Logan Payne Payne & Sons Paint & Body logan@paynescollision.com (214) 321-4362
Palomo West Texas Auto Color japalomo3@yahoo.com (806) 831-7765
Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361 Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564 Albert Salinas South Houston Nissan asalinas@southhoustonnissan.com 833-856-7871 Darrell Smith McDaniel’s Quality Body Works Inc darrell-mcdaniels@sbcglobal.net (903) 753-5391
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Corporate: (973) 667-6922 / FAX: (973) 235-1963
PRESIDENT/PUBLISHER
Thomas Greco / thomas@grecopublishing.com
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EDITORIAL DIRECTOR Alana Quartuccio / alana@grecopublishing.com
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PRODUCTION COORDINATOR Joe Greco / joe@grecopublishing.com
OFFICE MANAGER
Donna Greco / donna@grecopublishing.com
SPECIAL CONTRIBUTORS: Burl Richards / Jill Tuggle
Robert L. McDorman / Mike Anderson
www.grecopublishing.com
How Are You Surviving the Slowdown?
SSlowly, slowly, the work is trickling in slowly. Industry-wide, shops are complaining about a lack of business. There just doesn’t seem to be enough cars to repair! During ABAT’s most recent Board meeting, this topic came up, and 90 percent of attendees agreed that they’re slower than usual.
Now, of course, certain markets haven’t missed a beat due to weather events or an absence of competition in the area. A handful of shops are still plugging along at the same pace, possibly due to their business model; shops that service multiple dealerships may have an advantage in pulling in steady work. But for most of us, business is as slow as a snail climbin’ a slick log.
I’ve owned shops for nearly three decades, and personally, I haven’t seen it this slow for many years. During the pandemic, we were pretty insulated here in East Texas – my sales only dropped by a few percentage points, and it seemed like shops in the big metropolitan areas took a much bigger hit than we did. After the COVID-19 panic subsided, a lot of us enjoyed a busier time than ever, but industry leaders predicted it wouldn’t last.
In fact, Mike Anderson (Collision Advice) issued a warning at the 2024 Texas Auto Body Trade Show that stuck with me. He indicated that there would be some tough times coming over the next couple years, and although I was slammed with more work than I could imagine at the time, his caution stuck with me…for good reason since within just a few months, shops in the area started slowing down. Eventually, my shops slowed down too.
A lot of factors play into the current slowdown, but one of the biggest is probably related to inflation, which has affected everything from grocery prices to homes and new cars. Body shops are likely feeling the direct impact of increasing insurance premiums which have risen by over 50 percent since 2020. As a result, customers are less likely to file claims; Progressive’s claim count is 30 percent lower than normal right now, according to a pretty
Burl Richards ABAT President
Executive Director’s Message
PULL! It’s Skeet Shoot Time!
OOn Thursday, April 17, ABAT will host its Annual Skeet Shoot!
Get ready for an action-packed day of shooting, prizes and great food at the Dean Griffin Memorial Skeet Shoot! This annual event draws over 75 participants, competing in teams of four on a 100 sporting clay course set deep in the woods – a perfect challenge for all skill levels.
The event is named after one of our late Board members who always brought laughter (and a little bit of profanity) to
every ABAT event. Dean was a big part of the growth of ABAT in the DFW market in our early years. When I suggested a skeet shoot to Dean, he was “all in!”
After his unexpected passing, we chose to honor his legacy by continuing the tradition and establishing a trust fund for his daughter, Natalie. Each year, the skeet shoot allows us to make a meaningful contribution to her fund, helping support her future education or career training.
Just like years past, shooters will enjoy the experience with a live Cuban cigar roller crafting premium cigars on-site. You can also take your shot at winning some massive raffle prizes, including a shotgun and an AR rifle!
Top teams will take home our iconic belt buckles, and we’ll wrap up the day with a delicious crawfish boil, so come ready to eat and celebrate!
Sponsorships start at just $500, offering a great way to showcase your business while supporting two things that our dear Dean was passionate about – ABAT and his family. Registration is open right up until a couple of days before the event, so you can still sign up today!
Jill Tuggle ABAT Executive Director
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 ever y day and finally, will the company making the booth provide solid training and reliable customer ser vice?
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 industr y 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 ever yone and asked a lot of questions We knew that this was going to be a ver y 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 ver y 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 ”
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 ever ything 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!”
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 ever y month, so
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 ver y 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 industr y 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 ”
Ladies of Collision
Crystal Griffin of Griffin’s Paint & Body, Winnsboro
Whoever thought the auto body industry was solely a man’s world was strongly mistaken. The ladies of the collision repair industry continue to disprove that misconception time and time again. This month, Texas Automotive highlights Crystal Griffin of Griffin’s Paint and Body, an industry professional who stepped right in when the opportunity presented itself.
Texas Automotive: What led you to a life in auto body repair? What role do you play?
Crystal Griffin: My husband, Ed Griffin, and his father, Jim, own Griffin’s Paint and Body. Before they opened the business, they worked together at a dealership when Ed was fresh out of high school. Then they decided to go out on their own. This was probably about 15 to 20 years before I came along. Ed and I got married and had children. When it was time for me to go back to work, there was a really great need at their shop for someone to do administrative work. Things have changed so drastically in this industry, and there is so much admin time needed to deal with insurance companies. We have to do the work for them. It’s increased 100 fold. So I stepped in and took over the financial side and administrative duties. I also do some things in the shop – not necessarily with repairs – but whenever I’m needed, I help out with detailing or with scanning. I’ve been working at the shop for about 10 years now.
TXA: Prior to learning about your husband’s shop, did you ever foresee yourself working in the business?
CG: Absolutely not (laughs). I went to school and majored in biology with a psychology minor. After college, I moved back to Winnsboro to help my parents who had a family business. Then I met Ed, we started our family, and I became a stay-athome mom, raising our two boys. When I was ready to go back to work, it just worked out that Ed really needed help at the shop. I stepped in, learned and felt my way around. I learned a lot from him and just from being
there day in and day out. So, no, I never would have expected this, and sometimes I tease him about why he got us into this industry because it can be stressful, but it’s also very fulfilling because we are helping Texas consumers, probably more than we realize.
TXA: What are some of the biggest challenges you’ve faced in this industry?
CG: The biggest challenge is dealing with the insurance companies. It’s gotten to the point where insurance companies have free reign – there’s no regulations controlling them in a sense that helps consumers. They have too much power and too much money. The admin time that we put into dealing with them is astronomical. We spend long conversations on the phone or time writing long emails to point out every detail, but they don't really care what you're saying anyway, because they will do what they want to do. That’s the most difficult part of our job.
TXA: What about this industry do you love the most?
CG: I do love to help people that we see at the grocery store, go to church with or the families our children go to school with. I love helping the community. There are challenges too as some people are just always going to believe the insurance company, no matter what. But those who we are able to help, validates that we’re doing some good. That is the ultimate goal, and that’s what we look forward to. We can also be choosy of those we choose to work for. As a business, we can hire and fire a customer just as easily as they can us. We do love helping our community, and it’s a really big pay off when we see that we have helped someone. Whether it's to get their car repaired properly or to point them in the right direction to make sure they get fair market value for their total loss, it’s fulfilling.
TXA: Do you have any hobbies? What is life like outside the body shop?
CG: As we’ve gotten older and our kids are out of the house, our hobbies really are more about spending time with our kids or just enjoying some quiet time at home. We can be so worn out at the end of the week, we like to spend our quiet, peaceful time at home. We get our reprieve on weekends. At this point in our lives, anything we do is just based around our semi-adult children.
TXA: What advice would you give to a woman interested in getting into the auto body world?
CG: I believe that women can be very beneficial to this industry. Women have special characters and traits that can help – not only on the administrative or financial side of the business. From my own experience, I have noticed that having a woman in the office to talk to the customers can help other women feel more at ease. But even out in the body shop, women are much more intune to detail. I used to do more of it, but I enjoy detailing vehicles. It’s kind of fun to me and it fits my personality. Whenever I got done detailing a vehicle, the customers could not believe how good it was. I think women are especially attuned to that type of work. Women are just a little more geared to detail in general. TXA
Crystal Griffin, Griffin’s Paint and Body
ABAT Community Learns of Game Changing Goals and Breakthroughs
An exciting year for ABAT is underway! From goals at the Capitol to regional events, 2025 is definitely going to be one for the Texas auto body world books. ABAT hosted a “game changing” themed virtual webinar event on March 11 to inform the membership about the “super exciting things we have planned for this year” in the words of ABAT Executive Director Jill Tuggle.
Tuggle and ABAT Lobbyist Jacob Smith provided an overview of the legislative goals surrounding the fair appraisal bill SB 369, filed by Sen. Schwertner in preparation of ABAT’s Capitol Day, which was set for late March. (Look for full coverage of this event in the May issue of Texas Automotive available online at grecopublishing.com).
Tuggle gave a heads up about upcoming events, including the Dean Griffin Memorial Skeet Shoot set for April 17, a hybrid meeting planned for May, the annual Women's Night of Honor planned for June and the latest development for the 2025 Texas Auto Body Trade Show which will be held in the fall (September 12-13) at a new location – the Marriott Dallas Allen Hotel & Convention Center.
Giving members access to the best tools around is another mission of ABAT. They set out to do just that by inviting National AutoBody Research (NABR) team leaders Sam and Richard Valenzuela to give the ABAT community the very first look at their recently unveiled and newly revamped BillableGenie tool.
“Texas is the first association to see this,” revealed Sam Valenzuela about the breakthrough software that intends to level an otherwise “lopsided” industry due to “insurance companies having a competitive advantage over the body shops when it comes to accessing repair data.”
The previous version of BillableGenie involved a manual process of sending estimates to NABR to input into their database resulting in a collection of 20,000 estimates over an eight year time period. The new system is still in its infancy with a handful of body shops inputting data; however, it has already generated about 10 percent of what the original BillableGenie collected in just one month and a half, according to Sam.
“Once it’s installed, you don’t have to send anything to us; it does all the work,” he explained of the application. If every BillableGenie subscriber participates, he foresees having 1.3 million records of shop estimates available in the not-too-distant future.
“We are looking to help level the scales, so body shops can get access to and have more detailed estimate data than the insurance companies have,” he relayed. Insurance companies continuously claim they “won’t pay for that” and cite prevailing rates with little to
no data to back that up. The new BillableGenie sets out to supply the body shops with access to data that can prove them wrong.
The missing key has been the absence of access to the shop’s side of the estimate, according to Sam. “Now, you can see what other shops are writing. This is a real breakthrough as this is the data that the industry has never been able to get to before. There has never been a systematic way of searching through thousands – and eventually millions! – of records based on keywords like insurance company, vehicle make or a specific labor rate.
“The more Texas shops using this, the more ammunition you have to push back when they tell you it’s not the prevailing practice,” he added. “You can find examples of repairs being written at shops in your surrounding area asking for that very same thing. You can call them out, hold your ground and back it up with real data.”
The tool can be “as powerful as you want it to be,” he suggested. Search functions allow shops to view data by OEM certifications, so shops can compare their estimates to other shops with the same certifications. DRP data can also be submitted provided a shop “does their homework to view their agreement carefully to make sure there are no restrictions.” This data gives program shops the opportunity to see if others on the same program are charging or getting paid for certain line items.
The Valenzuelas stressed that BillableGenie is a safe space for data. Shop business names and customer names will not be displayed. “We know that data is flying all over the place, but not here. The data comes here, and it stays here,” Sam assured.
The tools available via BillableGenie are designed to address the “we don’t pay that” or “that’s not necessary” word track mantra of the insurance industry so that shops “don’t leave money on the table,” Richard Valenzuela relayed.
“We didn’t create this system to be an easy button where it magically results in an insurance company paying for everything,” Sam stressed. “That’s fantasy land. Having data is important so you can show facts. If you don’t have that, you are just arguing with words. You have better odds for winning an argument with facts.”
Ultimately, one needs to collect from the customer, but “it would be a slow death for shops that don’t collect for their work and let insurers get away with it. At some point, truth has to prevail, and we can’t keep acquiescing to what we know is false when insurers say something is not a prevailing practice when you have the data to prove it.”
Sharing market data is good for the industry. “There is nothing wrong with sharing it. It facilitates transparency. There is
by Alana Quartuccio
no legal issue with sharing market data anymore than a gas station posting their price on the corner,” stressed Sam. The more users who contribute their data, the more information there will be available to show what is really happening in the market.
“ABAT has always been a big proponent for what these guys do,” stated Tuggle. “I love that Sam brought up that it isn’t an ‘easy button’ or quick fix. That comes up so often in our industry. Many may think they just join ABAT and we’ll fix the problem. The reality is that the only one who can fix our problems is ourselves. ABAT is a vehicle to get together, share wins and losses and find ways to work for our common goal.”
Tuggle pointed to the benefits of BillableGenie which include appraisal data that could be an aid in ABAT’s fight to get the fair appraisal bill approved during this legislative session.
“One of ABAT President Burl Richards’ biggest sticking points is being told ‘you’re the only one’ or ‘that’s not the prevailing rate.’ NABR heard that and tackled it head on. Like the baseball analogy, ‘you won’t swing at the same pitch the same way,’ this is another way to respond to a different pitch. This, along with what ABAT is trying to accomplish at the Capitol, shows we are moving in the right direction.” TXA
Why Join WIN?
WIN offers education, mentoring and leadership development opportunities to build critical skills for success in the collision repair market.
• Local/Regional Networking Events
• Annual Education Conference
• Educational Webinars
• Mentoring Opportunities
• Scholarship Program
• School Outreach Program
• Most Influential Women (MIW) Award
Cover Story Dealing ADAS Calibrations: What Option Is Best? DAS
ADAS features have become pretty standard on most vehicles; in fact, around 95 percent of light duty vehicles manufactured in 2023 came equipped with automatic emergency braking, according to CCC Intelligent Solutions’ 2024 Q1 Crash Course Report (bit.ly/CCC-CC2024q1). These days, around 70 percent of vehicles being brought to a body shop require at least one calibration, but there’s a lot of debate about whether it makes more sense to sublet this task or to bring calibrations in-house. Simple answer: there isn’t one! It all depends on your business model and what makes sense for each shop.
“Calibrations are an absolutely integral part of the repair process on most vehicles, but when it comes to how those calibrations get performed, shops need to consider whether it’s more logical to sublet them or bring them in-house,” according to Tommy Ames (1Source ADAS/Automotive Electronic Solutions).
“Correctly performing calibrations requires tons of training,
certain equipment, a lot of space and a specific environment, so it may not be worth the investment if the shop doesn’t have a high enough volume.”
ABAT President Burl Richards began performing calibrations in the shops he previously owned because “it made sense to be able to service all three shops in-house. We wanted to make sure we were doing things right, so we updated the facility, invested in the training and equipment and turned one of our buildings into a calibration center.” The high volume between his shops justified the investment, and the ability to manage that aspect of the repair allowed for increased efficiency since he no longer had to schedule appointments with a sublet company.
With multiple dealerships under his umbrella, it also made sense for Eric McKenzie (Park Place Dealerships; Dallas/Fort Worth) to bring calibrations in-house. “We are the certified collision center for all the brands our dealerships sell, so we see
the importance of keeping as much of the repairs in-house as possible. We started doing our own calibrations as soon as there was training and procedures to show us how to do them.”
Greg Luther (Helfman Collision; Houston) also opted to follow this path because “we felt operations were missing through our third-party vendors, and we wanted more accuracy and control over the process. We started with research, visiting other shops performing in-house calibrations about their process and seeing their chosen systems in action. A friend of mine developed a system he calls VSSTA for in-house scans and calibration with remote assistance and OEM scan capability. VSSTA also communicated directly with our shop management system, ROME, so it has turned out to be a great fit for our shop.”
Beyond the tools, equipment and facility updates required, training is a key aspect of successfully performing ADAS calibrations, and for many shops, it makes sense to assign this task to a specialized diagnostician. In fact, Ames believes having a designated calibration expert is “one of the most important aspects of successful calibrations. In the ADAS world, knowledge is power. That knowledge can only come from training and experience. These are SAFETY features. Would you put your family in a car that was just calibrated by someone who doesn't know what they are doing?”
Richards agrees. “Calibrating a vehicle isn’t as simple as setting up some targets and using a computer; you need an experienced professional who knows how to diagnose their findings and can help the body tech understand what steps need to be taken next.”
McKenzie’s “dedicated mechanics use only OE scan tools and OE approved/compatible calibration equipment, plus they attend any available OE training.” Likewise, Helfman Collision employs “a dedicated technician who is trained and supported through VSSTA, with our manufacturer training as a dealership, and he has completed I-CAR training relative to his role,” Luther reports.
Following OEM procedures is absolutely imperative when performing this difficult task. “OEM repair procedures are absolutely critical in performing a proper ADAS calibration. Advanced Driver Assistance Systems rely on precise sensor alignment, which must be restored to factory specifications after repairs,” Luther states. “Following OEM repair procedures is not just best practice – it is necessary to ensure vehicle safety, consumer safety and the safety of everyone on the road around a repaired vehicle…and to protect the repair facility from liability issues. An improperly repaired vehicle could lead to injury or death, and no one wants to have to live with that responsibility to save a few bucks.”
“We base our whole repair plan and methodology on OEM procedures,” Richards concurs. “Everything starts there because our goal is to repair the vehicle to its original, pre-accident condition.”
“Following OE procedures is an absolute must because failing to do so could cause ADAS features to either not work at all or not as designed by the manufacturer either of which could end in catastrophic results,” McKenzie adds.
Because “procedures and requirements change daily in the ADAS space, following OEM procedures is paramount,” Ames
stresses, taking it a step further: “If you're not going to invest the time and money into OE repair procedures, don't even bother doing the work! You're not just risking liability; you're risking a life – someone's child, parent, grandparent or other loved one.”
There’s certainly a cost associated with bringing calibrations in-house, but shops that have made the investment often see a significant ROI. “Other than initial equipment purchases, costs are minimal,” McKenzie shares. “This is typically the most profitable area of our business. Some of the equipment does require larger spaces than repair stalls, so the drive aisles work for that.”
“The equipment cost is substantial, but it’s worth every penny,” Luther indicates. “Space is a concern because some vehicles require very large, dedicated areas for their specific calibration. It requires a large, level surface, free of obstructions. We were able to accommodate such a need, but many shops cannot. In-house calibrations have been a profitable venture for our shop. Although expensive and time-consuming to get started, I wish we had done it sooner.”
Although Ames recognizes that “performing calibrations in-house can enhance profitability by reducing cycle times and keeping all proceeds in-house if the business is structured correctly,” he warns those considering it that “there’s more to it than [just starting it up and collecting more money]. First, you need to have the volume to justify it. Calibration equipment is expensive. Subscriptions are just as expensive if you want 100 percent coverage. Then there are space requirements. If you have it, great. If not, then add that to the startup costs.”
To see a profit on this work, shops must first convince insurance companies to pay for calibrations, but shops doing this have come up with some tips.
“Some insurers want to compare your in-house bills to a third-party invoice, so it’s important to be very specific in your documentation and make sure you’re in a reasonable price range,” Richards suggests. “Then again, some appraisers objected to paying a markup on sublet invoices, despite the fact that the calibration company was using my stall and electricity, so of course, we’re going to mark it up because we’re a for-profit business. A lot of insurers want to argue about any required procedures, so there’s going to be some pushback no matter how you do it.”
Ames recommends that establishing a separate business makes it a little easier for shops to collect compensation from insurers but can also come with additional challenges.
Luther believes the key is in documentation. “Most insurance carriers agree to cover our repair costs without issue, as we maintain a fair and reasonable pricing structure, backed by thorough documentation to justify our charges; however, some carriers only cover a portion of our calibration costs, citing disagreements with OEM requirements or our pricing structure. Unfortunately, due to a lack of regulation, the State of Texas has allowed insurance companies to manipulate auto insurance policies in a way that enables them to determine repair coverage without adhering to OEM guidelines. This has negatively impacted Texas consumers. Since the Texas Department of by
Cover Story
continued from pg. 17
Insurance has permitted these changes, many major insurance companies have taken advantage of the situation, knowing that most consumers lack the time and financial resources to challenge their decisions and demand proper payment.”
McKenzie finds, “Most of the insurers understand and pay for reasonable calibration charges, though it can be a moving target.”
Even shops that have a dedicated diagnostic technician recognize that they cannot perform every calibration in-house, though, since it’s impossible for most facilities to acquire everything they need for all makes and models. McKenzie’s team sublets vehicles that they don’t have the proper equipment to calibrate, sending them to the dealer.
“There’s a lot of training to keep up with, and if you don’t have the volume to make the investment, there are definitely benefits to subletting calibrations,” Richards acknowledges, adding that some sublet companies do a wonderful job of keeping up with the technology and doing things the right way. And that’s not necessarily every sublet company.
“It is the wild west with ADAS calibrations right now,” Ames says. “Everyone and their grandmother is out for a money grab. Finding a good reputable sublet company can be difficult in some markets, and scheduling a sublet calibration can also be a challenge.”
So, how do you know whether your shop should bring calibrations in-house?
Ames recommends starting by identifying your shop’s volume and demand: Are ADAS-equipped vehicles a significant portion of your workflow? Does outsourcing calibrations lead to delays or inefficiencies? Then, determine if you have the space for static calibrations and open roads for dynamic calibrations, if you can justify the cost of tools and equipment and if you’re willing to invest in training for your team (or if you’re able to hire a diagnostic technician with the right experience). Consider facility requirements, and research your ability to comply with industry standards as well as how bringing calibrations in-house may impact liability for your shop.
Ames also recommends looking at existing costs and profits for outsourcing, the expense required to bring calibrations in-house and how long it would take to break even on your investment. Additional considerations include the possibility of starting a separate business to collect proper compensation from insurers if you suspect they may not recognize and reimburse your in-house calibrations.
In short, Ames offers this advice: “If ADAS calibrations are frequent, and outsourcing delays are hurting efficiency, bringing them in-house can be a smart move if your environment allows; however, if the volume is low or space is limited, outsourcing may still be the better choice.” TXA
Ask The Expert
by Robert L. McDorman
The Importance of Mandatory Right to Appraisal Time Triggers – Part Two
Dear Mr. McDorman,
I own and operate a collision facility in North Texas. Your December edition about Senator Charles Schwertner’s Senate Bill SB369 concerning mandatory appraisal rights in Texas mentioned time triggers in his appraisal bill. For repair procedure disputes, I believe I can see where these are a needed component of the bill. How do you view the importance of time triggers, and how do you see them helping insureds in loss disputes? Also, does Auto Claim Specialists keep data on typical cycle times for clients with claims going through appraisal? If so, can you share this with the readers so we can see how these compare with the time triggers in Senator Charles Schwertner’s Bill?
In last month’s response to these great questions, I submitted the following statistics for repair procedure Right to Appraisal disputes where claims do not require an umpire:
Our records show that from the date of loss to final settlement, it takes 280 days on average, broken down as follows: from date of loss until the carrier issues their estimate of record, it takes 32 days on average; from the estimate of record date until the last supplement by the carrier is issued, it also takes an average of 32 days; from the date of the last supplement is issued by the carrier until the Right to Appraisal is invoked, it takes another 47 days; from the date the Right to Appraisal is filed until the carrier appoints their independent appraiser, it takes 48 days; and finally, from the date the carrier appoints their independent appraiser until the appraisers agree on the amount of loss, it averages 121 days.
Now, I would like to add statistics for repair procedure Right to Appraisal disputes where claims do go to an umpire. For these claims, our records show that from the date of loss to final settlement, it takes 399 days on average; 119 days longer than
claims not requiring an umpire – and well over a year altogether! The biggest difference in cycle times between claims requiring an umpire versus those not requiring an umpire is in the period from the date the carrier appoints their independent appraiser until the appraisers and umpire agree on the amount of loss. For claims going to umpire, this takes 233 days on average versus 121 days for claims not going to umpire – a 112-day increase! (See graph.)
As I noted in last month’s editorial, Senator Schwertner’s bill contains critical time-sensitive triggers that prevent the harmful delays in the insurance claim process we see and deal with daily, as outlined above. As noted in the bill, should there be a dispute in the amount of loss, either party – the insurer or the insured – must invoke this Right to Appraisal within 90 days after the insurer accepts liability and issues their undisputed liability offer. Also, it sets a timeline that requires the parties to appoint and name their appraisers no later than the 15th day after the appraisal is demanded. The bill requires that the appraisers agree on the amount of loss on or before the 30th day following the date both appraisers are appointed. The bill sets a drop-dead date on the timeline for which the appraisers must select an umpire if they cannot agree on the loss. The appraisers must choose an umpire on or before the 15th day after the date the appraisers determine an umpire is needed. Should the appraisers not be able to decide on an umpire, the insurer or the named insured may request that a court in the county in which the named insured resides select the umpire. The appraisers and umpire must determine the amount of loss not later than the 30th day after the date the umpire is selected.
As you can see from comparing these time triggers in Senator Schwertner’s bill to our historical average cycle times for claims that go to umpire, the decrease from the date appraisers are appointed to the day the appraisers and umpire agree on the amount of loss (our historical 233 days versus the bill’s 75 days; 30 for appraisers, plus 15 to appoint an umpire, plus 30 for appraisers with umpire) would reduce the total repair claim cycle time by 158 days, a drop of over five months! This would be a huge relief for insureds in Texas.
Robert is a recognized Public Insurance Adjuster and Certified Vehicle Value Expert specializing in motor vehicle-related insurance claim resolution. Robert can be reached by phone at (800) 736-6816, (817) 756-5482 or via email at AskTheExpert@autoclaimspecialists.com. continued on pg. 22
The under-indemnification in repair procedure claims in Texas is rampant. Most of the estimates and supplements we see for repair
Ask The Expert
continued from pg. 20
claims have many overlooked (by design) safety and OEM-required operations needed to restore the loss vehicle to its pre-loss condition to the best of one's human ability. Limiting or removing the insured’s right to appraise a repair procedure is a serious safety issue. Limiting or eliminating the Right to Appraisal by the insurance carrier in a repair procedure dispute will be the nail in the coffin for safe roadways in Texas.
Our position at Auto Claim Specialists is that the Right to Appraisal should be a mandatory contractual right in every policy. For the 89th Texas Legislative panel, we have teamed up with lobbyist Andrew “Drew” Graham to educate lawmakers and help secure mandatory contractual appraisal rights for all insured Texans. We, the insureds, are many, and I am confident that if we join forces and all do what we can, we can be successful in securing our rights and our children’s rights to contest insurance settlement offers that would result in underpayment of losses and/or shoddy and dangerous repairs.
The spirit of the Appraisal Clause is to resolve loss disputes fairly and to do so in a timely and cost-effective manner. Invoking 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, 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 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 remember that a safe repair is a quality repair, and quality equates to value. I thank you for your question and look forward to any follow-up questions that may arise.
Sincerely,
Robert L. McDorman TXA
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Industry Update
The XPress 800: Practicality and Precision for All Riveting Needs
Quality repairers need quality tools to ensure precision in every job, every time. The RAE - Wieländer+Schill XPress 800 Riveting System provides a variety of options for all riveting needs, offering excellent accessibility and effortless maneuverability regardless of the nature of repairs needed.
The XPress 800 is made even more userfriendly with easily interchangeable adaptors, while being lightweight and effortlessly maneuverable. Its power control system includes a convenient STOP key, allowing you to halt tool advancement for adjustments without releasing pump pressure.
The XPress riveting system provides versatility by accommodating various tools for diverse functions and applications, with several customizations available to accommodate any repair needs. Thanks to its modular design, this device seamlessly integrates with a range of hydraulic cylinders and designated C-arms, enabling pressure control for self-piercing rivets, flow form rivets, blind rivets, punching and blind rivet nuts (when appropriately
The XPress 800 Riveting System offers options and customizations to handle a wide variety of repairs.
configured). The basic, standard and full set options offer versatility and portability, enabling repairers to locate the system wherever the job requires. Additional kits are available for specific manufacturers, allowing facilities to adhere to OEM requirements and repair procedures wherever necessary.
At RAE, we recognize that the right tools are only half of the equation. That’s why
President’s Message
continued from pg. 4
reliable source. To lower that, policyholders are carrying higher deductibles – it’s not uncommon to see a $2,000 deductible these days! More vehicle owners are also paying out of pocket to prevent their premiums from increasing even more, and that means that many minor repairs aren’t being sought. ADAS may also be causing fewer accidents, though I doubt we can blame it entirely.
At the same time, certain markets are being saturated with MSOs building new facilities or buying existing ones, so there’s more shops for the work to be divided amongst. Shops that operate on a DRP model are experiencing difficulty in attempts to sign onto new programs since the insurers don’t have as many claims and want to feed their existing shops. All of these things seem to be adding up to slow us down.
The current state of the industry seems really weird to me. Of course, it could work like a faucet where the work suddenly starts flowing out at any time, but I suspect that Mike’s prediction will be right – that we’re going to be experiencing this difficulty for a while, and that’s worrisome for many reasons. Beyond the obvious profitability concerns, we’re seeing technicians leaving the industry because they don’t have enough work, and we can’t afford to lose qualified talent in this field. I can’t help but wonder what this
we provide comprehensive training with the purchase of tools like the XPress 800, ensuring technicians can confidently master the equipment and perform repairs with precision. This commitment to training helps facilities not only meet, but exceed, OEM standards. To learn more about the XPress 800 system and our full product offering, visit raeservice.com
slowdown is going to do to the market and to competition. Will shops begin undercutting everyone else to try to get more work?
What will that do to our industry in the long-term?
What’s your workload like? How are you staying busy? What are your concerns about the slowdown, if you’re experiencing it? I’d love to hear your thoughts and suggestions!
