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Serving the New England Collision and Mechanical Repair Industry MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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November 2016 • Volume 14, No. 11
CONTENTS
DEPARTMENTS PRESIDENT’S MESSAGE by Molly Brodeur 8 | Making Positive Memories
LOCAL NEWS 18 | ADALB Moves Forward with Regulatory Revisions 22 | AASP/MA & CREF Host High School & College Collision Career Fair by Joel Gausten 32 | AASP/MA “Clambake” Draws Hundreds to Feeding Hills by Joel Gausten
LEGAL PERSPECTIVE by James A. Castleman, Esq. 40 | The 2016 AIB Auto Policy
22
ALSO THIS ISSUE
COVER STORY
7 | TRAINING OPPORTUNITIES: I-CAR CALENDAR OF EVENTS
by Joel Gausten
10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR 15 | AASP/MA SPONSORS 49 | AASP/MA MEMBERSHIP APPLICATION 53 | FOR SALE
44 | REACHING YOUR ROI: AASP/MA STATEWIDE MEETING RECAP
54 | AASP/MA CLASSIFIED FORM 58 | INDEX OF ADVERTISERS New England Automotive Report
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N
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AUT M TIVE STAFF PUBLISHER
CREATIVE DIRECTOR
Thomas Greco (thomas@grecopublishing.com)
Lea Velocci (lea@grecopublishing.com)
SALES DIRECTOR
EDITORIAL ASSISTANT
Alicia Figurelli (alicia@grecopublishing.com)
Chloe Durante (chloe@grecopublishing.com)
EDITORIAL DIRECTOR
PRODUCTION
Joel Gausten (joel@grecopublishing.com)
Donna Greco (donna@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 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 © 2016 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
AASP/MA EXECUTIVE COMMITTEE PRESIDENT Molly Brodeur
in Massachusetts November 1, 2016 Blueprinting Process & Damage Discovery Fuller Auto Body (Auburn, MA) November 2, 2016 Measuring Cape Auto Body (Plymouth, MA) November 3, 2016 Vehicle Technology & Trends 2016 Fuller Auto Body (Auburn, MA) November 5, 2016 Aluminum Exterior Panel Repair & Replacement Modern Auto Body (Brockton, MA) Sectioning of Steel Unitized Structures Modern Auto Body (Brockton, MA) November 7, 2016 Squeeze-Type Resistance Spot Welding Cape Auto Body (Plymouth, MA) November 9, 2016 Adhesive Bonding Cape Auto Body (Plymouth, MA)
VICE PRESIDENT Adam Ioakim SECRETARY
Plastic & Composite Repair Assabet Valley Regional Technical High School (Marlborough, MA)
Gary Cloutier TREASURER Kevin Gallerani IMMEDIATE PAST PRESIDENT Paul Hendricks
AASP/MA STATEWIDE DIRECTORS COLLISION DIRECTOR Rick Starbard
AASP/MA DIRECTORS Alex Falzone Kevin Kyes
Color Theory, Mixing Toners & Tinting Fuller Auto Body (Auburn, MA) November 14, 2016 Corrosion Protection Cape Auto Body (Plymouth, MA) November 16, 2016 Understanding the Cycle Time Process Cape Auto Body (Plymouth, MA) November 17, 2016 Replacement of Steel Unitized Structures Fuller Auto Body (Auburn, MA)
Michael Penacho Darlene Andrade Tom Ricci Ray Belsito, Jr.
November 21, 2016 Steel Unitized Structures Technologies & Repair Cape Auto Body (Plymouth, MA)
Peter Langone
AASP/MA EXECUTIVE DIRECTOR Jillian M. Zywien 12 Post Office Square, 6th Floor • Boston, MA 02109 Phone: (617) 574-0741 Fax: (617) 695-0173 Email: jzywien@aaspma.org
WWW.AASPMA.ORG
November 22, 2016 Sectioning of Steel Unitized Structures Fuller Auto Body (Auburn, MA) November 23, 2016 Best Practices for High-Strength Steel Repairs Cape Auto Body (Plymouth, MA) For more information, visit i-car.com
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PRESIDENT’S MESSAGE
MAKING POSITIVE MEMORIES MOLLY BRODEUR
With this being my final message of 2016, I had a difficult time choosing any one topic to discuss. After all, it’s been an invigorating two-year ride helping to lead our association in new directions and working on new initiatives. But for my last message of the year, I’ve decided I want to not only focus on the incredible strides being made by your association, but also touch upon the importance of the bigger picture. In my tenure so far as president, AASP/MA has worked on achieving a number of goals to better the industry. Most recently, the association was instrumental in helping to revise the 2016 Automobile Insurers Bureau (AIB) standard Massachusetts Insurance Policy, in cooperation with the Statewide Towing Association of Massachusetts (STA). While not every single change we proposed was ultimately incorporated into the 2016 policy standards, this is still a success for the industry at large, and is a vast improvement over the 2015 policy. Of course it’s not perfect, but the fact that the original policy was retracted and edited at all should be considered a win. Furthermore, AIB is a private entity, and their willingness to adopt some of the proposed changes speaks to the power of groups like AASP/MA across the state. When we speak, people listen. In other encouraging news, the Auto Damage Appraiser Licensing Board (ADALB) continues to be very proactive in hearing the industry’s concerns. The current Board is listening to upwards of 10 complaints, with ultimate decisions still to be seen. The complaint process adopted by the ADALB is very refreshing, especially considering that for the better part of nearly two decades, the Board was not a place where repair professionals felt like action was being taken. The current configuration of the ADALB has been working diligently over the last few years, and they’re taking action. Most recently, they voted unanimously to move the Board’s 212 CMR language changes to the next step in the process, which is the review by the DOI’s general counsel. In short, this has been a very productive, very exciting time for AASP/MA. While we can’t disclose every project on our horizon, I feel I can speak on behalf of our Board - both the outgoing and incoming new members when I say that we can’t wait to see what the future holds. I’d like to take this opportunity to thank all of our
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Board members, our general membership and vendor partners, with special gratitude to all of our generous sponsors. I thank you for the opportunity to serve as your president, and look forward to continuing to work together to help improve the landscape of the industry for all of us. To conclude, I’ll leave you with this thought. I don’t have to tell you that the world right now is a fairly scary place. By the time you read this message, we will have a new President of the United States, closing the chapter on what has been perhaps the most tumultuous campaign season in US history. With the election behind us, I encourage you to look around you and realize what’s most important: Your friends, your family…and your life OUTSIDE of the shop. The holidays are fast approaching, and of course we need to work constantly to make our businesses and industry better, but life is simply too short. This holiday season, make a promise to yourself to spend some quality time with those who matter the most to you. Get back to basics, and make some positive memories. 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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A MESSAGE FROM THE EXECUTIVE DIRECTOR
CHANGING TIMES JILLIAN ZYWIEN
Dear Members, At the time of this writing, the Auto Damage Appraiser Licensing Board (ADALB) had just submitted their final language recommendations on 212 CMR to the general counsel at the Division of Insurance (DOI). Following the public listening session in May, the Board worked to incorporate those comments and improve the regulations per the Governor’s Executive Order. We appreciate the work done by the ADALB and the DOI and for letting AASP/MA be a part of this important process. AASP/MA records all of the ADALB’s meetings and posts the videos on the Members Only section of aaspma.org. This gives our members a front seat to regulators who are making real changes that will affect the industry and how you conduct business. Following
approval by the DOI’s general counsel, the regulations will then be sent to the Executive Office of Administration and Finance for their review to ensure the language complies with the Governor’s Executive Order and intent. After their review, the ADALB will host a public hearing to gather additional comments on the finalized regulation recommendations. We will continue to keep our members informed throughout this process. Recently, the Automobile Insurers Bureau (AIB) filed a new policy, which became effective October 1. As you may recall, there were significant issues with their previously filed policy. Through our persistence and advocacy, the policy was withdrawn. The newly filed policy incorporates key changes sought by this association. While continued on page 50
AASP/MA EXECUTIVE DIRECTOR JILLIAN ZYWIEN has been a senior account executive at Lynch Associates for over seven years. She can be reached at (617) 574-0741 or via email at jzywien@aaspma.org.
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Contact AASP/MA at (617) 574-0741 / jzywien@aaspma.org for information on becoming an AASP/MA sponsor! New England Automotive Report
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[LOCAL] NEWS
ADALB
MOvES FORwARD wITh REGULATORy REvISIONS The October 4 meeting of the Auto Damage Appraiser Licensing Board (ADALB) in Boston was only about 20 minutes long, but it included a vote that could have a considerable impact on the collision repair industry in Massachusetts. By a unanimous vote, the Board agreed to submit their final recommendations for language changes to 212 CMR 2.00 et seq. to the general counsel at the Division of Insurance for review. Once approved by the general counsel, the ADALB’s revised regulations will be sent to the Executive Office of Administration and Finance for further review to ensure that the Board’s efforts have complied with the Governor’s Executive Order to improve them. From there, a special public hearing will be held to welcome additional comments on the finalized recommendations. The vote to move forward comes after months of intense debate among Board members. As covered extensively in recent issues of New England Automotive Report, the collision repair and insurer members of the Board often clashed over the proposed changes to CMR 212, with ADALB Chairman Gilbert Cox regularly stepping in to break the tie votes between the dueling factions. Before taking their vote on October 4, the Board discussed a September 6 letter written by John P. 18 November 2016
The ADALB sends their regulatory changes to the DOI. (Pictured: ADALB Chairman Gilbert Cox and Board members Rick Starbard and Lyle Pare. Present but not pictured: Board members Bill Johnson and Joseph Coyne, Jr. and ADALB Counsel Michael Powers)
Murphy, executive director of the Massachusetts Insurance Federation, regarding his concerns over the minutes of the ADALB meeting held on August 3. In his correspondence (available online at tinyurl.com/zgecqt8), Murphy expressed concerns over “several errors and discrepancies” in the minutes “that ought to be corrected…to ensure that the proposed changes to 212 CMR 2.0 accurately reflect the actions taken by the Board.” ADALB Counsel Michael Powers noted that he subsequently performed an extensive review of a recording of the August 3 meeting (provided by AASP/MA) to identify and correct errors as identified by the Federation.
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“There were so many amendments going back and forth – and the language changed, so it was hard to follow,” Powers explained. With the document updated and the concerns addressed, the Board agreed that this was the version to send to the Division of Insurance as the next step in the process. Videos of past ADALB meetings are available in the Members Only section of aaspma.org. Past issues of New England Automotive Report with coverage of the ongoing ADALB discussion are available for free online viewing at grecopublishing.com. Information on upcoming ADALB meetings is available at tinyurl.com/ hngtb94. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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[LOCAL] NEWS by Joel Gausten
AASP/MA & CREF
host high School & College Collision Career Fair On October 5, nearly 300 students from more than a dozen Massachusetts vocational schools gathered at Assabet Valley Regional Technical High School in Marlboro for the state’s first-ever High School & College Collision Career Fair. Hosted by AASP/MA and the Collision Repair Education Foundation (CREF), the event offered promising automotive students an opportunity to network with a slew of exhibitors representing shops, paint manufacturers, tool suppliers, insurers and more. The Career Fair was the latest in a series of similar gatherings organized by CREF across the country and first held in Dallas in 2014. More than a dozen Career Fairs have already been held this year, with another 15 planned for the spring of 2017. Students who attended the Massachusetts installment were presented with special Cintas technician shirts featuring logos for AASP/MA and CREF. The continued success of these Career Fairs allows CREF to gain insight into what students are looking for as they consider a life in collision repair. “We’ve always heard that there’s a need out there, but these physical events get to showcase that need and desire for companies to come out,” offers Brandon Eckenrode, CREF’s director of development. “We’d love to see 20, 30, 40 companies at these events. But with these events so far, it’s been great to bring together that younger group [of students].” Representing the association throughout the event, AASP/MA President Molly Brodeur was greatly encouraged by the stellar turnout. “I was really impressed with the number of students who were here and the level of school participation that we had. Doing this for the first time, none of us were really sure what to expect, especially with organizing something like this right at the start of the school year. I’d say it was a great success!” For Assabet Valley Collision Repair instructor Ken Stukonis, whose program is a past recipient of a Vocational Grant Award from AASP/MA and CREF (“AASP/MA Hosts Vocational Grant Ceremony & Roundtable,” NEAR June 2015), hosting the Career Fair was an opportunity to further connect with those who are working to provide a future for students in the automotive industry. “I felt we had to give back to the Collision Repair Education Foundation,” he says. “Our [school] being centrally located makes it easy for people to get here.” Petra Schroeder, current chair of the Women’s Industry Network (WIN), participated in the day to create awareness of the many possibilities open to female professionals in the industry. “Over the last 10 years, I think the acceptance of women has grown. Both men and women need to learn how to cooperate with each other and accept the strengths – and sometimes the weaknesses – of each gender.” Celebrating its 10th anniversary this year, WIN offers a special Student Scholarship Program that awards $1,000 to female students who maintain a 3.0 GPA and want to continue their educations at the postsecondary level. (Details are available at tinyurl.com/kc325uc.) Above all, Schroeder hopes that female students will utilize WIN as an industry 22 November 2016
Coverage continues on page 26 New England Automotive Report
Left to right: AASP/MA President Molly Brodeur, Brandon Eckenrode (CREF) and Ken Stukonis (Assabet valley Regional Technical high School)
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[LOCAL] NEWS continued from page 23
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resource and place of support. “They think they’re by themselves, but they’re not. There are some women in this industry who can network with them and help them.” Those who took part in the Career Fair festivities witnessed one of the biggest industry events of the year. PPG was one of the many exhibitors that walked away with a stack of résumés from eager potential employees. “PPG has been truly interested in the development of our youth into the collision industry,” says Rachel Skerry, PPG territory manager for Boston. “We certainly wanted to be a part of this because there are so many students involved.” “Having all these kids here today has been really eye-opening,” comments Amy Blair, group account manager for Enterprise Holdings. “What it says is that [the industry] is putting a focus on education to get more talent into the shops, which is really going to help customer service and the way that we do business in the future. A lot of kids passed out their résumés and were prepared to have careerand job-oriented conversations, which was really cool to see from juniors and seniors in high school.” Kevin Golden, manager of Sears in Natick, traveled to Assabet Valley to promote the company’s Craftsman Club Tech Student Discount Program, which has offered drastically reduced pricing to vocational students for the past two years. “We’ve seen a great response [here at the Career Fair]. A lot of tech students love the deals and also love the Craftsman Tools.” Ken Robbins, territory business account manager for BASF, feels that being a part of the Career Fair enables his company to demonstrate that there are numerous career paths available in today’s automotive repair world. “We work with quite a few vocational schools because these students are the future of this business. We want to let them know that besides working in body shops, there are other avenues – from distributors to paint manufacturers. If they [like] this industry, there are so many other areas they can get into.” Unlike other industries, collision repair gives young employees a chance to find work away from their neighborhoods and build a life wherever they wish. “Because this is an industry-wide and nationwide need, there are some students who have the ability and are open to the idea of relocating,” observes Eckenrode. “It’s attractive to them to know that they have the ability to maybe branch out from what’s been home and go work someplace else.” Thrilled with the response of this initial Career Fair event, AASP/MA and CREF are hopeful that more industry members will take advantage of future events in Massachusetts of this nature. “What I’m sure is going to happen is that other companies [that didn’t participate] are going to hear that they lost out on the chance to meet all of these students,” Eckenrode says. “Hopefully, when we come back and do this again, the word has gotten out to get more people involved.” “For a small investment in participating in a trade show like this, you can potentially walk away with some really hopeful future employees who you could bring into your place and nurture, grow and mold into what you need,” adds Brodeur. “I view it as a missed opportunity for shops that weren’t here.” MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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[LOCAL] NEWS by Joel Gausten
“CLAMBAKE”
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
DRAwS hUNDREDS TO FEEDING hILLS
On September 30, hundreds from the AASP/MA community gathered at the Polish American Club in Feeding Hills for the 2016 AASP/MA Clambake. Looking to change things up this year, the association opted to make the event a “clambake” in name only and offered steak and chicken instead of seafood. The revised menu was welcomed by attendees who joined their industry peers for an evening of fun and relaxation after a long week in the collision repair field. Emceed by AASP/MA President
ner Jack rand Prize win Super Deluxe G ) won a ln co at Ford-Lin Callahan (Sar erican m A here” from “Trip to Anyw arzio iM D is d by Chr Airlines donate c. of Linder ’s, In 32 November 2016
Molly Brodeur and AASP/MA executive team member Peter D’Agostino, the Friday night gathering featured an annual raffle that made a Super Deluxe Grand Prize winner out of Jack Callahan of Sarat Ford-Lincoln, who went home with an American Airlines “Trip to Anywhere” generously donated by Chris DiMarzio of Linder’s Inc. The Super Grand Prize, a Swagtron T1 hoverboard scooter donated by Lynch Associates, went to Ray Stateham of Lombard Equipment. This year’s Grand Prize, a 50-inch
Super Grand Prize winner Ray Stateham of Lombard Equipment received a Swagtron T1 hoverboard scooter donated by Lynch Associates.
New England Automotive Report
Insignia TV donated by Paul Hill of BAPS, was awarded to John Gonet of Langonet Auto Body & Frame. This year’s Clambake would not have been possible without the many industry companies and individuals who offered their invaluable participation and support. Gold Sponsors included ABSAP, Amherst Oakham Auto Recycling, Axalta Coating Systems, Balise Wholesale Parts, Central Chevrolet, Linder ’s Inc., Lynch Associates, Sarat FordLincoln, West Springfield Auto Paint & Body, Albert Kemperle Inc., Bald
Grand Prize w inner John Gon et (Langonet Aut o Body & Fram e) w ent home with a 50 -inch Insignia TV donated by Pau l Hill of BAPS.
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2016 AASP/MA CLAMBAKE GOLD SPONSORS
Gold Sponsors included ABSAP, Amherst Oakham Auto Recycling, Axalta Coating Systems, Balise wholesale Parts, Central Chevrolet, Linder’s Inc., Lynch Associates, Sarat Ford-Lincoln, west Springfield Auto Paint & Body, Albert Kemperle Inc., Bald hill Dodge/Chrysler/Jeep/Kia, BMw of west Springfield, hoffman Auto Group, Long Automotive Group, New England Auto & Truck Recyclers and Transtar Autobody Technologies Inc. New England Automotive Report
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[LOCAL] NEWS Hill Dodge/Chrysler/Jeep/Kia, BMW of West Springfield, Hoffman Auto Group, Long Automotive Group, New England Auto & Truck Recyclers and Transtar Autobody Technologies Inc. The event was also helped along by Silver Sponsors BAPS and LKQ-Keystone Automotive – Springfield and Bronze Sponsors 3M, CCC, Hampshire Towing and Westover Auto Salvage. Additional support came from A&R Auto Glass, Carquest, Cloot’s Auto Body, Designer Systems, Evercoat Products, Larry Skorupski, Marcotte Ford and U-POL Products. A special “shop owners only” drawing offered a MOPAR bar stool donated by Bald Hill Dodge/Chrysler/Jeep/Kia, an Edge cabinet with body shop fillers and putties donated by Evercoat Products, an
Apple TV and iPad Mini donated by the Gold Sponsors, a $50 gas card donated by Marcotte Ford, a Dewalt Speed Buffer and Startup STA Auto 500 spray gun donated by Albert Kemperle Inc., a Wahl 17-piece hair trimmer donated by the Silver Sponsors and a spray gun donated by U-POL Products. The Clambake featured a slew of additional raffle prizes graciously donated by Carquest, Marcotte Ford, Larry Skorupski, Hampshire Towing, West Springfield Auto Parts, Designer Systems, A&R Auto Glass, Cloot’s Auto Body, Sarat Ford-Lincoln and the Gold, Silver and Bronze Sponsors. For information on upcoming AASP/MA events, visit aaspma.org. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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Some of the Silver, Bronze and Prize Sponsors that made the Clambake an unforgettable time
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Quality Repairs Start With Volvo Genuine Parts.
For over eight decades, the Volvo name has been synonymous with unmatched quality and performance. That legendary Volvo quality starts with Volvo Genuine Parts.
Rely on Volvo Genuine parts to get the right fit, at the right price, right now. Please contact the following dealers for your Volvo parts needs:
Volvo Cars Cape Cod 270 North Street Hyannis, MA 02601 Parts Direct: 888-823-0093 Fax: 508-568-9250 www.volvocarscapecod.com
Prime Volvo Cars 425 Lincoln Street Hingham, MA 02043 Parts Direct: 781-829-3120 Fax: 781-829-3193 www.volvocarssouthshore.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: awilliams@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
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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[LEGAL] PERSPECTIVE by James A. Castleman, Esq.
ThE 2016 AIB AUTO POLICy For many years, the Massachusetts Division of Insurance (“DOI”) issued a standard private passenger auto insurance policy that all insurers were required to adopt. In 2008, however, when the state stopped setting fixed auto premiums and allowed insurers to set competitive rates (within limits), the DOI also stopped issuing a standard auto policy. Insurers were now allowed to develop their own auto policies, although they still had to be approved by the DOI. Initially, the Automobile Insurers Bureau (“AIB”), an umbrella entity representing the insurance industry in Massachusetts, issued its own standard policy that closely mirrored the old DOI policy, and almost all insurers adopted that policy. As previously reported in New England Automotive Report, last year the AIB developed a new standard private passenger auto insurance policy that significantly differed from prior versions. Initially, the AIB obtained its approval from the DOI. The 2015 AIB policy had provisions that would have been potentially devastating for Massachusetts consumers, collision repair shops, tow companies and personal injury lawyers. In addition, the 2015 policy was not particularly well written, so it was unclear what some of the new provisions actually meant. As the result of significant and intense pressure by the parties that would have been negatively affected, the AIB made an extremely unusual move and withdrew its 2015 auto policy, and it was never meaningfully implemented. The AIB went back to the drawing board this year, however, and the result is the 2016 AIB Massachusetts Automobile Insurance Policy, just recently approved by the DOI for use by electing Massachusetts insurers as of October 1. The 2016 AIB policy is not quite as egregious as last year’s version, and is much better written. Yet, it still contains provisions that are going to affect the way that collision repairers, tow companies and lawyers do business, and it is still going to negatively affect insured consumers as well. It is the purpose of this article to address some of the changes to the policy that are likely to affect the collision repair and towing industries. LIMITS ON PAyMENTS FOR COLLISION, LIMITED COLLISION AND COMPREhENSIvE CLAIMS Under the prior standard policy (which is still in effect for most insurers until they elect to adopt the new one), insurers are contractually obligated to pay for the repair of damage to your automobile up to its actual cash value. Under contract law as interpreted by the courts, this means 40 November 2016
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that an insurer is responsible to pay the “reasonable” cost of repair, whatever that might be. Under the 2016 AIB policy, insurers are still contractually required to pay for the repair of damage, but now the amount an insurer will pay is limited to “the prevailing competitive price, which is the price we can secure from a licensed repair facility conveniently located to you.” Essentially, it appears that an insurer will not pay anything more than the cost to repair a vehicle at one of its referral repair shops. In addition, the new policy specifically says that the insurer’s payment “may include an adjustment for depreciation and betterment and for the physical condition of the auto.” Some may question whether the changes in the policy do anything more than reflect what insurers in Massachusetts currently do anyway. To some degree, that may be true - but not totally. Under the prior standard policy, there was always room to argue about what was considered “reasonable,” but that argument may not exist under the new policy. While it may have been accepted that insurers could properly make adjustments for betterment and depreciation, it was not made clear if they could always legally do so. Now, it would be clear that they could. Still, questions remain about the meaning of the new policy language. For example, how does an insurer really know what “the price from a licensed repair facility conveniently located to you” actually is? Another shop may charge a lower Labor Rate, but how does one really know what their full actual charges would be to repair a vehicle unless they were to view the damage and write their own appraisal? And even then, who knows what supplements the other shop might request? If one shop does not separately charge for certain procedures, does that mean that no shop can charge for them? If one shop continues to agree to accept a “dollars-timeshours” formula for paint and materials, does that mean that all shops have to accept that - despite what the Auto Damage Appraiser Licensing Board (ADALB) says? As long as there is just one repair shop “conveniently located” to an insured that may charge a particular price to make repairs, does that mean that an insurer is obligated to pay
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Contact these Ford or Lincoln Mercury dealers for all your parts needs:
IMPERIAL FORD 6 UXBRIDGE ROAD MENDON, MA 01756 Toll Free Parts: 877-272-0332 Toll Free Fax: 877-800-6316 E-mail: johnl@imperialcars.com First Time Customers call John
© 2016, Ford Motor Company
SARAT FORD LINCOLN MERCURY 245 SPRINGFIELD ST. AGAWAM, MA 01001 413-786-0430 FAX:413-789-3715 www.saratford.com
SENTRY FORD LINCOLN 4100 MYSTIC VALLEY PARKWAY MEDFORD, MA 02155 PARTS: 617-506-6309 FAX: 781-874-9934 E-mail: pnewell@sentryautogroup.com
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[LEGAL] PERSPECTIVE only the lowest possible price that they can obtain a quote for? And so long as there is one shop agreeing to a particular Labor Rate, does that mean that the rate can never be increased beyond that? TowinG and SToraGe PaymenTS Under the 2016 AIB policy, insurers no longer have to pay for towing and storage of an insured vehicle, unless the insured has collision or comprehensive coverage (as may be applicable to the particular claim). That is, if you get into an accident, you must have collision coverage; if your car is stolen, vandalized, or destroyed by fire, you must have comprehensive coverage. This modification is accomplished through changes in various sections of the new policy, including the comprehensive, collision and property damage coverage sections. Additional changes can be found in the miscellaneous section of the old policy that requires an insured to protect their vehicle from further damage after an accident and says that an insurer must pay the costs of doing so. The changes in the policy in regard to this topic raise a number of new issues. Since the policy no longer obligates an insurer to pay for towing and storage as an additional cost, but rather incorporates this obligation in the collision and comprehensive coverage sections, does that mean the
insurer will deduct the cost of towing and storage from the actual cash value total payment to the insured if there is a total loss? After all, since the most the insured will pay is the ACV of the vehicle, will it pay for towing and storage above that? Arguably, they still will, since the applicable policy provision says, “We will also pay for the reasonable and necessary expenses for towing, recovery and storage of your auto.” But from the way the whole section of the policy is written, it is not entirely clear. Does this also mean that towing companies are going to be absorbing the costs of towing and storage of cars that do not have collision or comprehensive coverage? These tend to be cars of lesser value, and that value is decreased by the damage suffered in an accident. Based on this, in my opinion, tow companies that do involuntary tows are likely to see a lot more jobs for which they are not going to be able to get paid. LimiTS on Third-ParTy ProPerTy damaGe PaymenTS Unlike the prior standard policy, the new policy now says that for third-party property damage claims, “towing or recovery” of the insured’s car will not be paid. They will also not pay for any decrease in value of the third party’s damaged vehicle “unless otherwise required by law.” continued on page 50
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How do you make more money in this industry? If you’re having trouble coming up with a satisfactory answer to that question, AASP/MA is here to help. As the activities regularly featured in this publication prove, the association is committed to providing content that helps member shops strengthen their ability to earn a living. At the AASP/MA Statewide Meeting at the Holiday Inn in Taunton on September 27, attendees were provided with insight into how training and negotiating are leading to more money on the table at the end of the day.
The Importance of I-CAR The meeting began with a presentation by AASP/MA member and fourth-generation shop owner Josh Fuller (Fuller Auto Body and Collision Center, Auburn), who discussed a number of ways that I-CAR is increasing repairers’ productivity and profit. Fuller, who serves as chairman of I-CAR’s Massachusetts volunteer committee, offered an overview of the Illinois-based organization’s ongoing work to ensure that every person in the auto body industry has the information, knowledge and skills required to perform a complete, safe and quality repair for the ultimate benefit of the consumer. “In my opinion, we have a legal, ethical and moral obligation to our customers to make sure that we, as repair professionals, have the greatest amount of information and tools necessary to repair these vehicles correctly,” Fuller said. “We’re doing a disservice to our customers if we do not.” Currently, I-CAR’s national presence is comprised of 269 local committees, 2,350 volunteers, 450 instructors and 130 full-time employees. These professionals are working to get the estimated 36,000 body shops across America up to speed on the rapid evolutions occurring in vehicle construction and technology. Fuller explained that the industry sees an average of 75 major automobile changes – ranging from debuts to reengineering – each year. To help guarantee that consumers are receiving the most comprehensive repairs possible, automakers are partnering with I-CAR like never
before. In addition to Ford’s recent work with I-CAR to develop aluminum repair training, Fuller noted that General Motors is actively promoting the organization’s offerings. “GM reps have gone to three or four GM dealers in the state so far and said, ‘You guys need to find yourself an ICAR Gold shop to do any warranty work and look into aligning yourself with them.’ With that comes opportunity, because dealers don’t want to deal with a whole bunch of shops; they’d rather deal with just a couple.” Although only about 25 percent of the nation’s collision repair facilities currently take some kind of I-CAR training (with 17 percent either Gold Class or on the Road to Gold), there is a considerable return on investment for those who have elected to participate. I-CAR Gold shops have seen 14 percent cycle time improvement over shops without training, while touch time has improved by 34 percent. Additionally, supplement frequency for Gold facilities is 11 percent lower than non-I-CAR shops, while CSI scores for I-CAR shops are five percent higher than untrained businesses. Length of rental is also impacted by I-CAR training, with Gold shops averaging 10.2 days – that’s 1.3 days lower than the average. More information on I-CAR’s various training opportunities is available at i-car.com. Additionally, I-CAR’s Repairability Technical Support Portal (rts.i-car.com) offers thousands of pages of OEM information and will soon include diagnostic and calibration information and requirements. A list of I-CAR classes being held in November is available on page 7.
The Realities of Refinish The second half of the Statewide Meeting featured “Understanding Automated Refinish Deductions and Their Influence on Material Reimbursement,” a PPG-sponsored presentation by industry consultant Ralph Defibaugh (Benchmark Consulting Services, LLC). The workshop addressed the adverse effects that refinish time reductions (which have been grandfathered into the collision estimating
Reaching Your ROI: AASP/MA Statewide Meeting Recap by Joel Gausten
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databases for years) have on refinish material reimbursement. Defibaugh argued that shops are being shortchanged with what he called a “shell game” of using refinish times to calculate payment for paint and materials. “According to Mitchell, [during] the first quarter of 2016, the average paint reimbursement per hour in the US was $33.51,” offered Defibaugh, who is the past president of the New York State Auto Collision Technicians Association and the Capital District Auto Body Association. “If we applied two-tenths of an hour, for every twotenths deduction, it’s costing you $6.70 at $33.51. [At] four-tenths, it’s $13.40. Every time there’s an overlap deduction, there’s a minus going on in my paint and material bill.” A key component of Defibaugh’s discussion was the distribuRalph Defibaugh of Benchmark tion of a special Partial Panel Refinish Concession Worksheet to atConsulting Services explored tendees. The document explained that partial refinish deduction, or ways to combat refinish time blend-within-the-panel deduction, is based on the premise that the reductions. full basecoat coverage is not required when refinishing a specific panel when estimating repaired panels. MOTOR, Mitchell and AudaExplore all state that full refinish time should be applied to repaired panels. They also recommend that on-the-spot evaluations should take place where partial panel refinishing is possible. Defibaugh encouraged the industry members in attendance to “treat paint like a part” and use basic business principals to negotiate fair material compensation. “I want you to get paint management invoices for every car that you paint so you can prove exactly what you put on that vehicle,” he said, adding that shops should stay apprised of the P-Pages because “there’s gold here if you go after it.” In addition to offering plenty of paint talk, the presentation echoed Fuller’s call for more training among today’s body shops. “Training will pay for itself,” Defibaugh said. “I don’t care if we’re talking about welding a quarter panel on or sanding a fender; if the guy doesn’t know what he’s doing, he’s going to screw it up and cost you money.” Addressing one of the greatest hot-button issues in today’s industry, he added that shops needed to heed various manufacturers’ recent statements regarding pre- and post-repair scanning. “Toyota strongly recommends that repairers perform a health or diagnostic scan before and after every repair. They’re saying that if you do something as little as disconnect a rearview mirror…this health scan needs to be done.” Above all, Defibaugh urged audience members to maintain their grasp on what is necessary to be a successful repairer in 2016. “You need to know what you don’t know about these cars before you can even think about fixing them.” For more information on upcoming AASP/MA meetings and events, visit aaspma.org. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
AASP/MA member and I-CAR volunteer Josh Fuller discussed the ROI of I-CAR training.
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2016 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
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Mailing Address ______________________________________________________________________________________________________ City
Street
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)____________________________________ 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, 2016)
$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: ____________________________________________________
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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. New England Automotive Report
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A MESSAGE FROM THE EXECUTIVE DIRECTOR continued from page 10
this language will not solve every problem our membership encounters, it is far better than the 2015 AIB standard auto policy. How this language is interpreted and implemented still remains very important. Because of that, we look forward to working together to continue to protect the interests of our shared customers and members as any new policies arise.
Without the advocacy by AASP/MA, these significant industry changes would not have happened. This is such an important time for our industry, and we need YOUR support. Many of the readers of this magazine are the very people we need to get involved. You are aware of the issues facing your business every day. You are aware of all that AASP/MA is doing to advocate
on your behalf in the Commonwealth. We are making a real difference in how this industry will look today, tomorrow and beyond. So why are you not a member? AASP/MA is the voice that is building the success of the auto repair industry. As a shop owner, you must be a part of these conversations in order to survive. We need to have your voice to become stronger in the face of these challenges. Join TODAY and commit to helping to strengthen our voice in Massachusetts. Sincerely,
Jillian Zywien, Executive Director MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
[LEGAL] PERSPECTIVE continued from page 42
These are potentially significant changes. Again, the limitation on when an insurer must pay for the towing and storage of an insured’s vehicle is significantly limited. In this section, it is made clear that an insurer will not pay for towing, storage or recovery of the insured’s car, even if there is an obligation to pay these charges for the third party whose damages were caused by the insured (unless there is applicable collision or comprehensive coverage). The new language that attempts to limit an insurer’s obligation to pay for the decrease in value in third-party claims is, in my opinion, somewhat odd. Insurers never want to pay for the decrease in value of a damaged vehicle, and on first-party claims, it has been determined under Massachusetts case law that they are not contractually obligated to pay for it. But on thirdparty claims, insurers are obligated to pay for whatever damages their insured would be legally obligated to 50 November 2016
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pay as the result of their insured negligently causing damage to someone else’s property. Under standard “tort” law, this may well include the decrease in value of the third party’s car. While the new policy may say that an insurer is not obligated to pay for the decrease in value, the insurer will probably still be obligated to pay it, since it is actually “otherwise required by law.” ConCLuSion This article is not a description of all of the changes in the 2016 AIB policy (the personal injury changes are also meaningful, as are the newly stated time limits for payments for substitute transportation), nor does it cover all of the questions raised by the changes that are described. In order for the changes to take effect, insurers must elect to adopt the new policy - although I think that there is little question that most insurers will do so. I will be discussing the AIB policy as it relates to substitute transportation in a future article. If you are in the collision repair or tow business, be aware of these changes and be prepared to be able to address them in your facility. If you are an insured car owner in Massachusetts, you should also be aware of the changes and how they may affect the payment of claims you may have. Finally, if you do not have collision and comprehensive coverage, perhaps you should consider buying these coverages even if your car does not have much value. It may be worth having these coverages just to make sure that your insurer will pay to recover, tow and store your vehicle if you have an accident.
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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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AUT M TIVE AD INDEX Accudraft Paint Booths ............................OBC Audi Group ....................................................20 Audi Shrewsbury ..........................................56 Axalta Coating Systems ..................................4 Bald Hill Chrysler Jeep Dodge Ram............10 Balise Wholesale Parts Express ....................11 Baystate Chrysler/Jeep/Dodge ..................21 Best Chevrolet/Best CDJR..........................IFC BMW Group ..............................................28-29 BMW/Mini of Warwick ................................14 Clay Subaru ....................................................42 Collision Equipment Company ....................9 Colonial Auto Group ....................................19 Empire Auto Parts..........................................51 Enterprise ........................................................21 First Chrysler-Dodge-Jeep-Ram ..................53 First Ford ........................................................53 First Hyundai..................................................53 Ford Group ....................................................41 FutureCure ......................................................50 Honda Group..................................................39 Honda ProFirst ................................................5 Hyundai Group ..............................................57 Imperial Ford ..................................................41 Infiniti of Norwood........................................36 Ira Group....................................................12-13 Kelly Automotive Group............................IBC Kia Group........................................................35 Linder’s, Inc. ..................................................58 Long Automotive Group ..............................25 Mazda Group..................................................55 Mercedes-Benz of Shrewsbury ....................56 Mopar Group..................................................47 Nissan Group..................................................52 Polyvance ........................................................30 PMCLogic........................................................24 PPG ....................................................................3 Robertsons GMC Truck ................................46 Sarat Ford Lincoln..........................................46 Sentry Group ..................................................38 Subaru Group............................................16-17 Tasca Group ....................................................48 Toyota Group..................................................31 Volvo Group....................................................37 VW Group ......................................................43 Wagner BMW of Shrewsbury ......................56 Wagner Kia of Shrewsbury ..........................56 Wellesley Toyota/Scion ................................24 Wheel Collision Center ................................51
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NEAR1116.qxp_NEAR1014 10/20/16 3:00 PM Page 60