New England Automotive Report December 2019

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PLUS: Expedited Appraisals: Know the Rules Are You ADAS-Ready?

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2 December 2019

New England Automotive Report

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

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

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

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

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December 2019 • Volume 17, No. 12

DEPARTMENTS

CONTENTS FEATURES

PRESIDENT’S MESSAGE By Molly Brodeur 8 | Severity, Scanning and Safety – Oh My!

EXECUTIVE DIRECTOR’S MESSAGE

By Evangelos “Lucky” Papageorg

12 | We Have Let This Happen!

LOCAL NEWS 20 | AASP/MA President Featured in TV Report on Deer Hits 20 | MA Student Wows at Russian WorldSkills Competition

INDUSTRY ADVICE: ASK MIKE 24 | Is the Industry up to Speed on ADAS Procedures?

ALSO THIS ISSUE

29 | COVER STORY By Joel Gausten

Fighting for the Industry: An Association Presidents Roundtable

6 | AASP/MA MEMBERSHIP APPLICATION 13 | WHERE’S LUCKY? AASP/MA CHAPTER MEETING SCHEDULE 16 | AASP/MA VENDOR AFFINITY PROGRAM SPOTLIGHT 17 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS

ADVERTISERS’ INDEX Accudraft Paint Booths ................................OBC Audi Group....................................................39 Best Chevrolet/Best CDJR ..............................IFC BMW Group ..........................................................26 BMW/Mini of Warwick ..................................35 Boch Chevrolet ........................................27, 42 Boch Genesis ................................................42 Boch Hyundai ................................................27 Colonial Auto Group ........................................4 Empire Auto Parts ..........................................23 Ford Group....................................................37

36 | LEGAL PERSPECTIVE

By James Castleman

The Rules for Expedited Appraisals

Fred Beans Parts ............................................42 Genesis of Norwood ..................................27, 42 Honda Group ................................................41 Hyundai Group ..............................................11 Imperial Ford ................................................37 Ira Subaru ......................................................11 Ira Toyota of Danvers ......................................10 Kelly Automotive Group ................................IBC Kia Group ......................................................11

Mopar Group ................................................14 Nissan Group ................................................40 PPG................................................................3 Quirk Wholesale Parts ......................................9 Reliable Automotive Equipment ........................7 Sarat Ford Lincoln ..........................................33 Subaru Group ................................................18 Tasca Group ..................................................15 Toyota Group ................................................34

Linder’s, Inc. ................................................27 Long Automotive Group ..................................21 Mazda Group ................................................28 McGovern Chrysler Jeep Dodge Ram ................25

Volvo Group ..................................................22 VW Group ....................................................19 Wellesley Toyota/Scion ..................................33 Wheel Collision Center....................................23

New England Automotive Report December 2019 5

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2019 - 2020 as provided for in this contract.

REV 5/19

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New England Automotive Report December 2019 7

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TRY

PRESIDENT’S MESSAGE

Severity, Scanning and Safety – Oh My! MOLLY BRODEUR

The cover of last month’s New England Automotive Report illustrated the radical discrepancy of increased insurance premiums versus auto body repair costs and how that relates to overall consumer price inflation. Armed with the knowledge that increased insurance premiums have outpaced auto body repair costs by 87 percent since 2000, it stands to reason that the insurance industry has realized great profits at the expense of the motoring public and our industry.

As I sit here writing this month’s message, I am infuriated – and you should be too. These past 20 years have been a slow burn. Shops have watched their margins shrink and their overhead explode with huge annual hikes in health insurance premiums and massive equipment and training investments.

All the while, they have been slapped with statements from the insurance industry such as, “Your severity is too high,” “You scan too many vehicles,” “We don’t pay for that, “We don’t acknowledge OEM repair procedures” … the list goes on. As we all know, the vehicle owner – not the insurance industry – is our client, but the reality is we are faced with these difficult negotiations day in and day out. Of course, there are many ways to bite the apple, whether it be shortpays, Assignment of Rights or balance billing the customer.

However, none of that negates the fact that we have to justify our expertise daily.

I’m not telling you anything you don’t already know – liability starts and ends with us. We have to perform the proper OEM repairs to ensure vehicles are returned to precrash worthiness. Regardless of what the insurance industry purports daily, we are charged with the task of creating N

E

W

E

N

proper repair plans and executing the repairs, and that includes pre- and post-repair scanning and calibration with alignment as required. At the end of the day, it is all about SAFE and PROPER repairs.

At our fall meeting held in September, we hosted Sam and Richard Valenzuela of National AutoBody Research, who outlined how our first-ever Labor Rate Survey – which you need to take if you haven’t already – and their powerful BillableGenie tool can effect change in your shop TODAY. BillableGenie not only allows shops access to a national database of claims with effective Labor Rates, paint and material reimbursement, scanning procedures and much more, but you have the ability to add to the database with your own successful negotiations for these and other items.

The more shops that participate in BillableGenie, the greater the reach and the depth of information that can be garnered drastically increases.

If severity, scanning and safety are the three “S” words that keep you up at night, then join AASP/MA and be part of the solution – not the problem. Momentum is building in great numbers, and we need each and every shop to engage, join our association and be part of a cohesive, professional group of collision repairers who are making change possible.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

AASP/MA PRESIDENT MOLLY BRODEUR is the chief operating officer of Al Brodeur’s Auto Body in Marlborough, MA. She can be reached at (508) 485-1082 or molly@albrodeur.com G

L

A

N

D

AU M TIVE AUT T TI TIV STAFF

AASP/MA EXECUTIVE COMMITTEE

PUBLISHER

CREATIVE DIRECTOR

Thomas Greco - thomas@grecopublishing.com

Lea Velocci - lea@grecopublishing.com

SALES DIRECTOR

EDITORIAL/CREATIVE COORDINATOR

Alicia Figurelli - alicia@grecopublishing.com

Alana Bonillo - alana@grecopublishing.com

EDITORIAL DIRECTOR

PRODUCTION

Joel Gausten - joel@grecopublishing.com

Donna Greco - donna@grecopublishing.com

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

CELEBRATING 30 YEARS New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright © 2019 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com

WWW.AASPMA.ORG 8 December 2019

New England Automotive Report

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

PRESIDENT Molly Brodeur VICE PRESIDENT Kevin Gallerani SECRETARY Gary Cloutier

AASP/MA STATEWIDE DIRECTORS COLLISION DIRECTOR Rob DelGallo

AT-LARGE DIRECTOR Adam Ioakim

AASP/MA DIRECTORS Ray Belsito Alex Falzone Rick Fleming

Joshua Fuller Kevin Kyes Frank Patterson

Mike Penacho Dana Snowdale Bill Spellane

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

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

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10 December 2019

New England Automotive Report

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New England Automotive Report December 2019 11

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EXECUTIVE DIRECTOR’S MESSAGE

We Have Let This Happen!

EVANGELOS “LUCKY” PAPAGEORG

On one of my recent shop visits to solicit membership, I ran into an appraiser who I had not seen or spoken to in a very long time. After the initial niceties, the appraiser proceeded to tell me how things are when he goes into certain shops.

“I don’t sign in, nor do I leave field notes. Only a few shops ask me to do it; obviously, it really isn’t an issue. Don’t even get me started on P&M; I’m told, ‘Only pay $17/ hour,’ and that is all I am going to do. Sure, I will look at the sheets the shop gives to me, but I have been told what the maximum I can give is regardless of the documentation provided.”

Clearly, there is a lack of understanding and respect for what a collision repairer must accomplish in the repair process, especially at an artificially suppressed Labor Rate. It seems that all this appraiser and many others are concerned with is getting in

look at the last page for the bottom line.

They have been trained to figure out by how much they MUST cut your supplement appraisal before they have even seen the dismantled vehicle. If you do not believe me, the next time an appraiser comes to your shop, hand them the estimate with the total hours and calculations at the bottom blocked out. You will be amazed; they will be lost. If the insurance appraiser is truly there to negotiate the repairs of the damaged vehicle, WHAT DIFFERENCE DOES THE BOTTOM LINE MAKE BEFORE YOU EVEN START???

As collision repairers, we all need to get back to the basics; doing so will allow you to take back control of the repair process and your business. First and foremost, we need to determine if we are in the business of repairing vehicles properly and being fairly compensated for doing so while accepting the “cradle-to-grave”

unibody setup and to properly measure the ENTIRE vehicle when nothing could be further from the truth. How many remember when it was three hours?

That was replaced by, “I will give you two because that’s all they allow now, but I will throw a couple of hours up in the wheel well area.” Boom – you now only get two and NO time in the wheel well area.

There is also this scenario: “You’re right; the Labor Rate is way out of whack, but my hands are tied [even as an appraiser who is supposed to negotiate all aspects of the repair], but I can make it up to you with a few more hours here and there.” And there you have it: An average of $38.28 an hour!!!!

Of course, the appraiser is only doing this because you are “friends”!!!

As many of you have heard me say in the past, I have loads of friends, but not one who has stolen from me or asked me to be complicit in something

and out as quickly as possible and making their quota. That is not exactly true; insurance appraisers are also worried about the “severity” average on their supplements.

Using the absurd measuring of severity as a factor of an insurance appraiser’s abilities, professional aptitude and performance is ridiculous.

It is especially ridiculous when the same insurance appraiser must contend with the unwritten mandate from above to write cursory estimates on vehicles that are not in a body shop yet. Appraisers coming to your shop prove this every day. How? I think it is fair to say that the first thing the overwhelming majority of appraisers do when you hand them your supplement paperwork and procedural documentation is to

liability that it entails versus wanting to keep insurance appraisers as your friend (while doing 95 percent of their work for them). We must stop taking the “easy way out.” To do so, we have to take a long hard look at our own practices. The adage, “There is more than one way to skin a cat,” has led us to where we find ourselves now. We MUST stop the practice of, “They won’t let me pay for that, but I will ‘throw’ you a few hours over here to make up for it.”

PLEASE stop this. It is a tried and true method to drive our repair times down, and most of us have not learned to say “NO” to cost shifting. This allows the insurance industry to have “documented” proof – for example, that two hours is sufficient time for

fraudulent. Please choose your friends carefully.

Let’s get back to my “friend,” the appraiser. Sadly, his attitude is not uncommon. Most insurance appraisers, I believe, are aware of the inadequacies and hardships we face daily, but they don’t realize they too have the same power to change things for the better.

Insurance and independent appraisers have rights and obligations under the license they have been given the privilege to carry. It is up to ALL of us to live up to that obligation or point out failures to do so when they occur.

As collision repairers, we MUST use the regulations we have available and, when violations occur, file complaints.

Specifically, it comes down to turnaround time on original estimates

12 December 2019

New England Automotive Report

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(five business days) or supplemental requests (three business days) from the day they are called in. It is not easy; you must be diligent in your documentation

continue to add to your overhead by making countless phone calls and chasing

Body Association and the Central Massachusetts Auto Rebuilders

paperwork, be my guest. If you want to

Association) worked very hard to get the

continue to subsidize the insurance industry for buying and using paint and

regulations changed and worded in such a way that issues should be resolved by

of your request and use the requirement that upon the shop’s request, an

materials because you can’t be bothered

logically thinking individuals interested

appraiser MUST sign in to view a vehicle.

If an appraiser fails or refuses to abide,

to use the paint guide or other form of documentation (which is readily

in what is best for the consumer. The regulations are a strong and powerful

you DO NOT have to grant them access to that vehicle. That is not a violation on

available), then so be it. If you want to sit back and help the insurance industry set

tool, but only if you make yourself familiar with them and USE them.

your part! It is a response to a violation on the part of the appraiser. The same

the stage and make “programs” appear to be the way to go so you don’t have to wait for paperwork (a comment more

AASP/MA can help create the tool, sharpen it and put it in your hands - but only YOU can make it work as intended.

goes for signed field notes, which specify the agreements reached during the

than one shop has reported having been

One way to make sure you have the tools

review and negotiating process. It should be a standard operating procedure (SOP) for every shop to make appraisers adhere to the regs!!! “Friendship” be damned.

Again, I ask, are you in the business of repairing vehicles or making friends?

The only friend you should be concerned with is the customer. If you want to

said to them by insurance supervisors, which seems like an orchestrated effort to me), then continue to let your “friends” set the tone of how they will conduct their business in YOUR BUSINESS!!!

AASP/MA and its predecessor associations (the Massachusetts Auto

is to join AASP/MA – the ONLY association working hard on your behalf.

We can help you every step of the way.

You really don’t know what you don’t know!!! See page 6 for an application. Be a part of the solution, not the cause of the problem. We do not have to LET this continue to happen!!!

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

Where’s Lucky?

AASP/MA Chapter Meeting Schedule

Visiting Western Visiting Midstate Visiting Boston/Northeast

In the first week of December, Lucky will be visiting shops in the Western region.

Visiting Boston/Southeast

During the second week of December, he will be in the Midstate region.

In the third week of December, Lucky will be visiting shops in the Boston/Northeast region.

He will be visiting shops in the Boston/Southeast region in the fourth week of December.

In the first full week of January, Lucky will be visiting shops in Western region and hosting a chapter meeting on January 8*. (location TBD.) During the second week of January, he will be in the Midstate region.

M Visiting Western

In the third week of January, he will be visiting the Boston/Southeast region and hosting a chapter meeting on the 22nd*. (Location TBD.)

Visiting Midstate

M He will be visiting shops in the Boston/Northeast region in the fourth week of January.

Visiting Boston/Southeast

*Subject to change. Everyone should keep an eye out for meeting notices in their area.

Visiting Boston/Northeast

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

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

MASSACHUSETTS

New England Automotive Report December 2019 13

NEAR1219.qxp_NEAR1014 11/15/19 1:20 PM Page 14

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14 December 2019

New England Automotive Report

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New England Automotive Report December 2019 15

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[VENDOR AFFINITY PROGRAM] SPOTLIGHT By Alana Bonillo

Albert Kemperle Inc.

Where it all began: Albert and Mary Kemperle at the company’s original location in Brooklyn, NY Albert Kemperle Inc. is one of the most recognized names among body shops in the New England area for all automotive paint, body and equipment needs.

The company was founded by Mary and Albert Kemperle in 1940 as a singlestore operation in Brooklyn, NY. The company will celebrate its 80th year in existence in 2020. With 54 locations spanning from New Hampshire to Florida, Albert Kemperle Inc. stands as one of the largest independently owned distributors in the country. Included in its location portfolio is a very strong presence in the Massachusetts and surrounding New England market.

Albert Kemperle Inc. remains familyowned and operated under the leadership of Albert’s son, Ron, who serves as the company’s president and CEO. Ron’s

daughter, Kayli, and son, Ron Jr., are also involved with the business at its corporate headquarters in Amityville, NY. Albert Kemperle Inc. first entered the New England market in 2006 with the acquisition of Central Connecticut Auto Color. Shortly thereafter, the company opened a greenfield location in Warwick, RI. Today, they have seven servicing locations in the New England market, including Framingham and Lynn, MA. “We really are a one-stop shop for everything a body shop needs, and we go way beyond delivering paint. Our commitment is to the financial health and profitability of our customers,” comments Sean Vandale, regional director of sales and operations. “We pride ourselves on delivering everything to our customers – from training and technical support to business development, equipment sourcing, facility layout, design and more.

“With a vendor list of the most respected names in the industry, our product offering is comprehensive and targeted for the auto body, auto repair, fleet, industrial, marine and aviation markets. One of the biggest benefits we offer is choice,” he added. “We are continually looking for ways to improve and differentiate ourselves from the competition. We feel we do a great job of that with the amount of resources we

bring to our customers.”

Training has been and continues to be a key component of their operation.

Working under the belief that education and training is paramount to the success of their customers, Kemperle currently serves as a Vendor Affinity Program Silver Sponsor for AASP/MA. Through this relationship, Albert Kemperle Inc. works to bring in industry experts to educate customers on trends, techniques and technology to make sure they are staying ahead of the curve.

“We are really happy to be a part of AASP/MA and continue to strive to bring outside resources to meetings to help customers navigate through the rapidly changing industry.”

Due to the growth of its company in the New England markets and its overarching strategy to be the premier distributor to automotive professionals, Albert Kemperle Inc. has moved several of its operations into new facilities in multiple New England areas, including two new locations in the Massachusetts market.

“Our continued investments in brick and mortar stands as our commitment and dedication to the long-term success of our customers and their communities in the New England markets and beyond.”

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

The Albert Kemperle Inc. headquarters in Amityville, NY

16 December 2019

New England Automotive Report

The team today. Left to right: Ron, Kayli and Ron, Jr.

NEAR1219.qxp_NEAR1014 11/15/19 1:20 PM Page 17

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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 tschube@longauto.com

18 December 2019

New England Automotive Report

Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475

NEAR1219.qxp_NEAR1014 11/15/19 1:20 PM Page 19

Mattie Volkswagen 80 William S. Canning Blvd.

Fall River, MA 02771 800-678-0914 fax: 508-730-1283

Lia Volkswagen 140 Elm Street Enfield, CT 06083 860-698-6890 fax: 860-265-7840 www.liavw.com

Volkswagen of Hartford 133 Leibert Road Hartford, CT 06120 Direct Parts: 860-543-6012 fax: 860-728-4408 email: ebautista@vwofhartford.com

Mastria Volkwagen 1619 New State Highway Raynham, MA 02767 Toll Free: 888-581-1146 Direct Parts: 508-802-9955 fax: 508-802-9966 email: vwparts@mastria.com www.mastriavw.com

Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475

New England Automotive Report December 2019 19

NEAR1219.qxp_NEAR1014 11/15/19 1:20 PM Page 20

[LOCAL] NEWS

AASP/MA President Featured in TV Report on Deer Hits

On Halloween Night, a time that sees more people on highways and residential streets than usual, AASP/MA President Molly Brodeur (Al Brodeur’s Auto Body; Marlborough) appeared on Boston 25 News to warn consumers of the increased risk of vehicle accidents involving deer hits.

November is the height of mating season, which leads to greater chances of deer jumping in the way of moving automobiles. The strongest risk occurs from dusk to dawn.

“Particularly this time of year, there’s always going to be an uptick in deer strikes,” explained Brodeur during a segment by Boston 25 News reporter Jim Morelli. “Deer populations are large, so they are a threat to the motoring public.”

According to State Farm, Massachusetts is currently the 28th riskiest state in the country for deer hits. It was 44th just

three years ago. Drivers in the I-495 area are the most impacted by the trend, with the overall risk doubled this time of year.

“At this time of year, the males are more oblivious to traffic and other threats because they’ve got other things on their mind,” observed Marion Larson, a representative from the Massachusetts Division of Fisheries and Wildlife.

Showing a damaged SUV at Al Brodeur’s Auto Body as an example, Morelli explained that the average cost to repair a vehicle hit by a deer or similar animal is more than $4,000.

“Oftentimes, there’s no warning,” said Brodeur on deer-related hits. “They come at full force at your vehicle, and it’s extremely alarming.”

Video of the full segment is available at boston25news.com.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

MA Student Wows at Russian WorldSkills Competition David “DJ” Fors, a 19-year-old competitor from Lunenburg, recently traveled to Kazan, Russia to take part in the 45th Annual WorldSkills Competition. This year’s WorldSkills drew more than 1,350 competitors from 63 countries and regions. Fors placed 14th out of 27 competitors in the international Auto Body Repair category.

A former student at Montachusett Regional Vocational Technical School (“Monty Tech”) and already a veteran SkillsUSA competitor by the time he reached Russia, Fors (who was profiled in our January 2019 issue) was quick to praise SkillsUSA for providing him opportunities to develop in the collision repair field.

“There is a lot to be gained from SkillsUSA. Personally, I have gained new outlooks on life from around the country by interacting with the other competitors. It is also a great place to immerse yourself in new things and learn about trades you may not have known about. Overall, it was a great and positive experience.”

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New England Automotive Report

Jerry Goodson, senior associate of specialty training for I-CAR, served as an expert for Auto Body Repair and extensively trained Fors prior to WorldSkills. This training included adherence to I-CAR standards and the use of Car-O-Liner equipment.

Goodson was impressed by the high level of talent Fors displayed in a faraway country.

“The amount of work they required the competitors to complete was astronomical. What he did was really an achievement, and his work was top-notch.”

Michael Forhan, one of Fors’ past instructors at Monty Tech, is proud of everything his former student has accomplished in Massachusetts and beyond.

“When DJ puts his mind to something, there isn’t anything he can’t do. It’s not surprising to me at all that he has become this caliber of a professional.”

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

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[INDUSTRY] ADVICE

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Is the Industry up to Speed on ADAS Procedures?

This month, we “ASK MIKE” to share some of his thoughts on whether collision repair facilities are properly researching and utilizing OEM repair procedures for advanced driverassistance systems (ADAS). We at New England Automotive Report hope you find this following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a subsequent issue.

New England Automotive Report: Based on your “Who Pays for What?” surveys through Collision Advice (collisionadvice.com) and what you’re seeing in person at shops across the country, where do you see the industry in terms of readiness for ADAS? Are they performing those repairs? Are they looking up the right information for these procedures?

Mike Anderson: ‘ADAS’ is a pretty broad subject. A lot of things fall into that category: Parking sensors, blindspot monitors, adaptive cruise control, cameras in the mirrors – all kinds of things. I think what we have to 24 December 2019

New England Automotive Report

understand is that every vehicle needs to be judged on its own merits, and every vehicle needs to be researched via that specific vehicle’s VIN and build data. Also, it seems that a lot of shops are subletting these processes to dealerships or mobile vendors. It’s important that those shops still research those procedures even when they sublet them out. They should print them out, bring them to the dealership and say, ‘I need to make sure you do this procedure right here.’

As a good rule of thumb, whenever you’re going to do a repair in the vicinity of one of these ADAS components, you need to research to make sure you know of any repair or refinish limitations on that area. For example, Volkswagen says that if a bumper cover is damaged within the specific dimension of a specific area, you can’t do a repair or use filler. With a Chevy Equinox, you can’t paint a parking sensor. Even if it’s just nicked, you need to make sure you replace it.

It’s also important to learn and understand the key research terms within the OEM repair procedures in order to find the right information that ensures a safe and proper repair.

Words like ‘calibrate,’ ‘calibration,’

‘recalibrate, ‘initialize,’ ‘initialization,’ ‘reinitialize,’ ‘relearn’ – those are good ones to look up.

I see shops not researching the procedures required when they disconnect the battery. I’ve seen some vehicles with seven pages of procedures for disconnecting that battery. As we see more and more of these systems introduced into the collision repair environment, it makes it all the more critical that we research the OEM repair procedures.

When a new vehicle comes out, most if not all of the OEM websites have a ‘new car features’ section for it.

This is sometimes referred to as ‘NCF.’ I think it behooves us to go into that section and read about the new features that are on that vehicle so we understand what those systems are called. For example, a Nissan Infiniti might say ‘intelligent cruise control,’ but Toyota calls it ‘adaptive cruise control.’ Knowing the specific names of these systems will lead us to know what keywords to use in our search terms in the OEM repair procedures.

NEAR: Let’s talk about a more controversial topic. We both know that a lot of insurers are reluctant to

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pay for something as basic as pre- and post-repair scanning. Looking at greater ADAS procedures, what have your surveys revealed as far as how successful shops have been in receiving compensation for this high level of work?

MA: Honestly, I don’t think compensation is the issue; I think the issue is that shops aren’t even researching or

asking for it. Again, keep in mind we are talking about calibrations and such – not scanning. I don’t want to disrespect anybody, but there is a lack of knowledge and awareness on the collision repair side. I do estimating classes for several OEMs, and we have shops bring samples of their estimates in with them. I’ll ask, ‘Okay, how many of you have this on the estimate?’ A lot of people won’t have the operation itemized. Before we can get approval for reimbursement from an insurance company, we need to make sure we’re knowledgeable ourselves. I say this with love, but oftentimes we use the insurance companies as an excuse for our ignorance or lack of knowledge. Shops say insurers won’t pay for it, but that’s an easy copout when the reality is that they don’t even know enough to ask for it.

Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com).

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[COVER] STORY By Joel Gausten

Fighting for Your Industry:

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

An Association Presidents Roundtable Why join a collision repair or mechanical association? What are the major goals these groups aim to accomplish? How can members make the most out of their dues? Where is the industry going from here? To find answers to these questions, we sat down with AASP/MA President Molly Brodeur, AASP/New Jersey (AASP/NJ) President Jerry McNee, Auto Body Association of Texas (ABAT) President Burl Richards, Washington Metropolitan Auto Body Association (WMABA) President Torchy Chandler, AASP-Minnesota (AASP-MN) President Carl Thomas and Wisconsin Auto Collision Technicians Association Ltd. (WACTAL) President Larry Terrien for a frank and in-depth discussion on what they each see as the biggest problems facing the field and how being involved in a state group can improve conditions for everyone.

New England Automotive Report: What is the primary focus of your association on behalf of your membership?

Molly Brodeur: Our primary focus is education. We strive through our monthly membership meetings, our weekly tip emails, our bi-monthly newsletter and our monthly publication, New England Automotive Report, to educate our membership on a variety of topics that impact their businesses every day. Whether it be estimating tips and tools, negotiation skills, the technology evolution or total loss settlements, we are constantly adding to our members’ wheelhouse so

they can effect change in their businesses.

any success with that unless we’re also educating the consumer.

Jerry McNee: Support, education, collaboration and sharing information. There is definitely strength in numbers, and we achieve that through the training programs that we sponsor and put together, among other things. We give back to the industry. At the end of the day, we all volunteer to look out for the good for our community and our customers. Without AASP/NJ, we wouldn’t fare as well as an industry.

Torchy Chandler: The main objectives for WMABA are preventative advocacy, educating our members and industry at large and disseminating priority or actionable information. We keep on top of local legislative and regulatory discussions and work alongside our affiliate associations on initiatives that benefit the entire industry.

Burl Richards: Education is the first thing that comes to mind. We do that on various levels. We educate shops by providing them with industry leaders and OEM information and stress the need for proper and safe repairs. I believe that if they do that, it takes care of a lot of our industry’s issues.

If every shop was looking up all the OEM procedures and focused on fixing the vehicle properly, this industry would change overnight. They would find out quickly that fixing a car properly takes a large investment. All of these shops that supposedly don’t ask for processes and procedures would have a different outlook and attitude. Secondly, we educate legislators on the issues we’re dealing with. Of course, we can’t have

Carl Thomas: Our primary focus is all about providing the best possible outcome for businesses, whether they are collision repair or mechanical. We’re here to ensure the success, profitability and longevity of our industry.

Larry Terrien: Our mission is to help provide a future for the collision repair industry. We do this by providing many member benefits, such as business insurance, a personal concierge program that directs customers to member shops, several retail discount programs, credit card processing, web New England Automotive Report December 2019 29

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[COVER] STORY design/hosting, a customer service survey [CSS] program, consumer brochures/signage, conferences/trade shows, a scholarship program and lobbying efforts.

NEAR: What are some of the biggest issues impacting your members at the state level, and how has your association worked to identify and address them?

MB: The biggest issue affecting members at the state level is the Labor Rate. With the lowest reimbursement rate in the country, our members are challenged to invest in their businesses and properly train and retain technicians. This year, in partnership with National AutoBody Research, we’ve launched the first Variable Rate Survey in Massachusetts.

Members have responded quickly, and we surpassed our goal of 313 completed surveys, which gives it ‘bulletproof’ status with a 95 percent confidence level and a five percent margin of error. As we have over the last 12 years, we continue to lobby this issue at the State House with the filing of our Labor Rate Bill.

JM: We’ve tried to set up meetings with the New Jersey Motor Vehicle Commission for body shop licensing and with the New Jersey Department of Banking and Insurance, legislators and lobbyists on other issues. The insurance companies are chipping away at these entities to get what they want, so we need to be doing the same. To do this, we need more involvement from our members. That piggybacks off your previous question; we want to give back to the community and our members, but we need them to give back to us. Without our presence at the table, insurers create a one-sided version of what is going on.

BR: Quite honestly, underindemnification by insurers for safe and proper repairs is the biggest issue.

Unfortunately, it’s all based on the ‘prevailing’ rate because of the language in the insurance policies. The Texas Department of Insurance won’t follow up and do its job. This leads to the fact that we need specific legislation that identifies that issue. The shops that are trying to get things done are being underindemnified. I get calls all the time from members who say, ‘This insurance company is refusing to pay for this.’

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New England Automotive Report

Members are looking for help with how to deal with this and other problems.

TC: Insurer relations issues come up weekly, if not daily. We assist with useful information or contacts at higher-thanlocal levels. Many times, this will also involve the consumer. There are changes in technology for vehicles that happen daily, and helping reporters stay on top of that is a high priority. Helping to offset the cost of doing business is also a focus of ours, and utilizing benefit programs is one way our shops can take advantage of their membership.

“Belonging to an association provides shop owners with education, training, tools and the knowledge they are not alone.”

- Molly Brodeur, AASP/MA CT: Staffing is the largest issue in this industry right now. Trying to find quality technicians is a struggle – which I’m sure is the case in any trade. We have a lack of people getting involved in the industry.

Addressing that will be the biggest thing for the sustainability and success of our businesses. AASP-MN started the Minnesota Careers in Automotive Repair and Service [MNCARS] initiative, which aims to get younger people – and everybody else – involved in the industry. We have a lot of different points of contact, including car shows, schools, trade seminars and anything else that might help get more people involved in understanding what this industry has and what we can provide.

LT: One of our most recent efforts was successfully passing legislation that specifically allows us to replace information labels on vehicles that contain the VIN. Before this legislation, this was a grey area that was sporadically enforced by law enforcement depending on their interpretation of the existing statutes.

NEAR: What are some issues occurring nationally that are of particular interest/concern to your association and membership?

MB: We are actively monitoring various legislative efforts across the county that aim to establish OEM-recommended/ required procedures as the standard of repair, as we feel these efforts have the potential to better ensure the safety of collision repair consumers. Also, we’ve been following ongoing national discussions at the Collision Industry Conference [CIC] and elsewhere in regard to the classifications and definitions of ‘Opt-OE,’ ‘Alt-OE’ and ‘Surplus OE’ parts. Anything that adds ambiguity and potential liability to the parts-selection process is of great concern to us.

JM: The biggest thing is performing safe and proper repairs. Some of the shops in this country have had enough. They’re being bullied, but I see more of them taking a stand for what’s right for the consumer. It’s a fine line between taking a stand and being profitable and just rolling over, but the best shops are looking to do repairs correctly. The shop is liable for the repairs – nobody else.

BR: The biggest national issue I see is that not all parts are of like kind and quality.

There is a difference between an OEM part and an aftermarket part. From ABAT learning what other associations are doing in other states on this and other matters, we don’t have to reinvent the wheel if someone else has done something that has been successful. I think being out there with other associations like the Society of Collision Repair Specialists [SCRS] that are really on top of the collision industry on a daily basis has really helped us learn what’s going on.

TC: Everything national becomes local before we know it! We attend all the national meetings to get the latest developments around the industry as well as advocate our association’s position to the highest of company or entity representatives. Changes in scanning and diagnostics are of great interest to us, as are any changes in OEM certification programs. We all know our industry can change in the blink of an eye.

CT: That’s a vast question. I’m sure that

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the workforce issue is applicable to any state. I highly doubt there are shops in Arkansas or Washington that are saying, ‘We have so many technicians that I don’t know which one to hire.’

Obviously, Right to Repair continues to be a major fight for us, and we have a lobbyist who works with us in our state to try to help improve that situation.

safe and proper repairs. The shop would repair the vehicle based on that information in addition to its expert opinion, as they are the ones liable for the repair. The insurer then indemnifies the insured or claimant and walks away.

The insurance company is the bill payer, not the repair professional. Stop letting them dictate the repair.

LT: The rapidly evolving technology of the automobile and the need for scans and calibrations is probably the most obvious one. In many cases, it is difficult to get insurance companies to pay for scans, even though almost all manufacturers have position papers on the importance of them. Short-pays, Labor Rate discrepancies and steering are just some of the many other insurance company issues that we deal with.

TC: An appropriate shop/insurer relationship should first and foremost put the customer/policyholder first. The shop – if negotiating repairs – is responsible for ensuring a safe and proper repair, which includes proper procedures, parts procurement and more. The insurer is responsible for making the policyholder ‘whole,’ which to us means reimbursing for that safe and proper repair while supporting industry best practices for usage of OEM recommendations or requirements. In disagreements, there should be straightforward processes for remediating the problems, including fair and transparent escalation steps. An example of that is the appraisal clause and the usage of that for the benefit of mediation.

NEAR: In a perfect world, how would you and your association define an appropriate shop/insurer relationship?

MB: An ideal relationship would have an understanding of each other’s roles in the repair process. As the repairer, the vehicle owner is our customer, and we are charged with repairing the vehicle to pre-loss crash worthiness by utilizing our trained expertise and the proper equipment guided by the OEM repair procedures. The insurance company is obligated to indemnify their policyholder and pay for the required repairs to the vehicle.

JM: Essentially, a good shop-insurer relationship would have an insurance company – especially upper management – realize they can’t condense, restrict, hold back or neglect some of the things that need to be done. Include procedures and hourly rates in that. Many shops are giving it away for free – which the insurance companies expect. We’re at a pivotal point in business where our costs are continuously increasing, yet the insurance companies are unwilling to move. There has to be an understanding between the insurer and the shop; they have to understand this can’t continue to strangle this industry.

BR: The shop would provide supporting documentation from the OEM, I-CAR and the estimating database – basically a blueprint – that outlines all necessary

“It’s a benefit to shops to come out, listen to somebody else’s experiences and successes and share their own. You can’t sit back and cry about it; get up and do something about it. If you don’t, then you’re the problem.

Don’t blame the insurer.”

- Jerry McNee, AASP/NJ LT: In a perfect world, both body shops and insurers would understand who their customer is and always put their interests first. Body shops would understand that it is their job to repair the vehicle to the best of their ability and that they bear 100 percent of the liability for those repairs for the life of the vehicle.

Therefore, they would always use all of

their knowledge and expertise and all of the resources available – OEM recommendations, position papers, etc.

– to perform these repairs properly. Body shops would never allow a third party to influence how these repairs are made.

Insurance companies would always understand that their only job is to compensate the shop that their customer chose for the repairs. They would understand that it is not their job to direct customers to a particular shop, source parts and dictate what parts are used, prescribe repair methods and procedures, say what they will pay for Labor Rates, parts markup, etc. or to dictate what day of the week to begin repairs and how long the job will take.

NEAR: When working to gain new members, how do you answer the question, “What does your association do for me that I can’t do on my own?”

MB: Belonging to an association provides shop owners with education, training, tools and the knowledge they are not alone. There is strength in numbers.

When you are able to tap into the wealth of resources from not only the association but the member shop owners, you are able to make sound business decisions for your shop. ‘All for one and one for all’ is how we are going to help each other ensure vehicles are repaired properly and we are compensated for these highly skilled repairs.

JM: That’s a great question. I spoke to a shop owner yesterday; he was very successful years ago, and he worked very hard to make insurers happy. He said to me, ‘The things I have to go through…What are you doing?’ I replied.

‘Have you heard of the Variable Rate Survey? Do you know about the Database Enhancement Gateway [DEG]? Are you a member of the association?’ He answered, ‘No.’ I told him, ‘You have to come out of your cave! You need to be a member and get involved.’ We’ve put on more training classes and seminars in our members’ backyards in the past 12 months than we have in years. It’s a benefit to shops to come out, listen to somebody else’s experiences and successes and share their own. You can’t sit back and cry about it; get up and do something about it. If you don’t, then New England Automotive Report December 2019 31

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[COVER] STORY you’re the problem. Don’t blame the insurer.

BR: The association provides education seminars and classes by providing industry experts who teach and train us on all facets of repairs, technology and latest trends, including new advanced materials and vehicle engineering. We also fight for our industry by trying to pass new legislation that will make it easier for shops to repair vehicles properly without the friction costs associated with constantly battling insurance companies for proper compensation for safe repairs.

Shops need to communicate with and learn from each other. They can also carry a small part of the load by getting behind a specific issue they are passionate about, whether it be helping with legislation, education, fundraising or working with the colleges that are training new auto body technicians.

There are many other important issues to get behind through the association. If everyone does their part, then everyone can contribute and take the load off the few who tend to carry the weight.

TC: WMABA is present at national collision industry meetings, such as the Society of Collision Repair Specialists’ [SCRS] Open Board Meeting and member events, Collision Industry Conference [CIC] meetings, SEMA, AASP/NJ’s NORTHEAST® Automotive Services Show and more. We build national contacts with both vendor and insurance representatives. We have an ability to escalate industry issues and member inquiries to the highest levels. No one shop would be able to do that themselves without thousands of dollars and hours of investment. That said, if you want to attend any of those functions or get help with a problem, then we can connect you efficiently and also with the ability to remain anonymous if needed. Our scope of contacts and information far exceeds one person’s ability; we work together to create these networks when assistance becomes necessary.

CT: The reward programs more than pay for the membership, but the real value is in the networking. We recently had a Roundtable with 20-plus members, and

not one person walked away without taking something with them and having a good time. Our Leadership Conference every April is a must-attend for anyone who is serious about this industry.

LT: When discussing membership in the association with potential members, I always use the old adage, “United we stand, divided we fall.’ There is definitely strength in numbers; together, we can accomplish things that individual shops could never hope to do. For instance, WACTAL has its own lobbyist who keeps us informed on legislation that affects our industry and has been very instrumental in helping us pass several bills.

One of the biggest benefits we provide is education – not only education for shops through seminars, trade shows, newsletters and our publication [Wisconsin Automotive News], but also providing education for consumers through our website and helping members educate the insurance industry.

We also educate legislators and the insurance commissioner on issues that we deal with. One other thing that gives us the power of numbers is the many member benefits that we offer. If member shops utilize these benefits and discounts, they can more that offset their cost of membership.

NEAR: What are some of your association’s biggest goals for 2020 and beyond?

MB: It’s two-fold. We are hyper-focused on addressing the Labor Rate issue, and our goal is to begin utilizing the survey to effect change at the state and shop level.

The second tier is continuing to grow membership. The more shops we can bring into the fold, the better educated our industry as a whole will become. And of course, as the saying goes, there is strength in numbers. The more shops and technicians AASP/MA represents, the louder our voice becomes.

JM: One goal is to keep addressing the paint and materials accounting issue. We worked hard to get the use of a paint and materials cost accounting system in place, but some shops let that lapse and insurers stood back and said, ‘They’re not asking for it, so we’re not paying.’

We’d like to see more shops use the PPages to write their estimates for proper compensation and get involved with the Variable Rate System to see what others are getting paid. Shops have a lot more rights than they truly understand when it comes to repairing cars. Without getting educated or seeking explanations, a lot of them don’t know how much ammunition they really have.

BR: We want to continue educating legislators and doing things to prepare ourselves for the next legislative session so that we can hopefully get some things changed.

TC: We want to bring the best education the industry has to offer with our Collision Professional Repairer Education Program [Collision P.R.E.P.] at the NORTHEAST® Automotive Services Show in 2020! We want to see measurable changes in getting new people into our industry. We want to affect our repairers’ ‘HR’ by working on apprentice programs and the cost of employees.

CT: Our biggest goals revolve around individual participation and getting more of our members to attend events, including our Leadership Conference.

We’ll be working harder to get people more involved in what we do on a monthly, quarterly and annual basis.

Another goal is to continue to provide benefits to our members, and a lot of that will come from face-to-face interaction that can help us grow and further develop our membership.

LT: One of the goals is to get more shops involved in the association. Now more than ever, it is vitally important for shops to get involved and to take advantage of all of the benefits that WACTAL has to offer.

NEAR: What is the best way for a member of your association to get the most out of being involved in the group?

MB: Attend meetings! Our meetings are held all around the state, and our executive director, Lucky Papageorg, has done an amazing job of presenting timely, educational and informational sessions. This adds to the camaraderie continued on page 42

32 December 2019

New England Automotive Report

NEAR1219.qxp_NEAR1014 11/15/19 1:20 PM Page 33

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NEAR1219.qxp_NEAR1014 11/15/19 1:20 PM Page 34

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Bernardi Toyota 1626 Worcester Road Framingham, MA 01702 Parts Direct: 800-248-3033 FAX: 508-879-7895 www.bernarditoyota.com

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ToyotaPartsAndService.com 34 December 2019

New England Automotive Report

NEAR1219.qxp_NEAR1014 11/15/19 1:20 PM Page 35

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New England Automotive Report December 2019 35

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

The Rules for Expedited Appraisals Usually, all appraisals of all insured auto damage in Massachusetts must be written by appraisers who have personally inspected the damage. The rule applies to both initial appraisals and supplemental appraisals, and the requirement for personal inspection is emphasized in several places in both the governing statute and governing regulations.

The Auto Damage Appraiser

makes sense to be able to save everyone’s

Licensing Board (ADALB) regulations

time and expense by circumventing the

specifically require of all licensed

general rule by allowing a repair

appraisers, whether representing an

appraiser and an insurance appraiser the

insurer or a repair shop, that “the

ability to agree on certain repair costs

appraiser shall personally inspect the

without the need of actual personal

damaged motor vehicle and shall rely

inspection. With regard to supplemental

primarily on that personal inspection in

appraisals, especially where additional

making the appraisal.” Further, for

required repairs could have been

supplemental appraisals, M.G.L. Chapter

reasonably anticipated, and where the

26, § 8G requires that “every appraiser

insurance appraiser has already seen the

shall reinspect damaged motor vehicles

damaged vehicle and the repair shop and

when supplementary allowances are

the insurance appraiser trust each other

requested by repair shops within two

to be fair in their negotiations, common

days of a request.” If an insurer wants to

sense seems to dictate that a reinspection

obtain a competitive estimate of damage

of damage really may not be needed.

from a different repair shop, then the

In this situation, why should a

same statute says, “No such competitive

customer have to wait the additional days

estimates shall be obtained by the use of

that it may take an appraiser to reinspect

photographs, telephone calls or in any

damage to get their car back? Why should

manner other than a personal

a repair shop have to tie up a repair bay

inspection.”

waiting for an insurance appraiser to

Yet, particularly with respect to relatively minor damage, it sometimes

36 December 2019

New England Automotive Report

show up to reinspect the vehicle? Why should the insurance appraiser have to

spend valuable time traveling back to the repair shop to view what he already knows he will see? Why should the insurer have to pay for the additional days of rental car coverage?

Recognizing this situation – as well as what was probably already common within the industry despite the statutory regulatory requirements – the ADALB amended its regulation several years ago to allow for an expedited procedure to be used in certain circumstances. The ADALB, however, was careful in how it crafted the amendment, trying to make sure that the rights of customers, repair shops and insurers would be protected.

The Rules for Use of the Procedure If you own a repair shop, in the right situation it may make sense to use the “Expedited Supplemental Appraisal” procedure allowed by the ADALB’s regulations. But if you are going to use it, make sure that you know the rules, since the procedure is otherwise prohibited.

Here are those rules: 1. The expedited appraisal procedure can only be used for supplemental appraisals. For all initial appraisals, the insurance appraiser (and the shop appraiser) must personally inspect the damage. For initial appraisals, neither appraiser may rely on the word of the other, photographs of the damage or any other source of information.

NEAR1219.qxp_NEAR1014 11/15/19 1:20 PM Page 37

Get it right from the source.

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When you need fascias, grilles, headlamps, wheels or any other Ford Motor Company Genuine Part, call your local wholesaling dealership. They’re a great souce for technical and repair information as well. Using Genuine Parts can help your body shop reduce cycle time, improve relationships with insurance companies and satisfy customers. So get everything you need in just one call to your one-stop collision repair resource – your local Ford or Lincoln Mercury Dealership.

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Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475

© 2019, Ford Motor Company New England Automotive Report December 2019 37

NEAR1219.qxp_NEAR1014 11/15/19 1:20 PM Page 38

[LEGAL] PERSPECTIVE 2. The shop, the insurer and the customer must all agree

7. There are consequences that protect the repair shop and

that the expedited appraisal procedure will be used.

the customer if the insurer does not approve the expedited

Neither the repair shop nor the insurer can require that the

appraisal request, or if the insurer fails to respond to the

procedure be used, and the two of them cannot use it

request within two business days. Specifically, the request

unless the customer approves it as well. After all, it is the

for an expedited appraisal is transformed into a normal

customer’s car, and if they want appraisers to have to

supplement request, but with the time limits for the

inspect damage before writing an appraisal for repair of

insurer to reinspect the damage relating back to the date

that damage, then the customer can insist upon it. NOTE: It

that the repair shop made the original expedited appraisal

is strongly recommended that repair shops add a simple

request. In other words, if the insurer denies the request or

check-off box line to their repair orders so that the vehicle

fails to respond, then the insurer must assign an appraiser

owner can easily authorize the use of the procedure simply

who must inspect the damage within three business days of

by checking that box before repairs even begin.

the original request by the repair shop, since the regulation

3. If the parties agree to use the procedure, then the

would otherwise require an inspection within three

insurer does not need to assign an appraiser to personally

business days of a regular supplement request. A violation

inspect the damaged vehicle. Despite the apparent

of this provision may be reported to the Division of

requirements of the governing statute, and despite what is

Insurance, which may take action against the insurer.

otherwise required by regulation, using the expedited

Further, a violation may lead to a finding that the insurer

appraisal procedure negates the requirement of personal

engaged in unfair claims settlement practices, which could

inspection.

subject it to an award of treble damages and attorneys’ fees

4. It is the repair shop that initiates the procedure. A

if the insurer is sued by their insured.

repair shop cannot just orally request that an insurer

8. An agreement to use the expedited appraisal process

approve an expedited supplement request. The repair shop

cannot be made on a discriminatory basis. No

must have a licensed appraiser in its employ prepare an

shop/insurer is ever obligated to use the process. Further

itemized supplemental appraisal of the additional damage

determination of whether to use the process must be made

and must fax or electronically transmit that appraisal to the

on a case-by-case basis. Importantly, agreeing to use the

insurer with a request to use the expedited appraisal

process cannot be used by an insurer as a criterion in

procedure. The repair shop must also transmit whatever

determining whether to accept a repair shop as a referral

other documentation that is agreed upon between the shop

shop. And being a referral shop cannot be used as a

and the insurer.

criterion by an insurer in determining whether to engage in

5. Once a repair shop submits its appraisal and request

the process. In other words, referral shops cannot get

for an expedited appraisal, the insurer has only a limited

preference in an insurer’s decision as to whether to use the

amount of time to respond. The regulation requires the

process for any given claim.

insurer to respond to the repair shop within two business days. The insurer must fax or electronically transmit a written response to the shop indicating whether it agrees

Conclusion Using the expedited supplemental appraisal process can

or disagrees with the supplement request.

benefit a repair shop, its customer and the customer’s insurer.

6. Within the two-day response period, the insurer and

But if you are thinking of using the process for any particular

the repair shop may attempt to negotiate any differences

claim, be aware that there are strict rules that apply to the

between them. The regulation requires that any such

process, and be aware of how to comply with those rules – and

negotiation must be conducted by licensed appraisers. The

how to have the insurer comply as well.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

allowance for negotiation certainly seems to make sense, MASSACHUSETTS

since it can allow the process to work when there may only be a minor disagreement between the insurance appraiser and the shop appraiser about what needs to be done to repair the damaged vehicle to pre-accident condition.

38 December 2019

New England Automotive Report

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

NEAR1219.qxp_NEAR1014 11/15/19 1:20 PM Page 39

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

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•

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•

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Helping you do business is our business. Order Audi Genuine Parts from these select dealers.

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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

Hoffman Audi 700 Connecticut Blvd East Hartford, CT 06108 860.282.0191 Fax: 860.290.6355 www.hoffmanauto.com

New England Automotive Report December 2019 39

NEAR1219.qxp_NEAR1014 11/15/19 1:20 PM Page 40

GENUINE NISSAN PARTS

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

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

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

Web: www.mastria.com

40 December 2019

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

New England Automotive Report

Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475

NEAR1219.qxp_NEAR1014 11/15/19 1:21 PM Page 41

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

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

For Genuine Honda parts, contact these Authorized Honda dealers.

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

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

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

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

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

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

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

New England Automotive Report December 2019 41

NEAR1219.qxp_NEAR1014 11/15/19 1:21 PM Page 42

[COVER] STORY continued from page 32 and relationships that develop from attending the meetings and interacting with fellow shop owners.

JM: Attend and support AASP/NJ seminars and classes. Attend AASP/NJ's annual NORTHEAST® Automotive Services Show to network and learn from fellow members.Ask questions. None of us are enemies. People use the word ‘competitors,’ but we’re not. There’s enough work for everybody out there. I encourage members to pick up the phone and communicate. If they have a question, they shouldn’t be afraid to ask it. I’ve been in business for 32 of the 42 years I’ve been in this industry, and I don’t know everything. I’m still learning every day. You have to be willing to pick up the phone, come to the meetings, bring questions, help support each other and look out for the industry. This ‘what’s in it for me?’ approach isn’t working.

BR: Come to our local association meetings. We have approximately three meetings a year and our Trade Show. Also, network with other ABAT members – whether it be through an email or a phone call. Participate in our ABAT events, because our Board members put in a lot of time and effort getting these meetings together. If they would just participate in the events we offer, I think their issues would take care of themselves.

TC: Go to meetings, understand the benefits, be involved, get on

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42 December 2019

New England Automotive Report

a committee or, better yet, run for the Board. We are not a club; we are just a group of people trying to make positive strides for everyone. There’s no special magic there – just your average Joes doing their best. My dad always told me, “You get what you give,” so get involved.

CT: This is an easy question! Get involved. There are really two primary reasons why people get involved in AASP-MN. One would be the vendor discounts we offer, including health insurance and uniform discounts. The second and more important reason is to become more active in your industry and everything we provide to it. Our Leadership Conference is fantastic. The best way to get the most out of it is to put even a little bit into it. Show up for events and get to know other people. We’re all dealing with the same issues. The networking side of AASP-MN has been the best thing for me and really the reason why I’m in the position I am with the group right now.

LT: One of the best ways for shops to get the most out of their membership is to utilize the benefits that we offer. The meetings are always open to all members, and this is probably the best way for them to get involved and participate in giving the Board direction.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

NEAR1219.qxp_NEAR1014 11/15/19 1:21 PM Page 43

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