The official publication of the Auto Body Association of Texas
February 2021 $5.95
REAL-WORLD LABOR TIMES
Inside ABAT’s Support of Database Enhancement
PLUS:
• Battle of the Beetle • Out with the Old • A Simple Formula Gone Wrong
www.grecopublishing.com
Contents
FEBRUARY 2021
on the
cover
Official publication of the Auto Body Association of Texas
REAL-WORLD LABOR TIMES: Inside ABAT’s Support of Database Enhancement
ABAT BOARD OF DIRECTORS
14
by Joel Gausten
DEPARTMENTS
4 6 7 8 10 17 18 20
PRESIDENT’S MESSAGE by Burl Richards Out with the Old... EXECUTIVE DIRECTOR’S MESSAGE by Jill Tuggle Help Us Score a Touchdown ABAT MEMBER APPLICATION EDITOR’S MESSAGE by Joel Gausten A Simple Formula Gone Wrong VENDOR SPOTLIGHT by Alana Bonillo BOLT ON TECHNOLOGY ABAT ALERT H.B. 1131 Has Been Introduced & We Need Your Help!
President Burl Richards Burl's Collision Center burl@burlscollision.com (903) 657-8082
Vice President Eric McKenzie
Chairman of the Board Corey Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361
Treasurer David Osburn ozzy6384@gmail.com
Park Place Dealerships emckenzie@parkplace.com (214) 443-8250
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
Larry Cernosek Deer Park Paint & Body lcwrecker@comcast.net (281) 930-1539
Chad Neal Innovative Collision Equipment Chadwneal@yahoo.com (817) 527-2143
Kevin Ellison Westway Ford kellison@vtaig.com (972) 584-9033
Logan Payne Payne & Sons Paint & Body logan@paynescollision.com (214) 321-4362
Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136
Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564
John Kopriva Kopriva Body Works jtkopriva@gmail.com (713) 923-4412
Darrell Smith McDaniel’s Quality Body Works Inc darrell-mcdaniels@sbcglobal.net (903) 753-5391
Greg Luther Helfman Collision gluther@helfman.com (713) 574-5060
Mike Williams All Star Collision Center sales@allstarcollision.us (903) 589-3160
Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963 PUBLISHER Thomas Greco / thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com
ASK THE EXPERT by Robert L. McDorman “How Could USAA Do This to My Beetle?”
EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com
THE CONSUMER’S VOICE by Joel Gausten Battle of the Beetle: An Insured Wins in Winnsboro
OFFICE MANAGER Donna Greco / donna@grecopublishing.com
EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com
PRODUCTION COORDINATOR Joe Greco / joe@grecopublishing.com
ADVERTISERS’ INDEX 300 Advantage..................................................... 4
Innovative Collision Equipment........................ 22
Auto Claim Specialists........................................ 15
Paint Works Dallas............................................... IFC
Beacon Equipment Resources......................... 8
Reliable Automotive Equipment....................... 12-13
Bolt On Technology............................................. 11
Sherwin-Williams.................................................. OBC
CAR-O-LINER Southwest................................... 9
Tasco Auto Color................................................. 21
Charles Maund Toyota....................................... 16
USI North America............................................... 5
Ecotech................................................................... IBC
Wheel Technologies........................................... 17
FindPigtails.com.................................................... 16 3 FEBRUARY 2021 Texas Automotive
www.grecopublishing.com
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 © 2021 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
OUT WITH THE OLD...
A
Although we’re only two weeks into 2021 as I write this message, a lot has already happened to our nation – and to our industry here in Texas. As America continues to grapple with COVID-19 and political unrest, more than a few of our members are currently dealing with real snowfall hitting their areas. It’s getting to a point where nothing is surprising anymore. Through it all, I hope everyone reading this stays as safe, healthy and prosperous as possible as this year rolls on. This month, I’d like to devote my President’s Message to the importance of considering new directions in business. I’m not talking about making a typical New Year’s resolution that doesn’t stick; I’m referring to adapting new philosophies in your day-to-day operations that can result in real and lasting change. There are only so many hours in the day, and it’s very easy for all of us to get stuck in our ways as we push against the clock. However, every one of us could benefit from taking a step back and seeing how we can do things differently to help our businesses grow and survive.
The 300 Advantage™ Providing real-time intelligence before, during, and after a hail storm
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. 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
When I became a shop owner years Burl Richards ago, my goal was to be the best. At first, I ABAT President thought that meant having a business model that revolved around getting as many vehicles through the door as I could. While bringing in new jobs is obviously still very important, I realized over time that my true business plan was to serve as a consumer advocate. After a few years, it wasn’t just about repairing vehicles for me; it was also about communicating with consumers and standing up for them when their insurers attempted to under-indemnify them and/or pursue repair methods that did not adhere to manufacturer specifications. Along the way, I began pursuing OEM certifications as a way to better ensure that my technicians always had the skills, equipment and training necessary to perform OEM-required/recommended procedures. As of this writing, my business has more than a dozen certifications. By raising our bar high enough, we’ve been able to align ourselves with various automakers who are as committed to vehicle occupant safety as we are. This has helped us better fulfill our role as advocates for the consumer – not the insurer. Ultimately, the direction I went in as a shop owner is simple: If I – as a consumer advocate and not just as a repairer – am going to partner with anyone, it’s going to be with the entities that designed the vehicles and know how they should be repaired. I decided to apply a new direction – a philosophy away from the common practice of becoming a referral shop – to attract and support new customers, and that decision has carried my business ever since. This message isn’t about DRP versus non-DRP; it’s about exploring new ways to become more successful at what you do. My “new way” was pursuing certifications and putting the consumer first, but your new direction might be switching up the SOPs in your front office. It doesn’t matter what it is as long as it comes from taking a fresh look at your situation and seeing what could be changed for the better. The only thing that should never change at any shop is its commitment to one party – the consumer – above all. That’s true of all facilities out there – independents and DRPs alike. With so many challenges facing us these days, we all could use some fresh perspectives. ABAT would love to hear about any new processes or directions you’re considering on your shop floors or in your offices. If you have recently done something new and exciting that’s helped your business, we encourage you to share your stories and successes with us. We are a community, and we all learn from each other. That’s what this association is all about. TXA
To learn more! 4 FEBRUARY 2021 Texas Automotive
burl@burlscollision.com
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 5 FEBRUARY 2021 Texas Automotive
Executive Director’s Message HELP US SCORE A TOUCHDOWN
W
We know that 2020 was a year of many hardships for all. ABAT has certainly felt the effects of the coronavirus, and it has given us the opportunity to take a look at what we do as an association. We have so many great things planned for 2021, but we simply cannot do it without Texas body shops getting more involved. We were able to get by last year with the hard work from a select few, but if we want to recover from a pandemic, pass legislation, bring you guys the best education in the country (for FREE) and host our Trade Show, you absolutely must get involved. To understand what we do, it is important to look at what an association is. An auto body association is not a company or consulting firm; it is a group of like-minded shops who band together to create positive change. It takes a team effort. Without our members, nothing can be accomplished. We often see shops sit around and wait for us to “do something for them.” ABAT is like the coach to a football team.
A good coach can make or break a team, but it requires talent on the field to win a championship. An association can’t just change the industry – but members of an association can. Of the over 6,000 body shops in Texas… • 500 body shops are on our email list; • 120 are ABAT members; and • 17 have participated in our current initiative.
Jill Tuggle
ABAT Executive Director
Recently, a conversation was had on social media where someone begged the question, “What has changed since the John Eagle case, and what has your state association done to make changes since then?” Several people responded, but none were ABAT members and very few said anything positive about the industry changing for the better. We realized that we need to reach more shops and get our existing members and followers more active. So, in 2021, we implore you to be the one who makes change and not someone who wants to sit on the sidelines. ABAT has some pretty amazing things planned, but we need you to step up and take the field with us. Texas needs to stack its team; we have the numbers and the talent. A touchdown for us will come from preparation and a sustained drive. Let’s give the armchair quarterbacks something to talk about and want to be a part of! It’s time for change. TXA
jill@abat.com
September 17 - 18 TEXAS AUTO BODY TRADE SHOW
2021
Irving Convention Center at Las Colinas, Irving, TX For more information, please contact Jill Tuggle - ABAT Executive Director (817) 899-0554 / jill@abat.us
Surrounded by the exciting Toyota Music Factory! 6 FEBRUARY 2021 Texas Automotive
7 FEBRUARY 2021 Texas Automotive
Editor’s Message
A SIMPLE FORMULA GONE WRONG
A
A few months ago, Texas Automotive – with ABAT’s encouragement – began featuring editorial devoted to giving consumers in this state a voice and an opportunity to share their experiences in the collision repair and insurance claim-handling processes. The reason for this addition was simple: As a trade publication, we can always preach to the choir with our coverage of issues between shops and insurers, but putting customers’ words on our pages provides true, unbiased insight into why the Texas Department of Insurance (TDI) and legislators need to address the problems that ABAT is always working to bring to their attention. Consumers have no agenda but to have their vehicles brought back to pre-accident condition in a safe and professional fashion, and they rely on repairers and insurers to make this possible. When this goal is missed or goes horribly wrong, vehicle owners pay the price. If our recent “Consumer’s Voice” articles are any indication, there is a serious disconnect between what Texas motorists reasonably expect from their auto insurers and what these
Joel Gausten Editor
companies actually provide them. We will continue to spotlight consumers’ struggles in our pages. Their stories deserve to be told. An auto accident is never pleasant, and insureds deserve more than having a difficult time made even worse by those who are supposed to make them whole. Auto body facilities are responsible for providing repairs that adhere to automaker-specified guidelines, and insurers are responsible to pay for them up to the limits of the policies they sold to their insureds. Any party that willingly fails to follow this simple formula is harming those who depend on them in times of need. In some cases, this negligence can result in severe financial hardship for the consumer – and even death if an improperly repaired vehicle suffers a malfunction or is involved in a subsequent collision. Insurers and shops need to do their part to make sure this never happens. TXA
8 FEBRUARY 2021 Texas Automotive
joel@grecopublishing.com
9 FEBRUARY 2021 Texas Automotive
VENDOR SPOTLIGHT
BOLT ON TECHNOLOGY provides a fast, easy and contact-free way for automotive shops to communicate with their consumers – and it’s all done in the palm of one’s hand. Founded in 2008, the company offers mobile communication tools and software – including NextGear, Mobile Manager Pro and Pro Pack – that enable shops to stay in contact with consumers via a text messaging platform where digital inspections, remote payments, appointment scheduling and repair history sharing can all be done with a few simple clicks. “What we have done is taken technology that people – including shop owners – use in their everyday lives and brought it into the automotive repair business,” states Tim Cifelli, BOLT ON’s director of marketing. “We have the data to show how this has benefited shops in terms of customer relations.” BOLT ON allows a shop to conduct a multi-point inspection with its customer. This is done using key visuals – such as color coding, photos and videos – that help the consumer understand the recommendations and required work. More importantly, the technology helps speed up the communication and approval process. “Previously, a customer would drop off their car and go about their day. A few hours later, the shop may call the customer and get their voicemail due to the person likely being too busy to answer the call. The service advisor will rattle off the items found due to the inspection. Maybe the customer will call right back, but more than likely, it won’t be for a few hours. Research has shown that the calling process can take hours but only three minutes over text.” With BOLT ON, the technician can
mark up images or take videos of needed repairs that customers can easily view and approve via their phone or tablet. They can even make their payment and set up future appointments. Of course, this contactless way of communication has especially been ideal during the pandemic, as customers are able to make mobile payments and pick up their vehicles at their convenience without having to enter the shop. BOLT ON started out catering to general automotive shops but has since expanded to include collision repair facilities, dealerships, specialty (motorcycle, boat, RV) shops and more. The company works with more than 10,000 repair shops throughout the US and Canada and some parts of South America. In Texas alone, the company services nearly 200 shops. Recently, BOLT ON was proud to reach a major milestone with its 50 millionth shared repair photo. At the time of this writing, it was soon to approach the 52-million mark. As the name implies, BOLT ON’s integrated software solutions are designed to “bolt on” to a shop’s management system to help that facility become more professional and profitable. The company has since launched a version of its software that doesn’t require a compatible management system while still offering many of the same features and benefits. Additionally, the company has instituted an in-house education program to train people on how to use the software and assist businesses with best practices. Cifelli looks forward to participating in ABAT’s Texas Auto Body Trade Show this fall and interacting with customers. As for long-range plans, he foresees more growth on the horizon as shops continue 10 FEBRUARY 2021 Texas Automotive
by Alana Bonillo
Show, Don’t Tell: Digital inspection photos and annotations sent to drivers help better communicate recommended repairs.
The customers receive an easy-to-follow digital inspection health report with photos and notes to quickly review, understand and approve recommended repairs and services. to be introduced to everything BOLT ON TECHNOLOGY has to offer. “We want to be able to help shops fix common problems and achieve many for the goals that they face so they can benefit from their blood, sweat and tears.” TXA
Cover Story
by Joel Gausten
REAL-WORLD Labor times:
Inside ABAT’s Support of Database Enhancement In addition to its everyday actions in support of the Texas collision repair industry, ABAT is now an official Gold Sponsor of the Database Enhancement Gateway (DEG). Launched in 2007, the DEG is an initiative designed to help improve collision repair estimates through proactive feedback about vehicle-specific errors, omissions and inaccuracies in database labor times available from the industry’s three major Information Providers (IPs): CCC, Mitchell and Audatex. The system can also be utilized to verify and document necessary operations that have been addressed by other users and confirmed by a specific IP. As of January 2021, the DEG had resolved nearly 17,000 inquiries from shops, insurers and other inter-industry personnel. A complete history of all inquiries is available at degweb.org. “Many of us on the Board have been active users and have spent a great deal of energy educating our member shops about the value of the DEG and what it provides to our industry,” ABAT President Burl Richards says. “We are excited to formally partner with the organization and give back in a meaningful way.” “We are all really proud to recognize ABAT for sponsoring the DEG with a generous contribution to help invest in industry resources that are having a positive impact on its membership,” comments DEG Administrator Danny Gredinberg. “ABAT’s support of our program helps to maintain the DEG as a free resource for the collision repair industry and is a true testament to the commitment the ABAT Board of Directors has made to its member base.” In addition to providing considerable clarification on P-Page language, the DEG has assisted repairers in better identifying and confirming not-included items. The recent industry downtime caused by the COVID-19 pandemic has resulted in greater use of the DEG and an increase in requests for database operations to be double-checked, verified and potentially increased. As an example of how useful the DEG can be for repairers seeking clarity (and perhaps more realistic labor times) on the shop floor, inquiry #16740 from August 2020 involved a 2017 Mercedes-Benz Sprinter and resulted in the following changes from CCC/MOTOR: In the Roof High Roof group, Headnotes, Refinishing Notes, the “Refinish Roof Complete” operation was deleted. In the Roof High Roof group, Roof & Components subgroup, the following updates have been made: • The estimated refinish time applied to the Front Roof Panel has been updated to 2.8 hours from 2.0 hours. • The estimated refinish time applied to the Front Panel has been updated to 4.8 hours from 2.2 hours.
• The estimated refinish time applied to the Center Panel has been updated to 3.4 hours from 1.8 hours. • The estimated refinish time applied to the Side Panel Center Front has been updated to 1.6 hours from 1.4 hours. • The estimated refinish time applied to the Side Panel Center Rear has been updated to 2.9 hours from 1.0 hours. Sometimes, an inquiry simply results in a clarification from an IP without a change. For example, DEG inquiry #17330 (submitted December 2020) asked for Mitchell to clarify what its database labor includes for aiming headlights, with the user adding, “GM, in addition to multiple other manufacturers, requires a full tank of gas, ballast placed for driver weight, removing personal belongings from the vehicle, [verifying] tire pressure, etc.” The company later sent the following proposed response to the DEG (presented below with minor edits for clarity): Mitchell does not create procedural page information for Lamp Aiming. Specific included and not-included operations are not defined. The published allowance for aiming the headlamps on the 2020 Camaro includes reasonable considerations to ensure they are aimed to spec as outlined by the service procedure. Variables identified in the service procedure, such as the following, have not been factored into the published allowance: • Removing any snow, ice or mud from the vehicle. • Filling or adding fuel to the tank. • Removing personal belongings from the vehicle. • Simulate vehicle loads if the intended use of the vehicle is for hauling heavy loads or towing a trailer. As the DEG continues to present resolutions to database concerns, the Society of Collision Repair Specialists (SCRS) – of which ABAT is an affiliate – is doing its part to share this critical information to the industry at-large. In addition to distributing free weekly DEG Estimating Tips to industry members via email and scrs.com, the SCRSCollision YouTube page recently launched a new series of weekly “SCRS Quick Tip” videos hosted by Gredinberg and industry consultant/presenter Mike Anderson (Collision Advice). Additionally, SCRS’ 2020 Repairer Driven Education series (available for purchase and online viewing through August 31, 2021 at rde.scrs.com) offers some powerful food for thought on the benefits of the DEG platform. During the presentation “Estimating Resources for Collision Repairers: Integrating the BOT and DEG into Your Repair Plan Process,” Gredinberg stresses that even something as seemingly minor as a discrepancy with a $1.50 clip is worthy of an inquiry. continued on pg. 19
14 FEBRUARY 2021 Texas Automotive
Fair settlements through knowledge and negotiation! We are experienced in negotiating claims with insurance companies. We have teamed up with Vehicle Value Experts for access to the best vehicle valuing tool available. Together, with the best knowledge and the best negotiating skills, we can ensure a fair settlement on your auto claim.
No One Else Comes Close to our Total Loss Value Assessment! Contact us from anywhere in the U.S. to have a local Auto Claim Specialist working for you! WE SUPPORT
771 East Southlake Blvd. Southlake, TX 76092 817-756-5482 Fax: 866-550-0484 Toll Free: 800-736-6816 claims@autoclaimspecialists.com
• Over 25 years of front line skilled knowledge & hands-on practical experience involving automotive mechanical repair
MEMBER
• Licensed Public Insurance Adjuster Agency with a duty to act on your behalf!
Insurance Automobile Claim Mediator • Insurance Appraisal Clause Umpire
Vehicle Value Experts is a unique Consultant Firm
that specializes in Insurance Total Loss Market Evaluation Reports; Mechanical and Body Shop Estimates and Finalized Motor Vehicle Repair Evaluations; Diminished Value Assessment and Claims as such and Motor Vehicle Fair Market Value Reports. 15 FEBRUARY 2021 Texas Automotive
Founder Robert McDorman
CALL THE TOYOTA SERVICE GUYS! 8400 Research Boulevard • Austin, TX 78758
Direct: (512) 421-8504 Direct: (512) 458-3300
MILLION DOLLAR INVENTORY! Receive an Additional
5% OFF
YOUR NEXT MECHANICAL PARTS ORDER WITH OFFER CODE
WE OFFER WHOLESALE PRICE MATCHING ON MOST PARTS!
MAUND
wes_newman@charlesmaundtoyota.com
SAME DAY ADAS CALIBRATIONS
16 FEBRUARY 2021 Texas Automotive
ABAT Alert
ATTENTION TEXAS BODY SHOPS:
H.B. 1131 has been introduced & WE NEED YOUR HELP! ABAT is working hard to prepare for the 2021 legislative session. Nothing is more impactful than legislators hearing from their constituents. Now that House Bill 1131 has been introduced, we need shops to step up and utilize ABAT’s consumer complaint form, located right on our website at ABAT.US. Do you have a client who was under-indemnified by an insurance company? Make their voice heard!
Image courtesy of Texas Watch
Wheel Technologies Ad_TXA0319.qxp_Layout 1 2/26/19 11:00 AM Page 1
Visit ABAT.US or contact ABAT Executive Director Jill Tuggle at (817) 899-0554 to get started! And don’t forget to join our email list to receive important updates by texting ABAT to 22828! *Message & data rates may apply.
We Are Committed to
QUALITY REPAIRS
that Align with OEM Procedures Lifetime Warranty
We stand behind our work 100%
Fully Insured Repairs
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
We take wheel repair seriously and have had our repaired wheels randomly tested by an independent testing lab to ensure quality repairs. Download our app to schedule your next repair! Available on the Apple App store, Google Play and Android stores!
800-210-2371
17 FEBRUARY 2021 Texas Automotive
Ask The Expert “How Could USAA Do This to My Beetle?” 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-theart, 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) 7565482 or AskTheExpert@ autoclaimspecialists.com.
Auto Claim Specialists recently helped me get my 2015 Volkswagen Beetle repaired after USAA wrongfully deemed it a total loss and refused to return it to its pre-loss condition. Ed, the owner of Griffin’s Paint & Body in Winnsboro, explained to me how my Beetle could be safely and economically returned to its pre-loss condition. However, USAA informed me it was deeming my Beetle a total loss and would not be paying to repair it (presumably because it was in its best economic interest). When I resisted its offer, USAA even went so far as to contact my lender to apply pressure on me to accept its under-indemnified liability settlement. Despite my objections that it had undervalued my Beetle, USAA refused to listen to me. I was left confused and unsure how to convince my insurer that it had missed the mark to my detriment. After presenting my situation to Ed and expressing to him I wanted my Beetle repaired and not replaced, he referred me to Auto Claim Specialists, who reviewed my loss statement with USAA and recommended I invoke my policy right of appraisal in contest of the USAA loss statement. At the end of the appraisal process, my strong hunch turned out to be true. USAA had undervalued the actual cash value of my Beetle by $2,353 – 16 percent. With the correct actual cash value established, USAA saw it was now in its best economic interest to repair my vehicle. Thanks to Auto Claim Specialists, USAA authorized Griffin’s Paint & Body to repair my vehicle to its pre-loss condition. My question is, how could USAA undervalue the actual cash value by such a significant percentage and then refuse to take my complaints seriously and ignore my desire to repair my vehicle rather than replace it? Replacing a perfectly fixable car, while maybe in USAA’s best economic interest, would have meant financial devastation for me. I still owed $19,000 on the Beetle, while USAA was only offering me $14,685 as a settlement. Do you see this type of under-indemnification often, and do carriers often place their own best financial interest ahead of the insured? Sincerely, Deonna Bishopp
Thank you for your question. As I have outlined many, many times in past editorials, we see this type of gross under-indemnification regularly by carriers. Just last month, another of our clients had a very similar dispute with USAA. We appreciate your calling Auto Claim Specialists to help resolve your loss dispute. Also, as in your case, we often see the carriers go directly to the lender to apply pressure on the borrower to accept the under-indemnified and undisputed loss settlement. The carriers understand that a swift, united assault on the parties to make a quick decision to settle leads to fewer individuals challenging their under-indemnified proposed settlements and a cleaner escape from the true liability owed. We particularly see many USAA clients in the same situation as yours. The reason for this is that the USAA policy states, under LIMIT OF LIABILITY, “We will declare your covered auto to be a total loss if, in our judgment, the cost to repair it would be greater than its actual cash value minus its salvage value after the loss.” However, as I will show in my response to your question, after the actual cash value was defined by the independent third-party appraisers in your case, the repair cost was actually less than the actual cash value minus the salvage. This ultimately resulted in USAA electing to repair your car as you had wished all along. In your situation, USAA, with the help of CCC ONE, had determined the adjusted vehicle value of your Beetle to be $14,685. USAA calculated, by a formulated valuing methodology, a salvage value on your Beetle of $2,346. Griffin’s Paint & Body, after a thorough inspection, determined that the complete repair cost to return your Beetle to its pre-loss condition was $13,015.53. Under the USAA policy to determine whether it will administer the liability to replace or repair your Beetle, the salvage value of $2,346 was subtracted from the CCC ONE adjusted vehicle value of $14,685. This left a threshold of $12,339. Only should the cost of repair exceed this amount would USAA be in the right to total your vehicle according to its own policy. Given the repair cost of $13,015.53, it appeared that its replace threshold had been met. However, you rightfully questioned its valuation of your Beetle. Upon your providing us with the USAA CCC ONE Market Valuation Report (MVR), we sent it to our subsidiary, Vehicle Value Experts, to issue a certified actual cash value. The USAA policy limit
18 FEBRUARY 2021 Texas Automotive
by Robert L. McDorman
of liability under comprehensive coverage and collision coverage is the actual cash value. Vehicle Value Experts quickly identified that USAA had undervalued the Beetle a minimum of $2,000. We recommended you retain Auto Claim Specialists as your public insurance adjuster agency, use Vehicle Value Experts as your independent third-party appraiser and invoke your policy right of appraisal in contest of the loss settlement. At the end of the appraisal process, Vehicle Value Experts and the USAA independent third-party appraiser defined the actual cash value of your Beetle as $16,900. Once the independent appraisers define the true actual cash value, this becomes the loss value as defined under the USAA policy. Thus, USAA had to then use the true actual cash value of $16,900 less the salvage value of $2,346 to arrive at a proper and attested threshold of $14,554. Only if the cost of repair exceeded this amount would USAA be in the right to total your vehicle according to its own policy. Given the repair cost of $13,015.53, we see under the USAA LIMIT OF LIABILITY that the carrier is required to return the Beetle back to its pre-loss condition. The calculation method used by USAA to deem your Beetle a total loss is called the total loss formula, which always benefits the insurance carrier. Most policies in Texas use the total loss threshold method to determine the repair or replace loss type. Under the total loss threshold method, if the cost to repair is less than the actual cash value, the carrier will generally elect to repair. At the end of the appraisal process revealing that USAA under-indemnified your loss by $2,353, it was clear that your Beetle should obviously be repaired under either calculation method. Thus, USAA finally authorized Griffin’s Paint & Body to repair the Beetle. We expose this type of under-indemnification by carriers on a daily basis. However, it’s still the case that few insureds understand they have the right to an appraisal of the loss. The under-indemnification in total loss and repair procedure claims in Texas is rampant. Besides the higher settlements for total loss clients averaging 28 percent above the carrier’s undisputed loss statement, we have also reduced clients’ out-of-pocket expenses an average of 35 percent on repair procedure disputes, such as the example provided here. These under-indemnification percentages are staggering and harmful to Texas citizens. The spirit of the Appraisal Clause is to resolve loss disputes fairly and in a timely and cost-effective manner. The invoking of the Appraisal Clause removes inexperienced and biased carrier appraisers and claims handlers from the process, undermining their management’s many tricks to undervalue the loss settlement and under-indemnify the insured. Through the Appraisal Clause, loss disputes can be resolved relatively quickly, economically, equitably 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 best interest of the insured or claimant to have their proposed insurance settlement reviewed by an expert before accepting. There is never an upfront fee for Auto Claim Specialists to review a motor vehicle claim or proposed settlement and give its 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 a safe repair is a quality repair, and quality equates to value. I thank you for your letter and look forward to any follow-up questions that may arise. TXA Sincerely, Robert L. McDorman
Cover Story continued from pg. 14 “We’ve all come across that one clip that’s held up that one car on the day of delivery back to the vehicle owner because we didn’t identify that clip in the system or it didn’t have a note in there that it’s a one-time-use part. If we have that information in there from the get-go, we can make a correct labor assessment or repair plan reflecting that part needed, and we’re not struggling to get that $1.50 clip [that’s not in stock] on the very last day.” As for the future of the DEG, ABAT Executive Director Jill Tuggle is hopeful that the association’s increased involvement will strengthen the project moving forward. “As a non-profit, we understand how important sponsorships are, especially with the current business climate. We also know how valuable the DEG is to shops and what an impact it can have on our industry. The fact that it is a free service to shops is definitely something we want to be a part of. We appreciate all the work that goes into what it does, and we will continue to promote it within our organization and beyond.” In addition to receiving strong financial support from ABAT, the DEG is funded by member dollars from SCRS and the Alliance of Automotive Service Providers (AASP) as well as corporate sponsorships from PPG, Collision Advice, ASA, Spanesi Americas, the Washington Metropolitan Auto Body Association (WMABA), ALLDATA, Redwood City Auto Body (Redwood City, CA), Nylund’s Collision Center (Englewood, CO), Auto Body Hawaii (Kailua-Kona, HI), the Kansas Auto Body Association (KABA) and the Carolinas Collision Association (CCA). For more information on the DEG, please visit degweb.org or email admin@degweb.org. TXA
19 FEBRUARY 2021 Texas Automotive
The Consumer’s Voice BATTLE OF THE BEETLE: AN insured wins in winnsboro Winnsboro resident Deonna Bishopp absolutely loves Volkswagen Beetles. In December 2019, she drove away from CarMax with the fourth one she’s owned and looked forward to enjoying her latest ride throughout the coming year. Unfortunately, she’d soon end up facing an ordeal that no automotive consumer should ever have to experience. In April ’20, Bishopp’s Beetle was involved in a collision that made it unsafe to drive. She had it towed to ABAT member Griffin’s Paint & Body, which was located right in town. “They have a really good reputation here in Winnsboro, and they are close to us,” she says of her decision to use the facility. “They have really good reviews and are above-the-line people. They’re not going to put poorquality parts on your vehicle, Bondo it up and glaze over it with paint; they’re going to do the repair right. They were my first choice.” Deonna Bishopp on the day she bought her Although Bishopp Volkswagen Beetle in December 2019 found comfort in knowing her vehicle would be properly repaired, securing a rental car wasn’t as easy. With several Enterprise Rent-A-Car locations in the area shut down due to the pandemic, she had to utilize one in Longview – a good hour away. The frustrations grew from there. Although she agreed with the shop that the vehicle could be repaired, USAA – her insurer of nearly 30 years – insisted that it was a total loss without performing a personal inspection. “USAA was not sending anybody out to do pictures because of COVID-19; its people were all working from home. We never just had one person at USAA who was ‘our’ guy. It just made it all so much more difficult. “I think the quickest and easiest way in USAA’s mind to handle this was to deem my vehicle a total loss, write me a check and send me on my way,” she adds. “I kept saying, ‘If you’d just come and look at my car and meet with these people at the shop who know what they’re talking about, this could all be fixed.’” A month later, USAA informed Bishopp that she had to return the rental vehicle to Longview despite the fact that her Beetle was still stuck in limbo. “USAA told me it still deemed the vehicle a total loss and that I couldn’t keep the loaner. I had to take it all the way back to the original Enterprise location, which was 65 miles each way. I was told I could
have kept the car if I had COVID-19. How backwards is that? If I had COVID-19, I wouldn’t need a rental car to get to work because I’d be isolating at home or in the hospital on a ventilator. If I needed the car to get to work, I had to just find a way to get there. It was just crazy.” Fortunately, Griffin’s Paint & Body remained committed to assisting Bishopp any way they could. In addition to providing her with one of his facility’s vehicles to drive, shop owner Ed Griffin put her in touch with Robert McDorman of Auto Claim Specialists to see what could be done to move the claim along. In the meantime, Bishopp continued to refuse USAA’s settlement offer of $14,685. What happened next was extreme even by insurance industry standards. According to Bishopp, USAA reached out to her auto lender, Santander, in an attempt to put the matter to bed. “That freaked me out,” she recalls. “I got a call and a letter from my finance company saying that it needed me to sign a power of attorney to get this closed.” This soon led to a three-way call between Bishopp, McDorman and a representative from the lender. “I basically said to the lady at Santander, ‘I pay you twice a month so I can build good credit in my name on this vehicle, and it’s in your best interest to keep collecting these payments from me. I can promise you that if I have to close out this loan, I will never finance with you again. You should be on my side; you’re my finance company!’ How dare USAA reach out to them and try to coerce me into saying the car was totaled when we hadn’t even reached the point of proving that it was beyond repair. It was repairable. It just felt like they were all ganging up on me. It was just a terrible situation.” Not surprisingly, the months of struggle took an emotional toll on Bishopp, who works as a director at her local library.
The Volkswagen Beetle after being repaired by Griffin’s Paint & Body
“All of my library patrons knew about what happened to my car. They would say to me, ‘Are you getting your car back, Deonna?’ I’d quietly go back to my office and want to cry.” As detailed in this month’s Ask the Expert (page 18), Bishopp contested USAA’s settlement by invoking her policy right of appraisal. It was determined that USAA had undervalued the Beetle by $2,353, and the insurer subsequently authorized Griffin’s Paint & Body to repair it.
20 FEBRUARY 2021 Texas Automotive
by Joel Gausten Bishopp drove away from the shop in her repaired vehicle in November – seven months after the accident took place. “I was without my car longer than I was with it last year.” While she is understandably upset with USAA, she is quick to praise her shop of choice for a job well done. “My Beetle is beautiful – just absolutely perfect! I give Griffin’s Paint & Body 10 stars.” Although Griffin is happy that Bishopp is so pleased with the repair, he stresses that the obstacles she encountered while simply trying to have her vehicle returned to pre-accident condition are nothing new. “It’s happening with more frequency on every claim. Insurers are not just leaving their customer a little short; they are leaving them ABAT member Ed Griffin stands with short by leaps and bounds. the TDI consumer info sign at his shop It’s unbelievable what they try to offer their customers.”
In addition to helping his customer out when she had to give up her rental car, Griffin and his team made sure that her Beetle was repaired using safe and professional methods. “We’ve always done proper repairs,” he says. “We have never followed an insurance company’s guidelines instead of the vehicle manufacturer’s procedures and what our customers truly deserve.” While things ultimately worked out, Bishopp’s husband, David, is disappointed with USAA’s handling of the claim and the stress its actions put on his family. “I never would have suspected that my own insurance company wouldn’t be looking out for my best interests. I felt like it wasn’t there for the consumer.” Fortunately, he has a very different opinion of Griffin’s Paint & Body. “They went above and beyond what they needed to do for us. They did a fantastic job on the car and guided us through this. In a small town like this, what else do you have to offer than word of mouth? They did an outstanding job for Deonna and me, and they deserve their good name. They’re the unsung heroes in this.” “As a consumer, I’m so thankful that my story has a happy ending when so many other people’s may not,” Deonna adds. “If the insurers could learn something from this story, it would be to remember that their insureds are paying them to be on their side.” TXA
21 FEBRUARY 2021 Texas Automotive
22 FEBRUARY 2021 Texas Automotive
