7KH RI¿ FLDO SXEOLFDWLRQ RI WKH $XWR %RG\ $VVRFLDWLRQ RI 7H[DV
$5.95
NOVEMBER 2020
A SAFETY NET To A Proper Repair?
A Consumer’s Perspective and More
2020
SKEET SHOOT
Highlights
X Does Your Region Need An
ASSOCIATION? X Who Matters
MOST?
www.grecopublishing.com
Contents
November 2020
on the
cover
Official publication of the auto Body association of texas
aBat BOard Of direCtOrs
Ask the Expert
Vice President Eric McKenzie
Is There a Safety Net to a Proper Repair? By Robert McDorman
President Burl Richards Burl's Collision Center burl@burlscollision.com (903) 657-8082
Chairman of the Board Corey Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361
20
4 5 6
President’s Message By Burl Richards A Consumer Speaks
8 12 16 18 24
editOr’s Message By Joel Gausten Who Matters Most?
aBat MeMBersHiP aPPLiCatiOn eXeCUtiVe direCtOr’s Message By Jill Tuggle Does Your Region Need an Association?
Treasurer David Osburn ozzy6384@gmail.com Executive Director Jill Tuggle jill@abat.us (817) 899-0554
aBat BOard MeMBers
Bobby Beason DeMontrond Collision Center bobby.beason@demontrond.com (936) 577-2747
Robert McDorman Auto Claim Specialists rmcdorman@autoclaimspecialists.com (817) 756-5482
Kevin Ellison Westway Ford kellison@vtaig.com (972) 584-9033
Logan Payne Payne & Sons Paint & Body logan@payneandsons.net (214) 321-4362
Larry Cernosek Deer Park Paint & Body lcwrecker@comcast.net (281) 930-1539
DEPARTMENTS
Park Place Dealerships emckenzie@parkplace.com (214) 443-8250
Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136 John Kopriva Kopriva Body Works jtkopriva@gmail.com (713) 923-4412
Greg Luther Helfman Collision gluther@helfman.com (713) 574-5060
Chad Neal Innovative Collision Equipment Chadwneal@yahoo.com (817) 527-2143
Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564
Darrell Smith McDaniel’s Quality Body Works Inc darrell-mcdaniels@sbcglobal.net (903) 753-5391 Mike Williams All Star Collision Center sales@allstarcollision.us (903) 589-3160
PUBLISHER Thomas Greco / thomas@grecopublishing.com
LOCaL neWs ABAT Hosts Biggest Skeet Shoot Ever! LOCaL neWs Repairs and the Appraisal Clause: A Customer’s Perspective By Joel Gausten natiOnaL neWs SCRS Virtual Education Series to Run through 2021
SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com GRAPHIC DESIGNER Lisa M. Cuthbert / lisa@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com OFFICE MANAGER Donna Greco / donna@grecopublishing.com
neWs frOM sHerWin-WiLLiaMs Sherwin-Williams Automotive Finishes Debuts Quality Failure Prevention App
Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963
adVertisers’ indeX 300 Advantage ....................................................25 Auto Claim Specialists ........................................19 Beacon Equipment Resources ........................4 CAR-O-LINER Southwest ..................................9 Ecotech ..................................................................IBC English Color & Supply ......................................6 FindPigtails.com ..................................................8 FinishMaster ..........................................................17 Innovative Collision Equipment........................26
J & J Paint Supply ................................................10-11 Network 1 Solutions ............................................7 Paint Works Dallas ..............................................IFC
www.grecopublishing.com
Reliable Automotive Equipment ......................14-15 Sherwin-Williams ..................................................OBC Tasco Auto Color..................................................18 USI North America ..............................................22 Wheel Technologies............................................23 3 November 2020 Texas Automotive
TEXAS AUTOMOTIVE is published monthly and is sent to ABAT members free of charge. Subscriptions are $24 per year. TEXAS AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of TEXAS AUTOMOTIVE are copyright © 2020 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Stock Images courtesy of www.istockphoto.com.
President’s Message
A Consumer Speaks
I
In several issues of Texas Automotive, ABAT Board member Robert McDorman (Auto Claim Specialists) has written at length about the importance of the Appraisal Clause as a tool that consumers can use when disputes arise between insurers and shops during the repair process. In this month’s must-read cover story, Robert details how the Appraisal Clause recently helped one of my customers, Dale Barton, settle a dispute with Allstate and leave my facility with a properly repaired vehicle. Additionally, this issue includes a special article on Dale in which he shares his personal views on the situation and what consumers can do to become better educated and protected. In my opinion, the Appraisal Clause is one of the most valuable pieces of ammunition available to vehicle owners and our industry. e shop is the place repairing the vehicle, and its experience should weigh in the decision. But through the Appraisal Clause, an unbiased independent party – not the bill payer or the person profiting from the repair – makes the determination. I’m okay with that; I believe in the work my shop does, and I provide the necessary supporting documentation. Best of all, the Appraisal Clause helps the customer avoid being forced to pursue costly litigation. Although I’m unable to give my customers claim advice because
I’m not a licensed adjuster, I am able to recommend the Appraisal Clause to them and inform them of their rights. I can also recommend Auto Claim Specialists to assist my customers in getting what they deserve. It’s a shame that some insurance adjusters refuse to negotiate with me in Burl Richards the customer’s best interest, but the ABAT President Appraisal Clause is there for when these unfortunate situations arise. ank goodness Dale had the provision in his policy that allowed him to go through the Appraisal Clause. e Texas Department of Insurance (TDI) recommends that a customer should utilize this process if they can’t come to an agreement between the insurer and the shop. Unfortunately, TDI has allowed State Farm to carry on in Texas without making this provision available to policyholders. State Farm only allows the Appraisal Clause when it comes to a disagreement on the actual cash value (ACV) of a vehicle; they won’t allow it for a disagreement over the actual repairs. is
4 November 2020 Texas Automotive
Continued on page 23
Auto Body Association of Texas Membership Application Company Name:______________________________________________________________________ Primary Contact: _____________________________________________________________________ Position: ____________________________________________________________________________ Phone Number:________________________________ Direct Line/cell: ________________________ Email: _______________________________________________________________________________ Business address: ____________________________________________________________________
Years in Business: _____________ Website: _______________________________________________ Full 2019-2020 Dues $500 ² MSO $250 per additional shop 2019-2020 Affiliate (Vendor) Dues $500 Join online at www.abat.us OR send this form to the address below Credit card number________________________________________________________________ Exp _____________________
By signing below, you agree to pay the above amount and have your credit card put on file for auto renew each year in the amount of $500 to be charged 12 months after joining ABAT. You may cancel this auto renew at any time.
Signature:__________________________________________________________Date: ____________ OR pay online at http://www.abat.us/join-abat/ or make checks payable to ABAT Credit cards are preferred but if you must send a check please submit membership dues to ABAT 1207 N. Frisco St. Henderson, TX 75652
Questions? Please contact Jill Tuggle at 817-899-0554 / jill@abat.us
5 November 2020 Texas Automotive
Executive Director’s Message
Does Your Region Need an Association?
A
As you may know, despite a global pandemic, ABAT has actually seen some growth in membership, including our newest chapter in College Station. is chapter of ABAT started like any other: Someone in their region was tired of the issues they faced day in and day out and decided to do something about it. ey contacted several shops in their market and found that they all felt the same way. A trade association was what they needed; after some research, they found ABAT. Instead of reinventing the wheel, they reached out to us to join forces. Next steps always entail ABAT coming to their city to host an informational meeting about who we are, what resources we can offer and how we can be of service to that region. What happens next is up to them. Some regional meetings result in a chapter with leadership, communication and someone joining the ABAT Board of Directors. Some regions are not quite “there” yet in terms of communication, and
55 Over ons ti Loca ve you r to se
we help them break down the barriers and work through the brainwashed idea that they can’t talk to each other. Almost all shops have been told they cannot communicate with other shops nearby because they are Jill Tuggle ABAT Executive Director competitors – and if they DO talk, then they are colluding. Don’t let this bullying tactic scare you into submission any longer. e insurance companies have seen great benefit by creating division between shops and keeping you in the dark. Any kind of research on collusion will help you understand that it involves price fixing and making secretive agreements to increase prices. Association meetings are training sessions where selected presenters teach shops how to make safe and proper repairs and where you can
Auto Paint Continued on page 9
And Body Shop Supplies 1-800-664-5272 w w w. E n g l i s h C o l o r . c o m 6 November 2020 Texas Automotive
Support the ABAT Political Action Committee Fund!
ABAT is committed to passing some important legislation in 2021, and we must raise funds to make this possible. Please consider donating to the ABAT PAC fund by emailing jill@abat.us.
find supporting documents from the OEMs, P-Pages or Information Providers to support your need to make that repair. î “is is creating the case for reimbursement from the customer, who is the only party with a contractual agreement with the insurer. In order to collude, we would all have to get together and agree to increase our prices. î “is is NOT what ABAT does.
But not all chapters see the same successes. As with any journey you take, output depends on input. When a region decides they want change, ABAT is not the magic red “that was easy� button. We are a resource. A valuable one, but if you don’t decide to commit and put in the work, then nothing will change. Most ABAT chapters start the Continued on page 23
2
2
CALL US: 888-918-0737 EMAIL US: sales@network1llc.com
THE LIFT KING - LIGHT DUTY PACKAGE >Â?Â?ÂœĂœĂƒ ĂžÂœĂ• ĂŒÂœ Ăƒ>viÂ?Ăž >˜` ivwVˆiÂ˜ĂŒÂ?Ăž remove and install Pickup Boxes with only one operator in a matter of minutes! *DOLLIES ALSO AVAILABLE!
3 MADE IN AMERICA You read that right, our product is 100% American made. Rest assured knowing your dollar supports domestic business.
THE FENDER PAINT STAND V>˜ LÂœÂœĂƒĂŒ ĂžÂœĂ•Ă€ ÂŤĂ€ÂœwĂŒĂƒ LĂž ˆ˜VĂ€i>ĂƒÂˆÂ˜} ĂŒÂ…i ivwVˆi˜VĂž Âœv your collision repairs and painting process.
THE LIFT KING HEAVY DUTY PACKAGE allows you to remove and install Semi œœ`Ăƒ Ăƒ>viÂ?Ăž >˜` ivwVˆiÂ˜ĂŒÂ?Ăž ĂœÂˆĂŒÂ… one operator, with additional tilting mobility for body repair and painting. *DOLLIES ALSO AVAILABLE!
*DOLLIES ALSO AVAILABLE!
EFFICIENT Using four mechanics
to remove or install a semi hood or pickup bed is a liability and not productive. Use the Lift King and one person. 7 November 2020 Texas Automotive
SAFE Meets requirements for ASME PASE-2014 Safety Standard. WWW.NETWORK1SOLUTIONS.COM
Editor’s Message
WHO MATTERS MOST?
S
Joel Gausten Editor
Since its formation, ABAT has tirelessly worked on behalf of both consumers and the collision repair facilities that serve them. e association has spent years pushing to bring a variety of issues to the attention of the Texas Department of Insurance (TDI) while keeping vehicle owners informed of their rights and options during the repair process. Although ABAT has been vocal in bringing problems with insurers to light, consumers are the ones whose opinions and experiences truly matter. e problem for ABAT (as well as other industry associations) has always been getting consumers to directly discuss the roadblocks they often face from the insurance side in receiving a safe and proper repair. at’s about to change. is issue of Texas Automotive includes the first in a series of articles that will feature interviews with informed consumers who have taken the necessary steps to be made whole from their collision-related loss. No matter how many articles we publish on shops’ frustrations with insurers, nothing competes with printing consumers’ words on
what they’ve experienced. We open our magazine to any vehicle owner who would like to offer their thoughts on the repair process, where things went wrong between the shop and the insurer and how things were ultimately resolved. Please read this month’s content and reach out to us if you have a customer who is interested in talking with us. e more we are able to reflect realities from the consumer side of the fence, the more ABAT and the Texas automotive community will be able to provide TDI and other state entities with the information and insight necessary for them to change things for the better. Consumers are the key; let’s work together to make sure their voices are always heard. TXA
joel@grecopublishing.com
8 November 2020 Texas Automotive
9 November 2020 Texas Automotive
Hours of Operation: Monday - Friday: 8am - 5pm • Saturday: 9am - noon
Email: tarafoster@jjpaintsupply.com
Automotive Paint • Industrial Paint Paint and Body Equipment • Detailing Supplies Body Shop Supplies • Body Shop Management and Training
FOUR LOCATIONS SERVING NORTH TEXAS AND THE SURROUNDING METROPLEX FOR THE LAST 28 YEARS! 309 S. Garland Avenue Garland, TX 75040
(972) 271-9921
301 West 16th Street Mt. Pleasant, TX 75455
(903) 717-7330
536 West Division Street Arlington, TX 76011
(817) 861-9921
NEW LOCATION! 143 S. Buckner Blvd. Dallas, TX 75217
(469) 677-9927
10 November 2020 Texas Automotive
11 November 2020 Texas Automotive
BIGGEST SKEET SHOOT ABAT Hosts
LOCAL NEWS
! R E V E
Photos by: Heather Gaven
On October 16, the ABAT community gathered in full force at Elm Fork Shooting Sports in Dallas for the 2020 Dean Griffin Memorial Skeet Shoot. In addition to boasting gorgeous weather, the Skeet Shoot drew the largest crowd in its four-year history. “We had more people than ever!” says ABAT Executive Director Jill Tuggle. “Everybody had such a good time. e excitement was really at a
high level this year. Getting this amount of participation just blew us away. We were adding teams up to the 11th hour.” is year’s event was the first to be named in honor of ABAT Board member and beloved industry figure Dean Griffin, who passed away last year at age 56. Dean’s wife, Kim; daughter, Natalie; and mother-in-law, Linda Denison, were among his family members in attendance. ABAT has committed to creating a special college fund for Natalie, with half of the proceeds from this year’s raffle going toward the cause. Additional donors so far include ABAT President Burl Richards, Southwest Sales and Marketing and Moritz Dealerships. For more information on how to contribute, please contact Jill Tuggle at jill@abat.us. e Skeet Shoot drew nearly 100 attendees (including 68 shooters spread over 18 teams) and featured an appearance by a professional cigar roller. e top raffle prize was a Black Rain AR rifle, while the second raffle prize was an SKB shotgun. (Both guns were provided by Frank’s Friendly Firearms in Rockwall.) e First Place team (Texas Towing, Inc.) received special cooler bags, while the top three individual shooters (Craig Towson, Guy Adcock and Ryan Towson) each received Cabela’s gift cards. anks to J&J Paint Supply for signing up for two teams this year! TXA
12 November 2020 Texas Automotive
ABAT would like to thank the following sponsors for making this year’s Skeet Shoot a success:
Title Sponsor
Texas Towing, Inc.
Platinum Sponsors
AkzoNobel, Auto Tech Services, Axalta, BASF, Capital Paint and Refinish LLC, Car-O-Liner, English Color and Supply LLC, FinishMaster, J&J Paint Supply, Jordan Towing, Inc., Moritz Dealerships, National Coatings & Supplies/Single Source, Inc., Paint Works and Park Place Dealerships
Gold Sponsors
3M, AAMStraining.com, All Star Collision Center, Burl’s Collision Center, Innovative Collision Equipment, Sherwin-Williams Automotive Finishes, Southwest Sales and Marketing and WheelTechnologies.com
Silver Sponsor
A-1 Auto Glass, Inc.
Bronze Sponsors asTech and CCC
Special thanks to this year’s
SKEET SHOOT COMMITTEE: Brandon Gillespy, Kevin Ellison, David Osburn and Jill Tuggle
13 November 2020 Texas Automotive
REPAIRS AND THE APPRAISAL CLAUSE:
LOCAL NEWS
By Joel Gausten
A Customer’s Perspective
Dale Barton with the repaired MINI Cooper Clubman When a recent auto collision caused damage to Tyler resident Dale Barton’s wife’s 2017 MINI Cooper Clubman, he immediately knew he’d be taking it to Burl’s Collision Center in Henderson – his body shop of choice for 25 years – for repairs. “e first time I used Burl’s shop, I had done some research into who was the best in our area,” explains Barton, who was living in Kilgore at the time. “I saw that he was the guy to go to. He made a great first impression, and he did the work well. It’s very important to know who’s working on the car and the fact that they pledge to do a good job and do it right the first time.” Unfortunately, his latest trip to Burl’s Collision Center resulted in a disagreement between the shop and Allstate – Barton’s insurer since 1996 – over how to properly repair the vehicle. Barton, who has continued to use Burl’s over the years due to the facility’s OEM certifications and investments in proper equipment, stood by the shop’s position on the matter throughout the process. “is was about doing the repair the right way versus doing it the wrong way. Generally, when customers have an accident or have a car that needs to be repaired, they’re looking at it from a perspective of, ‘Well, I’m going to have to either pay for a rental car or get one. I’m in a hurry; this is going to interrupt my schedule.’ None of that is part of my mentality. I would rather take enough time to get the repair done right than hurry up and try to fix it.” At the suggestion of Burl’s Collision Center owner (and ABAT
President) Burl Richards, Barton elected to utilize the Appraisal Clause in his Allstate policy. With the help of Robert McDorman of Auto Claim Specialists*, the Appraisal Clause process led to Barton driving away with a properly repaired vehicle while being made whole for his loss. “Robert knows what he’s doing; he knows things are going to turn out the way he predicts they’ll turn out. It did in my case. is is a win for me, a win for Burl’s Collision and a win for Auto Claim Specialists. I have no ill will toward Allstate; they approved of the way Burl and Robert said was the right way to repair my vehicle, so I’m a happy customer.” Pleased to finally have his vehicle back to pre-accident condition, Barton encourages his fellow consumers to take their time in selecting a repair facility that has the same level of expertise, experience, OEM certifications and state-of-the-art equipment as Burl’s Collision Center. “As consumers, we’re bombarded by either TV or other media with ads for these big collision repair shops. I’m sure some of them are very good, but you can’t go in with the attitude of, ‘I don’t care who fixes my car; I’m in a hurry.’ It’s better to do your own research, find somebody who’s been to the shop before and base your decision on that.” *Read this month’s Ask the Expert by Robert McDorman for his perspectives on the Appraisal Clause and Barton’s repair. TXA
16 November 2020 Texas Automotive
N NO URE U NOT OT SU W AT PAIN WHA A NT L INE E IS BES B ST LINE FOR YO F OU U? With over 50 years off industry experience x ence, FinishMaster understands tands your needss and what w it takes to succeed. Our knowledgeable professionals p are here to help advise se you and serve e as an educational nall resource for yo our business.
CALL US TODA AY 866 -7111- 5235 www.finishmaster fi .com/wecanhelp
WE ARE HERE TO HELP – FR ROM STAR A T TO FINISH
NATIONAL NEWS
SCRS Virtual
Education Series
2021
to run through
In response to the cancelation of this year’s SEMA Show, the Society of Collision Repair Specialists(SCRS) has announced the creation of a virtual edition of its 2020 Repairer Driven Education (RDE) series. e program, which will be held in conjunction with the web-based SEMA360, will initially run November 2-6 and will then be available for on-demand viewing through August 2021. Confirmed
RDE presenters include Dave Gruskos (Reliable Automotive Equipment), Mike Anderson (Collision Advice), Danny Gredinberg (Database Enhancement Gateway), Tim Ronak (AkzoNobel) and John Shewbridge (Hunter Engineering), among others. e online RDE Full Series Pass provides access to ALL sessions being offered in the 2020 RDE series at a convenient price. Unlike the live SEMA Show in Las Vegas, where attendees have to pick and choose between sessions within a timeslot, the virtual RDE Full Series Pass will provide access to all sessions produced for the series. Individual sessions are also available to purchase. “Delivering education at the annual SEMA Show is of great importance to us as an association in trying to bring relevant information to repairers who are trying to better their businesses,” comments SCRS Executive Director Aaron Schulenburg. “We are fortunate that we can pivot from a live format to online, as it’s been a pretty natural trend over the past six months. But I think we are able to
18 November 2020 Texas Automotive
Continued on page 25
Fair settlements through knowledge and negotiation!
Contact us from anywhere in the U.S. to have a local Auto Claim Specialist working for you!
Founder Robert McDorman 19 November 2020 Texas Automotive
Ask the Expert
Is There a Safety Net to a Proper Repair? dear Mr. Mcdorman:
Robert is a recognized Public Insurance Adjuster and Certified Vehicle Value Expert specializing in motor vehicle-related insurance claim resolution. As the general manager of Auto Claim Specialists, Robert expertly leads this National Public Insurance Adjuster Agency, which is currently licensed in over 25 different states and specializes in providing automotive-related claim liquidation techniques, strategies and motor vehicle valuation services to all parties, including individual consumers, body shops, auto dealers, repair facilities, towing and storage operations, lenders, finance companies, banks, legal professionals, governmental agencies and others. The firm’s consistent success can be attributed to Robert’s 35-plus years of automotive industry knowledge, practical hands-on experience and multiple certifications, including licensure by the Texas Department of Insurance as a Public Insurance Adjuster. Auto Claim Specialists clients can absolutely trust that they will be provided with analytical, sophisticated, state-of-the-art, comprehensive, accurate, unbiased and up-to-date data and information that all parties can rely upon as both factual and objective. Robert can be reached at (800) 736-6816, (817) 756-5482 or AskTheExpert@autoclaim specialists.com.
this is dale Barton from tyler. You recently, once again, helped me resolve an insurance claim dispute on my wife’s 2017 Mini Cooper. as before, you saw to it i was completely indemnified for the loss. now that we have resolved the loss dispute, i feel compelled to ask you about the appraisal process we used to have my car returned to its pre-loss OeM condition and hold allstate accountable for the loss. i chose to ask you this question through your monthly Texas Automotive editorial with the hope that your explanation could assist others in a similar situation and help keep them from settling for substandard, possibly unsafe repairs. When i called you for help with my loss dispute, allstate had already issued a final loss statement/repair plan to return my vehicle back to its pre-loss condition for $1,226.33. My shop of choice for well over 25 years, Burl’s Collision Center, issued a repair plan to return my vehicle back safely and properly to its pre-loss OeM condition for $5,094.58. allstate assured me they had properly indemnified me for the loss with its $1,226.33 repair plan. Based upon the difference between the two repair plans, i was facing $3,868.25 out of pocket to have Burl’s Collision Center perform the necessary and required repairs to my vehicle. Please understand there was never a doubt in my mind that Burl’s was going to be the facility to safely repair my wife’s vehicle. However, the large out-of-pocket expense before the completion of the repair didn’t seem fair. therefore, i retained auto Claim specialists as my public insurance adjuster to address this indemnification issue and Vehicle Value experts as my independent third-party appraisal firm to issue a loss statement/repair plan. as a result of going through the appraisal process, my independent appraiser and the independent appraisal firm for allstate came to a binding agreement of $6,465.67 to return my vehicle safely and properly to its pre-loss OeM condition. this amount included what would have been supplemental charges at
Burl’s after the complete disassembly process. in fact, after the completion of the repair and the finalization of the appraisal process, my loss was in fact $6,465.67, and allstate has made me whole for the loss. My question is twofold: How could the allstate appraiser issue a loss statement/repair plan for only $1,226.33 when the unbiased qualified independent appraisers came to a binding agreement for $6,465.67, and does each policy in texas have provisions in place to prevent this type of gross underindemnification of the insured? do you see this often? ank you for your question, Mr. Barton, and we appreciate your continued business. Your question is a particularly good one, as this is a sensitive issue here in Texas. Yes, we see this type of situation daily in our office, and there has been an alarming spike in this type of loss dispute since the pandemic began. As in your situation, generally what we see is the insurance carrier’s appraisers who write the loss statements/repair estimates have very little knowledge of how to compose a safe and proper repair plan. ey have limited knowledge of the collision repair process, have spent little or no time working in the collision industry and refuse to accept the advice, knowledge, education, certification and hands-on experience of the certified collision facility as to the safe and proper method to return the vehicle to its pre-loss OEM condition. In most situations such as yours, the insureds do not know and are not being informed that they have options inside the four corners of their policy to combat the inexperienced, underqualified and potentially dangerous carrier appraiser repair plan methodology. With that being the case, many individuals end up taking their vehicle to a less than desirable, uncertified collision facility that then performs the repairs based on the underindemnified and, in most cases, unsafe repair plan as written by the clueless insurance appraiser. However, the problem is deeper rooted than just the under-indemnification of the loss. e insurance carriers use statistics from their underindemnified, improper and, in most cases, unsafe repair plans as a weapon to penalize collision facilities that invest significant resources on education, certification andquality equipment to
20 November 2020 Texas Automotive
By Robert L. McDorman
The biased, manipulative and overly profit-minded insurance carrier should never be given the absolute right over the liquidity of the insured’s loss. perform truly safe and proper repairs. e statistical results of this scheme are referred to in the policy as the prevailing rate or practice. So, in other words, if it is documented and recorded by the carriers that more collision facilities accept the under-qualified carrier appraiser’s repair plan as the safe and proper loss statement/repair plan, they can – through their own initiative – make improper and potentially dangerous repair methodology the “prevailing practice.” is borders on being diabolical! When the deceitfully claimed and concocted “prevailing practice” is the tool used by the carrier to measure the loss liability, and the insured chooses a qualified and certified collision facility to perform the OEM required operations to return the vehicle to its pre-loss condition, the loss statement difference between the two is clearly an indemnification issue. e Appraisal Clause is not only a mechanism to prevent the insured from being under-indemnified for their loss; it is an invaluable tool to make sure that when there is a dispute between the carrier and the collision facility over the proper repair methodology, independent, experienced and unbiased appraisers can be brought in to determine the safe and proper processes to liquidate the loss. As an example, and as you now clearly see from your own experience, the Allstate policy is friendly to the rights of the insured to contest the inexperienced or malicious appraiser’s repair plan methodology or loss statement. e Allstate Motor Vehicle policy Appraisal Clause reads as follows: Allstate Appraisal Clause: If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent appraiser. e two appraisers will select an umpire. e appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding.
Appraisers shall have no authority to decide any other questions of fact, decide any questions of law or conduct appraisal on a classwide or class-representative basis. If you had been insured with State Farm and were presented with the same situation, your right of appraisal in contest of the loss regarding the proper repair process and procedure for your vehicle would not have been available. As we see below, the Texas State Farm Motor Vehicle Appraisal Clause reads: (1) e owner of the covered vehicle and we must agree upon the actual cash value of the covered vehicle. If there is disagreement as to the actual cash value of the covered vehicle, then the disagreement will be resolved by appraisal upon written request of the owner or us, using the following procedures: (a) e owner and we will each select a competent appraiser. (b) e two appraisers will select a third competent appraiser. If they are unable to agree on a third appraiser within 30 days, then either the owner or we may petition a court that has jurisdiction to select the third appraiser. (c) Each party will pay the cost of its own appraiser, attorneys and expert witnesses, as well as any other expenses incurred by that party. Both parties will share equally the cost of the third appraiser. (d) e appraisers shall only determine the actual cash value of the covered vehicle. Appraisers shall have no authority to decide any other questions of law, or conduct appraisal on a class-wide or classrepresentative basis. (e) A written appraisal that is both agreed upon by and signed by any two appraisers, and that also contains an explanation of how they arrived at their appraisal, will be binding on the owner of the covered vehicle and us. (f ) We do not waive any of our rights by submitting to an appraisal. us, the State Farm policy has limited the right of appraisal to actual cash value disputes only. e State Farm policy even goes one step further to limit the insured’s right to contest the underindemnified or unsafe State Farm written repair plan as stated in the policy language below:
Each party will: 1. Pay its chosen appraiser; and 2. Bear the expenses of the appraisal and umpire equally We do not waive any of our rights under this policy by agreeing to an appraisal. In most policies in Texas, when a dispute over the loss occurs, the loss dispute is subject to the Appraisal Clause. However, the State Farm policy limits the insured or insurer’s policy right of an appraisal to only the loss dispute over the actual cash value (ACV) of the covered vehicle by stating:
You agree with us that the repair estimate may include new, used, recycled and reconditioned parts. Any of these parts may be either original equipment manufacturer parts or non-original equipment manufacturer parts. e Appraisal Clause language shown in your Allstate policy is the standard Appraisal Clause language we see in most motor vehicle policies in Texas. Fortunately, the State Farm Appraisal Clause
21 November 2020 Texas Automotive
Continued on page 25
Russell & Smith Logging Big Paint Hours with USI Booths & Prep Station Buying a paint booth is a huge investment, and there are many factors to carefully consider before selecting one. Will the booth work well in a region where there’s a ton of humidity and with drastic changes in the weather? How long do you think the booth will last and will it require a lot of maintenance? Will your painters be comfortable using it every day and finally, will the company making the booth provide solid training and reliable customer service? To answer these questions before acquiring two Chronotech spray booths and a prep deck from USI ITALIA back in 2004, Collision Center Manager Kevin McIllveen at Russell & Smith Body Shop in Houston, TX spent six months studying the market. He was looking for the best booths that matched his needs to use in a brand-new 36,000 sq. ft. facility that the company built from the ground up. Mcllveen, age 56, entered the industry more than three decades ago as an estimator and has worked for Russell & Smith Body Shop since 1993. His goal with his new spray booths was to improve the efficiencies in his paint department and to accommodate his production, he said, while simultaneously saving time and energy if possible. The vetting process was arduous but worth it in the end. "We did our research so that we could make an educated decision," he said. "I went to NACE two years in a row and talked to literally everyone and asked a lot of questions. We knew that this was going to be a very significant investment, so we took the time to perform our due diligence to cover all our bases. We invested in their prep stations as well, which was another good decision, because my guys can work so much faster and effectively with five different places where we can spray. We put a curtain up in the prep booth that provides us two additional spaces that are heated and properly ventilated. So, when we are really jammed, we can handle the workload and maintain our cycle time without interrupting or slowing down our production." After using them for a very short time, Mcllveen could clearly see that his Chronotechs were more than capable as they quickly became a centerpiece in his new, high-end, modern shop. "We have four paint teams here, consisting of a painter and a painter’s helper and we consistently log approximately 600-700 paint hours weekly,” he said. “We switched to waterborne paint when we opened this facility because we want to provide a healthier climate for our employees and the community as a whole.” Why was Mcllveen able to improve his numbers by simply adding two USI booths? “In the end, it all comes down to their airflow because we never need blowers or additional air to cure these vehicles. The fans in these Chronotechs are exceptional because they feature variable speeds, so we can switch depending on the parameters of each job. Our painters are producing an impressive product day after day, so these booths are saving us both time and money. We paint an average of 400 cars every month, so
we push these booths and they never let us down.” Any issues that Russell & Smith Body Shop have encountered with their USI ITALIA booths have been rare and far between. But Mcllveen feels good knowing that if called upon, the company will respond and find solutions promptly. “If you do your scheduled maintenance and keep everything clean, these booths will last you 30 years and maybe even longer. The issues that we have encountered with the Chronotechs have been minor and quickly solved, which is impressive when you think that we have been using these booths daily for the last 16 years. I tell people that these booths will be here long after I’ve retired!” After training provided by USI ITALIA, Mcllveen’s painters were able to start spraying after one day, he said. "The Chronotechs are designed to work with waterborne paint, which makes it easier for our painters to do their work. After a very short time, all of our guys were comfortable and the results were consistently exceptional.” Mcllveen is also impressed by the Chronotech's sturdy construction and durability. "Some booths are just a box, but these are wellbuilt," he said. “I know, because I've seen them all and there isn't anything like a USI ITALIA booth." His career in collision repair industry has been a great experience and products like his USI ITALIA spray booths and prep station are a part of that, he said. “We haven’t had to furlough anybody here and that’s because we value our people and, in the end, our Chronotechs are part of the team.”
USI of North America | 565 Commerce Street Franklin Lakes, NJ 07417 | 201-405-7761 | s.moretto@usius.com | www.usius.com 22 November 2020 Texas Automotive
President’s Message
Executive Director’s Message
Continued from page 4
Continued from page 7
deprives the customer of pursuing this critical route when they face an issue with their repair. TDI is supposed to be looking out for what’s best for consumers; it is my belief that they are dropping the ball when it comes to State Farm. I encourage everyone to read this issue for both industry insights into the Appraisal Clause and my customer’s firsthand experiences. Texas Automotive will be featuring other interviews with customers in upcoming issues. If you have a customer who would like to share their stories about issues they’ve encountered with insurers, please contact Texas Automotive Editorial Director Joel Gausten at joel@grecopublishing.com or (603) 680-4324. ABAT will always put the consumer first, and now they will have a say in this magazine. Stay tuned.
same way, but each region’s outcome can be very different. ere are some hallmarks for success, and it’s all in the hands of the members. Take our new chapter in College Station, for example. We hosted a meeting there on a ursday; by Friday, they had a group LET US email going. Within three TURN THEM weeks, they had conducted a AROUND! full survey with results and already had another meeting. ey used ABAT and me to handle administrative duties to accomplish some of this. I was thrilled to take on the workload, because THIS is what we are here for. How can WE HELP YOU? Reach out to me directly, and let’s make moves in your market.
TXA
Contact Texas Automotive Sales Director Alicia Figurelli
TXA
(973) 667-6922
burl@burlscollision.com
ALICIA@GRECOPUBLISHING.COM
jill@abat.com
We Are Committed to
QUALITY REPAIRS
that Align with OEM Procedures Lifetime Warranty
Fully Insured Repairs
We stand behind our work 100% All of our repair services are backed by a five million dollar insurance policy.
Customer Satisfaction
You can be sure that if your wheels are repaired by Wheel Technologies, you can deliver it to your customer with confidence!
Independent Lab Tests
Download our app to schedule your next repair! Available on the Apple App store, Google Play and Android stores!
We take wheel repair seriously and have had our repaired wheels randomly tested by an independent testing lab to ensure quality repairs.
800-210-2371
23 November 2020 Texas Automotive
NEWS FROM SHERWIN-WILLIAMS
Sherwin-Williams Automotive Finishes
Debuts Quality Failure Prevention App Sherwin Williams Automotive Finishes will address quality first with Collision Core, its comprehensive suite of intelligent and fully mobile applications. Collision Core Quality, available to collision centers as a single app purchase, verifies and validates the repair process in real-time with a focus on error elimination and labor optimization. “Quality is the foundation of a stable, sustainable and successful business,” says Louisa Martone, strategic marketing director for Sherwin-Williams Automotive Finishes. “It is an area that the collision repair industry collectively needs to address. With this specific application, we’re focused solely on quality with a digital solution that is accessible to everyone involved in the repair and reporting process.” e Sherwin-Williams Collision Core Quality App replaces paper checklists and end-of-repair quality controls with an easy-to-use mobile application that delivers in-process, time-stamped and validated information. e application enables peer-to-peer quality verification and validation assurance and delivers the customer a digital record of all the vehicle’s repairs. “Technicians don’t have to leave their workstation to get an answer,” Martone says. With in-process documentation, the technician records a task in
identifying the most common failure types using data-rich reporting tools. • Increase the number of quality inspectors without increasing your head count by enabling the team to validate quality at each step of the repair process. Increased Customer Satisfaction • Deliver high-quality repairs the first time – every time. • No more last-minute surprises at delivery or delays – addressing issues long before the customer is aware. • Automatically produce a certificate to validate repair quality, giving the customer reassurance. Reduced Liability • Import line items directly from your estimating system. • Customizable SOPs outline every step in the repair process along with a well-defined set of individual and departmental responsibilities. • Evidence, verify, photograph and store each repair report to protect against future claims.
The application enables peer-to-peer quality verification and validation assurance and delivers the customer a digital record of all the vehicle’s repairs. the Quality App, and the next technician in line verifies the repair work meets shop and OE criteria. Repairs are recorded and photographed to capture data, create training opportunities and allow for a better repair standard now and in the future. With the Collision Core Quality App, there are no delays in communication and reporting or any last-minute surprises, which improves repair confidence and on-time delivery. Its intuitive navigation enables early adoption and continued use within the team. Feature-rich, this multi-faceted app also delivers consistent, measurable outcomes in the form of: Reduced Costs • Less reworks through identifying any errors at the source. • Increase productivity by communicating and highlighting issues with parts or quality directly with other departments. • Improve cycle time by addressing issues at the root cause and
Increased Employee Engagement and Satisfaction • Employees know exactly what is expected of them. • Increase efficiencies by reducing time spent sourcing help from other departments and carrying out any unpaid reworks. • Reassurance that technicians carry out the repair to specification. • Link to Collision Core Learning — a comprehensive management system for additional training requirements. Collision Core Quality offers the added connectivity to estimating and management systems. As Martone says, “We’re focused on helping any collision center, regardless of who they’re buying paint from, prevent the continued occurrence and added expenditure associated with quality failures.” For more information, visit https://industrial.sherwinwilliams.com/na/us/en/automotive/customer-programs/collision-co re.html. TXA
24 November 2020 Texas Automotive
National News Continued from page 18
execute on our delivery in a way that is going to feel very unique to other online events. We’ve put quite a bit of effort into developing our delivery in a way that is still going to retain the feel of a national-level event, videoing our speakers’ presentations live and in person rather than a more typical ‘Zoom-based’ platform. I think it presents some interesting opportunities that in-person events aren’t always able to offer.”
Ask the Expert Continued from page 21
language that severely limits the insured’s right to contest a loss is not the norm, nor should it ever become so. In fact, it should be changed to match the other carrier policies. It is my professional opinion that a motor vehicle policy with limited or restricted appraisal rights leaves insureds facing similar situations such as yours having their vehicle unsafely repaired more times than not due to the inability to contest the loss and hold the carrier accountable to a safåbly and amicably by unbiased, experienced and independent third-party appraisers as opposed to more costly and time-consuming methods, such as mediation, arbitration and litigation. In today’s world regarding motor vehicle insurance policies, frequent changes in claim management and claim handling policies and non-standardized GAP Addendums, we have found it is always in the
“GET ME
GRECO PUBLISHING
“Attendees can expect the same unique content they would have in classroom settings now delivered to the convenience of their own facility,” noted SCRS in a statement. “is is an opportunity to involve the entire staff within a collision business to acclaimed national-level education while capitalizing on information designed to re-energize any team member with knowledge and implementable solutions to realworld problems.” For a full list of RDE sessions and speakers, visit rde.scrs.com/ courses. More information on SCRS is available at scrs.com. TXA
best interest of the insured or claimant to have their proposed insurance settlement reviewed by an expert before accepting. ere is never an upfront fee for Auto Claim Specialists to review a motor vehicle claim or proposed settlement and give their professional opinion as to the fairness of the offer. Please call me should you have any questions relating to the policy or covered loss. We have most insurance policies in our library. Always keep in mind that a safe repair is a quality repair, and quality equates to value. I thank you for your question and look forward to any follow-up questions that may arise. TXA
Sincerely, Robert L. McDorman
The 300 Advantage™ Providing real-time intelligence before, during, and after a hail storm
NOW!” Our network of local partners allows us to scale to any sized hail event. Our technology provides real-time visibility and performance measurements to keep business moving. Our people and repair management systems ensure the least amount of business disruption as possible.
Reach THOUSANDS of customers every month in print & online!
LET US SHOW YOU HOW! Contact: Alicia Figurelli - Sales Director
Our business model protects our clients’ core business within auto dealerships, body shops, fleet companies, and insurers alike.
But don’t just take our word for it... CALL 636-734-5470 EMAIL ryan@the300advantage.com
973.667.6922 ALICIA@GRECOPUBLISHING.COM 25 FEBRUARY 2020 Texas Automotive
To learn more!
WE HAVE EVERYTHING, VIRTUALLY. VIRTUAL TOUR TOUR
VIRTUAL TOURS AVAILABLE NOW (NO RESERVATIONS REQUIRED)
Spanesi® manufactures a complete equipment line for your collision repair facility. On display 24 hours a day ZH LQYLWH \RX WR WDNH D WRXU RI RXU RƯFHV WR VHH WKH Touch electronic measuring system, PULL UP! repair system, spray booths, preparation stations, our line of welders and straightening benches 1R RWKHU FROOLVLRQ UHSDLU HTXLSPHQW PDQXIDFWXUHU KDV HYHU\WKLQJ \RX QHHG under one roof. www.spanesi-americas.com/vrtours/spanesiamericas
(844) 810-2573 innovativecollisionequipment.com
12787 TX-155 Tyler, TX 75703
26 November 2020 Texas Automotive
authorized distributor
www.spanesi-americas.com facebook.com/spanesiamericas
27 FEBRUARY 2020 Texas Automotive
THE S Y S TEM FO OR THE CUSTOMER T H AT WA N T S
O NE E O NE E SOL L UTION N
PA RT N E R YOUR S YS T EM I S SUNFIRE PR R O ™. YOUR PAR T NER I S SHERWIN - WILLIAM W S® A UT O M O TIV VE FINISHE S .
IT IS TIM ME T O C ONVER R T. sherwin-automotive.com/sunfir s repro