It’s Not Your Fight

For far too long, the collision industry has been waging a battle that is truly not ours ––as positively intentioned as it has been – in an effort to protect, insulate and isolate our customers from the issues which arise in collision repair. The “taboo” topics of proper labor rate reimbursement, performance and payment of procedures to restore a damaged vehicle to safe functionality are just a few of the issues. We have gone to battle with insurers because of our failure to understand our position and obligation in the “game.” We must remember that we are professional collision repairers. We have slowly but surely evolved from just being “body men” to being highly skilled technicians. We are highly skilled technicians in an industry which is changing and advancing at a mind-boggling speed. What we are not, though, are superheroes protecting vehicle owners from the evils of the insurance industry. All too often, we position ourselves between the vehicle owner and their insurer.

Our need to be the protector of the “poor” individual who has suffered a collision loss has allowed the insurance industry to successfully and unfairly control independent collision repair businesses. As collision repairers, we have allowed ourselves to be brainwashed. Too many repairers believe that if we dare charge our customers a fair and reasonable rate that is higher than the suppressed and artificially controlled rate of reimbursement that the insurance industry has determined, we will have no customers and will go out of business. What could be further from the truth? As a matter of fact, the exact opposite is true. Sadly, we are destined to go out of business if we do not charge our customers a copay, which is the difference between our posted door rates and what an insurer is willing to reimburse. We will also go out of business if we continue to perform procedures but do not charge for them because they fall under the insurance company’s “we don’t pay for that” category. If a significant change in mindset is not achieved by the majority of collision repairers, our industry is destined to collapse and the only question which remains is when? It is NOT all “doom and gloom” however. As the saying goes, “There is a light at the end of the tunnel,” and for many collision repairers, it is NOT a train bearing down on them. More and more collision shop owners are proactively asking, “What can I do to change things for the better”? Many have already implemented changes in how they take in their work. They look at the customer and their insurance company and decide if it is really worth it to work on that vehicle. Especially after they have taken the time to educate that customer. The customer must understand that it is their insurance company that needs to be held accountable, and if their insurer is failing to meet their obligation under the indemnification policy and the customer still wants and expects a safe and proper repair, then they must pay for it. Shops are beginning to understand that the customer must pay for whatever the insurer fails to cover, just as if they were a patient at a doctor’s office.

This change of perception was clearly evident at the recent NORTHEAST® Automotive Services Show in March. Panel discussions and presentations, along with attendee participation, made it clear that the mindset is changing with collision repairers who are determined to not just survive but thrive in this great industry. Discussions regarding the difference between “prevailing rates” and contract rates and the meaning of terms such as “judicial reasonability” were clearly important to attendees. The understanding is that, as collision repairers, our obligation is to repair vehicles safely and properly, and to do so, we must understand where the line is when it comes to “avoidable liability” and that a difference between “required” and “recommended” procedures in the repair process does NOT truly exist when it comes down to being sued. (Be sure to read Jim Castleman’s Legal Perspective on page 34).

After some very pointed and passionate discussions, it was great to see and hear the change in position from, “I can’t charge my customers the difference” to “I can no longer afford NOT to charge them the difference.” Adding to the positive change in mindset was the fact that more shops than ever before voiced their successes and shared that they have a long waiting list of vehicles to get into their shop by vehicle owners who want it done right and are willing to pay. The shops that continue to “make the rate work” are NOT the shops of the future. Those shops will continue to fall by the wayside. Those are the shops that will not be able to keep pace with training, technology and equipment demands. They are the ones who will ultimately lose all their business as

You’ve got the right tools, staff, technology and procedures to give your customers the best repair possible. The missing piece of the puzzle? Genuine Volkswagen Collision Parts. Contact an authorized dealer today and find your perfect fit.

Mattie Volkswagen

80 William S. Canning Blvd.

Fall River, MA 02771

800-678-0914 fax: 508-730-1283

Lia Volkswagen 140 Elm Street

Enfield, CT 06083

860-698-6890 fax: 860-265-7840 www.liavw.com

Volkswagen of Hartford

133 Leibert Road

Hartford, CT 06120

Direct Parts: 860-543-6012 fax: 860-728-4408 email: ebautista@vwofhartford.com

Mastria Volkwagen

1619 New State Highway

Raynham, MA 02767

Toll Free: 888-581-1146

Direct Parts: 508-802-9955 fax: 508-802-9966 email: vwparts@mastria.com www.mastriavw.com

Balise Volkswagen

525 Quaker Ln.

West Warwick, RI 02893

TOLL FREE: 800-992-6220

FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com

Quirk Auto Dealers

115 E. Howard St.

Quincy, MA 02169

Toll Free: 877-707-8475

One Call, One Truck for Eleven Brands!

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