Protecting Consumers to Safeguard Repairers AASP/MA Returns to WSAR

AASP/MA Executive Director Lucky Papageorg and his assistant, Nadine Nesbitt – a Massachusetts-licensed auto damage appraiser and insurance agent, returned as guests on “Everything Auto with Mike Penacho” – the weekly radio show on WSAR 1480 AM/95.9 FM, hosted by AASP/MA Zone 1 Director Mike Penacho (Mike’s Auto Body; Fall River). As with previous visits, their appearance on September 13 provided the motoring public with valuable information and tips designed to protect consumers and enlighten them about the various ways that the association continues to work in their best interests.

Nesbitt began with a topic near and dear to listeners’ hearts – money – as she explained that consumers must pay excise taxes for the privilege of using Massachusetts roadways.

“If you don’t pay the excise tax on time, you’ll automatically be subjected to fines and penalties, yet if you want a refund, you have to apply for it, and people don’t know this, so the state keeps that money.”

Noting that the excise tax and registration abatement forms are available on AASP/MA’s website, Papageorg pointed out, “We supply that information to Massachusetts consumers because one of our association’s main goals is to protect the consumer because the consumer is our lifeblood; when we protect the consumer, we ultimately protect the collision repair industry as a whole.”

After describing how insurers write basic preliminary estimates, often resulting in the need for significant supplements, he clarified, “When a vehicle is damaged, the process is designed to ensure that the vehicle owner is fully aware of what it will take to repair that vehicle back to its pre-loss condition. That ‘estimate’ is the basis for what the insurance company owes the customer; the ‘estimate’ is the blueprint of the required and necessary repairs.

“A lot of people think that it’s kind of a triangular relationship with the body shop working for the insurance company, but we don’t – we work for the vehicle owner,” he added. “Sometimes, the insurer pays the shop, but only with the customer’s authority, and that doesn’t negate the fact that the owner of the vehicle is the body shop’s true customer.”

As he emphasized the need to properly enforce regulations, Papageorg mentioned House Bill 327/Senate Bill 182, which has a goal of empowering the laws related to insurer abuse by moving governance of the Auto Damage Appraisers Licensing Board (ADALB) from the Division of Insurance (DOI) to the Division of Professional Licensure.

“It is a conflict that causes many issues because no action is taken against appraiser licenses who work for insurance companies when complaints are filed against them,” Papageorg commented, noting that House Bill 327 also proposes an increase in the number of people sitting on the ADALB.

“Currently, there is no consumer representation on the ADALB, so our legislation would add two voices to the panel: one from the Attorney General’s Office of Consumer Protection, and another from a consumer protection agency. Yes, the laws and regulations are critical for body shops, but ultimately, we’re advocating for our customers to make sure their vehicles are repaired properly and safely – and that we are being properly reimbursed to do so.

“Because when the insurance companies refuse to keep pace with the expenses associated with repairing today’s vehicles, shops have no choice but to pass that expense on to consumers,” he continued. “Insurers have brainwashed the public to believe that they set the rate, but in truth, they do not have one iota of authority to set the rate for the collision repair industry – not one!”

“Everything Auto with Mike Penacho” airs every Monday at 2 pm on wsar.com. Archived recordings of the September 13 and previous episodes are available at aaspma.org.