplement negotiations with the appraiser? For example, let’s say the insurance appraiser originally wrote a $2,000 estimate of repair, and the supplement you wrote was an additional $1,500.

Now, after negotiations on Supplement 1, the appraiser paid only $1,000 of the $1,500 supplement.

After Supplement 1, did you need to rekey the insurer estimate again?

Look at the questions I asked in the previous two paragraphs. If you answered them in order by saying “the adjuster,” “a lot”/ “too much,” “not very” and “yes,” then you may want to read this…

There is no benefit to a repair facility to rekey an estimate – except in the case of Scenario 1 (where it may be a slight advantage to rekey). It would not be advantageous in any other situation. Scenario 2 should never be a reason to rekey, because it should never happen. You should always write your own damage analysis report (estimate). The damage assessor dropped the ball and did not do their job – no excuses. Additionally, the scheduling for the inspection was not properly reviewed; the CSR didn’t check with the assessor to see if the vehicle was written or not. The only time you would not write a vehicle is when it is an obvious total loss. In Scenario 3, the assessor wrote, by all 38 May 2017

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accounts, what would be a complete and accurate cost of repairs. So why the need for a supplement? Why did they (the shop) not get the vehicle owner reimbursed for all the procedures you are charging them for? Why didn’t the insurer pay the customer for all the procedures the facility was charging that customer for? We will not discuss the reasons why this happened.

In many cases after rekeying or back-keying, the cost for repair still is not agreed upon the second time and you must rekey or back-key again for Supplement 2. As we discussed earlier, Scenario 1 may be a reason to rekey and then create a first supplement.

Next month, I will further discuss the rekeying topic and offer a fix for your facility to stop working harder and start working smarter and more efficiently. Additionally, I’ll look at the topic of photo estimating and explain why I think this has become a critical issue for our industry.

Larry Montanez, CDA is co-owner of P&L Consultants with Peter Pratti Jr. P&L Consultants works with collision repair shops on estimating, production and proper repair procedures.

P&L conducts repair workshops on MIG & Resistance Welding, Measuring for Estimating and Advanced Estimating Skills. P&L also conducts investigations for insurers and repair shops for improper repairs, collision reparability and estimating issues. Larry is ISO 9606-2 Certified for Audi and Mercedes-Benz and is a certified technician for multiple OEM Collision Repair Programs.

P&L can be reached by contacting Larry at (718) 891-4018 (office), (917) 860-3588 (cell) or info@PnLEstimology.com.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

NEAR0517.qxp_NEAR1014 4/17/17 4:01 PM Page 39

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[LEGAL] PERSPECTIVE

by James A. Castleman, Esq.

USINg ARBItRAtIoN to SEttLE totAL LoSS dISPUtES I received a call from a collision repair shop owner a few weeks ago about a dispute he was having with an insurer with respect to the actual cash value (ACV) of a car that had been declared a total loss. The vehicle was owned by the shop owner’s daughter, and he thought that he could repair the car for a reasonable cost if the insurer would let her keep it and deduct the salvage value from its total loss payment. The car was an older-model car, but it was a high-end vehicle that had been maintained in very good condition.

The insurer agreed to let the daughter keep her car, but a dispute arose regarding the ACV. The insurer used a CCC valuation report to establish the actual cash value. As the shop owner noted, however, the “comparable” vehicles used for the report had higher mileage, were from different areas of the country and did not have some of the high-priced equipment of his daughter’s car. The matter got more complicated, since if the insurer were to accept the shop owner’s opinion of the ACV, then the car would no longer be a true total loss because the cost of repair plus salvage value would no longer be greater than the ACV. Further, the shop owner was pushing the insurer for payment of additional daily storage charges until an agreement could be reached on the ACV. The insurer increased its initial offer, yet the parties were still far apart. The insurer then sent a letter, demanding that the dispute be resolved through statutory arbitration.

That’s when the shop owner called me, asking if his daughter had to participate in the arbitration because of the time and expense that it would involve.

ThE ARBiTRATiON STATuTE General Laws, Chapter 175, Section 191A mandates that all Massachusetts auto insurance policies include language requiring that a process be used to resolve disputes as to “the amount of a loss” if either the insurer or the insured makes a demand within 60 days after the insurer receives a “proof of loss.” Technically, the process is not a true “arbitration;” it is actually an “appraisal” or “valuation” process.

The reality, however, is that it has the same effect as a true arbitration, and it is routinely referred to as an “arbitration.”

If either party makes a demand, then both must select a “competent and disinterested” appraiser. The two chosen appraisers are then to select a competent and disinterested “umpire.” If the appraisers cannot agree on an umpire within 15 days, then either party may ask a court to select the umpire.

Each of the two chosen appraisers must prepare their own appraisal of the loss, separately stating the actual cash value of the damaged vehicle and the amount of the loss. If the appraisers disagree, then they submit their differences to the umpire. An agreement in writing between any two of the three determines the amount of the loss. Each party is required to pay their chosen appraiser and split the cost of the umpire.

DiD ThE ShOP OWNER’S DAuGhTER hAvE TO PARTiCiPATE iN ThE ARBiTRATiON? The shop owner told me that he thought that his daughter did not have to participate in the demanded arbitration because he believed that the dispute did not involve “the amount of the loss.” That is, the parties actually agreed as to their damage

appraisals; they just did not agree on the ACV. And when read carefully, the statute seems to distinguish between “the amount of the loss” and the separately stated “actual cash value.”

Yet, the perceived distinction is far from clear. Also, there is a controlling 1999 Appeals Court case that specifically recognizes that disputes regarding ACV are subject to the statutory process. In that case, the insured demanded arbitration of the actual cash value of his stolen vehicle. When issues arose as to the insured’s appraiser being “competent and disinterested,” however, the insured tried to abandon his arbitration demand and sued the insurer in court.

The insurer asked the Court to dismiss the lawsuit, contending that the insured was required to continue with the arbitration process once he had initiated it. The Court agreed with the insurer and forced the parties to continue with the arbitration.

As to the shop owner who called me, the insurer made written demand for arbitration within 60 days of the insured giving notice of loss, and the insurer properly chose a competent and disinterested appraiser. The shop owner’s daughter was required to participate in the arbitration.

ShOuLD REPAiRERS DEMAND ARBiTRATiON TO SETTLE ACv DiSPuTES? Despite the reluctance of the shop owner who called me to engage in arbitration, perhaps this process might be something that repair shops and their customers should consider more often when having a disagreement with an insurer regarding actual cash value. If handled properly, there may be a good chance that doing so might lead to a favorable resolution. While not without cost (and while taking

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[LEGAL] PERSPECTIVE some amount of time), if there is a strong case to be made that the insurer is wrong in its evaluation of a totaled (or potentially totaled) car, then demanding arbitration and choosing the right appraiser possibly could assist in reaching a relatively quick and fair resolution. But some issues should first be considered.

First, how expensive is the car, and how much of a difference is in dispute? Arbitration appears better suited to more high-priced vehicles, and when the parties are far apart.

After all, the cost of the appraisers and the umpire should be considered. It may not be the best business decision to have to pay $300 to settle a $200 dispute. Notably, in the situation of the shop owner who called me, although the vehicle was old, it was high end and the valuation dispute exceeded $3,000.

Second, carefully choose your appraiser. After I advised the shop owner that his daughter had to participate in the demanded arbitration, he found a highly competent and disinterested appraiser, who independently developed very credible documentation to establish an ACV that confirmed the shop owner’s opinion. The appraiser also charged an affordable fee. While the appraiser must be “disinterested,” they don’t need to be someone unknown to you.

Third, choose your issues. Is ACV the only issue, or is the cost of repair and/or salvage value also in dispute?

It is important to determine this in advance of making a demand and to carefully state exactly what is in dispute in your demand notice. If the cost of repair is part of the dispute, you should include a copy of your appraisal with the demand.

Fourth, understand that the final arbitration determination is binding. If there is a strong possibility that your customer may lose, consider attempting to continue negotiations rather than wasting time and money on a losing battle.

of how the process works, and consider using it the next time there is a dispute with your customer’s insurer concerning the ACV of your customer’s car - especially if the car is

CONCLuSiON A statutory process exists for resolving valuation disputes. Be aware 42 May 2017

New England Automotive Report

high end and the opinions of the value are far apart.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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

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Kelly Nissan of Woburn 95 Cedar Street Woburn, MA 01801 Phone: 781-835-3510 Fax: 781-835-3580 E-mail: jtaddeo@kellyauto.com

www.kellyauto.com

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[ASK] MIKE

“What Do i Do When an insurer Won’t Pay Me for What i Want or Need?”

For our newest regular feature, we welcome industry legend and former shop owner Mike Anderson (Collision Advice) to discuss some of the collision repair community’s biggest questions and concerns. This month, we tackle the huge topic of insurers refusing to fully compensate a shop for the services it provides. We also dive into some additional (but related) subjects as the conversation carries on. We at New England Automotive Report hope you find this following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a subsequent issue.

New England Automotive Report: Let’s say someone stood up in one of your seminars and asked you, ‘What do i do when an insurance carrier won’t pay me for what i want or need?’ That’s a pretty big order to fill; do you care to give it a try?

Mike Anderson: Sure! The first thing you need to do if you’re a shop in this kind of situation is make sure you’re prepared in advance. You need to make sure you have all your documentation prepared in advance before the insurer ever comes out, and then you present that documentation to them. If they say ‘no,’ you have a couple of options. The first option is to go up the chain of command to their supervisor to see if you can appeal to them. At that point, you either get a ‘yes’ or a ‘no.’ A second option is to make a business decision to do the items that won’t be paid for for free. Another option is to refuse the repair and tell the customer they have to take it somewhere else, or you can do the repair and educate the consumer about why you need to do what you do and charge them the difference.

Most states have something called an arbitration clause, which is where an arbitrator comes out to the shop and makes a ruling that the shop and insurance carrier agree to abide by. You also can take legal action where you can get the customer to do an Assignment of Proceeds and 44 May 2017

New England Automotive Report

you take it to court. However, some states will not reimburse your legal fees. Every state is going to vary. Understand that while you may win the battle, you may lose the war in the long term. I’m not discouraging people from doing this, because everybody has to make the best business decisions for themselves. But if you go to court, understand that they’re probably going to start steering against you very heavily. You may lose; they may have deep pockets where they can drag it on forever. I’ve known people who’ve gone to court and won and done very well, and I’ve known other people who’ve gone to court and lost. There are pros and cons to that. In my mind, that might be a last resort.

Obviously, trying to go up the chain of command at the insurance company would be the first thing to try. The second option would be to try to utilize the arbitration clause. There are companies that will help you to do that.

NEAR: When we’ve talked to shops over the years on insurer payment issues, they have traditionally viewed balance billing the customer as the last resort. Based on your experiences as a former shop owner and on feedback you’ve received from the facilities you consult with on a regular basis, what do you see as the benefits and disadvantages of this practice?

MA: When I owned my shops, balance billing was my first option. It always worked well for me. I think it comes down to how you present it to the customer and how you prepare them for it. When I had my shops, I had a letter that we gave to the customers at the front end. I would present it to the insurance company as, ‘This is what I need to be paid for. If you don’t want to pay for it, let’s just agree to disagree.’ I would charge the customer the difference and move on to the next one. What I will say is that you don’t want to cut your nose off to spite your face.

Some estimates come back with a $10,000 difference, and some estimates come back with a $50 difference. There are

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some people who will fight for every penny no matter how much the difference is. I did that a lot in my life, and I ultimately realized I was wrong to do so. There’s a saying – ‘Do you want to be right, or do you want to be happy?’ I was trying to be right all the time, and I was making myself miserable. At the end of the day, you have to see what you can live with and what you can’t live with.

NEAR: We’ve heard from a lot of shops that insurers are not paying for pre- and post-repair scanning procedures.

We’ve even heard that some carriers are going as far as saying that the policies they’re selling don’t cover these procedures.

MA: If someone from an insurance company told me that, I would strongly disagree. If their actuaries did not do the proper research to assess what to charge for a premium for that vehicle, then shame on them. When it comes to safety, there’s no room for negotiations. We have a moral obligation to do the right thing. You either get paid to do it, do it for free or charge the customer.

Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com).

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Do you have a question for Mike? Contact New England Automotive Editorial Director Joel Gausten at joel@grecopublishing.com or (973) 600-9288, and we’ll ask him in a future issue.

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[MEET] THE BOARD by Nick Fernandes

FRANK PAttERSoN New AASP/MA Board member Frank Patterson iii (Patterson Auto Body, Stow) is ready to tackle the industry’s difficulties and educate both repairers and consumers.

After the second-generation, 17-year auto repair veteran’s shop had been a member of AASP/MA for four years, Patterson made the decision to become an even bigger part of the group’s efforts on behalf of the industry.

“New England Automotive Report is actually one of the main reasons I joined. Reading through that and seeing what AASP/MA is doing to help our industry is what made me want to be on the Board.”

He looks forward to improving the industry and providing assistance to his fellow shop owners.

“Without groups like AASP/MA, shops wouldn’t know what is going on; they’d be stuck in their own little bubble. We’re trying to educate not only the shops, but also the consumers on their rights and get them engaged in the industry so that everybody can benefit.”

He feels that many shop owners don’t take advantage of new ways to improve the industry’s daily struggles because they are so focused on the constant workflow.

“You’re constantly trying to just get the jobs done; in the back of your mind, you have all these other issues that you see that need to be resolved.”

Patterson wants all the shops to unite rather than look at one another as competitors.

“Years ago, I felt like every shop owner had a competitive grudge against the other one. Now, I think we should realize that we need to unite as shop owners to overcome the issues that we are facing in our industry.”

Patterson says that a major problem is the constant change in vehicles and technology. Shop owners often have to purchase new equipment and train technicians, preventing them from ever getting ahead financially. In addition, the country’s lowest Labor Rate and uncooperative insurance companies make it more difficult for Massachusetts shops to operate.

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“That obviously needs to change. A lot of shops are going under – they can’t afford the new technology, can’t afford the new equipment and can’t afford to send their techs to school. They’re just being pushed to the side, which is completely and totally unfair.”

Although many facilities in the region are facing difficulties, Patterson’s shop is successful because he educates and assists vehicle owners.

“We’re honest and fair, and we look out for the customer. We try to be upfront, and we try to help those who can’t afford the repairs. Most consumers don’t really know much about auto repair; they don’t know too much about their insurance.”

He adds that insurers take advantage of consumers who do not know their rights, which is an industry issue that he hopes to help curtail.

“Basically, what the insurance company says goes with most of the consumers because they’re not aware that they actually have rights, even though they are paying their premiums and the insurance companies should be working for them. What we do is inform the consumer as to what their rights are, and then we obviously give them a safe, affordable repair.”

Even though Patterson is part of such a tough industry, being able to overcome common obstacles gives him fulfillment and the encouragement to move forward.

“In the auto industry, you’re working with your techs, you’re working with your vendors, you’re working with insurance companies and obviously your customers. Trying to make all that work in this industry is difficult, but it’s definitely rewarding when you’re successful.”

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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2017 MEMBERSHIP APPLICATION MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

As a member of the Alliance of Automotive Service Providers of Massachusetts (AASP/MA), I will abide by the association’s bylaws and code of ethics. I understand that membership in AASP of Massachusetts is non-transferable, and I must remain current with my dues in order to be a member in good standing. I understand that if I discontinue my membership that I must immediately cease using any association promotions, logos or materials. Additionally, I understand that as part of my AASP of Massachusetts membership, I will receive New England Automotive Report, the official publication of AASP of Massachusetts, faxes, emails and other mailings.

*** PLEASE tyPE oR PRINt LEgIBLy *** Primary Contact Name: ________________________________________________________________________________________________ Business Name: ______________________________________________________________________________________________________ Street Address ________________________________________________________________________________________________________ Street

City

State

Zip

Mailing Address ______________________________________________________________________________________________________ Street

Phone Number ( E-mail Address

City

)____________________________________ Fax Number (

State

Zip

) __________________________________________

________________________________________ Web Site Address ____________________________________________

MEMBERSHIP TYPE (check one) Collision Repair Shop

ACCOUNTS PAYABLE CONTACT: Name: __________________________________________________

Mechanical Repair Shop

Phone Number: __________________________________________

Both, Collision & Mechanical Repair Shops Vendor

Email:____________________________________________________

RS Number (if applicable) ________________________________ ANNUAL MEMBERSHIP DUES

AASP/MA CHAPTER (check one) MidState Southeastern Northeastern Western

(The AASP membership year is from January 1 to December 31, 2017)

$40/month

$115/quarter

$425/year - BESt vALUE!

Monthly & Quarterly Dues are Automatic Credit Card Transactions ONLY*

NEW! Political Action Committee (PAC) Donation ...............$_____ Personal Contributions only

ADDITIONAL CONTACT FOR NEWSLETTERS AND LEGISLATIVE UPDATES Name: ____________________________________________________ Email: ____________________________________________________ Name: ____________________________________________________ Email: ____________________________________________________ Name: ____________________________________________________

Check or Cash

Credit Card:

Visa

MasterCard

Amex

Card Number: __________________________________________ CID Number: ____________ (3#s on back for Visa, 4 on front for AMEX) Expiration Date: ________________________________________ Name on Card: __________________________________________ Billing Address of Credit Card: ____________________________

Email: ____________________________________________________

________________________________________________________

Name: ____________________________________________________

________________________________________________________

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Signature: ______________________________________________

Name: ____________________________________________________

Date: __________________________________________________

Email: ____________________________________________________

PLEASE CoMPLEtE thIS MEMBERShIP APPLICAtIoN ANd REtURN It WIth PAyMENt to AASP-MA oFFICE. 12 Post office Square, 6th Floor • Boston, MA 02109 Phone: (617) 574-0741 | Fax: (617) 695-0173|jzywien@aaspma.org As required by the U.S. Tax Code, AASP of Massachusetts, Inc. informs its members that 75% of the dues paid to the association are tax deductible. The remaining 25% is allocated to legislative activities and is not tax deductible.

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GOT CLUTTER???

If you have unused, unwanted tools, equipment, parts or materials taking up valuable shop space, ÃÌÊÌ i in New England Automotive Report. Let us find someone who wants your stuff!

Fill out the form below and fax to (973) 235-1963 or email to joel@grecopublishing.com MAKE SURE TO LEAVE A CONTACT NUMBER & EMAIL WHERE POTENTIAL BUYERS CAN REACH YOU.

What are you getting rid of? (Be specific)

Price: $_________

Is Price Negotiable?

Do you have photos of the item being sold?*

YES _____

NO _____

YES _____

NO _____

Make/Model/Year (for parts): Model Years Spanned (i.e. 2003-2005): Part Name (Be specific): Condition (Please check one):

Excellent _____

Good _____

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Where is the item located? (City/State) ______________________________________________________ CONTACT INFORMATION: Your Name: Company Name: (Optional) Contact Phone Number (REQUIRED!) Contact Email:

*IMPORTANT! If you have photos of the items being sold, please email them to joel@grecopublishing.com or call ­603®Ê680-4324 for more information.

Photos sent via Fax WILL NOT be published.

FAX THIS FORM TO NEW ENGLAND AUTOMOTIVE REPORT @ (973) 235-1963 OR EMAIL TO joel@grecopublishing.com.

52 May 2017

Call 603 680-4324 with questions.

New England Automotive Report

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