AASP/MA's Papageorg and Penacho Talk

AASP/MA’s Papageorg and Penacho Talk “Everything Auto” on WSAR

On March 22, AASP/MA Executive Director Evangelos “Lucky” Papageorg was the special guest on “Everything Auto with Mike Penacho,” the long-running talk radio show hosted by AASP/MA Zone 1 Director Mike Penacho (Mike’s Auto Body; Fall River) on WSAR 1480 AM/95.9 FM.

The hour-long discussion provided both industry professionals an opportunity to enlighten listeners on how AASP/MA’s work extends beyond representing Massachusetts-based automotive businesses.

“The whole purpose of the association is to help consumers as well as the collision repair industry,” Papageorg said. “If the consumers are being handled properly and are getting what they are deserving of through their policy, then we as collision repairers benefit from that – that’s how we get paid. If they’ve been reimbursed properly to do all the repairs, that’s where we come in. We are the repair professionals in the equation; the insurance industry’s role is to pay for those repairs.”

Papageorg also discussed how the collision repair industry has changed over the years, stressing to listeners that the stereotypical body shops of the past have been replaced by the professional collision repair facilities of today.

“We’re no longer ‘bodymen.’ People have kind of a picture in their minds of a bodyman all covered in bondo dust. We’re actually evolving – and have evolved – into technicians.”

Despite the industry’s clear progress in training and expertise, Penacho shared that many professional facilities consistently receive pushback from insurers when it comes time to negotiate procedures and/or reimburse their policyholders for the services those facilities provide.

“Body shops that do proper repairs and put the consumer first are getting blackballed by insurance companies,” he revealed. “In my particular business, many times when I speak up, certain negative things happen. Appraisers don’t come on time. Some people consider this to be a game, but it’s truly not a game.” “Unfortunately, the insurance industry is obviously in business to make money. They try to cost-contain the areas of the repair process that they feel may not be necessary,” Papageorg responded. “One of the things that we stress as an association is that we’re not

anti-insurance; we are pro-consumer. It’s very important that we, as collision repairers, do proper repairs. In order to do so, we have to be reimbursed properly. That reimbursement is what the insurance part of the ‘game’ is. This is anything but a ‘game;’ it’s people’s livelihoods, people’s safety and protecting the motoring public.

“You have insurers steering customers away from you because you go through training, because you’re educated and because you understand what’s needed to restore the vehicle to that pre-loss condition,” he added. “You get labeled a ‘troublemaker’ because you won’t lie down and let insurers tell you how to fix a vehicle or have you use parts that you may feel should not be put on the vehicle or may never have been crash tested.”

Papageorg also spotlighted AASP/ MA’s current legislation (House Bill 327) that aims to move the Auto Damage Appraiser Licensing Board (ADALB) from the Division of Insurance to the Division of Professional Licensure.

“Although the Auto Damage Appraiser Licensing Board is supposed to be autonomous, it doesn’t answer to the Insurance Commissioner but is housed in the Division of Insurance right now. Our piece of legislation is there to try to level the playing field and make the ADALB truly a consumer advocacy board, which is what it was designed to be. Electricians, plumbers and even hairdressers have their licenses governed and overseen by the Division of Professional Licensure. The auto damage appraiser’s license, right now, is governed by the ADALB under the Division of Insurance. Governor Baker, back in 2016, put out a Governor’s request that all boards be moved to the Division of Professional Licensure. That has yet to take place, so we’ve been forced to put in a piece of legislation that is going to have to be voted on by our senators and representatives to have that Board moved.”

Additionally, he discussed the association’s current legislative effort (House Bill 111/Senate Bill 709) to ensure proper reimbursement to collision repair consumers by their insurers. “The rate of reimbursement here in Massachusetts is the lowest in the country. We have tried to address that issue, because we feel that at the poor reimbursement rate that the consumer is getting, they’re kind of being funneled into what shops the insurer wants them to have their vehicles repaired at. Those shops may have

“We’re no longer ‘bodymen.’ We’re actually evolving – and have evolved – into technicians.” - Evangelos "Lucky" Papageorg