New England Automotive Report June 2019

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PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

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PLUS: The New Labor Rate Survey

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New England Automotive Report

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Audi dealers strive to make you an Audi Genuine Parts fan •

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4 June 2019

New England Automotive Report

Audi Peabody 252 Andover Street Peabody, MA 01960 800.774.8411 Parts Direct: 978.605.2182 email: pwalke@iramotorgroup.com www.audipeabody.com

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Fall River, MA 02721 800.678.0914 Fax: 508.730.1283 www.mattieaudi.com

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June 2019 • Volume 17, No. 6

DEPARTMENTS

CONTENTS FEATURES

PRESIDENT’S MESSAGE By Molly Brodeur 8 | A New Way to Address Rates

EXECUTIVE DIRECTOR’S MESSAGE

By Evangelos “Lucky” Papageorg

10 | The New Labor Rate Survey

VENDOR AFFINITY PROGRAM PROFILE

By Alana Bonillo

17 | cPrax Internet Marketing

LOCAL NEWS 11 | New ADALB Holds First Meeting 20 | CCC Complaint Examined at AASP/MA Chapter Meetings 24 | Assabet Valley Tech Students Excel in Pedal Car Competition By Alana Bonillo

NATIONAL NEWS By Joel Gausten 26 | AASP/MA on the Road: Members Hit the National Scene

ALSO THIS ISSUE 10 | WHERE’S LUCKY? 14 | AASP/MA 2019 ANNUAL GOLF OUTING INFO 16 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS 41 | AASP/MA MEMBERSHIP APPLICATION

ADVERTISERS’ INDEX

29 | COVER STORY From Students to Stars: SkillsUSA Hits MA

32 | GUEST FEATURE Collision Labor Rates and the “Arm’s Length” Standard

By Fred Jennings, President, EconoLogistics

Fred Beans Parts ............................................13

Nissan Group ................................................36

Honda Group ................................................40

PPG................................................................3

Accudraft Paint Booths ................................OBC

Hyundai Group ..............................................24

Reliable Automotive Equipment ........................7

Audi Group ....................................................4

Imperial Ford ................................................31

Sarat Ford Lincoln ..........................................23

Best Chevrolet/Best CDJR ..............................IFC

Ira Subaru......................................................13

Sentry Group ................................................35

BMW Group ..........................................................18

Ira Toyota of Danvers ......................................12

Subaru Group ................................................19

BMW/Mini of Warwick ..................................28

Kelly Automotive Group ................................IBC

Tasca Group ..................................................25

Colonial Auto Group ........................................6

Kia Group ......................................................13

Toyota Group ................................................33

Empire Auto Parts ..........................................42

Linder’s, Inc. ................................................37

Volvo Group ..................................................22

First Chrysler-Dodge-Jeep-Ram......................37

Long Automotive Group ..................................9

VW Group ....................................................21

First Ford ......................................................37

Mazda Group ................................................30

Wellesley Toyota/Scion ..................................42

First Hyundai ................................................37

McGovern Chrysler Jeep Dodge Ram ................23

Wheel Collision Center ....................................11

Ford Group ....................................................31

Mopar Group ................................................15 New England Automotive Report June 2019 5

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CITY SIDE SUBARU 790 Pleasant Street Belmont, MA. 02478 Phone Number: 617-826-5013 FAX Number: 617-489-0733

COLONIAL FORD OF PLYMOUTH 11 Pilgrim Hill Road Plymouth, MA. 02360 Phone Number: 800-233-8109 FAX Number: 508-830-1658

NORTH END SUBARU 757 Chase Road (Rte. 13) Lunenburg, MA. 01462 Phone Number: 877-289-0053 FAX Number: 978-582-9843

COLONIAL CHRYSLER JEEP DODGE-RAM 24 Coolidge Street (Rte. 62) Hudson, MA. 01749 Phone Number: 978-568-8000 FAX Number: 978-562-1213

COLONIAL FORD OF MARLBOROUGH 428 Maple Street Marlborough, MA. 01752 Phone Number: 888-460-1125 FAX Number: 508-460-3464

COLONIAL SOUTH CHRYSLER JEEP DODGE-RAM 42 State Road (Rte. 6) Dartmouth, MA. 02747 Phone Number: 508-984-1900 FAX Number: 508-996-5801

COLONIAL CADILLAC 201 Cambridge Road Woburn, MA. 01801 Phone Number: 781-935-7009 FAX Number: 781-933-7728

NORTH END MAZDA 757 Chase Road Lunenburg, MA. 01462 Phone Number: 800-322-1241 FAX Number: 978-582-9841

COLONIAL VOLKSWAGEN COLONIAL SOUTH CHEVROLET 89 Turnpike Road (Rte. 9) 361 State Road (Rte. 6) Westborough, MA. 01581 Dartmouth, MA. 02747 Phone Number: 888-322-6570 Phone Number: 508-996-6266 FAX Number: 508-616-0445 FAX Number: 508-979-1219 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

COLONIAL CHEVROLET 171 Great Road Acton, MA. 01720 Phone Number: 800-787-2787 FAX Number: 978-263-8587

COLONIAL WEST CHEVROLET 314 John Fitch Highway Fitchburg, MA. 01420 Phone Number: 978-345-5532 FAX Number: 978-345-1152

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RAE is North America’s premier supplier of OE certified repair equipment.

Our OE approved systems and products are the “preferred choice” for use in collision repair because the system or products have already been prescreened by the car manufacturer.

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PRESIDENT’S MESSAGE

A New Way to Address Rates MOLLY BRODEUR

shows both shops and vehicles are different and do not necessarily have the same labor pricing for collision work.

The VRS system treats data with integrity, not changing or manipulating data to achieve a particular outcome; rather, the data speaks for itself.

Finally, and very importantly, the survey reporting is completely transparent, similar to a gas station sign on the corner for everybody to see, thus enabling a pro-competition environment in which individual body shops can make intelligent, informed business-driven pricing decisions.

This survey has the potential to be a very powerful means of affecting the financial standing at your business.

I encourage everyone to think of it as yet another tool that our industry has to address the Labor Rate issue. There is no one right method or answer that is going to solve this problem for us. Success will come through utilizing a variety of methods to move the needle in our shops, and AASP/MA will continue to serve as a resource that can provide you with these options.

Last month, AASP/MA announced the launch of the Variable Rate System (VRS) Labor Rate Survey in Massachusetts. The Survey is being facilitated by National AutoBody Research (NABR), an independent research, technology and business consulting firm serving the automotive collision repair industry. Through the VRS Standardized Labor Rate Survey, NABR now provides Massachusetts body shops with an independent, third-party process they can trust to survey Labor Rates properly and transparently. It can be found on NABR’s survey website at LaborRateSurvey.com and is free for all Massachusetts collision repair centers.

NABR is independent and does not have a conflict of interest. The VRS survey is openly and equally accessible to all collision centers nationwide. The questionnaire and format are standardized, so all repairers take the same survey. The VRS measures posted Labor Rates, which are more indicative of market rates than the off-market discounted, negotiated, wholesale or fleet rates that are not available to the general public. The survey is continuously measuring market rates; it’s not limited to once every year or two or longer.

Further, the VRS reports a range of market rates, not one singular so-called “prevailing rate” for all shops. The data

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PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

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

G

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AU M TIVE AUT T TI TIV STAFF

AASP/MA EXECUTIVE COMMITTEE

PUBLISHER

CREATIVE DIRECTOR

Thomas Greco - thomas@grecopublishing.com

Lea Velocci - lea@grecopublishing.com

SALES DIRECTOR

EDITORIAL/CREATIVE COORDINATOR

Alicia Figurelli - alicia@grecopublishing.com

Alana Bonillo - alana@grecopublishing.com

EDITORIAL DIRECTOR

PRODUCTION

Joel Gausten - joel@grecopublishing.com

Donna Greco - donna@grecopublishing.com Christopher Rizzi - chris@grecopublishing.com

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

CELEBRATING 30 YEARS 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 © 2019 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

WWW.AASPMA.ORG MASSACHUSETTS

8 June 2019

New England Automotive Report

TREASURER Matthew Ciaschini LEGISLATIVE CHAIR Peter Langone IMMEDIATE PAST PRESIDENT Paul Hendricks

PRESIDENT Molly Brodeur VICE PRESIDENT Kevin Gallerani SECRETARY Gary Cloutier

AASP/MA STATEWIDE DIRECTORS COLLISION DIRECTOR Rob DelGallo

AT-LARGE DIRECTOR Adam Ioakim

AASP/MA DIRECTORS Ray Belsito Alex Falzone Rick Fleming

Joshua Fuller Kevin Kyes Frank Patterson

Mike Penacho Dana Snowdale Bill Spellane

AASP/MA ADMINISTRATIVE OFFICE Evangelos “Lucky” Papageorg: AASP/MA Executive Director

Alana Bonillo: AASP/MA Administrative Assistant P.O. Box 212 Marlborough, MA 01752 617-574-0741

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Email: tschube@longauto.com New England Automotive Report June 2019 9

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EXECUTIVE DIRECTOR’S MESSAGE

The New Labor Rate Survey EVANGELOS “LUCKY” PAPAGEORG

Since returning to the position of executive director of AASP/MA, my primary goal has been to provide our membership with various tools that, when used consistently and properly, will help smooth the road and potentially add more dollars to your bottom line. It has meant knocking the dust off many unused tools that, for some reason, had been set aside and forgotten. We have also added many new tools that are valuable to everyone who takes the time to learn the benefits of using them. Many have used the tools we have developed. You have also let me know that even if they were unsuccessful on their first or second attempts, eventually headway was made during the negotiation process to achieve better results. None of it is easy, and we have a powerful entity that is bound and determined to keep our industry suppressed and pitted against one another rather than focused on the real issues at hand.

The insurance industry continues its practice of maximizing its profits at the expense of the motoring public’s safety. They do so by refusing to acknowledge and keep pace with the rising cost of the repair process and refusing to reimburse for proper

repairs. In their refusal to do so, they ignore and do not reimburse for the proper repair parts and procedures required to restore vehicles to the same “crashworthy” condition they were when they left the factory line. This also creates issues with the fit and finish of the final product. At every opportunity, they force collision repairers to decide between doing required work for little or no compensation or accept the liability for failing to follow manufacturers’ repair procedures.

We are acutely aware of the severely inadequate reimbursement rate. As collision repairers, you have all learned how to run your shops more efficiently and do the best with what you have available to you in regard to tools, equipment and training. You can no longer afford to keep pace with the ever-changing technology and entice skilled technicians into your shops. If this were any other industry, you would be able to competitively adjust your rates based on the actual costs in your marketplace. “One size does not fit all” (Liberty Mutual’s new ad campaign) apparently does not apply to the collision repair side of the equation.

As you are reading this message, AASP/MA and National AutoBody

Research (NABR) are more than a month into the Variable Rate Survey (VRS), which has already had a very impressive response rate from collision repairers. Shops across the state have been answering the survey questions dealing with their posted Labor Rates, their staff training and equipment levels and their status with I-CAR and OEM certification programs. This information compiled by NABR is being developed into an easy-to-understand, market-based report that will allow participants and subscribers to “procompetitively” post rates that reflect the market in which they do business just like any other retail service center or gas station does when they do market studies.

The information being gathered and analyzed will allow for comparisons on many levels within Massachusetts and across the country.

It takes into account the actual cost of living (CPI) state by state – of which Massachusetts ranks amongst the highest, yet has the lowest rate of hourly reimbursement. Why?? Many will point to the referral and “program” shops in Massachusetts. As I have stated before, that is a minor part of the issue.

All 49 of the other states that rate above

AASP/MA Executive Director Lucky Papageorg is on the move!

in Massachusetts

Read below for his stops this month.

June 6, 2019 Color Theory, Mixing Toners & Tinting Bay Path Regional Vocational Technical High School (Charlton) June 20, 2019 Understanding the Cycle Time Process Enterprise Rent-A-Car (Burlington)

3

In the third week of June, Lucky will be visiting the Western region and will host a chapter meeting on June 19. (Location TBD.)

4 2

During the fourth week of June, he will be in the Boston/Northeast region and will host a chapter meeting on June 25.

(Location TBD.)

41

June 16 - June 29

2019

Lucky can be reached at (617) 574-0741 or lucky@aaspma.org.

Keep an eye out for future meeting dates and locations!

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

For more information, visit i-car.com 10 June 2019

New England Automotive Report

MASSACHUSETTS

Lucky can be reached at (617) 574-0741 or lucky@aaspma.org.

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us have similar situations, such as DRPs, so this cannot be the deciding factor.

Additionally, a recent study of some referral/program lists shows that (on average) approximately 30 percent (or less in some instances) of the registered shops participate in insurance-referred work. Why is it reasonable that independent shops (70 percent) have their rates set by the minority under the guise of “prevailing” rate?

During the study of the referral/ program lists, calls were placed to several insurers that have both referral and program shops. In each and every instance when an inquiry was made, the caller was told that the “preferred” shops on the list were the ones the vehicle should be taken to. There was no mention of the referral shops on the list.

It seems odd that any shop that has a referral contract with a particular insurer would want to be steered against if that insurer also runs a “program.” It would appear that as a referral facility, you are being used to help the insurer give the impression of an accepted “prevailing rate” and thereby artificially suppress the true Labor Rate.

Along with our weekly Database Enhancement Gateway (DEG) tips and industry info sent out via email that can add directly to your bottom line, the monthly regional chapter meetings have been gaining attendance and participation. The last meetings in all four of the regions across the state have been educating the attendees as to the purpose of Labor Rate Surveys. Labor Rate Surveys serve a very important role, especially if one understands their true purpose. In nearly all of the other 49 states with higher Labor Rate reimbursements than Massachusetts, surveys are or have been performed. In some of the states, it is mandated while others are done voluntarily. In fact, Massachusetts is the only state, until now, that has NOT had an independent third party do such an extensive market study of the posted Labor Rates and related repair practices and issues.

Along with being an independent third party gathering the information, NABR allows you to update your survey as frequently as you feel necessary. By doing so, the “variable” and changing market is more accurately reflected by the survey. The NABR VRS survey will be unique to Massachusetts and continued on page 42

[LOCAL] NEWS

New ADALB Holds First Meeting On April 30, the Auto Damage Appraiser Licensing Board (ADALB) held their first meeting since January at the Division of Insurance in New ADALB Chairman Michael Boston. It was the first official meeting to feature Donovan new Chairman Michael Donovan (replacing longtime Chairman Gilbert Cox) and new Board member Peter Smith (MAPFRE Insurance).

The Board voted to move an issue of fraud publicized by the Attorney General's Office to the Division of Insurance's Special Investigations Unit.

Additionally, the Board voted to table a vote on a proposed Advisory Ruling in regard to sourcing parts from vendors that refused to sell to particular shops until Donovan and Smith had an opportunity to thoroughly review the matter.

The Board also explored the very hot topic of the difference between personal inspection and photo estimates. Complete video of the April 30 ADALB meeting, including this important discussion, is available in the Members Only section of aaspma.org. This discussion will be further explored at the ADALB at a future date, and AASP/MA encourages its members to participate and be involved when this takes place. The next ADALB meeting is scheduled for June 11 at 9:30am at the Division of Insurance in Boston.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

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12 June 2019

New England Automotive Report

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2019 AASP/MA

ANNUAL GOLF OUTING

WEDNESDAY, JUNE 26, 2019

BLACKSTONE NATIONAL GOLF CLUB

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Longest Drive Sponsor $500 (1 Available)

EMAIL admin@aaspma.org or CALL 617-574-0741 for sponsorship opportunities!

NEAR0619.qxp_NEAR1014 5/17/19 12:37 PM Page 15

New England Automotive Report June 2019 15

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16 June 2019

New England Automotive Report

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[VAP MEMBER] SPOTLIGHT By Alana Bonillo

cPrax Internet Marketing has become quite the household name when it comes to digital marketing for auto body shops in Massachusetts.

Founder and digital marketer Bill Enross has been a part of the automotive industry for more than four decades. Before settling into his current role of supplying shops with website design and social media marketing, he worked as a service manager for a dealership and went on to spend 22 years as the owner of a mechanical repair shop.

Around the start of the millennium, he moved on to marketing parts for OEMs. Meanwhile, he began tinkering with website design. Before he knew it, he had started a business that would eventually become his next full-time venture.

“I was always building this website business in the background. In 2012, I decided it was time to take a leap and move out of parts. I thought I could serve people better moving into marketing full time.”

Enross says he is fortunate to call shops throughout Massachusetts his customers. In addition, thanks to referrals from his work for OEMs, he also has built a footprint across the US. “I’ve sat where they are sitting,” says Enross of his clientele. Although his past endeavors were not in auto body repair, he knows the ins and outs of running a shop and understands the daily issues and challenges his clients face. This gives him an advantage when it comes to making them visible to their customers in a digital platform. cPrax stays involved with the automotive community. Being a Vendor Affinity Program supporter of AASP/MA helps Enross to keep up with the trends and issues his customers are currently dealing with.

“Belonging to AASP/MA is important to me, as it allows me to stay in the conversation. I try to keep a pulse on the industry. Staying close to the association, especially since [AASP/MA Executive Director] Lucky Papageorg has been involved, has been a breath of fresh air.”

In today’s digital world, shops really need to stay in front of their customers. First and foremost, shops need to have a presence on the internet. From there, cPrax focuses on

three main things: Visibility, trust and reach.

Enross is not a fan of paid searches, so he works to get his customers listed organically on engines like Google’s Local 3 Pack, which brings up the top three businesses in an area.

“Trust and visibility go hand in hand. You want visibility, but visibility won’t help you if you don’t have trust.”

One way to build trust is through online reviews. cPrax works to make it easier for shops’ customers to submit honest reviews.

He advises his customers to not be afraid of a bad one, as sometimes it can be an opportunity to win back an unhappy customer and/or fix a flaw in a shop’s repair process. cPrax has the ability to generate content by way of blog posts about hot-button industry issues that they can use on a shop’s website. Additionally, the company generates content for customers’ social media pages that is designed to draw the public back to the main website. The idea is to keep the business at the top of a consumer’s mind.

“Web presence has to be easy to navigate where a customer can get in touch with the shop and get the information they seek.”

At a time when one would think every business has a web presence, there are many that remain without or have websites that are extremely outdated by a number of years.

Enross believes those businesses are losing out.

Many shop owners think that marketing is the first thing to go when money is tight, but Enross believes taking the opposite approach is most helpful.

“When times are tough, you need to stay in front of your customer. It’s important for shops to look at marketing not as an expense but rather as an investment.”

With cPrax at their side, collision repair businesses succeed further by taking full advantage of today’s many forms of communication via the digital world.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

Bill Enross of cPrax Internet Marketing

For more information, contact Bill Enross at bill@cprax.com.

New England Automotive Report June 2019 17

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THEY’RE CALLED “ORIGINAL BMW PARTS” FOR GOOD REASON. FOR UNCOMPROMISING PRECISION AND INCOMPARABLE QUALITY, YOUR BMW CENTER IS YOUR ONE-STOP SHOP FOR EVERYTHING BMW. For Original BMW Parts, contact one of these authorized BMW centers: BMW of West Springfield 1712 Riverdale St. West Springfield, MA 01089 PH: 413-746-1722 FAX: 413-304-9009 bmwwestspringfield.com

BMW of Stratham 71 Portsmouth Avenue Stratham, NH 03885 PH: 603-772-0000 FAX: 603-772-9436 bmwofstratham.com

Tulley BMW of Nashua 147 Daniel Webster Hwy Nashua NH 03060 PH: 603-888-5050 FAX: 603-888-8427 tulleybmw.com

New Country BMW 1 Weston Park Ave. Hartford, CT 06120 PH: 860-240-7881 FAX: 860-240-7873 newcountrybmw.com

BMW of Warwick 1515 Bald Hill Rd. Warwick, RI 02886 PH: 401-821-1510 FAX: 401-823-0530 bmwofwarwick.com

BMW of Sudbury Wholesale Parts 68 Old County Road Sudbury, MA 01776 PH: 800-338-3198 FAX: 508-881-7578 bmwofsudbury.com

18 June 2019

New England Automotive Report

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Genuine Replacement Parts For the Road Ahead.

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For Genuine Subaru Body Parts, contact an Authorized Subaru Dealer.

Long Subaru 7 Sutton Rd., Webster, MA 01570 800-982-2298 Fax: 508-879-1212 tschube@longauto.com New England Automotive Report June 2019 19

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[LOCAL] NEWS

CCC Complaint Examined at AASP/MA Chapter Meetings Michael Parsons of Source One Financial

As reported in the April 2019 issue of New England Automotive Report, Norwell, MA-based subprime auto lender Source One Financial Corp. has filed a complaint against CCC Information Services claiming that the leading Information Provider routinely lowballs the amounts paid to insurance customers who have their vehicles totaled in collisions.

Speaking on his individual behalf and not that of his company, Source One CFO Michael Parsons appeared at the Essex North Shore Agricultural & Technical School in Hathorne for his fourth AASP/MA chapter presentation for the month of April to inform attendees of the troubling issues he has uncovered in his research into CCC One Market Valuation Reports over the past 36 months. One surprising fact revealed through Parsons’ work is that CCC One is currently the target of a variety of class-action lawsuits in various states for alleged wrongdoings against consumers.

“CCC One doesn’t work for us and/or the consumer; they work for the insurance company,” Parsons said, adding, “We want the customer to completely disregard [these Reports] – throw it away.”

Why are CCC One Market Valuation Reports such inappropriate

tools? For one thing, Parsons claims that these documents are full of inaccurate – and sometimes blatantly fictitious – data (including false mileage adjustments) and have sometimes gone as far as to falsify the names of the dealership personnel who supposedly supply CCC One field representatives with the vehicle valuation figures used in the reporting.

In one outrageous example of CCC One’s questionable activities, Parsons shared what happened when he received an offer on a stolen, unrecovered Ford Explorer.

“CCC One gave me a value of $14,951, but took $3,990 for the condition adjustments. Did you know this stolen, unrecovered vehicle [led an inspector to see] brown spots in the transmission fluid? Oil leaks? Burn marks in the upholstery? Every time they make a car ‘rough,’ the verbiage drops in…They look like observations, but they’re not.”

Parsons noted that when he protested against CCC One in this instance, he later received a Market Evaluation Report for $17,765. He then pursued a Reservation of Rights, stating that he didn’t trust the validity of the revised amount. He added that each CCC One report contains language that specifies that

it has been repaired for a particular insurer and that “no other person [or] entity is entitled nor should not rely upon” what it states.

“In every single report they’re telling the consumer, the courts and regulators that no one should rely upon it…Anyone who has attempted to sue CCC One has failed. Why? Well, it says right on it, ‘You’re not supposed to rely upon me.’ CCC One is not lying to me or the consumer; they’re not lying to you. They’re simply not working for us at all.

Therefore, their report should be completely discounted.”

AASP/MA Executive Director Evangelos “Lucky” Papageorg praised Parsons for his efforts to take a stand on behalf of the motoring public.

“I am a strong advocate for customers and doing what we can to help our customers get what they rightfully deserve from the insurance industry, especially when it comes to repairing the vehicle.”

In addition to his actions against CCC One, Parsons is working with AASP/MA in developing a special series of forms and website to walk consumers through the appropriate processes when their vehicles are totaled. New England Automotive Report will update readers on this project as it develops.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

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New England Automotive Report

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New England Automotive Report June 2019 21

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22 June 2019

New England Automotive Report

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[LOCAL] NEWS By Alana Bonillo

Assabet Valley Tech Students Excel in Pedal Car Competition Students at Assabet Valley Regional Technical High School have a lot to be proud of.

During the recent Summit Racing Equipment Student Career Day held in Boston, the Marlborough-based school took home Second Place in this year’s Pedal Car Custom Challenge.

According to Assabet Auto Collision Instructor Ken Stukonis, the students basically designed the car from scratch. The challenge provided an excellent educational opportunity for students to work together and apply their skills in a hands-on project that involved design, technique, planning, creativity, productivity and resourcefulness. Upon registering for the competition, the school received a pedal car from Summit Racing Equipment to modify as they please, provided the steering and pedal mechanisms were retained.

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24 June 2019

New England Automotive Report

In-progress looks at Assabet Valleys prize-winning pedal car

Although the challenge began with auto collision students, other shops within the school were incorporated. By the end, roughly 120 students were involved in the months-long process. Metal fabrication students helped build the body and frame and drafting students helped with the design, while a 3D printer was used to design the grille and tires. Students also had the opportunity to learn from world-renowned car builder and school Advisory Board member Fay Butler, who instructed them on what goes into the design process. In addition to designing and building the car, the students had to also work to meet the deadline, present the car and explain why it was designed a certain way.

“This was great integration with all the shops in the school. For our [auto collision] students, it really showed them what they can do,” comments Stukonis. “It was a great experience and exciting for the kids. The students learned a lot from the process and how to take pride in what they built.”

At the Student Career Day, which Stukonis calls the students’ own “SEMA Show,” the ISCA (International Show Car Association) judged the cars based on degrees of workmanship, design, ingenuity, paint and overall modifications. The Pedal Car Challenge program runs in conjunction with the Autorama, World of Wheels and Cavalcade of Customs Student Career Day Program sponsored by Summit Racing Equipment.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

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[NATIONAL] NEWS By Joel Gausten

AASP/MA members including President Molly Brodeur, Executive Director Lucky Papageorg and Past President Tom Ricci took in several Collision P.R.E.P. classes at the NORTHEAST show in New Jersey

AASP/MA on the Road: Members Hit the National Scene In addition to focusing directly on issues affecting the Commonwealth collision community, various AASP/MA members have spent recent months traveling to different parts of the country to gain new knowledge and a stronger perspective of the industry on a national scale.

In April, AASP/MA President Molly Brodeur attended the Society of Collision Repair Specialists’ (SCRS) 2019 Repairer Roundtable in Nashville, TN. The morning gathering featured a guest presentation by attorney Erica Eversman (Vehicle Information Services/Automotive Education and Policy Institute), who shared some of her experiences as a recently named consumer liaison to the National Association of Insurance

Attorney Erica Eversman presented at the SCRS Repairer Roundtable in Nashville. AASP/MA President Molly Brodeur was in attendance.

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New England Automotive Report

Commissioners (NAIC; naic.org). One of the collision repair industry’s foremost legal experts, Eversman explained her plans to use her new role with the association to shed muchneeded light on the issues that exist between repairers and insurers.

“There is nothing going on right now at the NAIC involving auto insurance in any way. We intend to change that.”

One way she hopes to do this is by informing commissioners of the critical need for insurance commissioners and carriers to embrace the use of OEMrequired/recommended repair procedures. Additionally, she is already working to push back against the common insurance industry position that paying for OEM procedures will lead to rate increases.

Based on her work with NAIC so far, Eversman has identified California, Georgia, North Carolina, Colorado, Mississippi, New York and possibly Oklahoma as “states of immediate opportunity” with respect to working with insurance commissioners on matters of importance to repairers. She encouraged the shops in attendance to file complaints with their respective state Departments of Insurance despite the common misconception that only consumers will have grievances heard at that level.

“If you get told, ‘We don’t take complaints from collision repairers,’ let me know. I will make a point of

contacting that commissioner [to] let him or her know you’re being told that.”

Brodeur is confident that Eversman’s work with the NAIC will strengthen the collision industry’s presence and success at the insurance commissioner level.

“Out of all the potential people who could have been named for that role, there is no one better than her.

She has been working in this industry in one capacity or another for a long time, she has a very deep understanding of the issues that exist for the consumer. I think she’s going to be the perfect person to advocate for the consumer and the collision industry.”

SCRS also devoted part of its Repairer Roundtable to exploring the many efforts underway to build a stronger automotive industry employee base in Tennessee. As a way to encourage post-secondary education, Tennessee Governor Bill Haslam made tuition free for any community or technical college in the state.

Requirements for students to take advantage of this rare opportunity included mentoring partnerships and community service. This tuition change was part of the state’s “Drive to 55” campaign to get 55 percent of Tennesseans post-secondary credentialed by 2025. Not surprisingly, this led to a tremendous spike in participation in post-secondary education. From 2014 to 2016, the state saw a 13 percent increase in enrollment. One of the fastest-growing hubs of automotive industry activity, Tennessee boasts the major in-state presence of General Motors,

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Volkswagen and Nissan North America and more than 900 suppliers.

“It was really exciting for me to see a state whose economic and workforce development entitles are actually listening to what the industry is telling them and putting together a plan and program to deal with that,” Brodeur observes.

Nissan North America, whose Tennessee vehicle production plant is the highest-volume location of its kind in the US, has joined Bridgestone and others in partnering up with the state’s education sector, namely the Tennessee College of Applied Technology (TCAT), to address the shortage of technical students joining the company after leaving the state’s programs. According to the college’s website (tcatmurfrees boro.edu), “in January 2017, TCAT and Nissan North America began accepting its first students at the Smyrna Campus and Nissan Training Center. The 162,000-square-foot technical training center is jointly occupied by the college and Nissan, representing a publicprivate partnership between Nissan and the College System of Tennessee to create educational opportunities that are closely aligned to current workforce needs in the region. The $[nearly 46] million state-of-the-art campus offers high-quality programs to prepare students and Nissan employees for careers in advanced manufacturing and other fields.”

Not surprisingly, Brodeur is impressed by Nissan’s push to provide greater educational opportunities in the automotive arena.

“Since I’ve been on the certification wagon with Nissan, it’s very clear to me they’re truly taking a huge look at their collision network and really putting their money where their mouth is. They are progressive as an OEM in thinking about the bigger picture.”

On March 15-17, various AASP/MA members were among the thousands who gathered at the Meadowlands Exposition Center in Secaucus, NJ for the 42nd Annual NORTHEAST® Automotive Services Show. Hosted by the Alliance of Automotive Service Providers of New Jersey (AASP/NJ), the three-day event drew the largest crowd and featured the most extensive slate of educational/training opportunities in NORTHEAST history.

For the second year, the Washington Metropolitan Auto Body Association (WMABA) partnered with AASP/NJ to present the Collision Professional Repairer Education Program (Collision P.R.E.P.) – a threeday schedule of nearly 20 classes designed to assist industry pros in strengthening their standing in today’s marketplace and preparing for developments to come.

Already one of the industry’s most beloved speakers and motivators, Mike Anderson of Collision Advice truly shone at NORTHEAST 2019, both debuting his new course on scanning and again offering his ever-popular “Write it Right, with Life Nuggets to Live By” seminar. Both events drew standing-room-only crowds looking to experience Anderson’s unique brand of high-energy education.

AASP/MA’s Lucky Papageorg (far right) with WMABA’s Jordan and Jeff Hendler

Tom Ricci (Body & Paint Center, Hudson) made the most out of his firstever NORTHEAST trip by focusing on things he could learn there and immediately implement at his shop.

“When I go to a trade show, I’m always looking at the seminars for furthering my own business and my employees’ education and what I can bring back to them. I was really surprised by the amount of information that was on the trade show floor.”

Within a week of returning home from the weekend, Ricci had added a scanning release authorization to the documents his shop has customers sign prior to a repair. That was one of many pieces of incomparable advice he received by attending Anderson’s two NORTHEAST presentations. He has since taken things a step further by actually using the slideshows from

Anderson’s presentations as part of inshop training sessions for his staff.

“It’s invigorating to be at Mike’s presentations. He’s a rocket scientist in our world, that’s for sure. He’s so unselfish in giving out this information just to help everybody become educated on what’s right.”

Fellow AASP/MA member Dan Lamontagne (White Lightning Auto Body; Williamsburg) also took in the “Write it Right” session and walked away with new ideas on how to improve his bottom line.

“Mike Anderson’s classes are always good. I’m always open to suggestions. When what you’re doing isn’t working, you can try something new. It’s always inspiring to listen to him talk.”

Away from the seminar rooms, AASP/MA Board member Mike Penacho (Mike’s Auto Body; Fall River) took advantage of the products offered on the NORTHEAST show floor.

“It’s always good meeting up with other body shop owners we know from New Jersey and New York.”

By reaching out into other areas across the country, AASP/MA representatives are able to provide a stronger and more valuable experiences for association members back home.

“There are things that aren’t happening in Massachusetts yet or maybe ideas we have not thought of,” Brodeur says. “Going around the country exposes you to many different people who have many different scenarios and challenges in their own states. They also have regulatory and legislative successes. We’re never going to know about these things if we don’t go. The networking that occurs, the connection we make and the information we gather as we’re trucking around the country to these meetings are then brought back to Massachusetts and utilized in our chapter presentations and Board meetings. It’s helping us to strategically plan for what AASP/MA is going to do now and in the future.”

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

New England Automotive Report June 2019 27

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28 June 2019

New England Automotive Report

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[COVER] STORY

A DAY OF WINNERS: SkillsUSA Hits MA On April 26, students from throughout the Commonwealth hit Blackstone Valley Regional Vocational Technical High School in Upton for this year’s MA SkillsUSA Championships. Past AASP/MA president and veteran SkillsUSA volunteer Tom Ricci (Body and Paint Center; Hudson) chaired this year’s Collision Repair Technology segment, while Ken Robbins of BASF chaired the Auto Refinishing Technology category. Sponsors included 3M Products, Jim Marshall, BP Auto Center, Ken Robbins/BASF, Keystone and Universal Technical Institute.

Domenic Schiavo, a student at Blue Hills Regional Technical High School, took home First Place in Collision Repair Technology, followed by Second Place winner Josiah Ramirez (Blackstone Valley) and Adam Page (Smith Vocational and Agricultural High School) in Third Place. The Auto Refinishing Technology competition yielded First Place winner Anissa Morris (Bristol-Plymouth Regional Technical High School),

Second Place winner Jessica Johnson (Plymouth South High School) and Third Place winner Courtney Enos (Upper Cape Cod Regional Technical High School). This year saw the debut of the new Collision Damage Appraisal segment, which made winners out of Arthur Verdeiro (First Place; Cape Cod Regional Technical High School), Morgan Hill (Second Place; Assabet Valley Regional Technical High School) and Grayson Funk (Third Place; Franklin County Technical School). The top winners in all three segments will move on to compete at the 55th Annual SkillsUSA National Leadership and Skills Conference later this month in Louisville, KY. The following industry members volunteered their time to judge the event: Michael Levy, Pat Carroll, Mike Spaan, Steve Vanderbeek, JR Force, Seth Elie, Mike Petrila, Bob Levy, Lamonthe Dimetra, Ryan Sarsfield, Chris Gervais, Nathan Boulanger, Michael Boone and Nicholas Bullock. A special thank you to Blackstone Valley Automotive Collision Repair Instructor David Beaudreau for hosting the event for another year.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

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Industry volunteers and impressive collision and refinishing students gathered for an inspiring day of competition.

New England Automotive Report June 2019 29

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New England Automotive Report

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[GUEST] FEATURE

COLLISION LABOR RATES and the “Arm’s Length” Standard

By Fred Jennings President, EconoLogistics In general, auto insurers’ estimates on their policyholders’ auto collision repair claims are routinely below the estimates written by independent shops.

These shops are then faced with the difficult choice of whether to accept or reject those repairs at the insurers’ lower price. The gap between the shops’ estimated cost of repairs and the compensation proposed by insurers reflects a conflict over hourly Labor Rates and times allowed on different repair procedures.

So, the question is: What would the hourly Labor Rates be in the absence of auto insurers’ control of this market? Before we get into the answer to this question (or at least any guide to what it might be), let’s first look at some background issues.

First, if you’re not aware of the 1963 Consent Decree between the US Department of Justice and the two dominant auto insurance trade associations of that time – the Association of Casualty and Surety Companies (now AIA) and the American Mutual Insurance Alliance (now AAI) – then you should be!

That Consent Decree, signed on November 27, 1963 (only five days after the assassination of President John Fitzgerald Kennedy and under Attorney General Robert F. Kennedy), provides – among other things – this passage: IV. (A) Each defendant is enjoined from placing into effect any plan, program or practice which has the purpose or effect of: (1) sponsoring, endorsing or otherwise recommending any appraiser of damage to automotive vehicles; (2) directing, advising or otherwise suggesting that any person or firm do business or refuse to do business with (a) any appraiser of damage to automotive vehicles with respect to the appraisal of such damage, or (b) any independent or dealer franchised automotive repair shop with respect to the repair of damage to automotive vehicles; (3) exercising any control over the activities of any appraiser of 32 June 2019

New England Automotive Report

damage to automotive vehicles; or (5) fixing, establishing, maintaining or otherwise controlling the prices to be paid for the appraisal of damage to automotive vehicles, or to be charged by independent or dealer franchised automotive repair shops for the repair of damage to automotive vehicles or for replacement parts or labor in connection therewith, whether by coercion, boycott or intimidation or by the use of flat rate or parts manuals or otherwise.

This 1963 ruling called for an end to auto insurers’ control of this market, therefore raising the question of what the Labor Rates would be in the sort of free market domain that it legally mandated.

The question of what prices should be in an uncontrolled market setting – as applied to situations with those payments strictly controlled – is what the “arm’s length standard” is meant to address. Arm’s length standards are generally used to establish the value of real estate properties and total-loss vehicles.

They are also used in a wide variety of other independently traded goods and services. The key element in an arm’s length transaction is that the agreed-upon terms are set through a free process of fair and equally balanced mutual negotiation and consent without interference by any externally influential interest or threat on one side or the other that distorts the bargain to favor one party at the other’s expense.

For a true and proper evaluation of property, goods or services, economically comparable transactions must be free of any biased influences or negotiating advantages for any one side or party over the other.

The broadest use of arm’s length standards to determine prices as a proper reflection of actual value is found in international tax law. This is because tax authorities in every national jurisdiction are bent on protecting their taxable revenues from corporate abuse and malfeasance. When multinational firms set prices on cross-border transfers between subsidiaries, those

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[GUEST] FEATURE prices serve as a way to move taxable profits across jurisdictions from high-tax to lower-tax countries. So, there are several long-tested principles on which these prices are judged based on well-established legal and economic criteria. In other words, those internal “transfer prices” must comply with an arm’s length standard to reflect the actual economic value being exchanged. These standards are enforced by virtually all national tax authorities.

What the arm’s length standard demands is that these controlled transfer prices must reflect the actual value exchanged in the same manner as would occur between truly independent entities dealing at “arm’s length” such as envisioned – and, indeed, mandated – by the 1963 Consent Decree.

The analytical process has several clearly delineated steps, specified by international law, founded upon a use of uncontrolled economic comparables. These comparable transactions are identified and justified through a detailed ‘functional analysis’ of both transactions in question to establish their comparability.

The main purpose of these universally accepted transfer pricing rules is to prevent international corporate tax avoidance and double taxation.

This functional analysis involves a careful review of various criteria – as spelled out in US and international tax regulations – for establishing comparability and how any price adjustments for differences should be addressed. These tax regulations specify five generally accepted factors that are used to determine comparability: (1) functions performed; (2) risks assumed; (3) contract terms; (4) economic conditions; and (5) the nature of the property or services being transacted. With all of these criteria, the provision of mechanical services is a nearly perfect comparison for the work performed by the collision industry.

Consequently, these widely accepted methods can be applied directly to the comparability of mechanical and collision service to show what the actual level of collision Labor Rates would be in a free marketplace uncontrolled by auto insurers and thus functioning under an arm’s length standard.

Such an analysis shows how mechanical services are extremely comparable to collision services, such that prevailing mechanical Labor Rates provide a firm foundation for estimating the true level of uncontrolled collision Labor Rates in a fair and fully competitive market domain of free independent transactions. This is precisely the situation envisioned – and, indeed, mandated – by the 1963 Consent Decree in its prohibition of auto insurers’ influence and control over the collision repair industry.

These regulations also call for adjusting comparable prices to reflect the relevant differences between these two types of transactions. The ascertainable differences here – both by happenstance and good fortune – all point in the same direction, allowing an unambiguous 34 June 2019

New England Automotive Report

What would the hourly Labor Rates be in the absence of auto insurers’ control of this market?

statement about their pricing effects. The arm’s length level of collision Labor Rates should therefore exceed the level of freely determined Labor Rates set by mechanical shops.

The reasons for these ascertainable differences should be clear. First, the capital and labor costs, as well as the skill and training requirements borne by collision service providers, far exceed those for mechanical work.

(Mechanical procedures tend to be standardized and formulaic, while collision work is always custom – no two crashes are ever alike in their repair requirements.)

Second, the economic risks associated with collision work are markedly higher than those involved in the provision of mechanical services.

Existing mechanical Labor Rates in a given geographical region should be seen as a lower bound for what the arm’s length collision Labor Rates would be in a free market setting. In other words, under the tax regulations summarized above, these cited differences call for an upward adjustment of mechanical Labor Rates to make them fully comparable to the arm’s length level of collision rates that would prevail in an uncontrolled market such as specified in the 1963 Consent Decree.

So, as a body shop, what can one do in this situation?

First and foremost, the main message is: Support your trade association!

Second, take control of your pricing. Address yourself to an independent determination of what your shopposted Labor Rates should be.

Third, if associations across the country worked together, the political possibilities – such as enforcing the 1963 Consent Decree – would be limitless. In unity, there is strength.

I hope this review of international tax law and the 1963 Consent Decree is of interest to you. There are all sorts of possibilities open to agents of change if you choose to act together in the pursuit of your interests. All you need do is to be examples of the changes you seek. If you do that, it all gets easier.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

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GENUINE NISSAN PARTS

MAKE ALL THE DIFFERENCE.

Only Genuine Nissan Parts deliver the fit, reliability, and performance to meet your shop’s collision repair needs. So keep it original, and keep it real with Genuine Nissan Parts.

Contact these Nissan dealers for all your parts needs: Mastria Nissan 1305 New State Highway Raynham, MA 02767 Direct Toll Free: 800-248-2458 Direct Fax: 508-802-6118 E-mail: parts@mastrianissan.com

Kelly Nissan of Lynnfield 275 Broadway (Route 1) Lynnfield, MA 01940 Toll Free: 1-800-698-9280 Fax: 781-598-8026 E-mail: BSherman@Kellyauto.com

Web: www.mastria.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: mbosma@kellyauto.com www.kellyauto.com

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Find us on Parts Line:

Prompt &  Dependable Delivery

508.699.4700

Fax Line: 508.699.4761 Parts Hours: Mon-Sat: 7:30-5:00 270 East Washington St. North Attleboro, MA 02760

www.firsthyundai.com

Experienced and Professional Parts Team

774.888.6666

Parts Line:

Fax Line: 508.673.6338 Parts Hours: Mon-Sat: 7:30-5:00 292 William S. Canning Blvd.

Fall River, MA 02721

www.firstfordma.com

Ask about our Competitive Prices Find us on Parts Line:

508.316.8410

Fax Line: 508.316.8397 Parts Hours: Mon-Sat: 7:30-5:00 280 East Washington St. North Attleboro, MA 02760

www.firstchryslerma.com

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[LEGAL] PERSPECTIVE by James A. Castleman, Esq.

Third-Party Insurance

LImITS

Last month, I got a call from a longtime collision repair shop owner who was having trouble getting an agreed figure on his customer’s third-party auto damage claim. The third-party insurer’s staff appraiser had written an original appraisal without a problem. When the shop owner called for a supplement, however, the insurer informed him that the cost of repair was going to exceed their policyholder’s $5,000 coverage limits, and they were going to have nothing more to do with it.

Despite the shop owner having been in the business for many years, he had never run into this situation before and was flabbergasted by what he had been told. Could the insurer just walk away from the claim? Did the shop or its customer have any right to collect anything more from the insurer?

The Law By statute, in order for a motor vehicle to legally operate in Massachusetts, the owner is required to have various insurance coverage in effect (or, alternatively, the owner must file a bond that guarantees payment of equivalent coverage). Some coverage is “first party,” meaning that the insurer will pay for damages or injuries suffered directly by their insured or by others considered insured under the policy, i.e., household members, listed drivers and (to some degree) passengers. Other coverage is “third party,” meaning that the insurer will pay for damages suffered by others, but for which their insured is liable because of their negligence or other irresponsible conduct. Additionally, while certain coverage is mandatory and required to be purchased in order for a vehicle to be legally driven here, other coverage types are optional and need not be purchased unless the insured chooses to do so.

One type of mandatory coverage is third-party “property damage” insurance – that is, insurance that will pay for damage to someone else’s property in certain circumstances. The governing statute provides, in part, “Every policy of property damage liability insurance shall provide that the insurer will pay on behalf of the insured all sums the insured shall become legally obligated to pay as damages because of injury to or destruction of property, including loss of use thereof, caused by an accident and arising out of the ownership, maintenance or use, including loading and unloading of the insured motor vehicle…” The mandatory coverage, however, is “subject to a limit of not less than $5,000 because of injury to, or destruction of property of, others in any one accident.” In other words, a vehicle owner in Massachusetts is required to have only $5,000 worth of insurance to cover all property damage caused by the operator of the vehicle in any one accident, no matter how many other vehicles (or buildings, or fences or any other type of property) the operator smashes into. Higher limits are certainly available, but the purchase of any coverage in excess of $5,000 is purely optional.

Understanding the Limits Under the Statute It is important to recognize that not only is there a requirement for merely $5,000 worth of property damage insurance under the governing statute, but that amount needs to be paid only in certain circumstances.

In particular, the insurer is required to make a payment only if its insured is legally obligated to pay for damage to someone else’s property.

That means that the vehicle operator had to have caused damage by driving negligently, recklessly or intentionally. As explained in the language of the standard Massachusetts private passenger auto policy, “The amount we will pay is the amount the

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owner of the property is legally entitled to collect through a court judgment or settlement for the damaged property.” In the majority of cases, a third-party insurer will agree to make property damage payments without forcing a claimant to actually bring a court action.

However, the amount that they will agree to pay will be based on the insurer’s perception of what a claimant would be able to collect if they did sue and what they likely would be awarded by a judge or jury hearing the case.

Further, Massachusetts is a state that recognizes “contributory negligence” in determining proportionate fault in an auto accident. As an example, if two cars are involved in a collision and a court determines that one party was 40 percent at fault and the other was 60 percent at fault, then the insurer for the person with the higher degree of fault is required to pay only 60 percent of the cost of damage to the other person’s car. The insurer for the person who was 40 percent at fault would be required to pay nothing.

On the other hand, there are a couple of positive provisions in the governing statute for a person making a third-party property damage claim. In particular, the statute makes it clear that the insurer is responsible not only for direct damage to a person’s property but also for “loss of use” of the property. So, if a person’s car is damaged because of the negligence of a third party, then the third party’s insurer is responsible for paying for the cost of a rental car while the claimant’s vehicle is out of commission – and the amount to be paid is the reasonable cost of renting a vehicle similar to the one that was damaged, without the contractual $15 or $30 per day limits that the renter may have purchased with their own auto policy. But the cost of rental is still included in the total property damage coverage limits purchased by the responsible party; i.e., the total amount that a thirdparty insurer is required to pay out for both the cost of repair and the cost of rental may be only $5,000.

Further Limitations in the Auto Policy To complicate matters, there are additional clauses in the standard Massachusetts private passenger auto insurance policy that further limit when a third-party insurer will make payments. These limits can allow an insurer to deny coverage altogether. These limits include (but are not limited to) the following: If the third party’s car is being used for “livery” for hire. So, if the third party is a Lyft or Uber driver or has contracted to transport school children for a fee,

then they need to purchase special additional coverage. Notably, this limitation doesn’t apply to expense sharing car pools or to transporting people for free on behalf of a charitable organization.

If the third party’s car is being operated by someone in the auto repair or vehicle garaging business. In this case, the operator’s garage keeper’s liability insurance is required to pay instead.

If the third party’s vehicle is not a passenger car (but is a pick-up truck or van) and is being used in the business of delivering goods or equipment other than for the incidental use for a vehicle owner’s own business of installing or repairing furnishings or equipment.

If the insured damages their own property. This seems to make sense. However, the insurer will pay if the insured damages the garage at their own home.

If the car was being used in a racing, speeding, “stunting” or demolition contest. This one seems pretty obvious.

If the vehicle is being operated by someone without the owner’s consent.

The Bottom Line Beware the third-party claim! Sometimes, there is no choice but for a claimant to seek payment for repairs and for related costs from a third party, such as when the claimant has no collision coverage or (perhaps more commonly) when a claimant has no rental coverage. But because of the various limitations that exist, it is generally better for a claimant to seek payment from their own first-party insurer even if it means having to pay a deductible out of pocket.

If you are a collision repairer looking for a thirdparty insurer to pay for your services, make sure that you protect yourself. Keep an eye on what is happening with your customer’s claim, make sure that the insurer does not have grounds to deny the claim, and make sure that they are not going to only pay $5,000 of your $8,000 repair job.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

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

In the collision-repair business, time is money, and you can’t waste time on parts that almost fit properly. Use Genuine Honda replacement parts. Your reputation depends on it.

For Genuine Honda parts, contact these Authorized Honda dealers.

Bernardi Honda 960 Worcester Road Natick, MA 01760 Parts Direct: 800-247-3033 FAX: 508-651-1220 www.bernardihonda.com

Lia Honda of Northampton 293 King Street Northampton, MA 01060 Toll Free: 800-369-7889 Direct: 1-413-586-6043 FAX: 1-413-585-0502 www.liahondanorthampton.com

Honda North 382 Newbury Street Danvers, MA 01923 Toll Free: 800-882-9797 FAX: 978-774-9483 e-mail: eadams@iclautos.com www.hondanorth.com

Kelly Honda 540 Lynnway Rt. 1A Lynn, MA 01905 Parts Direct: 800-779-7466 FAX: 781-595-2898 e-mail: mpsomosjr@kellyauto.com

Honda of Enfield 20 Palomba Drive Enfield, CT 06082 Toll Free: 800-222-6632 FAX: 860-253-5419 www.liahondaofenfield.com

Schaller Honda 1 Veterans Drive New Britain, CT 06051 Toll Free: 800-382-4525 Direct: 860-826-2080 FAX: 860-826-2083 e-mail: jkiniry@schallerauto.com www.schallerauto.com

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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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2019 - 2020 as provided for in this contract.

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EXECUTIVE DIRECTOR’S MESSAGE continued from page 11 incorporate our own “who pays for what” feature with substantiations through documentation.

We will be holding four more regional chapter meetings during the month of June before a brief summer break. Take the time to attend and learn what the power of the Survey has to offer and how it will help you prove what you already know. The information will help you and your customers be properly reimbursed for restoring the vehicle to “crashworthy” condition while being able to properly equip and train your staff and earn a fair return on your investment while doing so.

THIS SURVEY WILL BE ONE OF YOUR MOST VALUABLE “TOOLS OF THE TRADE,” BUT ONLY IF YOU CHOOSE TO PARTICIPATE AND USE THE VRS TO ITS POTENTIAL!!!!

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

AASP/MA EXECUTIVE DIRECTOR EVANGELOS “LUCKY” PAPAGEORG can be reached at (617) 574-0741 or lucky@aaspma.org

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