New England Automotive Report April 2014 by Thomas Greco Publishing, Inc.

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PartsTrader Enters Massachusetts - page 40 E W E N G L A N

AUT M TIVE Serving The New England Collision AND Mechanical Repair Industry MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

April 2014 U.S.A. $5.95

In Memoriam: Jim Simeone page 54 www.grecopublishing.com

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April 2014 • Volume 12, No. 4

CONTENTS

DEPARTMENTS VICE PRESIDENT’S MESSAGE 8 | Building the Success of the Auto Repair Industry...One Future Repairer at a Time! by Molly Brodeur SPECIAL ANNOUNCEMENT 16 | AASP/MA to Host 7th Annual Casino Night at Gillette Stadium! VENDOR SPOTLIGHT 26 | Built to Last: Goyette’s Auto Parts Celebrates Nearly 80 Years in Business LEGAL PERSPECTIVE 28 | “What Do You Mean You Won’t Pay the Claim?” by James A. Castleman, Esq. MARK MY WORDS 35 | A Recall of the Recall by Mark Giammalvo

IN MEMORIAM 54 | Jim Simeone

FEATURES 40 | PartsTrader Enters Massachusetts The industry's most controversial company hits the Commonwealth.

44 | Controversy Greets National Right to Repair Rollout Right to Repair is set to go national - but is it what the industry wants?

48 | The New Age of Education: AASP/MA Shares Real-World Knowledge with Members AASP/MA delivers at one of its most comprehensive Statewide Meetings ever. by Joel Gausten

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AUT M TIVE STAFF PUBLISHER Thomas Greco (tgp22@verizon.net) MANAGING EDITOR Alicia Figurelli (tgp2@verizon.net) EDITOR Joel Gausten (tgpjoel@verizon.net)

APRIL 2014

April 8, 2014 AASP/MA MidState Chapter Meeting Doubletree Hotel 5400 Computer Dr., Westborough, MA

PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963 Advertising: (800) 991-1995 / FAX: (732) 280-6601 www.grecopublishing.com New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright © 2014 by Thomas Greco Publishing, Inc. Images: Cover and Page 50 ©www.thinkstockphoto.com/Peshkova; Page 17 ©www.thinkstockphoto.com/PJPhoto69; Page 29 ©www.thinkstockphoto.com/monkeybusinessimages; Page 35 ©www.thinkstockphoto.com/xril; Page 40 ©www.thinkstockphoto.com/Comstock; Page 45 ©www.thinkstockphoto.com/Kalawin

April 22, 2014 AASP/MA Board of Directors Meeting

Doubletree Hotel 5400 Computer Dr., Westborough, MA

MAY 2014

May 13, 2014 AASP/MA Statewide Chapter Meeting Doubletree Hotel 5400 Computer Dr., Westborough, MA

JUNE 2014

June 10, 2014 AASP/MA MidState Chapter Meeting Doubletree Hotel 5400 Computer Dr., Westborough, MA June 12, 2014 AASP/MA Annual Golf Outing Charter Oaks Country Club 394 Chestnut St., Hudson, MA

ADVERTISING DIRECTOR Norman Morano (800) 991-1995 (tgp5@verizon.net) ART DIRECTOR Lea Velocci (tgp3@verizon.net) PRODUCTION Sofia Cabrera (tgp4@verizon.net)

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA EXECUTIVE COMMITTEE PRESIDENT Paul Hendricks VICE PRESIDENT Molly Brodeur SECRETARY Gary Cloutier ACTING TREASURER Molly Brodeur IMMEDIATE PAST PRESIDENT Rick Starbard

AASP/MA STATEWIDE DIRECTORS COLLISION DIVISION DIRECTOR Adam Ioakim ASSOCIATE DIVISION DIRECTOR Don Cushing

AASP/MA CHAPTER DIRECTORS N/E CHAPTER COLLISION DIRECTOR Alex Falzone S/E CHAPTER COLLISION DIRECTOR Kevin Gallerani S/E CHAPTER MECHANICAL DIRECTOR Michael Penacho MIDSTATE CHAPTER COLLISION DIRECTOR Tom Ricci MIDSTATE CHAPTER MECHANICAL DIRECTOR Justin Forkuo WESTERN CHAPTER COLLISION DIRECTOR Peter Langone WESTERN CHAPTER MECHANICAL DIRECTOR Ed Nalewanski

AASP/MA EXECUTIVE DIRECTOR

FOR A FULL LISTING OF UPCOMING AASP/MA EVENTS AND TRAINING OPPORTUNITIES, PLEASE VISIT WWW.AASPMA.ORG

Jillian M. Zywien Lynch Associates, Inc. Phone: (617) 574-0741 Fax: (617) 695-0173 Email: jzywien@aaspma.org

Please note new phone/fax numbers!

WWW.AASPMA.ORG New England Automotive Report April 2014 7

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VICE PRESIDENT’S MESSAGE

Building the Success of the Auto Repair Industry… One Future Repairer at a Time! As we announced recently, AASP/ MA’s newly refocused mission is to build “the success of the auto repair industry.” While we are committed to supporting all of our members and the collision repair community of Massachusetts as a whole, it is my opinion that there’s no better

place to start than with those who are not even in our field yet. I’m talking about collision repair students and the vocational school sector of our industry. We have talked frequently over the years about how the future of the industry rests on the shoulders of these young techs, but have

we done all we can to support and promote these future repair professionals? Not really. Well, I’m happy to say that all that is about to change. AASP/MA is working hard to reinforce to our members and the industry at-large the importance of our educational counterparts, starting within our own association. Membership in AASP/MA (a $395 value!) is FREE to any vocational educational facility in the Commonwealth, and we encourage all instructor members to bring their students to any association events and meetings to give them a glimpse of their future career path. And speaking of meetings, by the time you read this message, AASP/MA will have made a special announcement at our April 8 meeting (an event that included numerous area vocational school representatives and students as our guests) regarding our commitment to area vocational educators. Stay tuned to next month’s issue for full details! As we move toward the future, AASP/MA would love to further incorporate vocational schools into our association. One of our long-term goals is to one day establish an annual educators’ roundtable, where instructors from across Massachusetts would gather to discuss common issues and solutions. In the meantime, here at AASP/MA, we are working in a number of ways to give educators - and the students they teach who will ultimately shape our industry - the recognition, support and assistance they absolutely deserve. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA Vice President Molly Brodeur is the Chief Operating Officer of Al Brodeur’s Auto Body in Marlborough, MA. She can be reached at (508) 485-1082 or molly@albrodeur.com.

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A MESSAGE FROM THE EXECUTIVE DIRECTOR

Exciting New Developments at AASP/MA! Dear Members, AASP/MA has certainly started this year with some great meetings. Last month, we hosted our second quarter Statewide Meeting, which was sponsored by Balise Collision Repair and welcomed over 60 attendees. In January, we announced the launch of our statewide media campaign and rolled out several new member benefits. This month, I am thrilled to share some news about our upcoming statewide events. Our third quarter Statewide Meeting on May 13 will feature a keynote presentation by Attorney Erica Eversman. As some of you may be aware, Eversman is at the forefront of issues plaguing the auto body industry today. She is recognized nationally as an authority on diminished value and a legal expert in collision repair issues. Eversman is chief counsel of Vehicle Information Systems and the author of the www.Forbes.com “Best of the Web” award-winning blog, AutoMuse. Her highly anticipated

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presentation is a unique opportunity for Massachusetts shops to get an industry-wide perspective on current problems. I encourage all shops to mark their calendars and attend this vital presentation. Following the Statewide Meeting is our Annual Golf Outing on June 12. This year, the Board has chosen a superb location: Charter Oak Country Club in Hudson, MA. Our Golf Outing is an all-day event full of fun, friends, prizes and a little golf. We encourage you to bring your employees, let loose and network! Last year, we didn’t let a little rain stop us; this year, we are hoping for sunshine! Sponsorship opportunities are listed on our website and we are accepting prize donations for our raffle. Player information can also be found on our website. Pricing includes golf, greens fees, golf cart, locker room use and a buffet lunch including carving station! For pricing information, please turn to page 21.

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AASP/MA’s final statewide event is probably our members’ favorite - Casino Night. This year’s event will be held on Saturday, November 15, and we have moved locations in order to accommodate our ever-growing size. This year’s Casino Night will be held in the Putnam Club at Gillette Stadium! We are thrilled to be hosting Casino Night at Gillette’s Putnam Club and have added a number of event enhancements, including private stadium tours (for an additional fee) and special casino night gift(s), with more to come! As we do every year, this event will sell out quickly. Please register today online at www.aaspma.org or call (617) 574-0741 to reserve your tickets! The recent momentum of the association has been exciting, to say the least. Support from both sponsors and members has been extremely positive, and I look forward to our continued success. Please continue to participate and reach out to fellow shop owners and encourage their participation. AASP/MA is growing every day, and we need YOU to participate in building the success of the auto repair industry! Sincerely,

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA Executive Director Jillian Zywien has been a senior account executive at Lynch Associates for over six years. She can be reached at (617) 574-0741 or via email at jzywien@aaspma.org.

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SPECIAL ANNOUNCEMENT

AASP/MA to Host 7th Annual Casino Night at Gillette Stadium! The Annual AASP/MA Casino Night is getting a major upgrade this year. As announced at the March 11 AASP/ MA Statewide Meeting in Westborough, the

association will host its 7th annual event on Saturday, November 15 in the Putnam Club at the world-renowned Gillette Stadium in Foxborough!

One of the country’s most celebrated venues, Gillette Stadium is the home field of the New England Patriots, New England Revolution and University of Massachusetts Amherst Football. The stadium regularly hosts other marquee sports events that include international soccer matches, NCAA lacrosse championships and high school football Super Bowls. Additionally, Gillette Stadium regularly hosts the largest concert tours in the United States. Billboard ranked Gillette Stadium among the top 10 venues in the world over the last decade. Artists who have recently taken the stage at Gillette Stadium include Bruce Springsteen, U2, Taylor Swift and Kenny Chesney. In addition to enjoying the Casino Night event in such a unique setting, AASP/MA members can attend the festivities for a one-time price of only $100 per person. The package includes admission, event parking, $50,000 in gaming chips and two special Casino Night gifts. Special stadium tours are available to AASP/MA members for an additional $25 per person. Non-members can attend for $200 per person for the regular package and $225 per person for the package plus the stadium tour. AASP/MA Executive Team Member Peter D’Agostino believes that the pricing structure will encourage non-members to join AASP/MA and take advantage of all that the association has to offer. “We think that if you’re going to get the opportunity to come to this venue and be part of Gillette Stadium, then you should support us throughout the year or really contribute for that one night,” he says. The vast array of Casino Night sponsorship opportunities include having your company’s name featured on the Jumbotron on the end zone! For more information on the 7th Annual AASP/MA Casino Night, see the announcement at right, visit www.aaspma.org/casino-night-2014gillette-stadium/ or call AASP/MA at (617) 574-0741. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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PLEASE SUPPORT AASP/MA SPONSORS! AASP-MA Silver Sponsor

1-800 RADIATOR & AC Provides a 2% rebate applied to members’ annual dues.

(800) 914–3802

Contributes 1% of gross sales to your annual dues

(800) GK-CARES

New AASP/MA member benefit provider!

To get more information on becoming an AASP/MA Sustaining Sponsor, please contact AASP/MA Executive Director Jillian Zywien at

(617) 574-0741 / jzywien@lynchassociates.net

LAST CHANCE TO JOIN AASP/MA’S STATEWIDE CONSUMER EDUCATION MEDIA CAMPAIGN!

Consumers are not always aware of their rights, which may cause an insurance company to influence them away from their own trusted body shop. AASP/MA leadership has approved an aggressive anti-steering radio campaign. Our consumer education ads will run on premier radio stations during PRIME TIME hours, such as morning and evening commutes. Over the course of this campaign, our message will total 10 million radio impressions. Every person who tunes into radio in Massachusetts will hear our ad an average of four times. In addition, listeners will be directed to a website outlining all of their rights to a quality, safe, repair covered by their insurer.

WE NEED YOUR HELP! We are funding this enormous effort by offering the auto body industry the chance to be personally identified in these ads. Following each ad, YOU can purchase the opportunity to market YOUR shop. There are opportunities in all geographic locations, so that you can buy in the market where RATES you are located. AASP/MA members will receive special discounting on their ads, but ALL shops are eligible to participate. Are you an industry leader who wants to stand up and be counted? Help us to provide consumers with a better understanding of their rights and buy an ad TODAY!

Don't let the insurance company take another one of YOUR customers away. Act NOW, as these advertising opportunities will sell out. Purchase your ad by calling (617) 574-0741 or fill out the credit card info at right and fax to (617) 695-0173.

Consumer Education Media Campaign Ad Purchase Form

Company: __________________________ Contact: ____________________________ Phone: (_____)_______________________ Fax: (_____) _________________________ Email: ______________________________ Credit Cards Accepted: (check one) M/C___ Visa___ Amex___ Disc___

Card #: _____________________________ Exp. Date: __ / __ CID # ____

(3 #s on back for Visa/MC/Disc; 4 #s on front for Amex)

Name on Card: _______________________ Signature: ___________________________

Billing Address: _______________________ State:_______ Zip Code:____________ Please fax this form back to (617) 695-0173.

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2014 AASP/MA ANNUAL GOLF OUTING

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Thursday, June 12, 2014 Charter Oaks Country Club 394 Chestnut St. Hudson, MA 01749

8am Registration â&#x20AC;˘ 9am Shotgun Start

*Golfers are asked to arrive by 7:30am to facilitate registration

GOLF PRICES: Single: $200 Foursome: $800

SPONSORSHIP PRICES: Hole Sponsor: $200 Competition Sponsor: $250 Raffle Prize Sponsor: $500

To register or for information regarding sponsorships, call (617) 574-0741 or email ckane@aaspma.org New England Automotive Report April 2014 21

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ADALB REPORT

ADALB Discusses Regulation Amendments The ADALB hosted its first session of 2014 on February 25 in Boston. The agenda for the public portion of the meeting included reporting on the results of the most recent appraiser test, amending the current appraiser license application and receiving input from the Board on areas of interest for possible amendment within the ADALB’s regulations. ADALB member Carl Garcia started the meeting by reporting on the results of the January 7 Part II examinations. Twenty-seven individuals took the examination; 17 individuals passed. The next test will be held on April 1 at the Holiday Inn in Taunton. There will again be a review in Garcia’s shop at 3pm the day prior to the exam. For the next item under consideration, the Board voted 3-0 to amend Question 16 on the appraisal license

application to clarify the reporting of an applicant’s criminal history. The amendment would limit the reporting to certain types of crimes, thereby excluding certain minor motor vehicle infractions that do not affect an individual’s ability to provide an appraisal. Finally, the Board entered into a discussion about the amending of regulations contained in 212 CMR 2.04 et. seq. After a report about the regulatory process, Board Counsel further reported that the regulations are currently also under review by the Division of Insurance’s (“the Division”) General Counsel to determine areas that need updating to comply with any recent legal changes. In addition, Board Counsel stated that the Division is awaiting suggestions from the Board on their desired areas of review.

With that stated, the Board entertained a thoughtful and lengthy discussion, outlining several areas of concern for further discussion at the next meeting. The first area identified was a potential change to the regulation’s conflict of interest clause. The Board stressed the importance of how appraisals are being written and the need for language to ensure auto body shops are writing appraisals on behalf of insureds, not the insurers. Along those same lines, appraisal fees, intensified appraisals and time frames were also identified as areas for further consideration. To that end, the Board also noted that recent insurance plan changes, process updates and technological advances (i.e., digital media) have made some of the regulations relating to how an appraisal is conducted and the time needed to complete an appraisal outdated. The Board also slated these items for further discussion at the next ADALB meeting. Of final note, the Board noted that the current regulations were written before direct payment plans were in place. Accordingly, the current language could be in conflict and warrants further consideration for potential amendment. Before adjourning to executive session, the Board set their next meeting for April 29. Per the shared concern of Board members, the further discussion about the regulations will be the final item on the agenda in order to allow for a lengthy discussion. As reported previously, AASP/MA has been working diligently with our legislative committee to review the regulations to develop our own recommendations. AASP/MA will be formalizing our recommendations and sharing them with the ADALB and the Division. Please pay close attention to all future member publications as this initiative develops. If you are not a member of the association, please consider joining today so you will be part of these important deliberations.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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VENDOR SPOTLIGHT

BUILT TO LAST: GOYETTE’S AUTO PARTS CELEBRATES NEARLY 80 YEARS IN BUSINESS

As any dedicated parts professional will tell you, shops that call with an order need those products delivered as promptly as humanly possible. In the fastpaced world of vehicle repair, auto body facilities can’t wait for a back-ordered part to show up or (even worse) another part to arrive if the first one shows up defective. And when New England shops need a dependable used part yesterday, they know they can call Goyette’s Auto Parts for the fastest service around. Goyette’s Auto Parts was founded by Henry Goyette in New Bedford in 1935. Henry’s son, Joe Sr., was the guiding force for future generations in the business. During the ’80s, he knew that the used parts market needed to modernize and break out of the “junkyard” mentality. He was well known and respected by many recycling yards and body/repair shops in the area. Today, the family business’ day-

to-day operations are overseen by Joe Sr.’s sons Phil (marketing and Internet sales) and Joe Jr. (general manager) and daughter Paula Reusch (accounting and administration). Currently, Joe Jr.’s 22year-old son Jake is also an active part of the business, bringing the family trade into its fifth generation of excellence. Along with 16 employees and a fleet of eight trucks, the family offers same- or next-day deliveries throughout Southern New England. Additionally, the company utilizes long-haul trucking outfits to handle orders in Northern New England. Throughout the years, they have steadfastly stood behind their well-known slogan: “Our goal is to provide quality products at competitive prices with honesty and integrity.” Goyette’s employees are dedicated and willing to go the extra mile in busy times to see to it that their customers are serviced in a timely

Goyette's Auto Parts sales professionals (left to right): Mark Barnett, Brian Rogers, Adam Fedele and JD Dubois 26 April 2014 New England Automotive Report

manner. That is an important factor in running an efficient operation at this level. Most of Goyette’s salespeople have an automotive background and can “talk shop” with the shops as well as provide expert sales knowledge on part interchange and evaluation. Goyette’s Auto Parts’ in-house warehouse includes a vast array of products including engines, transmissions, starters, alternators and body parts such as doors and decklids. Three years ago, the company added an extensive new dismantling area that elevated its customer service offerings to new heights. In addition to maintaining a strong presence throughout New England, Goyette’s Auto Parts has successfully branched out into national and even global markets by using eBay and other Web-based technologies. “I think the Internet is changing everything - from the way we buy cars to the way we sell the parts,” Reusch says. “Now, we see all this social media that’s coming out. From the sales and marketing end, we’re seeing a greater push for even recyclers to get into marketing through these social websites, which is fascinating.” Of course, the Internet can go only so far in securing Goyette’s place in the industry. Although these technologies bring new clients to the door, it is the company’s job to make sure these customers stay. In Reusch’s mind, this means always paying attention to changing attitudes, practices and demands that affect the used parts industry.

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“You have to stay in touch with your customers, see what their needs are and meet them on a continual basis,” she says. “You also have to stay up with the current trends. If we kept doing our business the way we did it 20 years ago, we would be in trouble.” Goyette’s is a member of Automotive Recyclers of Massachusetts (ARM) and the Automotive Recyclers Association (ARA). They are part of the Gold Seal Program overseen by ARA. This is a program exclusively for ascertaining customer satisfaction within the auto recycling industry. As part of the program, on a quarterly basis, the company’s customers are called at random and polled on their experiences with auto recycling facilities in general. Goyette’s uses this feedback to improve their operation. Above all, the ongoing success of Goyette’s Auto Parts stands as a symbol of what can be accomplished by legitimate auto parts suppliers. As their customers know, Goyette’s has done much to elevate the image of the salvage parts world. “I know some shops won’t use used parts, and that’s a mindset that maybe came from them using some of the old junkyard-type of operations in the past and having bad experiences,” Reusch offers. “Those are the type of customers we’d like to bring in and say, ‘We can work with you and make things work for you.’ “When you’re buying used parts, you’re getting original equipment, but at a discount,” she adds. “They’re perfectly usable; they’re not aftermarket items that are not up to par in some cases. You’re getting the actual original equipment but not paying original, brand-new prices.” Goyette’s Auto Parts is open 8am5pm Monday through Friday. For more information, please call (508) 994-1801 or visit www.goyetteautoparts.com.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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LEGAL PERSPECTIVE

“What Do You Mean You Won’t Pay the Claim?*” by James A. Castleman, Esq.

I got an email from a longtime collision repair shop owner the other day, telling me about a problem that the shop’s customer had in getting paid on a third-party claim. Another driver had run a stop sign and hit his vehicle. Despite how the accident happened, the insurer of the at-fault driver advised that they were only going to pay 50 percent of the repair costs, alleging that the shop’s customer was “contributorily” negligent. The insurer made the bizarre argument that the customer was 50 percent at fault, because he should have anticipated that someone might run the stop sign. After lengthy negotiations, the insurer eventually agreed to pay 90 percent of the cost of repair. This still seemed ridiculous - to both me and the shop owner - but the customer finally threw up his hands and gave in, thankful that he had to pay only 10 percent of the repair costs.

The Problem for Repair Shops Insurers pay for a very significant percentage of auto damage repairs. Since many car owners would have difficulty paying for repairs if they had to come up with the full cost out of their own pocket, collision repair shops depend on insurers in order to stay in business. When an insurer denies coverage or otherwise refuses to pay a claim, a repair shop can find itself in a difficult position, particularly if the shop has fixed the car before they have learned the insurer isn’t paying. Unfortunately for repair shops, there are a number of valid reasons an insurer may have to deny payment of a claim. And an insurer (or at least its appraiser) may also legitimately not know that it is denying coverage until after repairs are finished. On the other hand, insurers’ excuses for nonpayment are not always legal or proper, and shop owners should know when to challenge an insurer’s denial of payment. Further, improper denial of coverage can often be the basis of an unfair insurance claims settlement claim, making the insurer potentially liable for multiple damages and payment of the claimant’s attorney fees if legal action becomes necessary to enforce the customer’s rights. Cancellation of the Insurance Policy Some excuses for nonpayment are based on exclusions specifically listed in the standard Massachusetts auto insurance policy. Others are based on governing statutes and case law.

A definite legitimate excuse for not paying a claim is that the insurance policy has been validly canceled. The single most common reason for cancellation of an auto insurance policy is that the insured has not paid their premium when due. Both governing statutes and the auto policy itself allow an insurer to cancel coverage if it is not getting paid. But there are also a number of other reasons that a policy may be canceled. Something as simple as failing to fill out and return a renewal application could be grounds for cancellation. Giving fraudulent responses or making misrepresentations in an insurance application can also allow an insurer to cancel, as can the suspension or revocation of the insured’s driver’s license registration - or the revocation or suspension of the license of any other operator listed on the policy living in the insured’s household. Cancellation for any of these reasons allows the insurer to deny coverage for any first- or third-party claim. Of particular concern to collision repair shop owners are provisions in the auto policy that allow insurers to cancel just collision and/or comprehensive coverage. An auto policy may still be in place in these situations, covering personal injury and maybe even third-party damage claims, but there may be no first-party coverage for auto damage claims. Legitimate reasons for an insurer canceling collision and/or comprehensive coverage include the insured vehicle being owned or customarily used by an operator who has been convicted within the last five years of vehicular homicide, motor vehicle related fraud or auto theft. Conviction within the past three years of operating under the influence or alcohol or drugs also allows cancellation of these coverages. The same is true if the owner or any operator has made any intentional material misrepresentations within the past five years when making an auto insurance claim. These coverages may also be canceled if a salvage title has been issued for the vehicle, if the owner has not had the car re-inspected and otherwise followed the procedures required for a reconstructed vehicle title. If the car has been designated a “high-theft” vehicle and does not have an approved anti-theft or auto recovery device, these coverages may be canceled. Similarly, an insurer is required to cancel collision and/or comprehensive coverage if a used vehicle is being insured and has not had an insurance “pre-inspection” as

*This article is a follow-up to a recent Legal Perspective regarding “the basics” of auto insurance in Massachusetts, concentrating on the issue of insurers denying claim payment. To view the “Basics” series, please visit www.grecopublishing.com.

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required by law within seven days of the effective date of the policy, unless the vehicle falls into one of the statutory exceptions. Separately, collision coverage may be canceled if a vehicle operator has been involved in four or more “at fault” accidents within the past three years. And comprehensive coverage may be canceled if the vehicle owner or an operator has had two or more auto theft or fire insurance claims within the same time frame. If an operator has had their license suspended or revoked during the insurance policy’s coverage period, coverage for that person may be suspended in regard to collision and comprehensive coverage, and liability (“third-party”) coverage may be limited to the statutory required minimum of $5,000. Despite all this, there are limits on an insurer’s ability to cancel coverage, and if the insurer has not followed the statutory requirements for cancellation explicitly, then the insurer will remain on the hook. And the procedures for cancellation are relatively complex. The insurer must give 20 days’ advance written notice of its intentions to cancel, stating the specific reasons for cancellation. The notice must be hand delivered or mailed to the insured; if mailed, the insurer must do so by certified mail. Case law is split on what may make a notice defective. Some cases have held that minor defects in the wording of the cancellation may make it ineffective, while other cases are more forgiving to the insurer. What is important is to recognize that there may be a defect in the notice that may prevent the insurer from denying coverage. Reasons for Denial of Coverage Among the reasons for denial of coverage under an insur-

ance policy that has not been canceled are: Unlisted household operator. An insurer is entitled to - and will deny - collision coverage if the vehicle was being operated by a household member who was not listed on the applicable insurance policy at the time of the collision. Note, however, that this exclusion applies only if the listing of the person would require a higher premium, either because the operator is considered to be an “inexperienced” operator or because they have a higher insurance step rating. Note also that this exclusion does not apply to a non-household member who does not regularly use the vehicle, no matter what their experience or step rating. So, if everyone in your customer’s household is an experienced driver, but they let their neighbor’s 17-year-old son drive their car on a one-time basis at the time of the accident, then there is still collision coverage. There also appears to be a 60-day grace period to notify the insurer if someone becomes a household member, if they were not at the inception of the policy period. Use without consent. An insurer will not pay a third-party property damage claim if the person who caused the accident was using a car without the owner’s consent. If that neighbor’s son in the prior scenario had the permission of the vehicle owner to drive it, the owner’s insurer will pay for damage the neighbor’s son causes when he swerves into someone else’s car. But if the neighbor’s son hotwired the owner’s car in the middle of the night without the owner’s permission and caused the same damage, the owner’s insurer would not pay the third-party claim. Be careful of this excuse for nonpayment. In the past, I have seen insurers subtly goad vehicle owners into claiming that someone they knew did not have their permission to use New England Automotive Report April 2014 29

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LEGAL PERSPECTIVE their car, making the vehicle owner think that they were doing something wrong if they did. In reality, the insurer is just looking for an excuse not to pay the third-party claim. Intentional damage. Insurers do not have to pay collision or comprehensive claims for damages intentionally caused by the owner or operator. When someone takes a baseball bat and smashes his or her fender because he or she got angry that the car wouldn’t start, the insurer does not have to pay. Similarly, when a vehicle owner hires someone to torch his or her own car because it’s a lemon, the insurer will not pay. Failure to give timely notice of a claim. An insurer does not have to pay a collision or comprehensive claim unless the vehicle owner files a notice of claim within 91 days of the loss. An insurer does not have to pay a third-party liability claim if the responsible party does not “promptly” give his or her insurer a detailed notice of the incident giving rise to the claim. “Promptly” is not defined in the policy or law, but legislation enacted many years ago prevents an insurer from denying a third-party claim on this basis, unless the insurer can show that it was prejudiced by the late notice. Failure to cooperate. An insurer can deny collision, comprehensive or third-party liability coverage if the insured or anyone else covered under the insurance policy does not cooperate with the insurer in the investigation of the claim. What constitutes “cooperating” is not clearly spelled out, but generally, the person must answer questions, provide requested documentation and otherwise respond to “reasonable” requests for cooperation by the insurer. Additionally, as part of being cooperative, an insured is required by the insurance policy to submit to an “examination under oath” if requested by the insurer. There are a couple of important things to recognize about this excuse for nonpayment by an insurer. First, by statute, an insurer cannot refuse to pay their statutory minimum $5,000 property damage coverage to a third-party claimant just because the responsible party refuses to cooperate with their insurer. Second, insurers sometimes use the policy’s cooperation clause - particularly the examination under oath - to paint their insured into a corner. The insurer may investigate a claim that they consider to be suspicious, and then when they think the time is right, ask their insured to undergo a lengthy examination under oath. The examination is usually at the insurer’s office, and almost always conducted by a lawyer who is part of their SIU staff. If the insured refuses to attend and testify, then the insurer can legally deny the claim. If the insured does attend and testify, the insurer’s lawyer will try to develop as much factual information as possible to use as an excuse to deny the claim. In my experience, it is rare that an insurer voluntarily pays a claim immediately on the heels of an examination under oath. Fraud or misrepresentation. It may seem obvious that an insurer should be allowed to deny a claim if their insured has lied about the incident that caused the damage. If an insured backs his or her car into a stone wall, but then claims that he or she was hit from behind while parked, the insurer can deny the claim. In some situations, however, an insurer may not be able to 30 April 2014 New England Automotive Report

deny third-party liability coverage just because their insured made misrepresentations to them. If the third party did nothing wrong, and the insured had a valid policy in effect, the third party may still be able to collect. It should also be noted that an insurer can use any misrepresentation that would affect a policy’s premium as an excuse to deny collision or comprehensive coverage. Perhaps the most common instance of this is the person who garages his car in Boston, but claims that they garage it in the suburbs. The insured saves a ton of money on premiums for collision and comprehensive coverage, but buys themselves a denial of coverage when they have a claim and the insurer finds out where the car is really kept. On the other hand, if a misrepresentation is immaterial and does not affect the premium, then it cannot be used as an excuse to deny coverage. Contributory negligence. On a third-party liability claim in Massachusetts, an insurer does not have to pay the third party’s damages if the third party was more negligent than their insured. And even when their insured is 50 percent or more at fault, the amount of the payment on behalf of the responsible party is reduced by the percentage of the fault of the claimant. A couple of things should be noted about contributory negligence. First, in Massachusetts, an insurer must pay a thirdparty claim if the parties are equally negligent. The insurer’s responsibility is to pay only 50 percent of the claimant’s damages, but they still have to pay. They can disclaim liability only if their insured was less than 50 percent at fault. Second, “negligence” is in the eye of the beholder. Thus, when the insurer mentioned in the opening paragraph of this article had the chutzpah to claim that they only had 50 percent liability for their insured who ran a stop sign, they were trying to raise the issue that someone could truly find the claimant 50 percent liable as well. Even though the argument made no sense in that situation, the insurer was able to negotiate down, and still save itself 10 percent of the cost of repair. Might a judge or jury have found the claimant 10 percent negligent? Probably not, but no one knows for certain. Conclusion It can put you in a difficult situation to have your customer’s insurer deny coverage for a claim. If you have not started repairs, can you refuse to fix the car? What do you do if you’ve already repaired the car? What do you tell your customer to do? In order to answer these questions, it is important to know when an insurer can properly deny coverage. And it is important to know when an insurer’s denial of coverage can be challenged. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Attorney James Castleman is a managing member of Paster, Rice & Castleman, LLC in Quincy, MA. He can be reached at (617) 472-3424 or at

jcastleman@prclawoffice.com.

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MARK MY WORDS

A Recall of the Recall It seems like every other week we hear of a vehicle, refrigerator or lawn mower making headlines over some type of recall. Recently, a Buick customer asked me to look up their vehicle’s history in our service database. I came across an invoice showing that we had brought their car to the dealership for a recall. A courtesy trip by us to the dealership was not all that unusual, but the actual recall itself caught my attention because it included a rebate check issued to the customer. The vehicle in question was a 2007 Buick Lucerne and the recall was #10153. A search of our ALLDATA system gave me the history of the recall, as well as a separate recall for the same problem two years earlier. Evidently, back in 2008, GM was receiving complaints about fires (or what GM refers to as “thermal incidents”) regarding a GM option known as the Heated Washer Fluid System (HWFS). The recall affected numerous models with this option within the Buick, Chevrolet, Cadillac, Hummer, GMC and Saturn car lines. At that time, it was discovered that the HWFS was developing a short inside its printed circuit. According to that initial recall (#08048), GM advised their dealers to install a jumper harness that added the feature of an inline fuse to the HWFS. Some time after that recall, a number of these vehicles with the now-modified HWFS circuit were still experiencing thermal incidents by a “new failure mode attributed to the device’s thermal protection feature.1” Over the years in this industry, I’m sure we have all seen some unusual recalls, including some where the vehicles were even bought back by the manufacturer. But I could not remember a time when a new car manufacturer had decided to bring vehicles in for a recall and disconnect an item because it could not be repaired. In GM’s defense, I will admit that they did seem to honestly word their rationale for not wanting to attempt a second repair. (“This is a special case where we are not confident a repair would work. This is why we are removing this feature from the vehicle2.”) In the final recall, GM dealers were advised to disconnect and remove the HWFS system and issue the customer a $100 refund check to compensate them for the loss of this option on

1 2 3

their vehicle. Now, you may wonder, how did the factory determine that the value of this feature was $100? Was that the cost of the option when new? Was it even an option? Well, GM answered these questions in a Q&A portion of the recall that was sent to its dealers: “Compensating the current customer of record for this loss is an appropriate gesture. Q2. What is the original cost of the Heated Washer Fluid System? A2. The system was priced in several ways; as standard equipment, as a stand-alone option and as part of an option package. We analyzed these scenarios and determined that $100 is an appropriate estimate of the value of the feature.3 In reading the technician’s repair instructions for this final recall, I noticed that part of the procedure includes removing the dedicated 60-AMP (yes, 60-AMP) circuit fuse. No question that this was a high-powered heating device. But why would you want to heat up windshield washer fluid in the first place? It appears that the design here is not to heat up the entire washer fluid bottle contents, but to heat up the fluid as it is headed to the washer nozzles. Here in New England, we often get those early winter days were the windshield gets that very continued on pg. 62

Excerpt of Bulletin No.: 10153B Date: July 20, 2010 Subject: 10153A - Heated Windshield Washer Module Short Circuit - Permanently Disable and Remove Module Bulletin No.: 10153B Date: July 20, 2010 Subject: 10153A - Heated Windshield Washer Module Short Circuit - Permanently Disable and Remove Module

Excerpt from Q&A section of Bulletin No.: 10153B Date: July 20, 2010 Subject: 10153A - Heated Windshield WasherModule Short Circuit - Permanently Disable and Remove Module

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FEATURE

By the time this issue of New England Automotive Report is in your hands, the PartsTrader online parts procurement system will be available in all 48 continental states. Over the last two years, it has been virtually impossible to open an industry trade publication without reading about the controversy surrounding the company’s deal with State Farm to become the sole parts procurement provider allowed to be used by the insurer’s Select Service DRP shops across the country. The national rollout of PartsTrader has led to everything from heated debates on the floor of the Collision Industry Conference (CIC) and other industry gatherings to legislative efforts in Maryland and New York (as well as a lawsuit against State Farm in Mississippi) to prevent insurers from mandating the use of a particular parts procurement provider in the repair of automobiles. However, PartsTrader’s arrival in Massachusetts and Rhode Island comes under dramatically different circumstances: For the first time in PartsTrader’s history in the US, it will be operating in both states as a strictly voluntary, free-market entity without the benefit of an insurance partner. With State Farm not writing auto insurance in Massachusetts and Rhode Island, PartsTrader will now have to prove its ability to prosper in the marketplace without the nation’s largest auto insurer mandating its use. Despite this opportunity to silence critics who have attacked the company for depending on an insurer to drive work, PartsTrader appears to be taking a decidedly hands-off approach to marketing its services to Commonwealth auto body shops.

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“We are not actively soliciting repairers in Massachusetts; we have no feet on the street,” offers Dale Sailer, PartsTrader’s vice president of business development. “But if there is a shop that wanted to use it, they can certainly register to do so.” Similar to PartsTrader’s setup in other states, Massachusetts shops that use the system nominate parts suppliers to be involved in it. As such, Sailer insists that PartsTrader’s ultimate success or failure in Massachusetts will depend on the support of repairers. “A supplier cannot unilaterally sign up to use PartsTrader; only a repairer can nominate a supplier,” he says. “It all has to start with the repairer. If no repairers sign up, then no suppliers can sign up.” Effective February 1, the base rate for parts suppliers to use PartsTrader is $19 per month. Based on a specific level of sustained ordering activity, a supplier’s order volume through PartsTrader could move a company into one of three higher monthly pricing tiers, with a maximum subscription fee of $199 per month. In terms of educating users on the product, Sailer claims that shops “need about 15 or 20 minutes” to learn the PartsTrader system, thus making the need to provide hands-on training to Massachusetts shops minimal. “This is a website; nobody from Expedia comes to your house and trains you on how to use their travel site,” he says. “But they certainly have tutorials on their site that say, ‘This is how you use it,’ and we have the same thing. We have training videos, we have online webinars and what we

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With State Farm not writing auto insurance in Massachusetts and Rhode Island, PartsTrader will now have to prove its ability to prosper in the marketplace without the nation’s largest auto insurer mandating its use. call the ‘training sandbox,’ where [shops] use a practice version of the site to get good at it. Now, if in fact there were a group of 20 shops in Western, Eastern or wherever Massachusetts that said [they were] interested in using it or wanted to learn more about it and were serious, I could see us holding an informational meeting out there.” With PartsTrader now in operation across the United States, Sailer is quick to express his desire to address “some things that have been written about us that, based on [actual] usage [of the product], people should now go, ‘Well, that was a stupid thing for anybody to ever say.’” This includes the “myths” that PartsTrader forces repairers to purchase the cheapest part (“That’s dumb,” he insists) or that dealer-owned shops are forced to purchase parts from their competitors. Additionally, Sailer claims that PartsTrader currently has no interest in partnering up with other insurers to grow market share through DRP shops. “We don’t have any ambitions or big plans to go get another insurance company and do what State Farm has done,” he says. “Our focus is on providing value to repairers such that they use it on their own.” Considering the importance of Massachusetts as a state where PartsTrader can stand or fall on its own merits, why has the company decided to take such a passive approach to promoting itself in the region? “Our focus for the last 10 months has been rolling out with Select Service shops,” Sailer replies. “We have a responsibility to make sure that those shops have a good

experience with PartsTrader. Our resources have been 100 percent devoted to getting them online and making their experience a good one. There is no logical reason to divert attention to folks who don’t have to use it. Once we’re sufficiently rolled out and we have all the resources deployed and we’re kind of ‘steady state,’ then we can worry about growing beyond the non-State Farm shops. At which point, Massachusetts obviously comes into play.” Launched in New Zealand in 2004, PartsTrader talks itself up on its US website (www.partstrader.us.com) as “an easy-to-use online marketplace that provides collision repairers with a single source for procurement of parts from leading OEM dealers, parts recyclers and alternative parts suppliers.” According to company figures available in mid2012, PartsTrader manages over 10,000 parts request tenders and more than 30,000 quotes from suppliers each month in New Zealand. Since the implementation of the PartsTrader rollout last year, New England Automotive Report has received numerous complaints and concerns from users throughout the country, ranging from the amount of time it takes for repairers to receive estimates through the system to dealers having to hire additional personnel just to handle it in their parts departments. An in-depth analysis and discussion of the PartsTrader controversy was featured in our October 2012 issue (available online at www.lont.com/NEAR_Oct12/).

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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FEATURE

Controversy Greets National Right to Repair Rollout In November, Right to Repair became a reality in Massachusetts. Now, it’s the rest of the country’s turn. Earlier this year, a number of major players in the ongoing national Right to Repair debate announced that they had reached an agreement to extend the essential provisions for all light vehicles negotiated in the Massachusetts law nationwide; impacting “all companies and organizations that are currently members of the signatory associations.” In a joint statement issued on January 22, the Alliance of Automobile Manufacturers (Alliance), the Association of Global Automakers (Global), the Automotive Aftermarket Industry Association (AAIA) and the Coalition for Automotive Repair Equality (CARE) announced their collective acceptance of this national agreement, based on a recent law finalized in the Commonwealth of Massachusetts, to “ensure consumer choice in post-warranty auto repair” in the form of a signed “Memorandum of Understanding” (MOU). According to a special “Frequently Asked Questions” section about the MOU on the AAIA website (www.aftermarket.org/ Resources/FAQ- R2R.pdf), the agreement requires automakers to: • Immediately make available to consumers and the independent vehicle repair industry, on “fair and reasonable terms”, the same tools, software and repair information that they make available to their franchised dealers; • Establish websites or "clouds," beginning with the 2018 model year, that will contain the same information and software that dealers have access to as part of their proprietary tools; and • Provide access to the vehicles’ diagnostic computers using a standardized vehicle interface that meets either the Society for Automotive Engineers (SAE) J 2534 or International Standards Organization (ISO) 22900 standards. In addition to announcing the groups’ acceptance and participation, the MOU press statement revealed that “the Alliance, Global, AAIA and CARE will stand down in their fight on ‘Right to Repair’ and work collectively to actively oppose individual state legislation while [their] respective groups work to implement this 44 April 2014 New England Automotive Report

MOU. In the meantime, the parties agree that further state legislation is not needed and could serve to weaken the effectiveness and clarity of the MOU.” Kathleen Schmatz, president and CEO of the Automotive Aftermarket Industry Association, was quick to praise the entities that contributed to the MOU. “We are excited that consumers and independent repair facilities around the nation will have the same access to the information, tools and software needed to service late-model computer-controlled vehicles as is required under the Massachusetts Right to Repair statute,” she offered in a prepared statement. “We believe that the resulting competitive repair market is a win-win for car companies, the independent repair industry and, most importantly, consumers.” Massachusetts Governor Deval Patrick signed the Massachusetts Right to Repair legislation into law on November 26. The signed legislation was created to address and reconcile two laws that were on the books in Massachusetts that mandated that car companies provide affordable access to all tools, software and information used to repair late-model computer-controlled vehicles. The first law was the result of an agreement reached between the Massachusetts Right to Repair Coalition and the vehicle manufacturers that was passed unanimously by the state legislature in late July. The Bill was approved by the legislature too late to remove a ballot measure that had been sponsored by the Coalition. That ballot measure was approved in November 2012 by an overwhelming 85-15 percent margin, thus ensuring that there were two Right to Repair laws on the books in Massachusetts. The new law includes provisions that require that information and tools be available for heavy-duty vehicles (those over 14,000 pounds.) Although the MOU press announcement publicly stated the automakers’ willingness to abide by the light-vehicle provisions of the Massachusetts law, the AAIA notes on its website that the MOU is “a voluntary agreement that does not have the weight of law behind it. Therefore, under the MOU, an independent shop not located in Massachusetts would not be able to take legal action against a car company for failing to abide by the terms of the MOU. However, it is hoped that since the MOU is based on a law in place in Massachusetts, car companies will abide by the

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Although the MOU press announcement publicly stated the automakers’ willingness to abide by the light-vehicle provisionsof the Massachusetts law, the AAIA notes on its website that the MOU is “a voluntary agreement that does not have the weight of law behind it."

voluntary agreement for the other 49 states.” Additionally, the MOU excludes motorcycles (also absent in the Massachusetts law) and heavy-duty vehicles over 14,000 pounds. According to the AAIA, “it is hoped that groups representing the independent heavy-duty repair industry will be able to negotiate a similar agreement with trade associations representing heavy-duty truck manufacturers.” Unsurprisingly, what is “hoped” for isn’t enough to satisfy a growing number of automotive organizations that have expressed concerns over the MOU. On January 23, AAA President and CEO Bob Darbelnet criticized the Memorandum in a heavily distributed press release entitled “‘Right to Repair’ Agreement Does Not Go Far Enough in Ensuring Access to Car Data.” “AAA has promoted this issue for years because most consumers want the ability to choose their preferred mechanic,” he said. “While this agreement has benefits for consumers, it is not a comprehensive solution. Vehicles are changing rapidly and more must be done to guarantee consumer choice and control of vehicle data in the future.” Schmantz countered AAA’s position in a February 5 posting on her blog, http://kathleenschmatz.wordpress.com/tag/aaa : Of course there is always some group like AAA who is eager to play Monday morning quarterback that points out that the MOU “did not go far enough.” This is a very interesting statement from an organization that sat on the

sidelines for more than a decade, until the eleventh hour when the Massachusetts referendum and legislation were nearly enacted and MOU negotiations were in the final stage. Reluctance to embrace the MOU is also being seen in other pro-Right to Repair states. Sal Risalvato, executive director of the New Jersey Gasoline-Convenience-Automotive Association and a longtime proponent for Right to Repair legislation, tells New England Automotive Report that the appearance of the “Memorandum of Understanding” will not prevent his organization’s ongoing efforts to get a Right to Repair law passed in New Jersey. In addition to concerns that the MOU doesn’t adequately address information-access issues pertaining to heavy-duty vehicles, Risalvato believes that the agreement does little to actually ensure that its provisions will be enforced throughout the industry. “When they say they’re going to do a Memorandum, there is no reason why we can’t memorialize it in law, because then they can’t back out of it,” he says. “It’s too hard to go after them at a later date to say they’re not holding up their end of the bargain…There’s nothing in law that compels them to do what they’ve said they’re going to do.” New England Automotive Report will provide updates on this story as it develops. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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COVER STORY

The New Age of Education: AASP/MA SHARES REAL-WORLD KNOWLEDGE WITH MEMBERS IF YOU HAVEN’T ATTENDED AN AASP/MA STATEWIDE MEETING IN 2014, YOU’RE MISSING OUT ON THE TOOLS YOU NEED TO SURVIVE IN THIS INDUSTRY.

In addition to re-structuring the association’s mission statement and public image, the AASP/MA Board of Directors and Executive Team have worked to add greater value to the meetings and events it holds for members throughout the year. Focusing on everything from health care to website marketing to a new way to retrieve OEM repair information, the March 11 Statewide Meeting held at the Doubletree Hotel in Westborough (and sponsored by Balise) offered a full slate of educational presentations designed to help members navigate through some of the most common issues affecting their industry.

Next-Generation Estimating Made Simple Rick Leos, collision program developer for Toyota Motor Sales, got the presentations off to a rousing start with a discussion on the automaker’s new “OEM-Recommended Repair Procedures” program. Scheduled to go live in June, “OEM-Recommended Repair Procedures” is a next-generation estimating system designed to help shops lower cycle time and improve accuracy. With this system, collision repair estimates for Toyota vehicles 2012 or newer begin with a complete list of all the parts and documentation required for repairing the vehicle 48 April 2014 New England Automotive Report

to pre-accident condition. Instead of starting with a blank document and adding parts in, Toyota will display all the information related to the repair upfront, providing shops the choice to keep what they want and omit what they feel is unnecessary. Through this program, Toyota is offering shops all necessary parts information, Toyota recommended procedures, bulletins and any additional information that’s part of the estimating process. “OEM-Recommended Repair Procedures” will be available through Mitchell beginning this June at no additional cost to repair shops. The program will contain a special “synch” feature that will enable users to connect to other existing estimating systems. Leos explained that although he solicited all three Information Providers to come on board with “OEM-Recommended Repair Procedures,” Mitchell was the company most willing to participate at this time. “Mitchell stepped to the plate because they have a new estimating database coming out and it’s the right timing for them,” he said. “It wasn’t high on the priority list for the other guys.” Additionally, Leos noted that by partnering with an IP to bring this information to the collision repair community, he is ensuring greater usage by repairers than if he developed “OEM-Recommended Repair Procedures” as an independent, stand-alone program. “If we roll it out on our own, nobody is going to adapt to it,” he shared. “There is no way an insurance company is going to allow [repairers] to upload an estimate from Toyota Motor Sales. There’s no use for me building a one-off [system] for you guys.”

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Leos advised attendees to proceed with caution if they feel the need to override a recommended repair procedure in the system. “The estimating system will be time-stamped that you [overrode it] against the manufacturer’s recommendations,” he said. “If an insurance adjuster does the same thing, it’ll be time-stamped that [he or she] overrode the procedures or deleted out things that [he or she] thought didn’t need replacing. It’s on both sides; it’s truly built around consumer safety. “It’s really hard for [insurers] to go against this right now… We’re actually putting in writing how all of our cars are supposed to be fixed,” he added. Leos urged attendees to give the “OEM-Recommended Repair Procedures” program a try when it becomes available in two months. “It’s the right thing to do for the car; it’s the right thing to do for the customer,” he opined. “All I can say is that I hope you guys do the right thing when you get it in your hands.” Capturing Online Opportunities Scott Gonnello, founder of new AASP/MA benefit providers Gonnello SEO and webmaster for the association’s website (www.aaspma.org), presented a special workshop at the March 11 gathering to assist AASP/MA members in making the absolute most of their professional websites through improved search engine optimization (SEO). In simple terms, “search engine optimization” is building a website in such a way that it effectively communicates with search engines to achieve first-page placement on Google and other popular sites. “A problem that a lot of companies have is they’re trying to market to people,” he said. “That’s great if you can get them to your website, but if your website doesn’t communicate with the search engines, you’re not going to be found. “Search engines are the only places where people go to find commercials,” he added. “If you’re not on the top page and not showing up when they’re looking for something, your competition may get the business or the call…It doesn’t matter if you’re a multi-billion dollar corporation or if you can’t afford a cup of coffee; Google is a level playing field.” So how do shops get on Google’s all-important first page? For starters, business owners need to care enough to put in the effort to make it happen. Gonnello advised attendees to never keep a poorly working site around simply because they’re paying or it. “When you keep a site that’s not working and you’re paying for it, you’re helping your competition by not showing up

The March 11 AASP/MA Statewide Meeting included presentations by (clockwise from top left): Maura McGovern Snow (Aflac), Evan D. Cross (Aflac), Tiffany Finnegan (Cloud Business Advisors), Scott Gonnello (Gonnello SEO) and Rick Leos (Toyota Motor Sales). on the search engine,” he explained. “Google wants nothing but the best to show up on their top page. If you have a site that’s not great and you’re not maintaining it or adding new information [to it], you’re not that much of an expert versus a company that is constantly adding to and updating their site and keeping those search engines coming back on a regular basis.” Naturally, what you say on your site goes a long way in determining where you’ll end up on the cyber food chain. “The average person types between four and five words [in a search engine] because they’ve learned that the more you type, the better your results are,” Gonello said. “If you know they’re searching [with] four or five words, you should write phrases in your content that are four and five words [long].” Above all, Gonnello advised attendees to get to know their competition before they attempt to beat them. New England Automotive Report April 2014 49

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“If you want to get on the top pages, do some searches and see who’s there,” he said. “If you look at their website and the page they’re showing up under and see a lot of content, then you better have a lot of content.” Gonnello currently offers free website SEO reviews for AASP/MA members who contact him through the Members Only section of www.aaspma.org. The site also includes information on how members can get a copy of Gonnello’s must-read book, Common SEO Mistakes: Basic Edition. Other services available only to AASP/MA members include 25-percent discounts on website upgrades and special monthly SEO pricing. More information on Gonnello SEO is available at www.gonnelloSEO.com. Health Care Woes & Solutions Of course, all that revenue generated at your shop through Gonnello’s web marketing strategies could help pay for the ever-rising cost of health care in Massachusetts. Tiffany Finnegan, vice president of employee benefits for Cloud Business Advisors, appeared at the Statewide Meeting to update attendees on some of the recent news surrounding the implementation of Obamacare. On the top of Finnegan’s list of trends resulting from the new insurance marketplace is an increase in renewal rates for those who already had health insurance in 2013. “I’m seeing anywhere from 15-20 percent of people calling me with 40-percent renewal increases for the same plan – or the carriers are forcing them into a different plan, which 50 April 2014 New England Automotive Report

is usually slightly worse, " she said. "Unfortunately, that’s all part of Obamacare. “There used to be renewal caps of 15 percent on certain components, but that is now discontinued,” she added. “Somebody could feasibly get a 70-percent renewal increase.” Additionally, Obamacare has resulted in a decrease in the plan options offered by insurers and an increase in the out-of-pocket maximums that policyholders need to pay when they are faced with a medical need. “All of a sudden, your out-of-pocket maximums went up, but it’s actually a good thing because it’s going to cap those costs for you,” Finnegan explained. “However, when you actually look at health care spending, about 50 percent of the costs are by 5 percent of the population…Most folks who have a lot of health care expenses are actually going to be spending less now, so unfortunately those of us who [don’t] use health care so much are paying.” According to Finnegan, health insurance costs rose 118 percent from 2001 to 2009 and are expected to go up another 166 percent over the next 10 years. “The hope [with Obamacare] was you get more people covered…and hopefully that helps drive down costs eventually,” she said. “But that is not happening.” As a way to help ensure that AASP/MA members’ employees are protected as much as possible during these challenging times, the association welcomed a guest presentation by Aflac, the country’s leading provider of supplemental insurance. Currently, Aflac offers a suite of indemnity plans designed to pay the policyholder above and beyond any other coverage they currently have. “Unfortunately, about 50 percent of Americans have less than $1,000 in the bank, yet our deductibles have gone to $2,000 or $4,000,” offered Maura McGovern Snow, a broker development coordinator for the company. “It doesn’t compute, and [the costs] are only going to keep going up.” Aflac District Sales Coordinator Evan D. Cross added that Aflac provides an opportunity for employers to enhance the benefits they’re currently offering to employees at no cost to their businesses.

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“Employees are looking for more benefits, and a lot of people are actually cutting benefits right now,” he explained. “Aflac is a great way for you to add on to what you’re offering for your employees to make you a little more marketable and hopefully help out with retention. We work with the business owners to devise a plan of benefit options that employees can participate in.” More information on Aflac is available at www.aflac. com. The Media Matters At the start of the meeting, AASP/MA Executive Team Member Peter D’Agostino urged members to contribute to the association’s ongoing consumer education radio campaign. As reported in our February 2014 issue, the goal of the campaign is to drive hits to www.itsyourrideyoudecide.com, which will direct users to a special page on the AASP/MA website (www.aaspma.org) featuring the Consumer Bill of Rights. In an effort to maximize consumer engagement, AASP/MA worked with Art Kinsman, media coordinator for the hugely successful Massachusetts Right to Repair campaign, to develop a strategic list of the top radio

stations in the Commonwealth based on pricing and exposure. If the association’s funding goals are met, the campaign will have the potential to reach 9.3 million consumers with a powerful anti-steering message. “The bottom line is, you want your customer to know beyond the shadow of a doubt that they can come to you regardless of any information they’re given to the contrary,” D’Agostino said. “We really want to push this out to the entire state so it benefits [listeners] from New York to Cape Cod.” D’Agostino stressed that the campaign would only succeed if shops support the endeavor in great numbers. “A few hundred dollars from a lot of people would be huge and allow us to keep our goals instead of a select few putting in a few thousand dollars and still not meeting our objectives,” he said. For more information on the radio ad campaign (including how to purchase spots), please call AASP/MA at (617) 574-0741 or see page 19 of this issue. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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IN MEMORIAM

Remembering Jim Simeone On March 8, AASP/MA said goodbye to one of its most loyal

and beloved supporters with the passing of James J. “Jim” Simeone at the age of 64 after a long illness. Born in New Haven, CT,

Jim enjoyed a lengthy career in the wholesale automotive parts industry that included (among other positions) nearly 20 years at Long Cadillac and nearly four years at Puritan Pontiac GMC. Since 2008, he had served as wholesale parts manager at Best Chevrolet in Hingham. A graduate of New Haven High School and an attendee of the University of Connecticut, Jim served his country during the Vietnam War. An avid golfer, he was a member of the Dennis Pines Golf Course in Dennis, MA and played every weekend.

Jim was an active and enthusiastic presence at numerous AASP/MA events. Whether at a local chapter meeting or major Golf Outing, he was always happy to do all he could to assist the collision repair industry. His selfless dedication to AASP/MA was honored at the March 11 Statewide Meeting in Westborough, where AASP/MA Board member and longtime friend Tom Ricci led the room in a moment of silence. AASP/MA President Paul Hendricks tells New England Automotive Report that Jim’s efforts left an indelible mark on the

Jim Simeone (pictured here second from left) was a longtime industry supporter.

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Massachusetts automotive community. “Jim was a very positive person who would do almost anything to advance the automotive industry,” he says. “He was a

very dedicated parts salesperson who would be willing to go the extra mile for his customers. He supported the association by soliciting new members and would always attend chapter and statewide meetings. He was a faithful Texas Hold ’em player each year at Casino Night, and always ended up in the last group standing. He was an excellent golfer and would always attend the yearly Golf Outing held by AASP/MA. “Jim’s wife Patricia, being the strong lady she is, commented to me that he was the best husband that a wife could ask for,” Hendricks continues. “Jim had told her how sorry he was for putting her through these tough times. Jim was always more concerned about everyone else. He will be dearly missed, but never forgotten.” AASP/MA Vice President Molly Broduer remembers Jim’s dedication to the annual AASP/MA BBQ. “He was a great supporter, always willing to help with soliciting donations and working the night of the event,” she says. “He was a regular attendee of CMARA meetings and made many

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AASP/MA MidState Chapter meetings even when his health was failing. As a newcomer to the industry and association, I always appreciated his participation and support. It was clear to me that he valued his relationships and genuinely cared about repairers.” “We have lost a veteran,” adds Ricci. "We build relationships through our industry that sometimes become much more than just about work. Beyond business, Jimmy genuinely wanted to help the association out any way he could. He always did what he thought was the right thing to do. We have lost a colleague to this industry, and a friend. He will be forever missed.” In addition to his wife Patricia and mother Elizabeth, Jim is survived by two stepsons (Mark Pironti of Long Beach, CA and Geoffrey Pironti of Milford,) one brother (Michael Simeone of Clinton, CT) and one grandson (Geoff Pironti of Milford). AASP/MA and New England Automotive Report offer the Simeone family our deepest condolences. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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2014 MEMBERSHIP APPLICATION MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

As a member of the Alliance of Automotive Service Providers of Massachusetts (AASP/MA), I will abide by the association’s bylaws and code of ethics. I understand that membership in AASP of Massachusetts is non-transferable, and I must remain current with my dues in order to be a member in good standing. I understand that if I discontinue my membership that I must immediately cease using any association promotions, logos or materials. Additionally, I understand that as part of my AASP of Massachusetts membership, I will receive New England Automotive Report, the official publication of AASP of Massachusetts, faxes, emails and other mailings.

*** PLEASE TYPE OR PRINT LEGIBLY ***

BUSINESS INFORMATION: Mr.

Mrs.

Ms.

Business Representative Name: ______________________________

Business Name ____________________________________________

What benefits motivated you to join AASP of Massachusetts? ________________________________________________________ PERSONAL INFORMATION:

Street Address ________________________________________________________________________________________________________ Street

City

State

Zip

City

State

Zip

Mailing Address ________________________________________________________________________________________________________ Phone Number (

Street

) ____________________________________ Fax Number (

) ____________________________________________

E-mail Address __________________________________________ Web Site Address______________________________________________

Enrolled By (Name and Address) __________________________________________________________________________________________

Name ____________________________________________________

MEMBERSHIP TYPE REPAIRER MEMBER (check one) Collision Repair Shop Mechanical Repair Shop Both, Collision & Mechanical Repair Shops Other Repair Shop SUPPLIER/ASSOCIATE MEMBER (check one) Auto Paint/Crash Parts/Auto Parts/Wholesaler Equipment/Tool Supplier Manufacturer/Sales Agent Services (Computers, Software, Vehicle Rental, Other) LIST OTHER SPECIALTIES __________________________________ ________________________________________________________

Just like good tools and equipment, membership in AASP of Massachusetts is a valuable investment. AASP of Massachusetts works for you through such outstanding programs as: (1) management and technical training; (2) discount uniform rental; and (3) a wide variety of other business services. Put AASP of Massachusetts to work for you today. COMPLETE THE MEMBERSHIP APPLICATION AND RETURN IT WITH PAYMENT TO AASP OF MASSACHUSETTS.

Nickname ________________________________________________ 2014 ANNUAL MEMBERSHIP DUES (The AASP membership year is from January to January 2015)

Total Due .................................................................................$395.00 NEW! Political Action Committee (PAC) Donation ...............$______ Check or Cash Credit Card: Card Number:

Visa

MasterCard

__________________________________________

Expiration Date: __________________________________________ Signature: ______________________________________________ Date: __________________________________________________

FOR OFFICE USE ONLY Check Number ________________________________Check Date__________________________Check Amount________________________________ Date Joined ______________________________Member Number ________________________Next Bill Date ________________________________

10 Liberty Square, 5th Floor • Boston, MA 02109 (617) 574-0741 | (617) 695-0173 (fax) | jzywien@lynchassociates.net As required by the U.S. Tax Code, AASP of Massachusetts, Inc. informs its members that 75% of the dues paid to the association are tax deductible. The remaining 25% is allocated to legislative activities and is not tax deductible. New England Automotive Report April 2014 59

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MARK MY WORDS continued from pg. 35 thin coat of frost. Typically, it seems so thin that you figure you won’t bother to scrape, and shoot some washer fluid at it instead. Then, as you’re driving, you suddenly realize that this fluid is now freezing into a big mess on your windshield. Here at our shop, we purchase cases of the premix (winter mix) washer fluid. This fluid is good to –20°F. But

even so, if that hits a cold windshield, it’s still going to freeze on contact. With that said, this heated system does seem like a good idea in theory. Until it’s perfected, it looks like we’ll just have to wait for a better and safer system to heat up our washer fluid. Until then, keep that ice scraper handy. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AUT M TIVE AD INDEX Artioli Dodge ......................................................11 Audi Group..........................................................56 Axalta Coating Systems........................................4 Bald Hill Chrysler Jeep Dodge Ram ..................57

Balise Wholesale Parts Express........................13 Baystate Chrysler/Jeep/Dodge ........................46 Bernardi Group ............................................32-33

Best Chevrolet ..................................................IFC BMW Group ..................................................38-39 BMW/Mini of Warwick ......................................12

CCC One ................................................................9 Clay Nissan of Norwood ....................................46 Clay Subaru ........................................................55 Colonial Auto Group ..........................................31 Empire Auto Parts ..............................................27

Enterprise ..........................................................10 Ford Group..........................................................60 Future Cure ........................................................16 Goyette’s Inc. Auto Parts....................................27

Honda Group ......................................................53 Hyundai Group ..................................................34 Imperial Chrysler-Dodge-Jeep ..........................52

Imperial Ford ......................................................60 Infiniti of Norwood..............................................25 IRA Group ......................................................14-15 Jaffarian Toyota/Volvo ......................................22 Kelly Automotive Group ....................................IBC

Linder’s, Inc. ......................................................62 Long Automotive Group ..................................OBC Lundgren Honda ................................................11

Mazda Group ......................................................47 McLaughlin Chevrolet ........................................37 Mopar Group ......................................................52

Nissan Group......................................................23 Nissan World of Dartmouth ..............................57 PPG........................................................................3 R.F. D’Agostino ..................................................24 Robertsons GMC Truck ......................................51

Sarat Ford-Lincoln ..............................................61 Sentry Group ........................................................6 Subaru Group ..............................................42-43

Tasca Group........................................................20 Toyota Group ......................................................58 Toyota of Nashua..................................................8 Village Auto Group..............................................18

VW Group............................................................36 Wellesley Toyota/Scion ......................................61 Woburn Jaguar ..................................................37

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