Indasa Open House & Customer Appreciation Event Highlights

Now Is the Time!

by CHARLES BRYANT

As many of you have called and wondered where Charlie Bryant’s article was last month, no worries! Charlie is fine. We just decided to give him a break and run it every other month. As many in the industry may already know, AASP/NJ has been running a Hotline for many years, which members can call any day, all day, to get answers to industry questions. If, for some reason we do not have the answer, we will do the research while you go back to work. There are no restrictions on the type of automotive questions you can seek from the Hotline, ie. questions related to the regulations governing fair claim settlement practices, the rights of consumers when bringing their vehicle into a repair facility, the requirements of a collision shop when preparing to repair a customer’s damaged vehicle – basically any question related to the industry. Again, if we don’t have an immediate answer, we will research and get back to you with the answer.

AASP/NJ has been answering these questions for basically as long as I can remember and we have provided members with sections of the regulation that govern the practices of insurers which would most often result in insurers getting back in line when doing something that was not in compliance with the regulations. However, since the pandemic, it appears that insurers are taking the position they no longer have to follow the regulations. Now, consumers’ vehicles are often left sitting in collision shops for weeks waiting for insurers to inspect them and negotiate an agreement so the repairs can commence. Then, once the repairs have commenced and the repair shop discovers additional or hidden damage and calls the insurer for a supplement, it often takes weeks to get the insurer out to inspect the vehicle and reach an agreement on the cost of the supplemental damage.

The regulations are clear that if – and I repeat: IF – the insurer intends to inspect a damaged vehicle before the repairs commence, they must do so within seven working days, in addition to commencing negotiations and making a good faith offer of settlement. (See provision below.)

Section 11:3-10.3 - Adjustment of partial losses

(a) If the insurer intends to exercise its right to inspect, or cause to be inspected by an independent appraiser, damages prior to repair, the insurer shall have seven working days following receipt of notice of loss to inspect the insured’s damaged vehicle, which is available for inspection, at a place and time reasonably convenient to the insured; commence negotiations; and make a good faith offer of settlement. Although I feel like I am starting to sound like a broken record, I can’t stress enough just how important this section of the regulation is, especially at the present time. Damaged vehicles that could most likely be repaired in a few days are sitting in shops for weeks before the insurer even comes out to see the vehicle. It has become obvious that there is a method to the madness we are presently

seeing. For some time now, insurers have wanted to have estimates prepared based on photos, instead of actually performing a personal inspection of the damaged vehicle. Insurers claim the purpose of going to photo estimating is to expedite the repair procedure. Well, in reality, it is the photo estimating process causing extreme delays. It is not uncommon for a collision shop to go along with the insurer and send photos of the damage to the insurer along with an estimate for, let’s say $10,000 and then get an estimate back from the insurer for just $1,500.

From there, it goes to one supplement after the other, often taking weeks to even get close to the actual cost to repair the damage. The insurer keeps saying over and over, “That is all we can see based on the images sent.” So, rather than getting the damaged vehicle repaired and back to the owner in a reasonable amount of time, it takes weeks or months to get the repairs completed and back to the owner. The reality is, it is impossible to prepare a realistic estimate on a severely damaged vehicle based on photos. It was for this exact reason that the regulation governing collision shops practices forbids a collision shop from preparing an estimate on a damaged vehicle based on photos, phone calls or any other means than the personal inspection of the vehicle:

The following is one of the violations of the NEW JERSEY AUTO BODY REPAIR FACILITY ACT OF 1983 (N.J.S.A.39:13-1 et seq.):

(6) Making appraisals of the cost of repairing an automobile, which has been damaged as a result of a collision, through the use of photographs, telephone calls or any manner other than personal inspection.

Since this is the standard that governs the people who are actually licensed to repair damaged vehicles, it certainly should be the standard that insurers follow, as well; however, it appears that insurers are ignoring current rules in all areas, and they are basically doing whatever they feel like. Listen, I am not attempting to stand in the way of progress, and as technology progresses, I am sure that photo estimates will be the way of the future…one day; however, once again, that time is not now!

Long story short, AASP/NJ is constantly addressing things like the issues mentioned in this article. But – like the old saying goes –– power is in numbers. With all that is presently going on, there could not be a better time to join AASP/NJ. We are fighting for the rights of members of the industry and addressing the issues referenced in this article on a daily basis. Based on the foregoing, I am once again pleading with the members of the industry who are not part of AASP/NJ to join today. Stop being part of the problem, and become part of the solution. Anyone interested in joining can contact AASP/NJ Executive Director, Charles Bryant on the AASP/NJ Hotline at (732) 922-8909.

NJA