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BEYOND TDI: Finding Help with Auto Insurance Complaints T BRIGHTER Days, BETTER Business T Remembering RAMON LIRA, Sr. T “YOU Don’t Know What You DON’T KNOW” t Importan dy to Bo Texas Au ow Trade Sh nt! eme c n u o n n A 8 See page www.grecopublishing.com
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TO OUR READERS, ADVERTISERS AND SUPPORTERS: THE PAST FEW MONTHS HAVE BEEN CHALLENGING, TO SAY THE LEAST. AS WE ALL LOOK AHEAD TO A BRIGHTER FUTURE, WE WOULD LIKE TO ACKNOWLEDGE THE SUPPORT OF THE MANY READERS AND ADVERTISERS WHO STUCK BY US THROUGHOUT THE PANDEMIC. YOUR LOYALTY SPEAKS VOLUMES. WE APPRECIATE YOUR OVERWHELMING SUPPORT AND FLEXIBILITY - WE QUITE LITERALLY COULD NOT HAVE GOTTEN THROUGH THIS PERIOD WITHOUT YOU. WE LOOK FORWARD TO CONTINUING TO SERVE YOU IN OUR DUTY TO KEEP THE AUTOMOTIVE REPAIR INDUSTRY CONNECTED AND INFORMED. THANK YOU AGAIN - THE BEST IS YET TO COME!
THOMAS GRECO PUBLISHING, INC. PUBLISHERS OF TEXAS AUTOMOTIVE
4 July 2020 Texas Automotive
Contents
July 2020
on the
cover
16
ASK THE EXPERT
ABAT BOARD OF DIRECTORS Vice President Eric McKenzie
President Burl Richards Burl's Collision Center burl@burlscollision.com (903) 657-8082
BEYOND TDI:
Chairman of the Board Corey Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361
Finding Help with Auto Insurance Complaints
Treasurer David Osburn South West Collision Center dosburn@southwestautogroup.com (855) 395-2720 Executive Director Jill Tuggle jill@abat.us (817) 899-0554
Larry Cernosek Deer Park Paint & Body lcwrecker@comcast.net (281) 930-1539
Chad Neal Innovative Collision Equipment Chadwneal@yahoo.com (817) 527-2143
Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136
Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564
Kevin Ellison Westway Ford kellison@vtaig.com (972) 584-9033
DEPARTMENTS
19
Park Place Dealerships emckenzie@parkplace.com (214) 443-8250
ABAT BOARD MEMBERS
By Robert L. McDorman
6 8 8 10 14
Official publication of the Auto Body Association of Texas
PRESIDENT’S MESSAGE By Burl Richards “You Don’t Know What You Don’t Know” EXECUTIVE DIRECTOR’S MESSAGE By Jill Tuggle No Trade Show? No Problem!
John Kopriva Kopriva Body Works jtkopriva@gmail.com (713) 923-4412
Greg Luther Helfman Collision gluther@helfman.com (713) 574-5060
Robert McDorman Auto Claim Specialists rmcdorman@autoclaimspecialists.com (817) 756-5482
Logan Payne Payne & Sons Paint & Body logan@payneandsons.net (214) 321-4362
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
TEXAS AUTO BODY VIRTUAL REGIONAL MEETING ANNOUNCEMENT PUBLISHER Thomas Greco / thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com
LOCAL NEWS By Alana Bonillo Remembering Ramon Lira, Sr.
GRAPHIC DESIGNER Lisa M. Cuthbert / lisa@grecopublishing.com
ABAT FEATURE By Joel Gausten Brighter Days: Lone Star State Repairers Shine through Summer
ABAT MEMBERSHIP APPLICTION
EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com OFFICE MANAGER Donna Greco / donna@grecopublishing.com Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963
ADVERTISERS’ INDEX 300 Advantage ....................................................21
EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com
Innovative Collision Equipment........................IFC
Beacon Equipment Resources ........................10
J&J Auto Body Supply ........................................12-13
CAR-O-LINER Southwest ..................................9
Park Place Dealerships ......................................11
Complete Collision Equipment/Spanesi ........22
Reliable Automotive Equipment ......................7
Dallas Parts Distribution Center ......................OBC
Sherwin-Williams/Matrix ....................................3
Ecotech ..................................................................IBC
Tasco Auto Color..................................................15
English Color & Supply ...................................... 6
Wheel Technologies............................................20
FindPigtails.com ..................................................18 5 July 2020 Texas Automotive
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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
“You Don’t Know What You Don’t Know”
L
Last month, I asked our readers to reach out to me with what they were doing to offset the changes in their businesses from the hardships of COVID-19. I thought I would share with each of you a game-changing call I made many years ago that has impacted my business and helped us thrive today. Each of you who knows me has heard me say many times, “You don’t know what you don’t know.” e following is a great example of the truth behind this saying. A little over five years ago, I received an email from Robert L. McDorman with Auto Claim Specialists. e email subject line said, “If You Want to Fix More Cars Call Me.” e body of the email only said, “If you are interested, please call me at (409) 7904378. Sincerely, Robert L. McDorman.” Responding to this email has changed the way we do business. By referring our clients to Auto Claim Specialists in the last 60 days, we have safely repaired six additional vehicles the carriers had deemed an economic total loss for an estimated repair cost of $180,000. Our clients have been able to recover more than $58,000 in under-indemnification of their total loss settlements and more than $23,000 in under-indemnification of repair related losses. On top of this, Auto Claim Specialists has helped our clients recover over $25,000 in diminished value. Several times daily, we refer our clients to Auto Claim
55 Over ons ti Loca ve you r to se
Specialists to assist with their motor vehicle claim issues. We have seen many of our clients retain them over the years and have never received anything but the highest appreciation and gratitude from them. ere is never an upfront fee for Auto Claim Specialists to review Burl Richards a motor vehicle claim or settlement and ABAT President offer its professional opinion as to how to proceed. Auto Claim Specialists’ company website (autoclaimspecialists.com) has a wealth of information relating to your clients’ claim issues. Auto Claim Specialists’ subsidiary, Vehicle Value Experts, can be found at vehiclevalueexperts.com. At the top of the homepage, there are two short videos: “What Is Total Loss?” and “What Is Diminished Value?” ese videos have helpful information concerning common important issues faced by your clients. In today’s world regarding motor vehicle insurance policies, claims management and the frequent changes in insurance carrier claim-handling policies, Burl’s Collision, from time to time, will Continued on page 18
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Executive Director’s Message
No Trade Show? No Problem!
I
I love the Texas Auto Body Trade Show. It is my favorite event of the year. ere is so much there to like: Seeing some of my favorite people, watching the booths go from concrete floor to perfect vignettes of equipment, the excitement of those who needed that one class or are just learning about ABAT, the happy hours and even the chaos of coordinating it all. It is the
pinnacle of the hard work of so many and the fruits of our labors. So, of course it makes me sad to announce that ABAT has to cancel this year’s show. I sat for only about 30 seconds wallowing in my sorrow until I was filled with the excitement that comes with change. Some people hate change – I, in fact, love it. When you work in the collision industry of the 21st
century, you shouldn’t be a stranger to it. ere won’t be a big show, Jill Tuggle but there will be ABAT Executive Director several regional events to come. We are making plans for educational
CRITICAL FINANCIAL TACTICS
Continued on page 20
in Today’s Economy
Virtual
By John Niechwiadowicz, QLC, Inc. with significant input from Burl Richards, Burl’s Collision
REGIONAL MEETING Wednesday, July 22 1pm
To register, go to
ABAT.US or email
jill@abat.us
*THE COST TO ATTEND IS $50
Discussion topics include: t Auto Body Lessons from COVID-19: Who Suffered? Who Succeeded? t Important Money Management Lessons
t Straight Line Recovery or Peaks and Valleys?
t Five Essential Tactics for Sound Financial Management
t Calculating Your Breakeven Point, Increasing GP, Managing Expenses and More! 8 July 2020 Texas Automotive
LOCAL NEWS
By Alana Bonillo
Remembering
RAMON LIRA, SR. ABAT is saddened to report the passing of association member Ramon Lira, Sr. (San Antonio Collision Center), who left us on June 10 from complications of COVID-19 at the age of 53. “We are very sad to hear of Ramon Lira’s passing,” shares ABAT President Burl Richards. “I enjoyed speaking with him at ABAT events, and it was obvious that he had a passion for this industry. Our newly formed San Antonio chapter was made better by his efforts to make a positive impact on the collision repair industry, and he will be missed. Our thoughts and prayers are with his family.” ABAT Board member Manuel Rubio remembers Lira as a dedicated and enthusiastic member of the Texas automotive community. “He attended all the meetings, diligently cooperated and did anything we asked him to.” An ABAT member since 2018, Lira quickly became a regular at various association events, including the Texas Auto Body Trade Show. Rubio will never forget how Lira was the first to step up during a chapter meeting and volunteer to purchase a table of 10 tickets for ABAT’s first-ever Holiday Gala fundraiser. “He bought right into the theory of, ‘Let’s work together, help each other, teach and learn from each other and grow together to do things right.’ He was just a great member.” Before going into business for himself, Lira was the general manager of Alamo Toyota Collision Center in San Antonio for 15 years. He earned a reputation as the best repairer to contact in the San Antonio area for all things Toyota.
The grand opening of San Antonio Collision Center was a great day in the life of Ramon Lira, Sr. Left to right: son Ramon Lira, Jr.; Councilman Clayton Perry (District 10); Jaziel Rodriguez; Ramon Lira, Sr.; wife Rosa Lira; Robert Renteria; sister Ana Lira; Ofelia Rodriguez; Jesse Rodriguez; and Elias Rodriguez
“He was an expert in all the certifications and was the guy to call in town for information on proper installation, proper electronics, proper diagnostics and proper collision repair,” Rubio recalls. A little over a year ago, Lira opened San Antonio Collision Center with his son, Ramon Jr., on the north side of town. Rubio was pleased to see him find great success with the new facility. “His business was up and running really well. He had a lot of clientele, as he was known as a Toyota expert with a fanbase due to his commitment to the industry. He was just a wonderful guy.” ABAT and Texas Automotive offer our condolences to Lira’s friends, family and colleagues. TXA
10 July 2020 Texas Automotive
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Brighter Days:
ABAT FEATURE
LONE STAR STATE REPAIRERS SHINE THROUGH SUMMER Collision repair is a tough profession with or without COVID-19, but ABAT members are tougher. With the arrival of summer amidst ongoing efforts to get the state back on track, Texas auto body shops are standing strong and beating the odds. Although recent months have been challenging for anyone who calls this industry home, there are clear signs of success and survival for facilities in the Lone Star State. Despite seeing business drop by about 30 percent during the lockdown, Berli’s Body & Fine Auto Finishes in Pflugerville has been able to overcome the downturn thanks to its involvement with nine high-end certification programs. By taking advantage of the PPP loan, the facility didn’t lose a single employee and is currently in the process of bringing its regular work schedule back to 50 hours a week after temporarily dropping down to 40. Additionally, the facility went into the pandemic with a heavy backlog that lasted nearly four weeks. With August typically a good month for business, ABAT Board member and Berli’s General Manager Chad Kiffe anticipates an increase in jobs as Texas continues to strive toward a return to regular life. “As long as we don’t get another wave of this and things don’t start shutting down again, I think we are going to start seeing a trend in the right direction.” Over at Westway Ford Collision Center in Irving, Collision Director/ABAT Board member Kevin Ellison has also made the best of the unexpected circumstances to hit the industry and our nation. “At this particular dealership, we were fortunate to have had a hailstorm hit early in April. at created some good work for us in April and May, but all that work has since 14 July 2020 Texas Automotive
been finished. Now, we’re relying on collision work for the most part. We’re starting to see a little bit of an uptick at this time, but it’s certainly been a challenging 60 [to] 90 days.” Westway Ford‘s ability to keep moving forward was helped along greatly by doing fleet work that kept vehicles coming in as the general population stayed indoors and traveled less. While Ellison remains “cautiously optimistic” that business will continue to increase, he acknowledges that a full recovery could take some time. “I don’t think we’ll be back to a wide-open economy for the next 90 days…Shops are running a lot less volume and not carrying over as much from month to month.” Of course, the coronavirus pandemic has impacted more than just the shop side of the equation. Social distancing guidelines have resulted in many insurers utilizing photo estimating technology in their dealings with repair facilities. Not surprisingly, this decrease in personal communication between both parties has had mixed results. While he worked to accommodate this trend at the start of COVID-19, Kiffe has seen photo estimating add greater stress and strain over time. “It’s getting harder and harder to get some of these claims approved without getting upper management [involved]. On top of that, we’re dealing with people who are not in our market.” As a way to help improve the situation, Kiffe has gone as far as offering to park vehicles in his front lot to allow insurer representatives to personally inspect them without being in direct contact with anyone at the shop. As of this writing, there has yet to be a carrier to take him up on this arrangement. “I feel like we’ve moved forward 10 years [with technology], but we’ve also moved backwards 10 years in how we negotiate with insurance companies.” e insurance industry’s growing insistence on virtual negotiations has also affected Ellison’s
By Joel Gausten
operation. Although photo estimating has actually resulted in lower wait times to start the process in some cases, he reports that the subsequent back-and-forth needed to get everyone on the same page has often been greater. “Sometimes, it has required two or three attempts on our part to get what we need to repair the vehicle correctly.” While these difficulties in the shop/insurer dynamic are clearly adding new concerns on the shop level, recent months have also provided an unexpected – and, in some cases, greatly needed – opportunity for repair facility owners to focus attention on how to operate more efficiently once work resumes in full. As the summer carries on, industry consultant and former shop owner Mike Anderson (Collision Advice) offers some pointers on how repairers can sharpen their sales and marketing approaches to better reach consumers. Although recent “Based on statistics, the majority of accidents occur on a Saturday. Prior to months have been coronavirus, Friday was the second-most common day for accidents; the third day was Sunday. We have to look at having a digital presence where people can reach challenging for out to us for our services outside of normal business hours. We need to make sure anyone who calls this our Google My Business listings are claimed and we have the ability for a customer to text us from that listing if they need services outside of normal industry home, there business hours. We need to have best practices to make sure we have the ability for are clear signs of customers to schedule appointments online. ere are shops that haven’t gotten around to doing that, and the shops that did are doing pretty well right now. success and survival Having a digital presence where people can reach us in multiple ways after hours is for facilities in the critical.” Finding stability in such unpredictable times has been a daunting task for folks in Lone Star State. and out of this industry, but the summer season offers hope for more positive conditions for repairers and customers alike. As long as there are drivers in need of safe and dependable repairs, the ABAT community will continue to adapt to and thrive beyond COVID-19 and anything else that comes its way. TXA
15 July 2020 Texas Automotive
Ask the Expert
Beyond TDI: Finding Help with Auto Insurance Complaints
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 22 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-ofthe-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@autoclaimspecialis tts.com.
Dear Readers: Over the past several months, I have answered numerous questions in regard to the insured’s policy rights and what steps are available for relief when there is a covered loss dispute. Also, I have continued to update you on a widespread unfair claim settlement scheme Auto Claim Specialists discovered and brought to the attention of the Texas Department of Insurance. TDI has now issued its position on the scheme and a suggestion on how to proceed. Before I share their position, it is useful to review the recommendations outlined on its website regarding insurance-related complaints. e Texas Department of Insurance’s website offers a clear three-step process in the event there is a dispute between the insurer and the insured for a covered loss. In such an instance, you may direct your clients to tdi.texas.gov/ consumer/auto-insurance-complaint.html, which contains the following advice (which appears below without edits):
Get help with an auto insurance complaint Step 1: Talk to the insurance company. You can resolve many issues by talking to your insurance company or agent. If you disagree with the adjuster’s estimate, tell the company why. e company might raise the estimate if it finds out that it overlooked something or gets new information. Send the company any supporting documents, such as the body shop’s estimate for the repairs. Most companies have a toll-free customer helpline. e phone number is printed on your policy. Step 2: Ask for an appraisal. If you and your insurance company can’t agree on the amount of your settlement, you can ask for an appraisal. You and the company each hire an appraiser. e two appraisers choose a third appraiser as an umpire. You must pay for your appraiser and half of the umpire’s cost. 16 July 2020 Texas Automotive
e appraisers review your claim and estimate the amount of damage. If their estimates are different, the umpire decides. You can only use appraisal to resolve disputes about the amount of damages. If there’s a dispute about whether something is covered, you can try and resolve that ssue after the appraisal. Check your policy for any deadlines to demand appraisal. If you need help finding an appraiser, search for a “property damage appraiser” online or check your contractor. Step 3: File a complaint with us. We can help with complaints against the insurance companies, agents and adjusters we regulate. We can’t help with complaints about service providers, including body shops. If you have a complaint against a service provider, send it to the licensing or enforcement agency that regulates the provider. Before you complain to us, understand that there are some things we can’t do: • We can’t make a company pay a claim unless the failure to pay violates a law or terms of your policy. • We can’t help with complaints against another person’s insurance company. For instance, we probably won’t be able to help you if you’re in an accident and the other driver’s insurance company won’t accept liability. • We can’t decide who was at fault in an accident. ere is additional clarification and information on how to resolve insurance-related disputes found at tdi.texas.gov/pubs/ consumer/cb020.html under “Automobile Insurance Made Easy.” e following text from the website appears below without edits. Please note the last option: Resolve your issue
in court: Resolving problems If you disagree with the adjuster’s estimate or the amount the company is offering to pay you, tell the insurance company why. You might be able to
By Robert L. McDorman work things out by talking with the company or the adjuster. If that doesn’t resolve the issue, here are your options: • Ask for an appraisal. e appraisal process is for disputes about the amount of your claim. If you use appraisal, you and the insurance company each hire an appraiser. e two appraisers then choose a third appraiser as an umpire. Your appraiser and the company’s appraiser each estimate the amount of your loss. If the estimates are different, the umpire makes the final decision. e umpire’s decision is binding on both you and the insurance company. You pay for your appraiser and half of the umpire’s expenses. You can use appraisal only for disputes with your insurance company. You can’t use it to resolve disputes with another person’s insurance company. • Complain to us. Your complaint must be in writing. You can use our Online Complaint Portal. Understand that our ability to help might be limited. For instance, we can’t decide who was at fault in an accident or determine damage amounts. • Resolve your issue in court. You might have to file a lawsuit to resolve the issue. If your claim is for less than $10,000, you can use Justice Court. Justice Court is a special court that handles small-claims disputes. You don’t need an attorney, but you have to pay a filing fee and other court costs in advance. If you win, you can get that money back. For more information, call your county justice of the peace office. Each month, many of our clients who are insured with lawabiding carriers follow TDI’s appraisal advice and successfully resolve loss disputes quickly, amicably and at minimal cost to both parties. However, some clients find – at the most inopportune time – that their carrier is unconcerned about the unlawful disregard of contractual obligations, such as the right of appraisal, when it suits its pocketbook. While we reasonably believed that a straightforward matter such as this would be in TDI’s purview and interest, it seems there is a reason for its advice to file a lawsuit to resolve the issue. Upon seeing more and more carriers ignoring and violating the clear policyholder rights of our clients, I began writing in the January 2020 editorial about the widespread unfair settlement practice scheme being committed by certain Texas carriers. On September 13, 2019, Auto Claim Specialists began turning over information, audio files, claim numbers and supporting documents to TDI in support of our allegations. We respectfully requested that the Department issue an immediate cease-and-desist order from the Commissioner instructing carriers with an appraisal provision in the policy to stop denying the insured’s right of appraisal following the discovery of under-indemnification given a reasonable time period for discovery. We further requested a bulletin from the Commissioner stating that the unlawful act mentioned herein had been brought to TDI’s attention. As we progressed through the discovery stages of the dispute process, we continued to provide any and all additional information requested by TDI as well as updates on new cases of violations supporting our allegations. On May 14, after over seven months of
anticipation – not only for us, but for many of you who have contacted us for updates – TDI issued the following response: First, after a thorough and careful review of the complaints and information provided, our staff has determined that an insurance company may not be obligated to accept an appraisal request after the policyholder has agreed to a settlement and relinquished their insurable interest in the vehicle. Whether the insurer is obligated depends upon the language in that particular insurance contract and the specific facts of that claim. Second, in some of the examples you provided where your company was able to negotiate an agreed settlement, there appear to be fact questions which indicate the settlement was not necessarily based on an improper valuation by the data vendor or the insurer when the claim was initially settled. Please know that the reasonableness of any settlement, and any change in the valuation and the final settlement amount following an appraisal, are all fact questions. Fact questions are resolved through a court or an alternative dispute resolution process. TDI does not provide advisory opinions, legal advice or otherwise get involved in fact questions intended to be addressed by a court of law in private litigation. We appreciate you bringing all of these matters to our attention and assisting in our regulatory efforts.
17 July 2020 Texas Automotive
Continued on page 20
President’s Message Continued from page 6
consult with a public insurance adjuster licensed by the Texas Department of Insurance to help explain and assist with complex insurance claim issues faced by our clients. Over the years, we have learned it is always in our clients’ best interest to seek the advice of a professional public insurance adjuster who is licensed to watch over the public interest regarding motor vehicle insurance claims. When there is a dispute over the covered loss, we always advise our clients as follows: It has been brought to our attention the insurance carrier currently overseeing your claim has failed to properly indemnify you for your loss. As a loyal customer of Burl’s Collision, we would respectfully like to extend some advice and suggestions that could help you prepare, understand and deal with the next steps of your claim. Following this is information about the appraisal process and how a public insurance adjuster can be of help in receiving a fair insurance settlement.
As an additional way to help our clients, we have placed an informative marquee in our customer waiting lounge with information from the Texas Department of Insurance (TDI) to help them get assistance with an auto insurance complaint. is four-step advice directs the insured to: 1.
talk to the insurance company;
2.
ask for an appraisal;
3.
file a complaint with TDI; and
4.
get legal help.
We have found steps two and four to be the most effective manners for our clients to protect themselves from the predatory practices of the insurance carriers. If you want to fix more cars and see to it your clients are properly indemnified for their loss, refer them to a licensed public insurance adjuster specializing in motor vehicle claims. Also, you can refer them to Auto Claim Specialists, as we have done in the past, and have them take the advice of the Texas Department of Insurance to “ask for an appraisal.”
ABAT President Burl Richards with the consumer information from the Texas Department of Insurance (TDI) that he has prominently displayed at his shop.
A successful business in our industry is one that puts the customers’ safety and best interest first. Remember, when you are always taking care of and looking out for your customers’ best interests, everything else takes care of itself. Please check out the Ask the Expert feature in this month’s issue for more insight and information on this topic. In closing, thank you to Jerry McNee at Ultimate Collision Repair in Edison, NJ for being the first person to show me, “You don’t know what you don’t know.” TXA
burl@burlscollision.com
18 July 2020 Texas Automotive
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
19 July 2020 Texas Automotive
Executive Director’s Message
Ask the Expert
Continued from page 8
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meetings, Golf Tournaments and Skeet Shoots all across the great state of Texas. We will be focusing on membership and expanding our territories to gear up for an exciting legislative session in 2021. If you thought new car technology kept you on your toes, try the legislative ring! With all that our country has faced in the last six months, that realm has altered its course as well. e Legislature will be redrawing districts this year, which adds another layer. e manpower that a trade show requires can now be redirected to formulate a calculated plan for this upcoming session. ABAT needs your support now more than ever. e profits from the Texas Auto Body Trade Show is ABAT’s main source of funding, so we will be relying on membership dollars and corporate sponsorships at events to help us prepare for success in 2021. We are thankful to have such a great support system and look forward to seeing you all – socially distanced, of course – at one of these exciting events this fall and at the Texas Auto Body Trade Show in 2021! TXA
Our interpretation of this response is that the issue we presented to TDI is one for the court system (rather than the regulatory system) to address. Lesson learned. I, as well as my clients, appreciate TDI reviewing the allegation, information and documents we provided to support the exposed scheme harming Texas insureds. Fortunately, in preparation for this exact outcome, we had clients and very interested lawyers lined up to take this issue to the next step should TDI not take action to resolve it. e first of many of our clients across Texas willing to fight in court to protect their policy right of appraisal appeared in court on June 1. GEICO was the defendant in this case. During the hearing, most if not all of the same evidence provided to TDI on our behalf was entered into the court as evidence. At the end of the hearing, once the evidence was presented and the testimony heard, the Judge swiftly denied the carrier’s position to deny the insured’s right of appraisal. I heard the Judge say that in the absence of fraud, he found no legal authority to deny the insured their right of appraisal. Clear and straightforward. No regulatory agency policy position or interpretation required. As I understand it, the preliminary denial of the right of appraisal now becomes the unlawful carrier’s most expensive means of settling loss disputes. is is because a subsequent court ordered the granting of the appraisal, and the conclusion of such does not cleanse the unlawful acts of the carrier to defraud the insured. e
jill@abat.com
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20 July 2020 Texas Automotive
carrier now faces additional damages, including (but not limited to) damages for breach of contract, bad faith and various insurance code violations. In addition, here’s something in regard to yet another client’s claims where the carrier denied the insured their policy right of appraisal: Once the insured filed suit seeking relief and damages against the unlawful carrier, that company’s defense team quickly motioned the court to enforce appraisal to mitigate its loss – only to find out the earlier denial of the insured’s right of an appraisal has now barred the carrier of the right to seek appraisal! Isn’t it interesting to now see the unlawful carrier’s defense team scurrying around to find a defense to limit its courtsanctioned damages due to its self-righteous attitude and greed!? As the age old saying goes, “Once you turn the light on, you will see the rats run!” After just a few of these hearings, it is now evident justice is in sight and these unlawful carriers that maliciously deny their policyholders’ rights of relief will now be punished and held accountable for their wrongdoing. ere are many more court cases lined up across Texas in the fight to force the rest of the bad apples among carriers to cease and desist from denying the policy right of appraisal. As these work their way through the judicial process, I will continue to provide updates to the readers. I expect as monetary punishment forces some carriers to reluctantly reform, others will fall in line to avoid the same inevitable fate. In fact, it is already happening. e very next day after the court granted the insured’s policy right of appraisal in the face of strong opposition from the defense representing the insurance carrier in the aforementioned case, we submitted the Plaintiff’s Motion to Compel Appraisal, the carrier’s Opposition of Motion to Compel Appraisal and the Court’s verdict to one of the other unlawful carriers we identified to TDI where we have clients who have initiated judicial intervention to seek relief against their unlawful actions. e same day, seeing the writing on the wall, the defendant carrier moved each of our client’s claims to an independent third-party appraiser and subsequently changed its position to grant the insured right of an appraisal! e spirit of the Appraisal Clause is to resolve loss disputes fairly and to do so in a timely and cost-effective manner. e 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. rough 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. When the carrier issues a total loss settlement, an improper or unsafe repair plan or a dispute concerning the repair or replacement of the loss vehicle, the insured almost always has a policy option to invoke their right to appraisal in a contest of the proposed loss settlement. State Farm policyholders are an unfortunate exception; they only have the policy right under the appraisal clause to contest the actual cash value (ACV) in a loss dispute.
e under-indemnification in total loss and repair procedure claims in Texas is rampant. We have been increasing the total loss settlement for the eight out of 10 contacts we end up retaining as clients an average of 28 percent. We have also reduced clients’ outof-pocket expenses an average of 35 percent on repair procedure disputes. ese under-indemnification percentages are staggering and harmful to Texas citizens. 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. 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 a safe repair is a quality repair, and quality equates to value. I thank you for your submitted questions and hope you are finding value in the answers provided. Sincerely, Robert L. McDorman TXA
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