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Lia Volkswagen 140 Elm Street Enfield, CT 06083 860-698-6890
fax: 860-265-7840 www.liavw.com
Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475
Volkswagen of Hartford 133 Leibert Road Hartford, CT 06120
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Balise Volkswagen 525 Quaker Ln. West Warwick, RI 02893
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6 | Are You Being Duped Into Breaking The Law? by Evangelos “Lucky” Papageorg
12 | ADALB Demonstrates Consistency in Pushing Everything Down the Road by Chasidy Rae Sisk
16 | Take the 2024 NEAR Industry Survey!
| Embracing Opportunity: Collision Shops Bring Calibrations In-House by Chasidy Rae Sisk
AFFINITY PROGRAM SPOTLIGHT
20 | Tiny & Sons Auto Glass by Alana Quartuccio
24 | AASP/MA Leaders Assure National Board Dissolution Has No Effect Locally
Are You Being Duped Into Breaking The Law?
There is a legal principle that states, “Ignorance of the law is no excuse.” Unfortunately, with the multitude of rules and regulations collision repairers must navigate, it's nearly impossible to be aware of them all. Some laws may be outdated, akin to the “blue laws” in Massachusetts. (Did you know that one such law prohibits grazing cattle on the Boston Common?!) Thus, it’s important to remain vigilant. Additionally, regulations that were well-intended at the time of enactment may now be interpreted differently. As circumstances change, the original intent and the beneficiaries of these laws can shift significantly.
Are you aware of the specific wording in current regulations regarding labor rates for collision repairs? Massachusetts law under Chapter 100A, Section 8(c) explicitly states: “…No registered motor vehicle repair shop or other person shall…charge or offer to charge a higher rate or discount for an insured repair than for an uninsured repair…” This language may have been originally designed to protect insurers, addressing concerns that collision repairs would inflate costs for insured repairs while offering lower rates for uninsured customers. The lower charges to the uninsured dealt not only with labor rates, but also repair versus replacement of parts, procedures and the types of parts being used. Today, we
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AASP/MA
“Lucky”
see that the governing regulations address these issues on behalf of insurers under the guise of cost containment.
Before I go any further, I want to clarify that I am not an attorney nor am I attempting to practice law. For a comprehensive legal perspective on this issue, please refer to attorney Sean Preston’s article on page 32 of this issue.
Here’s how I personally view the situation: Nearly 40 years later, the collision repair industry has evolved drastically. The insurance industry has not kept pace with fair and equitable reimbursement rates for repairing modern, technologicallyadvanced vehicles. They often rely on contracts established decades ago to define what they consider a “prevailing competitive labor rate” and to dictate what constitutes “standard and accepted practices” in collision repair.
It’s fair to say that many collision repairers could unknowingly find themselves breaking the law due to the intent and spirit of labor rate regulations as stated in Chapter 100A, Section 8(c). Remember, “pleading ignorance” is not a viable defense. Violations could lead to unfair claims handling suits under MGL 93A, which could result in penalties of up to triple damages if found guilty.
P.
ZONE
J.R. Force
Jeff White
Affiliate
Jayce
Gregg Tanguay
Scott Varney
Membership Application 2024-2025
P.O. BOX 850210
Braintree, MA 02185
Phone: 617-574-0741
Fax: 973-235-1963
Email: admin@aaspma.org
Please complete this form and return to our office via mail, email or fax with your dues payment. Thank You!
As a member in good standing, your shop WILL BE listed on our website Click here � if you do not want your shop listed on our website map for potential customers to find you. If you have any questions about this benefit, call (617) 574-0741, ext. 1.
Yes � Please send me information regarding the following MONEY SAVING BENEFITS: � Dental plan � Healthcare plan � Credit card processing � FMLA savings program � Grant writing/training � Google presence optimization � All benefits
PLEASE ENCLOSE PAYMENT WITH YOUR MEMBERSHIP APPLICATION
Check# : _______________ (IF collision shop please note your RS# on the memo line of the check) OR CC #: ______________ EXP: ________/___________ CID: _________________
Name On Card: _____________________________________________ Signature: _____
Check here � to opt out of auto renewal using this credit card information for future renewal
Note: A 4 percent convenience fee will be charged for membership renewal via credit card transaction
I hereby make this application for membership with the Alliance of Automotive Service Providers of MA (AASP/ MA) for membership dues 2024-2025 as provided for in this contract.
*Membership Dues are for a twelve-month period commencing on your anniversary month of membership.
12/23
continued from pg. 6
This concern is especially relevant for repair shops that are on referral programs or have contracts with insurance companies. While you may offer discounts to insurers for sending work your way, having multiple labor rates could pose a problem. It might be argued that your posted labor rate should be the lowest rate you’ve contracted with an insurer. This is particularly frustrating and unsustainable in today’s economic climate.
You could inadvertently be setting yourself up for a lawsuit if you do NOT practice balance billing on all your insurance-related repairs. If you are an independent shop not listed with insurers, Chapter 100A, Section 8(c) essentially mandates that you charge your posted labor rate for all work. A possible scenario which could arise if you do not balance bill: A vehicle owner pays you out of pocket for a 23-hour repair at your posted rate of $77/ hour*, totaling $1,771 in labor, but their insurer would only have reimbursed you at $44/hour. The customer might claim you overcharged them by $759 if you are not billing all your work –regardless of the presence or absence of insurance – at the rate of $77/hour. If they raise this issue and you do not reimburse them, they could sue for “treble” (times three) damages and you could face a court judgment of $2,277 – definitely a situation to avoid! (*NOTE: This hourly rate dollar figure is only used as an example, and is not intended to set a specific minimum or maximum labor rate.)
If you are a referral or contract shop, the same language in the regulation could be interpreted to say that you must post your labor rate at the lowest amount you’ve agreed to with an insurer. This would include any additional fees for procedures and total losses. If you are an independent shop with a fair posted labor rate, you should charge that rate regardless of whether insurance is involved. Yes, that means practicing balance billing! If you fail to do so, you risk being duped into breaking the law; this issue also extends to parts used and other repair-related services.
Shops that have embraced strategies like “Breaking Free in
‘23” and “Getting More in ‘24” have implemented balance billing and are seeing the benefits while safeguarding against potential unfair claims handling. These same shops are also positioning themselves to “Thrive in ‘25.”
It’s crucial to understand that after reading this piece, along with Preston’s report, it may evoke fear in those who do not fully grasp the implications. Independent shops might feel pressured to lower their posted labor rates to match those dictated by insurers. Please do not succumb to this fear. Empower yourself by recognizing your right to balance bill! Contrary to warnings sent by the Division of Standards at the behest of insurance companies, and by some insurers with their estimates, you are NOT breaking the law by balance billing unless you have a contract with an insurer. This interpretation of the language in Chapter 100A, Section 8(c) should not cause you fear. It should empower you to do the right thing by following the regulation language, charging your posted labor rate across the board and balance billing when the vehicle owner’s insurance carrier fails to cover the entire cost of the repair – a charge you determined allows you to accept the liability for doing the repairs while maintaining a reasonable ROI on your investment and business.
To avoid becoming a defendant in a lawsuit, you should independently consider your options:
• Option 1: “Go all in.” Join every referral list and agree to work for an unfair reimbursement rate, which you accept as the “prevailing rate,” if you do not balance bill.
• Option 2: Decide to opt out of all referral lists, thereby ceasing to be part of the problem, and charge what you determine to be your fair and reasonable posted labor rate, practicing balance billing when insurance is involved.
• Option 3: Continue as an independent collision repairer and charge your fair posted labor rate regardless of insurance involvement, i.e.: balance billing as necessary.
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Keep in mind that your customers are very familiar with balance billing and have been getting balance billed by their medical professionals for years based on health insurers’ underpayment for services rendered by their doctor! I have yet to hear a patient say: “I am not going back to my doctor because he balance billed me for what my insurance did not cover.”
Ultimately, the choice is yours. The Alliance is here to assist you with any questions. If you are not already a member, see the application on page 7. It’s a small price to pay to ensure you are not being duped!
Genuine Replacement Parts For the Road Ahead.
Avoid problems down the road that will cost you time, money and customers. Choose Genuine Subaru Replacement Parts, engineered to fit better today, and perform better tomorrow.
For Genuine Subaru Body Parts, contact the following Authorized Subaru Dealers:
Long Subaru
7 Sutton Rd.
Webster, MA 01570
800-982-2298
Fax: 508-879-1212
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Quirk Auto Dealers
115 E. Howard St.
Quincy, MA 02169
Toll Free: 877-707-8475
Balise Subaru 561 Quaker Ln.
Warwick, RI 02893
TOLL FREE: 800-992-6220
FAX: 800-254-3544
wparts@baliseauto.com
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Patrick Subaru
247 Boston Turnpike
Shrewsbury, MA 01545
508-756-8364
Fax: 508-752-3691
www.patricksubaru.com
jlavalley@patrickmotors.com
by Chasidy Rae Sisk
ADALB Demonstrates Consistency in Pushing Everything Down the Road
The Auto Damage Appraiser Licensing Board (ADALB) reconvened late September with a full agenda to discuss, but as has become customary at these meetings, little actually moved forward as the Board consistently decided to delay making an actual decision on even the most trivial details.
As the ADALB resumed its review of proposed amendments to Regulation 212 CMR 2.00 et seq., Board member Peter Smith (MAPFRE) launched into discussion on 212 CMR 2.02, which largely relates to appraisal forms and the application and examination processes. His suggested updates to the verbiage were made to account for the application and renewal process being moved online, and he also recommended updating the application fee.
Moving on to 212 CMR 2.04, Procedures for the Conduct of Appraisals and Intensified Appraisals, Smith suggested clarifying that all appraisal forms used today are electronic.
Looking at a new addition to the Regulation, via 2.02(5)(c), Board member Bill Johnson (Pleasant Street Auto; South Hadley/ Belchertown) clarified that added verbiage means that a handwritten appraisal requires a signature and seal, while an electronic appraisal does not require a signature. Smith agreed but emphasized, “It still needs to have all the proper information, and then transmission of that [electronic appraisal] constitutes the electronic signature.”
Before the Board moved on to the next matter of business, Johnson questioned a definition in the CMR, asking why “supervisory appraisal” is specifically identified as “an appraisal conducted by an insurance company or appraisal company supervisor solely for the purpose of evaluating the appraisal ability of one of his or her appraiser employees or for the purpose of providing on-the-job training of an appraiser employee” [emphasis added].
Smith suggested, “The verbiage is there to pave the way for the fact that a supervisor could come to the shop and say, ‘Hey, I need to take a look.’”
“Conversely, I can’t do a supervisory appraisal on one of my employees if I wanted to,” Johnson argued. “I’ve been confused for 30 years about why it was there, and I’d like clarification on why it cherrypicks and specifies insurance and independent appraisers.”
AASP/MA Executive Director Lucky Papageorg offered insight into possible situations where the insurer’s appraiser and supervisory appraiser show up in tandem, leaving the shop appraiser in a situation where they seem to be negotiating with two individuals.
“You’ve hit the nail on the head,” Johnson said. “I’ve had that happen before, yet I don’t have the same rights and privileges; I can’t go out to my appraiser to mentor him at the same time so it’s two on two because that’s not allowed. Maybe the definition of supervisory appraisal should be changed to specify that it happens after the initial appraisal is written and negotiated.”
Smith expressed his intention to update the Regulations based on the discussion held before the review continues at the Board’s next meeting.
Next, the Board discussed the proposed advisory ruling submitted by Johnson based on concerns raised at their March meeting. He pointed out, “There’s nothing earth-shattering in here. It just basically states what the rules and regulations are because we just need to keep on defining that for people. Nobody is going to sit down and read all the CMRs the way we do, so this is just a Cliff Notes version. We’re not changing any rules; we’re just telling everybody what the rules are.”
Yet, Smith seemed to take exception to some of the language related to exceptions and delays, expressing the desire to “be consistent in everything we do.”
Johnson objected, “We are consistent, Pete – you consistently say no and consistently push everything down the road, so we are very consistent.”
His words proved true as Attorney Michael Powers suggested Smith put his concerns in writing for the Board to review at the next meeting.
In the call for “other business,” Johnson brought attention to inconsistencies in the CCC One Market Valuation Reports, and the Board went down the rabbit hole of discussing the matter, leading to a suggestion to review the matter and adjust 212 CMR 2.00 during the ongoing review, which was made by Board member Carl Garcia (Carl’s Collision Center; Fall River).
When Complaint 2024-1 was brought up for review, Garcia explained that the complainant had informed the Board that he resolved the issue with the particular appraiser. The Board voted to dismiss the complaint before adjourning to Executive Session to review Complaint 2024-21. Before the ADALB adjourned, Papageorg asked Powers and Chairman Michael Donovan to outline the nature of the complaint, without disclosing the involved parties’ names, as they have done in the past; however, his request was all but ignored.
The ADALB was scheduled to reconvene on October 22. Don’t miss detailed coverage of the meeting, only available in the October/ November issue of Damage Report, AASP/MA’s members-only newsletter.
AASP/MA members are strongly encouraged to listen to the recording of the September 19 meeting in the Members Only section of aaspma.org for a glimpse into the inner workings of the ADALB. View the meeting agenda at bit.ly/ADALB91924.
Enhanced Mobility and Shop Safety with RAE Mobile Battery Lifting Table
When repairing sophisticated electric vehicles, proper disassembly and handling of EV batteries is a must. RAE’s Mobile Battery Lifting Table is a game changer, taking the stress out of lifting and storing EV batteries as well as motors and transmissions.
The table’s sturdy build and smooth hydraulic system ensure precise lifting and lowering, allowing repairers to position the battery exactly where it’s needed with the ability to safely handle loads up to 1.5 tons, with a pneumatic-hydraulic drive powering smooth and reliable lifting.
With adjustable features including a mechanical drop safety device, 3-step handle and slopes on both axes, operators can be confident of precise positioning. An extendable platform (adjusting from 1830mm to 2130mm) fits various battery
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With approvals from Ford, Lucid and Rivian, this Mobile Battery Lifting Table is a solid investment, not only cutting down on time spent with manual labor but also making battery handling more efficient to improve overall productivity in the shop.
If you’re looking for a solution that combines safety, ease of use, and durability, this Mobile Battery Lifting Table is exactly what you need. The team at Reliable Automotive Equipment is ready to help with this and any equipment concerns you may have; please contact us today at raeservice.com to learn more about our array of collision repair products, training and support.
has a lifting capacity of 3,080 pounds, ensuring safe maintenance procedures.
The RAE Mobile Battery Lifting Table
Take the 2024 NEAR Industry Survey!
It’s that time of year again!
The New England Automotive Report 2024 Industry Survey opens next month! Every December, collision repairers in the Commonwealth have the opportunity to speak up anonymously on behalf of their shops. The information collected paints a picture of what collision repair professionals deal with day after day. No two shops are the same, but as results have shown in the past, most businesses are dealing with the same challenges, though they may handle them differently.
For example, while last year’s survey results showed that finding good help was still a struggle for most collision repair businesses, it discovered a 40 percent increase of shops finding new employees via word of mouth referrals and a 23 percent increase in online searches, while 16 percent more shops relied on local vocational schools. This showed a big difference over the 15 percent of shops who reported the year prior that they were searching “everywhere.”
When this industry survey first debuted, 52 percent of shops responded that they did not participate in any referrals or programs. Last year, that number grew to 58 percent. It’s expected that trend will continue with the 2024 survey results yielding a higher percentage of shops removing themselves from contract agreements
with insurers.
The survey is updated every year with new questions designed to capture the evolving collision industry landscape. Are shops using AI? Are they any more prepared to handle EVs than they were last year? The 2023 survey revealed that 74 percent of respondents believe they are not ready.
Balance billing customers is becoming a common practice with many businesses. It will be curious to see if this year’s survey will reveal a higher number than last year’s 62 percent who reported doing so. Results will be featured in an upcoming issue of New England Automotive Report in early 2025.
Remember, answers will remain anonymous so there is no fear in coming forward with your wins and woes. The survey will open December 1, 2024. Watch your inbox for details. Your opinion matters, so do yourself and the industry a favor by taking 15 minutes to complete the survey.
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
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New Country BMW
1 Weston Park Ave.
Hartford, CT 06120
PH: 860-240-7881
FAX: 860-240-7873
newcountrybmw.com
BMW of Stratham 71 Portsmouth Avenue
Stratham, NH 03885
PH: 603-772-0000
FAX: 603-772-9436
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BMW of Warwick 1515 Bald Hill Rd. Warwick, RI 02886
PH: 401-821-1510
FAX: 401-823-0530
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Audi Peabody 252 Andover Street Peabody, MA 01960
800.774.8411
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Mattie Audi 80 William S. Canning Blvd. Fall River, MA 02721
800.678.0914
Fax: 508.730.1283 www.mattieaudi.com
It’s pretty clear why Tiny & Sons Auto Glass shines as a trusted provider for highquality glass service in the South Shore area. The family-owned-and-operated business is committed to not only making proper repairs, but also being involved in the communities they serve.
“My dad started in the auto glass business in 1959,” shares Peter Brown, who co-owns the operation with his brother Edward. “He worked for Settles Glass and Acme. In 1978, he decided to start his own business. My brother and I are the second generation.”
The business is named for its founding father, James “Tiny” Brown. As Peter puts it, “They called him ‘Tiny’ because he played football and was six feet, six inches tall and 350 pounds, so that was his nickname. He was known for his height and his size 15 triple wide boot.”
Peter and Edward got an early start jumping on board in their role as “the Sons” in their dad’s business.
“We were really young when we started working with our dad, like eight, nine or 10 years old,” Peter recalls. “On weekends or during the summer, it was our job to cut windshields out of back windows to create an inventory for our father’s side business selling used windshields to salvage yards.”
Tiny & Sons Auto Glass is devoted to auto glass replacement and repair. They serve collision repair shops, dealerships, fleets and municipalities. If they replace a windshield on an ADAS-equipped vehicle, they will perform the necessary recalibrations. The company is certified through the Ford Glass Network to replace
windshields and perform recalibrations. Peter says the shop is proudly registered and accredited with the Auto Glass Safety Council for the past 20 years, and “all of our technicians are certified through the Auto Glass Safety Council.”
Peter and Edward officially took over the business in 2008, although their father continued working with them until he passed away a few years later. The brothers share the business 50/50; Peter handles the business end with consumers, sales aspects and community involvement, while Edward plays the technical role of training and overseeing operations, making sure everything is running smoothly.
“Tiny’s” sons continue to carry out his philosophy – it’s what has kept them successful for close to 50 years.
“My father’s philosophy was ‘get involved’ – learn, grow, always study. He also believed in being part of the community. We’ve always been a community-based business. My father was involved with the Elks Club, the Boys and Girls Clubs of Plymouth and Marshfield, the Cub Scouts, the Boy Scouts. We’d sponsor local sports teams. He was a call firefighter and a grand exalted ruler for the Elks Club. He’d dress as Smokey the Bear for all the firemen’s musters in Plymouth County. That’s how we were brought up – if you want people to do business with you, you have to get involved with them and be a part of their community.”
He also believed it was important to “always try to do it right. If you mess up, fix it and move on to the next thing,” says Peter of their father’s beliefs.
That philosophy extends to the support they give AASP/MA. Tiny & Sons Auto Glass has been an active supporter of
by Alana Quartuccio
the Alliance’s events for years, sponsoring its annual golf outing and other events. Most recently, the auto glass business came on board as a Silver-level sponsor in its Vendor Affinity Program.
The Browns gain so much from their affiliation with AASP/MA; at the top of that list is knowledge.
“The auto glass industry and the collision industry are intertwined in so many ways,” states Brown. “Glass is a structural part of the car. So when a collision happens, a lot of the time, the glass needs to be taken out in order for them to do the body work. On the advocacy side, we deal with many of the same issues – Right to Repair, steering and referral programs, similar to what the collision industry goes through. We want to be supportive as these issues align with what the auto glass side deals with every day as well.”
Tiny & Sons Auto Glass’ commitment to community involvement is another reason they work with and support AASP/ MA.
“A lot of the body shops and dealerships are embedded in their communities. We want to make sure we’re involved with them too, so we try to be as supportive as possible, and we will advocate when needed.”
The family operation extends beyond the Browns. Peter is proud of their diverse team. “We have a female technician who has been with us for about three years now. We also have second-generation employees as their sons and daughters are working for us now. We really are a family-run and family-oriented business.”
Peter Brown of Tiny & Sons Auto Glass. The shop is proudly registered and accredited with the Auto Glass Safety Council.
Tiny & Sons founding father, James "Tiny" Brown with AASP/MA President Kevin Gallerani
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AASP/MA Leaders Assure National Board Dissolution Has No Effect Locally
In the wake of the recent announcement of the AASP National Board of Directors' decision to dissolve the association at the national level, AASP/ MA (aka the Alliance) wants to assure the auto body repair community in the Commonwealth that the national board’s decision to not carry onward has no bearing on the Alliance and its activities.
AASP/MA will remain active in all its efforts to strive to advocate for consumers, educate repairers and create unity for the voice of repairers within Massachusetts.
and guidance when needed, the Alliance, here in Massachusetts, has always operated independently and will continue without any disruption.”
Alliance members should anticipate no interruptions to AASP/MA’s ongoing initiatives and upcoming events. In fact, the Alliance just celebrated a successful annual golf outing fundraiser and its Fall General Membership Meeting.
Enhancement Gateway, which it cofounded, by contributing $100,000 (equivalent to five years of its current financial support) to ensure that the valuable industry resource continues to thrive and benefit the industry.
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSET TS
“AASP National has been a great resource to our local association, and we are proud to have been active participants all these years,” comments AASP/MA Executive Director Lucky Papageorg, who served as a member of the national executive board. “Although the national association has been there to lend support
AASP/MA President Kevin Gallerani echoed Papageorg’s sentiments and assured all, “It’s business as usual on the local level. Our efforts to support proper repairs, fight for fair labor reimbursement rates and protect consumers will remain unchanged by this news. We continue to gain momentum. It’s only onward and upward we go.”
AASP National reported it will continue to fund the Database
Affirming its core mission to support and strengthen its affiliates, the national board’s remaining assets will be distributed equally among current affiliates in good standing who, in turn, can utilize those funds to enhance their work serving the industry at the local level. In addition to AASP/MA, the affiliate associations include AASP Illinois, AASP Minnesota, AASP New Jersey, AASP Pennsylvania, Automotive Service & Tire Alliance North Carolina and New York State Association of Service Stations and Repair Shops.
GENUINE NISSAN PARTS MAKE
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Contact these Nissan dealers for all your parts needs:
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
Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169
Toll Free: 877-707-8475
Balise Nissan of Warwick
1350 Post Rd.
Warwick, RI 02888
TOLL FREE: 800-992-6220
FAX: 800-254-3544
wparts@baliseauto.com
www.BaliseWholesaleParts.com
One Call, One Truck for 14 Brands!
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.
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
Balise Honda
400 Riverdale St.
West Springfield, MA 01089
TOLL FREE: 800-992-6220
FAX: 800-254-3544
wparts@baliseauto.com
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One Call, One Truck for 14 Brands!
Balise Honda of West Warwick 509 Quaker Lane West Warwick, RI 02893
TOLL FREE: 800-992-6220
FAX: 800-254-3544
wparts@baliseauto.com
www.BaliseWholesaleParts.com
One Call, One Truck for 14 Brands!
EMBRACING OPPORTUNITY: COLLISION SHOPS BRING
It’s no secret that the majority of new vehicles being sold today include ADAS. In fact, around 95 percent of light duty vehicles manufactured in 2023 came equipped with automatic emergency braking, according to CCC Intelligent Solutions’ 2024 Q1 Crash Course Report (available at cccis.com/reports/ crash-course-2024/q1) – and experts anticipate that number will continue rising as consumers increasingly rely on these types of safety systems.
With cars being produced with a growing number of electronic components, it’s no wonder that the majority of repairs necessitate calibrations to maintain those components’
functionality following an accident, though the frequency of shops performing calibrations does not seem to be keeping pace with the influx of ADAS. CCC’s report indicated that just over a quarter of last year’s appraisals for 2023 model year vehicles included a calibration.
In response to this climbing demand, multiple ADAS calibration companies have popped up in recent years, yet some shop owners have chosen to take matters into their own hands, stepping up to the plate to address this concern by investing in the training, equipment and tools needed to perform these vital operations in-house. The primary drivers behind this decision?
by Chasidy Rae Sisk
CALIBRATIONS IN-HOUSE
Convenience, liability concerns and profitability.
“We were subletting a lot of vehicles to various dealers and another collision shop,” shares Rick Starbard (Rick’s Auto Collision; Revere). “While the shop was always accommodating, sometimes dealers were booking weeks out. It became clear to us that we would be sending almost every car in the shop out for calibrations, so we decided to explore getting into the business ourselves.”
Shops performing calibrations in-house allows them to ensure procedures are being done correctly since the shop carries the liability, even when they sublet a portion of the job. “We wanted to make sure calibrations were done correctly,” offers Don Dowling
(Marblehead Collision; Marblehead).
Kevin Gallerani (Cape Auto Body & Service; Plymouth) agrees. “Originally, we sublet our calibrations to various dealerships. But as we learned more about the requirements of performing an accurate calibration – specifically as it relates to having a clean room – we realized that we were subletting the work to companies that did not have this type of set up. Most of them were calibrating vehicles in the middle of the shop, which had a pitched floor, improper lighting and toolboxes scattered all around, so it made us question whether the vehicles’ systems were truly being restored as intended
continued on pg. 32
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by the OEMs. And if something went wrong with that vehicle, if those systems failed to perform properly after we returned it to the customer, we would be held liable because we handled the claim and the repair wasn’t done properly. The last thing this industry needs is for a driver to get hurt because someone performed a calibration they weren’t trained and equipped to do.”
Cape Auto Body started investing in training employees on ADAS repairs in 2017, and in 2019, the shop built a clean room to bring the majority of calibrations in-house. The process was somewhat daunting, Gallerani admits. “The floor had to be completely level, and we had to install special LED lights in a room that admits no sunlight, so it couldn’t have any windows. The walls had to be painted a flat gray color, and the room must stay clear of toolboxes and equipment that the radar could misinterpret as the target. Having clutter around the room is like buying an obstructed seat at Fenway Park; sure, you’re at the game, but you don’t really know what’s going on because you can’t see clearly, so you’re bound to miss something important.”
Conscientious of how much work would be involved to bring calibrations in-house, Starbard did his homework before making the leap. “We looked into it for quite some time. We spoke to just about every equipment manufacturer during SEMA ‘22 and asked them all if they had a system where we could perform alignments along with calibrations in one bay. Everyone said that it was impossible, including Autel, but a few months later, Autel announced their development of an in-ground alignment rack that could deliver what we were looking for. We spent some time with Gary Machiros at Applied Automotive Technology, who not only owned a calibration center but was also a distributor for Autel, as well as with the owner of a fairly large tire, suspension and calibration center in New Hampshire, who was happy and successful with their equipment for both alignments and calibrations.
“After deciding to move forward, we went through the process of rearranging our mechanical shop by moving some lifts and a garage door opening and having the alignment rack installed in the floor so that it sits level with the floor when down,” Starbard continues. “This allows us the ability to perform calibrations on a level surface on the ground, but we can also perform alignments and/or repairs in the air. Because a properly aligned vehicle is the foundation for any calibration, it really makes sense to pull a car in, perform the alignment, scans and go right into calibrations. It also gives us the ability to do an alignment pre-check during vehicle check-in to help identify potential steering and suspension damage out of the gate. We also use multiple scan tools including some OE. When we need to have OE calibrations and programming, the system can be remoted with OE tools.”
Marblehead Collision dedicated a large bay to calibrations. “We have multiple ADAS systems: Launch, Autel and Snap-On.
Launch is the main system we utilize,” Dowling explains. “I selftrained and had support from Launch while I was learning. I then trained our calibration experts.”
The process of invoicing to collect from bill payers can be challenging and requires additional considerations. Dowling established a separate business entity for his calibration business. “We were forced by insurers to open a separate company because they refused to pay the collision shop for these calibrations, but opening a separate company was not difficult. The calibration company rents a couple bays at our collision shop.”
Starbard also “set up a different company under a different corporation, and we operate the mechanical and calibration businesses in a separate part of our building. It is crazy that this is what has to be done to be fairly compensated.”
Fortunately, shops seem to be encountering less pushback from insurers as these procedures become more widely accepted.
“We have fought insurers for years with the need for calibrations, but at this point, they allow the required calibrations,” Dowling acknowledges. “However, we do need to provide a sublet invoice from the ADAS company since insurers tend to refuse to pay the collision shop a fair labor reimbursement rate.”
Gallerani agrees. “Every insurance company in Massachusetts, except one, seem to realize calibrations are a required safety procedure and pay the bill. When we have a claim from the one insurer that doesn’t pay, we educate the customer ahead of time, submit the invoice to the insurer and then bill the customer when the insurer denies it.”
“Most insurers are beginning to understand the reality of the many ADAS features in today’s vehicles and the manufacturer requirements following a repair,” Starbard suggests. “We don’t really run into a problem when we produce all of the documentation. As crazy as it sounds, things started to change once CCC added the Vehicle Diagnostics tab to their estimating system.”
Still, he worries, “While insurers seem to have a better understanding of ADAS, there are still many repair shops that do not. While we do perform a fair number of calibrations for other facilities, we typically only get those calls when there is a problem such as a warning lamp or something is clearly not functioning. If repairers are not planning to do calibrations themselves, they should at least be checking what the OEM requirements are following a repair and making sure that those requirements are carried out, even if there is no light on the dash.”
Shops properly performing calibrations in-house deserve – and need! – to be properly compensated due to the large investments needed to provide these services.
The complexity of the process typically requires a dedicated resource. Cape Auto Body employs four ASE-certified ADAS technicians who underwent rigorous training and testing. “ASE
requires technicians to be able to read electrical diagrams and know how they work before calibrating these programs,” Gallerani says. “You have to measure them to make sure they’re pointing in the right direction before you even place the target. Their tests are hard, and we’re really proud of our team for acing them.”
Starbard received training through Autel and performs some calibrations himself, but his son-in-law is the shop’s go-to guy for calibrations. “Shawn has been our in-the-shop appraiser for years, performing scans, writing cars and researching repair procedures for the techs in the shop while working from a mobile work station. He has always been more of a tech guy and really embraced the idea of performing calibrations. He has the patience to deep dive into the different systems when necessary. He did a lot of research on his own in addition to taking a multitude of I-CAR classes and spending quite a bit of time learning at our distributor's shop.”
The employees performing ADAS calibrations spend a significant amount of time researching OEM repair procedures to ascertain the manufacturer’s specific requirements.
“Manufacturer requirements should be followed for the calibration requirements,” Dowling insists. “The risks created by not doing the calibration could affect the functionality of the vehicle.”
“We need to find out how the OEMs want it done and follow those procedures because they made the car and know how it’s supposed to work,” Gallerani contributes. “Each OEM and each system has different requirements, and if you neglect to do the research, something important could easily be missed. There’s no cutting corners in this game; ADAS systems are safety devices that need to be repaired properly, or someone could be seriously injured.”
“Pulling OEM procedures has been one of the steps that we have followed for quite some time, even before doing calibrations,” Starbard adds. “Following repair procedures is a process. If you follow the processes as they are laid out and don’t allow yourself to become overwhelmed by them, calibrations are not so mysterious. If you think you can leave a step out or shortcut anything, you will become extremely frustrated because the calibration will fail. Similar to measuring equipment in the shop, the equipment is extremely delicate as are the cameras, sensors and modules that you are working with.
“This is not a job for someone who lacks patience or is a bull in the china shop. I really think that computer-oriented people or ‘gamers’ may be ideally suited to perform many of these tasks. With the shortage of techs in the industry, I think that seeking out computer-oriented people for this role will become the trend,” he predicts.
Then, the dollars and cents required to purchase the tools and equipment need to be considered. Charges must reflect the cost of
the equipment, the ongoing training/ upgrading of equipment and subscription costs associated with obtaining access to the repair information specific to the vehicle.
“The equipment as well as software access is very expensive and vehicle specific,” Starbard points out. “We recently purchased one board just to perform front radar on newer Jeeps that cost $1,500. We also purchased target mats for performing surround view calibrations on Ford trucks that cost $2,500. We have some targets that we have never used, but if this is the road that someone is going to go down, you have to be equipped to do it. There is no telling how many times that you will use these targets and devices, which is something that must be added into your overall pricing. With the expense of equipment and training required to perform these procedures, the price for these services has to include the equipment and knowledge and should not be based on dollars times hours.
“Another thing that must be considered is space,” he adds. “Many calibrations require a large amount of space to carry out, and it is not really conducive to doing in an active body shop environment. Anyone who is considering gearing up for calibrations should consult with the various equipment companies and find out exactly how much space will be required to perform the types of calibrations that you would like to perform and the make of vehicles that you typically repair.”
“We paid somewhere around $22,000 for a good target system several years ago, plus additional tools and equipment made the original startup costs around $30,000,” Gallerani calculates. “Then, we have to buy new targets and floor mats every year as we constantly add on manufacturers. At this point, we’re doing about 95 percent of our calibrations in-house.”
Dowling estimates that he has invested “roughly $70,000” into the equipment needed, but after the initial investment is paid off, “The cost for in-house calibrations is just the time you have into it. We perform roughly five calibrations per day.”
Although the initial cost may seem overwhelming, Dowling offers advice to shops that have not yet brought calibrations inhouse: “All shops should invest in an ADAS calibration scanner. Even if you cannot do all the calibrations, start with the dynamic and radar calibrations. These have fairly low initial costs for the shop. Work your way up to doing the lane departure calibrations. These targets are costly, and calibrations typically require more space. If a third party can do calibrations at your shop, then the body shop certainly can.”
And there’s definitely money to be made for shops performing their own calibrations. AAA released a report in December 2023 indicating that ADAS can add up to 37.6 percent to the total repair cost, an increase of around $1,540.
The Discount Dilemma: Insurers Want You Out of Business
For decades, insurers have pushed shops to lower their rates. This pressure is intensifying as insurers outsource negotiations to third-party companies like Control Expert. These companies – armed with AI tools – promise insurers cost savings, all while squeezing shops.
Many repair shops feel cornered, believing they must lower their rates to stay competitive or compliant. Some shops even fear they may be committing violations under M.G.L. Chapter 93A
Despite these pressures, the reality is that repair shops should be charging their door rates without fear. Not all shops are succumbing to these demands, and many are thriving by sticking to their established rates. This article will explain why it’s legally and financially sound for shops to charge their posted rates and how to avoid legal traps.
II. Understanding Chapter 100A, Section 8(c): The Misconception of Pricing Discrimination
The statute is clear:
“No registered motor vehicle repair shop or other person shall...charge or offer to charge a higher rate or discount for an insured repair than for an uninsured repair.”
The language in this law was originally designed to prevent shops from inflating repair costs for insured customers. The fear was that shops would overcharge insurers, who were seen as having deep pockets. The law’s purpose was to maintain fairness and prevent price gouging.
Today, shops often feel pressured to lower their rates for insured repairs to avoid steering or to keep insurers happy. However, the law doesn’t require this – shops should charge their posted door rate, whether it’s for an insured or uninsured repair. Lowering rates under pressure is not a legal necessity and
could hurt a shop’s long-term profitability.
III. Massachusetts Auto Body Ass'n, Inc. v. Commissioner of Insurance: Legal Precedent and the Race to the Bottom
In 1991, the Massachusetts Supreme Judicial Court addressed the pricing issue in the case Massachusetts Auto Body Ass'n, Inc. v. Commissioner of Insurance. The court upheld that repair shops could offer discounts, but those discounts must apply equally to insured and uninsured customers.
The Court clarified this point, stating:
"Since nothing in the regulation prevents a repair shop from offering the same discount to an uninsured customer, we cannot say that, on its face, the provision conflicts with G.L. c. 100A, § 8(c)."
This ruling has led to unintended consequences. Shops, feeling pressured to offer discounts to insurers, are lowering their rates unsustainably. The danger is that once shops start reducing rates, the overall market value of repairs falls, pulling quality, wages and safety down with it. However, not every shop is falling into this trap – some shops, in fact more shops, are standing firm and succeeding by charging their full rates by implementing balance billing practices based on the underpaid amount offered by the insurer.
IV. The New Reality: Insurer Pressure Through AI-Driven Cost Negotiations
Insurers increasingly farm out their cost negotiations to third-party firms like Control Expert. These firms use AI tools to request lower rates, storage fees or discounts on repairs.
An example of a common tactic:
"Thank you for sending those requested documents and charges over to us. Are we able to do $XX a day in storage, as anything above that comes from the customer’s settlement?"
On the surface, this seems like a simple inquiry. However, shops are being coerced into lowering their rates under the threat of losing business or seeing insurers steer customers elsewhere. Shops that comply may not realize they are hurting themselves in the long run and giving up more than they gain
V. Legal Ramifications: M.G.L. Chapter 93A and the Illusion of Risk
Many shops are terrified that by sticking to their door rates, they may be violating M.G.L. Chapter 93A. However, this fear is misplaced Chapter 93A penalizes unfair and deceptive business practices, but charging your posted door rate – whether to an insured or uninsured customer – does not violate this law.
Chapter 93A allows for treble damages (up to three times the actual damages), plus legal fees, for any violation of consumer protection laws. This is a serious penalty, but the key point is
that charging your door rate, uniformly for all customers, is not deceptive or unfair.
The true risk lies in offering discounts to insurers while not offering the same to private-pay customers. This discrepancy could expose a shop to Chapter 93A liability. To avoid this, simply charge consistent rates for all customers, whether the repair is being subsidized by an insurance claim or not.. This will protect you from legal threats.
VI. Case Study: A Shop Pushed Back—And Won
One Massachusetts shop was contacted by Control Expert, which requested reduced storage fees. Instead of complying, the shop pushed back. They invoked the Driver's Privacy Protection Act (DPPA), demanding documentation that Control Expert had proper authorization from the insurer to negotiate.
The shop’s response was simple but effective:
"We will be very happy to assist you with your request, once we receive documentation from the vehicle owner and/or the registered owner’s insurance company to act on their behalf. Storage charges are continuing to accrue daily."
By holding firm, this shop avoided being coerced into lowering its rates. The lesson? Shops can successfully push back when they know their rights and stick to their rates.
continued on pg. 38
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continued from pg. 35
VII. Navigating the Legal Minefield: Why Charging Your Door Rate Is the Best Strategy
So, how can repair shops protect themselves from the traps set by insurers?
• Uniform pricing is key: The best way to protect your shop is to charge your posted door rate for both insured and private-pay repairs. This ensures compliance with Chapter 100A, Section 8(c) and eliminates any risk under Chapter 93A.
• Document everything: Keep a detailed paper trail of all communications, especially when dealing with third-party negotiators. Demand proper authorization before engaging in any rate discussions with anyone other than the vehicle owner.
• Consult a lawyer: Regular legal consultations will ensure you’re operating in compliance with state laws. A lawyer can help you navigate any tricky situations with insurers or third-party vendors.
• Push back: Don’t be afraid to stand your ground when insurers or third parties request discounts. Know that charging your door rate is perfectly legal and protects your business from unnecessary financial loss.
VIII. Conclusion: Why Charging Your Rates Will Keep You in Business
The pressure from insurers is real, but shops do not need to lower their rates to survive. Charging your door rate ensures that your shop remains profitable and compliant with Massachusetts law.
Stop fearing insurers’ discount demands. Trust in your rates and your rights. By charging your posted rate consistently, you’ll avoid legal risks and ensure your business remains financially healthy. Don’t fall into the trap insurers have set for decades –charge your rate, and stay in control of your business.
Coverall Law Managing Attorney Sean Preston finished in the top of his law school class at the historic Howard University School of Law in Washington, DC after serving in the United States Army. He went on to excel in business and legal strategy, serving some of the world's most recognizable brands in neighboring industries. Sean recently returned from Berlin, Germany with his family (where he served in Rolls-Royce's General Counsel function) and today resides in Wareham, MA, where he helps to oversee and meaningfully lead efforts in the region for Coverall Law. He can be reached at (508) 635-5329 or via email at spreston@coveralllaw.com.
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In Massachusetts, insurers reimburse at an average of between $44 and $45 per hour, which falls far short of the true cost of labor at my shop," says Dowling, who estimates sales of nearly $30,000 per month. "By my calculations, I don't even reach a breakeven point with my tech expense until almost $60 per hour - not taking into account associated costs from 'non-production staff' needed to facilitate the repair process, like appraisers or our administrative support team."
“We have found it to be a worthwhile endeavor that has been helped by not only doing work for our shop, but we also do work for several shops in the area,” Starbard concurs.
Gallerani refers to it “as a good business decision. Any shop obviously wants to capture as much business on each repair as possible because that favorably affects our productivity and profitability, so why give part of the repair to someone else when we can get trained and do it ourselves? Calibrations is another income-generating opportunity for your shop, and it can certainly be a positive one if you go about it the right way.”
But doing it the right way is more important than earning a quick buck, Gallerani stresses, reiterating, “The goal of ADAS is safety, so calibrations need to be taken seriously and performed properly, or someone could get hurt…or worse. Shops can’t afford that liability, but I also like to sleep sound at night. Controlling the repair, rather than relying on an outside source that hopefully calibrated the systems correctly, gives me confidence that we’re doing the right thing for our customers and returning their vehicle in a safe condition so it will protect their families if they get in another accident.”
