7KH RI¿ FLDO SXEOLFDWLRQ RI WKH $XWR %RG\ $VVRFLDWLRQ RI 7H[DV
$5.95
DECEMBER 2020
Repair, Risks and Liability A TRUE STORY FROM THE FIELD
Consumers Need Our Help! Avoiding a Total Loss Disaster A Year in Review
www.grecopublishing.com
Contents
December 2020
on the
cover
Official publication of the Auto Body Association of Texas
ABAT BOARD OF DIRECTORS
REPAIR, RISKS AND LIABILITY:
Vice President Eric McKenzie
President Burl Richards Burl's Collision Center burl@burlscollision.com (903) 657-8082
A True Story from the Field
14
By Joel Gausten
4
PRESIDENT’S MESSAGE By Burl Richards Consumers Need Our Help!
6
EXECUTIVE DIRECTOR’S MESSAGE By Jill Tuggle A Year in Review
8 10
EDITOR’S MESSAGE By Joel Gausten Keeping Your World Small
THE CONSUMER’S VOICE From Total Loss to Total Frustration: A Customer Shares Her Story ABAT MEMBERSHIP APPLICATION
300 Advantage ....................................................20
Network 1 Solutions ............................................7
Auto Claim Specialists ........................................16
Paint Works Dallas ..............................................IFC
Charles Maund Toyota........................................6 Ecotech ..................................................................IBC FindPigtails.com ..................................................7 FinishMaster ..........................................................17 Innovative Collision Equipment........................22
Kevin Ellison Westway Ford kellison@vtaig.com (972) 584-9033
Logan Payne Payne & Sons Paint & Body logan@payneandsons.net (214) 321-4362
Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136 John Kopriva Kopriva Body Works jtkopriva@gmail.com (713) 923-4412
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
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 Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963
ADVERTISERS’ INDEX
CAR-O-LINER Southwest ..................................9
Robert McDorman Auto Claim Specialists rmcdorman@autoclaimspecialists.com (817) 756-5482
PUBLISHER Thomas Greco / thomas@grecopublishing.com
ASK THE EXPERT “How Do You Rectify a State Farm Insured’s Under-indemnification of Loss after Appraisal?” By Robert L. McDorman
Beacon Equipment Resources ........................4
Executive Director Jill Tuggle jill@abat.us (817) 899-0554
Bobby Beason DeMontrond Collision Center bobby.beason@demontrond.com (936) 577-2747
Greg Luther Helfman Collision gluther@helfman.com (713) 574-5060
VENDOR SPOTLIGHT FindPigtails.com By Alana Bonillo
Treasurer David Osburn ozzy6384@gmail.com
ABAT BOARD MEMBERS
Larry Cernosek Deer Park Paint & Body lcwrecker@comcast.net (281) 930-1539
DEPARTMENTS
18 20 21
Chairman of the Board Corey Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361
Park Place Dealerships emckenzie@parkplace.com (214) 443-8250
PPG ..........................................................................11
www.grecopublishing.com
Reliable Automotive Equipment ......................12-13 Sherwin-Williams ..................................................OBC Tasco Auto Color..................................................15 USI North America ..............................................5 Wheel Technologies............................................8 3 December 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
Consumers NEED OUR HELP!
W
Well, we’re finally approaching the end of 2020. Although many of us might be tempted to just get the next few weeks over with and see if 2021 will deliver some much-needed good news, there are actually some great things to reflect on as we think about ABAT in 2020. Before COVID-19, we hosted our first-ever virtual meeting for members across the state. It turns out we were ahead of the pack, as the need for industry gatherings of this nature quickly became a reality once various lockdowns and state mandates occurred. Despite the health crisis, ABAT was able to expand its membership by helping the new Bryan/College Station chapter get off the ground, and we hosted an incredibly successful Skeet Shoot in honor of our late Board member, Dean Griffin. We also made ABAT-branded facemasks available to our industry here in Texas. anks to our members, sponsors and Board of Directors for working so hard together to rise above our collective challenges. I know we’ll be able to conquer anything that comes our way in the new year. If all goes well, the next 12 months will be a productive and critical time for ABAT and our industry. Our most important item will be pushing
ahead with our legislative agenda. We will be refiling our previous bill in support of OEM repair procedures and other pro-consumer practices. We will update you with the new bill number as soon as it is available. Burl Richards Additionally, we are considering either revising ABAT President the bill to include a provision guaranteeing the Appraisal Clause in all insurance policies written in Texas or making this goal a standalone piece of legislation. Let me be clear: Consumers in our state should not be denied the right of appraisal. ABAT has proven that the Appraisal Clause saves consumers money, gives them an option away from having to pursue things legally and drastically reduces the amount of time it takes to resolve a dispute. Consumers deserve to have more rights during the repair process; insurers should not be allowed to dictate every facet of a claim. A system of checks and balances is desperately needed; otherwise, Texas consumers will continue to suffer. If
4 December 2020 Texas Automotive
Continued on page 20
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 December 2020 Texas Automotive
Executive Director’s Message
A YEAR IN REVIEW
T
Typically, I would have much more to write about when sitting down to reflect on what ABAT accomplished in a year, but I’m just going to respond with one thing: “2020.” What a worn-out line the 2020 excuse is becoming, but it just seems to become more and more applicable as we continue to experience the fallout and continued presence of COVID-19. e year started out with ABAT trying something new and exciting: A VIRTUAL meeting! is meeting happened exactly three weeks prior to COVID-19 shutting down Texas schools and sending the state into shelterin-place orders. It was before virtual meetings were an everyday occurrence, and we really felt like pioneers. Knowing what I know now, it makes me chuckle a little when I think back on it. We were finally able to have an event in October – the Dean Griffin Memorial Skeet Shoot. at event is usually held in May and has been rained out almost every year. e October date provided perfect weather, sparking a conversation about a possible date change and a springboard to take a look at the ABAT calendar as a whole. For example, in prior years, the Texas Auto
ABAT's Texas Auto Body Trade Show is ON for 2021! Be on the lookout for dates coming soon! Like the Trade Show’s Facebook page at facebook.com/TXABTS for up-to-date info!
Body Trade Show has been plagued by hurricane impact. e show lands at the height of hurricane season, and our members in the Houston area have had to stay behind to board up their homes twice now. e slowdown was a great time for us to reflect on everything. e lack of meetings, events and the Texas Auto Body Trade Show afforded us the opportunity to slow down, dissect it all and find areas for improvement. My hope is that Texas body shops have been able to Jill Tuggle take advantage of some of the slow time this year ABAT Executive Director to make improvements as well. e end of the year here at ABAT HQ will be full of strategic planning for both our upcoming legislative session as well as 2021 events. We will be shaking things up next year, and we are also determined to resume some normalcy. We are committed to planning a safe and successful Trade Show next year. Stay tuned for new dates for your favorite events! Until then, be safe and blessed this holiday season, and we will see you next year! TXA
jill@abat.com
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 6 December 2020 Texas Automotive
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 December 2020 Texas Automotive
SAFE Meets requirements for ASME PASE-2014 Safety Standard. WWW.NETWORK1SOLUTIONS.COM
Editor’s Message
KEEPING YOUR WORLD Small Joel Gausten Editor
I
It’s difficult to write a year-end message for 2020 without resorting to a cliché about living in “unprecedented times,” but I’ll do my best to avoid stating the obvious and instead focus on some good things I’ve seen this year amidst the chaos. On a personal note, I experienced some major life changes that had nothing to do with COVID-19. I had long desired an opportunity to downsize my life, and I finally sold my nearly three-acre property in early March. e process went well, and I was able to successfully pack up and move even during a New England winter. (I’m based in New Hampshire.) On the day of the closing, I turned the key in my 220,000-mile Toyota and heard a death rattle. Two days later, I put a nice chunk of change down on my first new car in several years – just as the country went into lockdown. What if my car had died a day or two later? What if the home closing had been delayed a week? Would I have been able to safely get a new car? Would I have been able to hire movers? As our country – and our lives in general – began to slow down, I counted my blessings that my critical life essentials were in place at the right time. In terms of the industry, the resilience and inventiveness displayed over the last several months has been amazing. Despite some kinks along the way (including several surprise background/on-screen appearances by various
people’s pets – who really should be given director of marketing titles at this point), people have consistently utilized Zoom and other online technologies to keep things moving without travel. In fact, some industry events saw their highest attendance levels ever thanks to switching to an online format. Participation is soaring these days, and real work is being done. at’s something else to be grateful for right now. As we face the conclusion of the year, I’ll leave you with this thought: ere is value in keeping your world as small as possible. Obviously, we should all care about what is happening around us (especially in the world of politics), but nothing is more important than focusing energy on our loved ones, friends and immediate communities. Make sure the people in your daily life are well. Make them laugh and smile. Try to bring some light to every conversation you have. If we all did that, then I believe that a positive and supportive spirit would spread across this country. Life is rough these days, but it’s still wonderful. After all, everyone reading this has one. TXA
joel@grecopublishing.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
8 December 2020 Texas Automotive
9 December 2020 Texas Automotive
VENDOR SPOTLIGHT By Alana Bonillo
e name really does say it all. FindPigtails.com does exactly what it says – it finds pigtails. Advanced search technology via the website and its mobile app brings repairers directly to the necessary pigtails they seek quickly and easily. e Texas-based company is the brainchild of President Eric Palazzolo and CEO Paul Grant. FindPigtails.com provides a tech-driven solution that allows shops the ability to purchase pigtail connectors, eliminating the need for the purchase of unnecessary surrounding parts and allowing the shop to keep costs in check while improving cycle times and severity rates. “What I often saw happening was when there was a pigtail needed, you had two little wires dangling. It would be left as an open sublet item for the estimator; nobody really knew what to do,” Palazzolo explains. “So, a shop would end up buying a $5,000 engine harness or wiring harness. Specifically, if you had a German car like Audi, Mercedes-Benz or BMW, it
Via the FindPigtails mobile app, a repairer can take a photo of the pigtail needed, and they will be provided the part information and availability on the spot. would not only cost $5,000, but it would be non-returnable or either on backorder or take two months to come from Germany. Nine times out of 10, that is unnecessary because instead of spending $8,000 on a repair that would kill your cycle time, rental car costs and destroy severity, you can easily get one pigtail for $75. After an hour of labor time to put it on, the car could go home that Friday instead of 60 days later.” Knowing that innovation and technology was becoming more and more key to the way the auto industry operates, Palazzolo’s team set out to create a solution that is now helping body shops around the globe. eir online database connects users to an inventory of 350,000 OE pigtails for most makes and models. A lot of research and preparation went into developing the FindPigtails.com searchable database and inventory so the company can offer pigtails for just about every vehicle dating back to the 1990s (as well as those being produced for 2021). Palazzolo credits his core team, who have been with him since day one, for “literally working out of an attic” to make all this happen. e operation has come a long way over the past few years and now has a 10,000-square-foot facility complete with hi-tech conference rooms and a call center.
Another primary goal is to make certain customers are connected to a live person who can provide needed support within seconds. Via the FindPigtails mobile app, a repairer can take a photo of the pigtail needed, and they will be provided the part information and availability on the spot. In a case where a poor photo is uploaded and the app is not able to recognize the item needed, it will automatically connect the user with a FindPigtails.com President Eric Palazzolo support person via text chat to assist in getting them what they need. “Our goal is to not let you leave the site without getting you what you need.” Palazzolo stresses that although the company set out to provide techsavvy solutions, it also accommodates anyone who may still consider themselves old school. Users can always easily pick up the phone and contact FindPigtails that way. FindPigtails.com has also set out to provide training to its customers. “We try to help and train shops by way of in-person [training] or webinar so they can learn to do some of these repairs in-house, get cars out more quickly and make their customers happy. Even if it improves things by only one day, that one day can make a difference.” Since FindPigtails.com is a relatively new company, Palazzolo is aware that many may not realize it offers something new and different than the status quo. He invites anyone to take the “taste-test challenge” and try it out. Above all, FindPigtails.com strives to help shops provide a great and time-efficient experience for vehicle owners. “e customer is the person getting their car fixed, and that matters most to us. We want to make sure they get the part from us – and that it’s the right part of the best and highest quality.” TXA
10 December 2020 Texas Automotive
NOTHING MATCHES TODAY’S COLORS BETTER Ford Ruby Red. Inspired by the vivid hues of the ruby gemstone. Matching any color is easier when you’re spraying with the best. Learn more at envirobase.com
©2019 PPG Industries, Inc. All rights reserved. The PPG Logo and Envirobase are registered trademarks of PPG Industries Ohio, Inc.
COVER STORYBy Joel Gausten
Repair, Risks and Liability:
A True Story from the Field
If you’re a collision repairer in Texas, then you know all about the landmark case against John Eagle Collision Center in Dallas over improper repairs to a Honda Fit that caused near-fatal injuries to its occupants in a subsequent collision. While that case stands as the most harrowing example of why OEM-recommended/required repair procedures must always be followed, there are other stories that stress the physical and legal dangers that exist in overlooked or poorly performed operations. One such scenario plays out in an intense fashion during “Scanning and Diagnostics: Get Educated and Be Prepared in Order to Get Paid,” one of the must-see online videos produced by the Society of Collision Repair Specialists (SCRS) as part of its Repairer Driven Education (RDE) online series in conjunction with SEMA360. e seminar includes a frank overview by former MSO owner Aaron Clark, now vice president of strategic initiatives at AirPro Diagnostics, of the “traumatic experience” he faced several years ago when a vehicle repaired at one of his Indiana-based Collision Solutions locations was involved in a subsequent collision. On paper, the approximate $1,700 repair of the Nissan Sentra that arrived at Clark’s bay should have been an easy job. e car wasn’t even moving when it was hit, and the airbag hadn’t deployed.
“Why did we not see this information? Why did we not perform it? We have to live with that whether or not it was responsible for anyone’s injuries."
“e vehicle had a single crash sensor that was attached to the vertical support, and part of my repair was to replace the upper tie bar. e vertical support that the airbag sensor was attached to had to be removed and reinstalled because the vertical support was included with the new replacement tie bar. We did in fact replace the vertical and the upper tie. As a result of that, we had to disconnect the SRS components in the vehicle. We performed our repair, and that airbag sensor was simply reattached. e compensation I received as a repairer was 0.2 [hours] to remove and reinstall the airbag sensor, which again is the only airbag sensor in this particular vehicle. I think there was 0.3 [hours] for diagnostic time essentially to reset the electrical components […] at’s what the P-Pages allowed us to charge for, so it was twotenths of body labor and three-tenths of mechanical labor.”
With the vehicle returned to the customer, Clark assumed his time with the vehicle was over. Unfortunately, it was involved in a “terrible” frontal impact a few weeks later, leading to several injuries to its occupants. “e entire front part of the vehicle was sheared off […] How this affected me was the fact that the airbags didn’t deploy in the subsequent collision.” Repairer Driven Education Before long, Clark was faced presenter and former shop owner with “a life-changing process for Aaron Clark me and a lot of my employees” – a major lawsuit against his facility that went on for five years. “We had substantial evidence that I had performed my repair correctly, but there were a couple of things that were missing […] Nissan has published information for what to check or replace in the event of a frontal collision with deployment or [one] without deployment of the airbag. In the event of a frontal impact/nondeployment, there are multiple operations that are recommended and/or required by the vehicle manufacturer […] In my case, whether [they were] recommended or required, sadly I must say we didn’t perform the operations.” Clark’s insurance company ultimately decided it was in its best interest to settle the claim. Although he explains that the legal process included “expert testimony” in his favor that illustrated “that the system was performing the way that it should after [his facility] had repaired the car,” he is quick to acknowledge that there were still steps not taken by his business. “In the case we were in, there were approximately 15.5 hours of operations […] for the checking of items, which included the removal of the steering column, the dash, the console [and] the seats. “e damage really occurred to my staff and me,” he adds. “Why did we not see this information? Why did we not perform it? We have to live with that whether or not it was responsible for anyone’s injuries. Again, they settled, so it was never decided by a jury. But at the end of the day, shops need to know where to look for this information. Ignorance is no excuse.” While he stresses in his presentation that he is not an attorney
14 December 2020 Texas Automotive
“GET ME
GRECO PUBLISHING providing legal counsel, Clark nonetheless offers some valuable words of advice to his industry peers. “Anything that you would see published by a manufacturer that shows [something] to be ‘recommended,’ I would advise that you remove that and insert ‘required.’ As far as a repairer is concerned, if a manufacturer – who’s designed the vehicle – recommends that a particular procedure be followed, when it comes down to your defense in the event that you did not perform a recommended procedure, you would be exposed.” Clark sold his collision repair business in 2012. It is clear when viewing the video that the Nissan
ordeal still affects him deeply. Above all, he makes it clear in his discussion that it is the shop – not the insurer or anyone else – that is responsible for crafting and standing by the quality of a repair. “You cannot use the excuse, ‘Well, they don’t pay for that.’ How much you get paid for something has nothing to do with how. Shops need to separate how from how much, and [they] will be better off.” “Scanning and Diagnostics: Get Educated and Be Prepared in Order to Get Paid” and the rest of the 2020 Repairer Driven Education series from SCRS (of which ABAT is an affiliate) is available for purchase and viewing through August 31, 2021 at rde.scrs.com. TXA
NOW!”
Reach THOUSANDS of customers every month in print & online!
LET US SHOW YOU HOW! Contact: Alicia Figurelli - Sales Director
973.667.6922 ALICIA@GRECOPUBLISHING.COM
15 December 2020 Texas Automotive
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
16 December 2020 Texas Automotive
WE BRIN W B G YOU O T THE BES B T... . Baccked by strong ve endor partnership ps and over 50 years of hard-earned h industry experience, we can help you identify the h best b solutions l i fo for your business b i and a d get you the h products d you u need.
866 6 6-711-52 2 23 235 www w.finishmasterr.com/wecanhhelp
/finishmasterinc @finishmasterinc finishmasterinc
Ask the Expert “How Do You Rectify a State Farm Insured’s Under-indemnification of Loss after Appraisal?” 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.
I manage Henderson Collision Center in Henderson, a wholly owned subsidiary of Burl’s Collision Center. I read your editorial in the October 2020 issue entitled, “Is State Farm Totaling Clients’ Vehicles without Inspection or Appraisal?” We are experiencing this same issue at our facility. Since the pandemic began, this sensitive situation has escalated even further. Shortly after reading your editorial, we had a State Farm claim that mirrored your editorial. We took your advice and were frankly shocked at the results our client experienced. In our client’s situation, her date of loss was September 4, 2020. We found out through our client that State Farm, on or about September 21, deemed her vehicle a total loss without any type of inspection or appraisal. Our client explained to us the proposed settlement offered by State Farm (after her deductible) was $2,726.65 less than her payoff. Shortly after speaking with our client, State Farm called and requested our charges. We emailed State Farm an itemized invoice of our charges; later that day, State Farm called us back and informed us they would not be paying for $960.88 of our charges relating to the inspection, tear down, storage and various other related operations. I explained to State Farm that these proper charges relating to the work performed and storage fees due had never been an issue over the years with them or any other carrier. State Farm informed me they handle each claim on a case-by-case basis and would be deducting $960.88 of our charges from the insured’s settlement. Afterwards, I called our client and went over with her my conversation with State Farm and our charges. She said she understood and was certain State Farm would be honoring this liability after she spoke with them. On or about September 24, our client called me back and informed me she was
not only going to be left owing a balance to her lender of $2,726.65 but State Farm would indeed be holding $960.88 from her settlement for our charges that they refused to cover. I again went over our charges in detail and explained to her each item on our itemized invoice. At the end of our conversation, she summed up the total of $3,687.53 that she would now owe her lender and dejectedly said she didn’t know what to do. That is when I referred her to you and agreed to hold her vehicle at our facility for no additional charges until this situation was resolved. On October 11, our client called me to release her vehicle to State Farm and thanked me for referring her to Auto Claim Specialists. She enthusiastically told me through the appointment of Auto Claim Specialists as her public insurance adjuster, her vehicle was being completely paid off, all of our charges were being paid and she would even be receiving a return on her equity of $432.84. Will you please explain the outcome to us? Do you see this often? ank you for your question, and we appreciate the referral of your clients. Your client’s particular situation is a common and 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 you recall from reading the October 2020 editorial, State Farm’s policy has limited the right of appraisal to actual cash value disputes only. Fortunately, the State Farm Appraisal Clause 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 that allow appraisal for the covered loss. As to how we were able to see to it your client was made whole: As a rule on these types of claims, we always request the client to email us the market valuation report, complete settlement breakdown (including all itemized deductions) and any available exterior and interior pictures of the
18 December 2020 Texas Automotive
By Robert L. McDorman
vehicle. We will then forward this information and documents to our subsidiary, Vehicle Value Experts, and request they provide us with an actual cash value appraisal of the vehicle. ere is never a charge for us to review the insured carrier’s proposed undisputed loss settlement statement. Upon receiving your client’s market valuation report and complete settlement breakdown, we identified that State Farm had valued the loss vehicle at $9,562. e settlement breakdown revealed State Farm had identified their undisputed liability loss as $9,739.89 after the applicable $500 deductible. e $9,739.89 ($9,562 + $597.63 + $80.26 - $500 = $9,739.89) included sales tax of $597.63 and a title transfer fee of $80.26. is, plus some exterior and interior pictures of the vehicle, was forwarded to Vehicle Value Experts, and we requested an actual cash value appraisal. Upon receiving the appraisal results, it was discovered the proposed State Farm settlement fell far short of its true liability as defined under the State Farm policy limits of liability. e Audatex Autosource valuing tool used by State Farm, which utilized a complex algorithm to arrive at the market value of $9,562, was far off the mark. As we always inform our clients, this formulated market value calculation is nothing but a quick and rough estimate of the actual cash value of the loss vehicle which (if you can believe it) typically errs to the advantage of the carrier. An appraisal is applicable in every loss scenario such as this. After a thorough review of the State Farm proposed loss statement and the Vehicle Value Experts loss statement, we recommended to the client that the proper way to see to it she was made whole for her loss was to invoke her policy right of appraisal to move the valuation of her vehicle into the hands of experts. After our consultation, she agreed to appoint Auto Claim Specialists as her public insurance adjuster and Vehicle Value Experts as her independent third-party appraiser and invoke her policy right of appraisal to identify the actual cash value as defined in the State Farm policy. Auto Claim Specialists placed State Farm on notice of our appointment and provided the company with the appraisal notice from the insured. As requested, State Farm timely appointed its independent third-party appraiser and provided Auto Claim Specialists with the proper contact information. At the conclusion of the appraisal process, the independent third-party appraisers identified and agreed to the actual cash value of the loss vehicle as $13,440. is changed State Farm’s liability for the loss after the deductible to $13,860.26 ($13,440 + $840 + $80.26 - $500 = $13,860.26), which included sales tax of $840 and title transfer fees of $80.26. rough the right of an appraisal to identify the actual cash value, it was determined State Farm’s initial undisputed settlement offer of $9,739.89 under-indemnified the insured by $4,120.37 – a 30 percent miss! e supplemental liability of $4,120.37 allowed the insured to satisfy the remaining payoff balance due to her lender of $2,726.65 and overcome the under-indemnification of the $960.88 liability for associated fees due to the collision facility, leaving a net return on her equity of the vehicle of $432.84. However, please note that the offset of
the $960.88 collision facility liability from the $4,120.37 State Farm supplemental liability is a mockery that under-indemnified the insured $960.88. It is our position from reviewing the collision facility’s invoice relating to this claim that this charge was a valid liability of State Farm that they refused to pay. Unfortunately, and by design, this charge was not applicable to appraisal under the State Farm policy. As previously outlined, State Farm has limited the right of an appraisal to actual cash value disputes only. We clearly can see from this claim the absolute harm to the insured when the right of appraisal is limited to only certain elements of the covered loss. It is my professional opinion that a motor vehicle policy with limited or restricted appraisal rights leaves insureds facing similar situations such as this claim more times than not. e biased, manipulative and overly profit-minded insurance carrier should never be given the absolute right over the liquidity of the insured’s loss. Protection of the party’s appraisal rights should be mandatory on all elements of the covered loss. e 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. ese under-indemnification percentages are staggering and harmful to Texas citizens. 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. 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 question and look forward to any follow-up questions that may arise.
19 December 2020 Texas Automotive
TXA
Sincerely, Robert L. McDorman
The Consumer’s Voice From Total Loss to Total Frustration: A Customer Shares Her Story Getting into an automobile accident is stressful enough, but imagine being left on the hook for more than $3,600 by your insurance company as a result. As discussed in this month’s Ask the Expert article by Robert L. McDorman (see page 18), this unreal scenario was faced by his client, AnneMarie Roth,* after her 2011 Toyota Camry was involved in a collision last September. A State Farm-insured driver since the 1960s, she had assumed that the company would make her whole again without much conflict. Unfortunately, that was not the case. In addition to receiving a total loss settlement offer that was thousands less than her payoff amount, she says her vehicle was totaled by State Farm without any actual physical inspection being performed by an insurer representative. “According to the phone conversations I had with [State Farm], no one from the company ever came and looked at my car. I was not happy with my insurance company. ey were only going to pay [an amount] that wasn’t near what the car was worth.” Roth says that State Farm also took issue with her decision to have the vehicle inspected by her shop of choice, Henderson Collision Center in Henderson. “When they asked me who authorized [the shop] to look at it, I said,
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...
‘I did!’ I wanted to know how much it would take to get it fixed and what was wrong.” To make matters worse, State Farm refused to pay for Henderson Collision Center’s charges – totaling nearly $1,000 – for inspection/tear down, storage and related operations. Facing a sudden financial hardship that she would not have been able to pay off at one time in addition to needing a new car, Roth put her foot down. “I finally just said, ‘Okay, now. is ain’t right.’” At the shop’s recommendation, Roth reached out to McDorman’s company, Auto Claim Specialists, for assistance. In early October, the issue was settled, and Roth walked away without having to pay a dime out of her pocket to cover the shop’s charges and pay off her totaled Camry. She advises fellow customers to seek out Auto Claim Specialists if they even find themselves in a similar bind. In the meantime, she is unsure if she will continue her long relationship with State Farm. While no consumer should ever have to find themselves in this kind of situation, Roth has powerful words of advice for those who do: “Stand on your own two feet and don’t let the insurance company bully you!” *e consumer’s name was changed at her request. TXA
President’s Message Continued from page 4
we don’t hold insurers accountable, the rampant under-indemnification of policyholders will become an even bigger problem than it already is. Texas consumers deserve better. We’re repairing vehicles for them – not the bill payer. It’s extremely important that we succeed in the next session, and we will be calling on our membership to do all they can to make this possible. In the September 2020 issue of Texas Automotive, our executive director, Jill Tuggle, revealed ABAT’s plan to send 1,000 consumer-signed letters in regard to issues with common insurer practices to the Texas Department of Insurance (TDI) and lawmakers. is project is well underway, and it is important for our members to let their customers know that they have a voice. More often than not, a consumer has no idea that their insurer refused to pay for a necessary procedure. Shops need to better communicate this reality to them and encourage them to let TDI and legislators know what’s going on and how much underindemnification has hurt them. A truly educated consumer is our best ally in changing things for the better. One more thing: I’m currently dealing with a very interesting situation at my shop that shines a bright light on insurer interference – especially when it comes to steering and misinforming the consumer. It promises to be an intense ride, and I’ll update our members and readers on it as soon as I can. Stay tuned.
CALL 636-734-5470 EMAIL ryan@the300advantage.com
TXA
To learn more! burl@burlscollision.com 20 December 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
21 December 2020 Texas Automotive
22 December 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