Texas Automotive April 2023

Contents APRIL 2023

APPRAISAL: AN ISSUE OF LIFE AND DEATH

by Chasidy Rae Sisk

PRESIDENT’S MESSAGE by Burl Richards

A Correlation Between Under-Indemnification and the Tech Shortage

EXECUTIVE DIRECTOR’S MESSAGE by Jill Tuggle

Turning on the Back Burner

ABAT’S DEAN GRIFFIN MEMORIAL SKEET SHOOT FLYER

TEXAS AUTO BODY TRADESHOW: SAVE THE DATE!

ABAT MEMBER PROFILE by Alana Quartuccio Bonillo Automotive Electronic Solutions, LLC

ASK THE EXPERT by Robert McDorman Are Lawmakers Changing Their Mindset about Consumer Safety?

NATIONAL FEATURE by Chasidy Rae Sisk

ABAT BOARD OF DIRECTORS

President Burl Richards Burl's Collision Center burl@burlscollision.com (903) 657-8082

Chairman of the Board Corey Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361

Vice President Eric McKenzie Park Place Dealerships emckenzie@parkplace.com (214) 443-8250

Treasurer David Osburn Paint Works davidosburn@paintworkstyler.com (817) 648-5797

Executive Director Jill Tuggle jill@abat.us (817) 899-0554

ABAT BOARD MEMBERS

Bobby Beason DeMontrond Collision Center bobby.beason@demontrond.com (936) 577-2747

Larry Cernosek Deer Park Paint & Body lcwrecker@comcast.net (281) 930-1539

Kevin Ellison Westway Ford kellison@vtaig.com (972) 584-9033

Brandon Gillespy Park Place BodyWerks bgillespy@parkplace.com 214-443-8250

Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136

Greg Luther Helfman Collision gluther@helfman.com (713) 574-5060

Darrell Smith McDaniel’s Quality Body Works Inc darrell-mcdaniels@sbcglobal.net

Robert McDorman Auto Claim Specialists rmcdorman@autoclaimspecialists.com (817) 756-5482

Chad Neal Innovative Collision Equipment Chadwneal@yahoo.com (817) 527-2143

Logan Payne Payne & Sons Paint & Body logan@paynescollision.com (214) 321-4362

Anthony Palomo West Texas Auto Color japalomo3@yahoo.com (806) 831-7765

Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564

Albert Salinas South Houston Nissan asalinas@southhoustonnissan.com 833-856-7871

Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963

PRESIDENT/PUBLISHER

Thomas Greco / thomas@grecopublishing.com

VICE PRESIDENT/SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com

EDITORIAL/CREATIVE COORDINATOR

Alana Quartuccio Bonillo / alana@grecopublishing.com

MANAGING EDITOR

Chasidy Rae Sisk / chasidy@grecopublishing.com

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 / Jacquelyn Bauman www.grecopublishing.com

TEXAS AUTOMOTIVE is published monthly and is sent to ABAT members free of charge. Subscriptions are $24 per year. TEXAS AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of TEXAS AUTOMOTIVE are copyright © 2023 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

A Correlation between Under-Indemnification and the Tech Shortage

AAs a shop owner, I constantly try to stay aware of the environment our industry is in, and I encourage other repairers to do the same. But even the least observant among us would find it pretty hard to ignore the tech shortage that just keeps getting worse every single year.

Recently, it was brought to my attention that the auto body industry’s struggles are well-known to insurance companies as well – when one of my customers reported an accident and scheduled to bring their car to my shop for a repair, they received the following message from State Farm:

“Customers are experiencing delays in repairs due to parts delays and labor shortages. Consider calling your repair facility before dropping off your vehicle to minimize time without your vehicle.” [Emphasis added.]

I find it pretty interesting that an insurance carrier is addressing the fact that there’s a labor shortage in the collision repair industry because I think we all know that there’s a correlation between the lack of technicians in our field and the egregious under-

indemnification that body shops encounter when dealing with insurance companies! Now, I’m not saying that the tech shortage is entirely their fault, but they are absolutely part of the problem that has caused these burdens, and they should share some of the blame.

Burl Richards ABAT President

How does the insurers’ refusal to properly indemnify their insureds for vehicle repairs relate to our industry’s labor shortage? Well, there’s a couple different ways it impacts our shops and our employees when third-party payers fail to reimburse vehicle owners for required processes and procedures.

Obviously, by refusing to respect and acknowledge a shop’s posted labor rates, the insurer creates a deficit in the business’ budget that inhibits some shop owners’ ability to pay their technicians competitive wages and benefits since they aren’t getting paid for those processes and procedures they should be able to bill for. Knowledge of the wages our industry can afford to offer

Turning on the Back Burner

LLike most people, I tend to have a laundry list of good intention items and things I’d like to do under the ABAT umbrella, but the daily grind of planning events, managing membership, operating a large Facebook group and so much more gets in the way. The daily grind takes over, and those super important but regrettably back burner items tend to fall by the wayside. In the past few months, I put in just a small amount of effort to bring those things to the forefront, and it feels so good to put a little extra into the industry. I gave that back burner a light and cooked up a few good things!

I was invited to speak at career day at a local high school. I was divinely paired with Lincoln Technical School. I say divinely… but likely one of the educators in charge of this program knew that we would be a good match – and we were! We had the perfect combo! I spoke about the opportunities that exist in the industry, some common misconceptions, cool tools and cars and training. The training topic tackled on-the-job training as well as formal education – a perfect segue to hand it off to Mr. Stephen Reed with Lincoln Tech.

– things that go well beyond the actual body shop. I showed them photos of super clean, trendy or mega shops, a snapshot of the Lucid repair app and also let them know that we still do a lot of good oldfashioned body banging. Did we have students interested? Of course! Did some fall asleep? Also, yes. But knowing that we may have sparked something in a few local young bright minds made taking the time out of my busy schedule to attend this event worth every missed call or email.

The other product of this day was the networking I was able to do, mostly with Lincoln Tech personnel – who are working very hard to improve and reinvest in their auto body program! I am looking forward to including them in ABAT’s future ventures and events as well as supporting them through our efforts and through connections with the Collision Repair Education Foundation (CREF).

In the same week, I was able to attend an exciting day at

continued on pg. 22

Jill Tuggle ABAT Executive Director

LARGEST SHOW OF ITS KIND IN THE SOUTHWEST!

Featuring education from national speakers, vendors, networking, live demos, celebrity appearances, a car show and ABAT’s BIG SHOTS Competition

Please plan to join us August 25-26, 2023 at The Irving Convention Center surrounded by the exciting Toyota Music Factory where dining, entertainment and hotels are just steps away!

Exhibitor registration open NOW & attendee registration will be opening soon. Stay tuned for updates by visiting abat.us/events/tradeshow

Appraisal: An Issue of Life and Death

At first glance, it may appear like Right to Appraisal is a pecuniary matter, but as Ware Wendell (Texas Watch) stressed during a recent installment of the consumer organization’s podcast, In Conversation: Auto Appraisal with Robert McDorman, auto appraisal is “literally an issue of life and death. It’s about getting to a fair number that allows repair professionals the time they need to do the job the right way, to make that repair as safe as possible so that, heaven forbid, if we’re in another collision, the vehicle will perform correctly and protect its occupants, that it won’t come apart at the seams.”

Wendell welcomed his guest, Robert McDorman (Auto Claim Specialists) as “an expert on automotive safety and insurance practices [who] is familiar with what consumers need to know to receive fair and full payment on their auto claims.”

The pair have visited the Capitol together for years, advocating for consumers, yet despite their best efforts, “It’s just getting worse and worse. We’ve spoken with three different insurance commissioners, and for some reason, our message isn’t being heard. We’ve provided statistics and data on the under-indemnification related to these motor vehicle claims,” lamented McDorman, whose role as a licensed public insurance adjuster makes him a “custodian for these records” who only represents the insured.

“Not every single insurance claim we look at is unfair,” McDorman acknowledged. “But a large amount of the insurance companies’ estimates or repair plans are grossly under-indemnified when it comes to the repair procedures, and that often constitutes an unsafe repair. Although manufacturers issue position statements saying certain operations absolutely should be done, we routinely see the insurance carrier refusing to recognize that because it’s not the ‘prevailing practice’ in the market. That means if nine out of 10 shops are doing it wrong because they’re not certified in that brand or don’t have the right qualifications, they won’t pay the one shop doing it right. It’s a serious problem because the technology and materials on today’s cars equates to more sophisticated repairs –and there’s no one better to tell a shop how to fix the car than the manufacturer!”

Wendell pointed out that many consumers are likely unaware that some body shops engage in “professional relationships” (DRPs) with certain insurers that necessitate following the carrier’s guidelines on the repair process. He also lauded ABAT members as “the independent shops that are putting the customers first time and again, investing in their workforce and the best equipment and who have the willingness to push back against the insurance companies when they try to force these repair professionals to cut corners, cheap out on repairs and do things that the consumer may not even realize is creating problems for them.

“Consumers typically have no idea how structurally sound and safe a vehicle is beneath the surface level,” Wendell added. “But

these independent shops care about doing the job the right way and are rebuilding those cars from the ground up, from the frame up, to ensure all the safety systems are working the way they should and not letting the insurance companies pressure them into making a cheaper and more dangerous repair.”

Clarifying that the term under-indemnification simply means the insurer isn’t paying enough money according to the policy to make the consumer whole, Wendell explained that appraisal is used merely to identify the amount it will cost to properly repair the damage, and McDorman pointed out that appraisal allows conflicts between the repair professional and the insurer to be handled in a timely fashion, noting that without appraisal, consumers are forced to pursue the matter in litigation which takes an average of 19 months. In fact, he’s still aware of several pending cases from September 2019!

House Bill 1437 (sponsored by Representative Travis Clardy), along with Senate Bill 554 (sponsored by Senator Bryan Hughes), serve as this session’s proposed Auto Appraisal Clause legislation, which are being supported by ABAT, Texas Watch, Auto Claim Specialists and others as a way to rectify many of these issues by requiring all Texas insurance policies to allow policyholders to invoke the Right to Appraisal. “The appraisal bill has stop gaps in it and mechanisms to restructure the appraisal process to be fair for the insurer and the insured,” McDorman said, and Wendell optimistically shared, “Powerful legislators are pushing these bills in both chambers of the Capitol, and we hope to get it signed into law this session.”

Originally, the Appraisal Clause was added to policies at the insurers’ behest; they wanted appraisal as an option in the event of a dispute. By over the years, “as more and more of these disputes have gone through appraisal, we’re finding that the appraisers are coming down on the side of the consumer,” Wendell indicated, asking McDorman about the average under-indemnification he sees when Right to Appraisal is involved. On total losses, McDorman calculated the average under-indemnification as $3,800, while it’s closer to $5,400 on repairable vehicles.

“This is a neutral process,” Wendell stressed. “If the two appraisers cannot agree on the amount, in some cases, it can go to a third appraiser, called an umpire, who figures out the right amount. So, it’s a neutral process, but as you take these claims through that process, you’re seeing the insurance companies underpaying by thousands and thousands of dollars. And it’s taking appraisal to get the right amount of money on the table for that consumer to get the job done the right way, to have their vehicle repaired safely.”

Although these are large amounts of money for the average working family, it’s often difficult to find a lawyer to take those cases through court since a portion of that payment will be needed for attorney fees, often leaving Texas drivers to contend with these

situations on their own…unless they’re able to invoke the Appraisal Clause.

“Appraisal is a mechanism to do that whenever the repair methodology is in dispute,” McDorman insisted. “It’s a safety issue, and appraisal is a mechanism that should be honored.”

Yet, back in 2014, a major insurance carrier removed Right to Appraisal from their policies. When McDorman brought this to the attention of the Texas Department of Insurance (TDI), he was instructed to seek appraisal before filing a complaint, forcing him to prove that the Appraisal Clause had been removed from the policy. “They said it was the insured’s right, and they were shocked when they found out that I was right,” he recalled. “One of the deputy commissioners admitted, ‘That got past us completely.’”

For Wendell, instances like this are exactly why it’s “very important for the Texas legislature to step in and to step up on this issue. Our state lawmakers and regulators are the ones that set policy for our state in terms of what is going to be permissible in an insurance policy…and what isn’t.”

The Appraisal Clause legislation proposed during the last session made good progress in the House but stalled in the Senate,

and this year, “we need the legislation to pass both chambers so that the governor can do the right thing for the consumers of this state and make sure that they have options when it comes to working with an insurance company to get the right amount of money to do the repair the safe way,” Wendell emphasized his viewpoint.

“Appraisal is the guardrail for indemnification,” McDorman cautioned. “The bill that we drafted, that was sponsored by lawmakers, was fair for both sides. But if we don’t have appraisal on these repairs, this is going to become an even bigger safety issue than it is. If we get to the point where no one is looking over the proper repair methodology when the repair professional and the insurer are at odds on the proper way to fix the car, that will be the nail in the coffin for the safe roadways of Texas.”

Wendell urged listeners to get involved: “We need everybody to tell their lawmakers, state representatives, state senators and the governor to pass this legislation to protect all of us.”

Texans can easily do exactly that and show their support by going to texaswatch.org/saferepairs.

Check out the interview at bit.ly/InConvoAppraisal TXA

ABAT Member Profile

Automotive Electronic Solutions, LLC

Vehicle technology continues to advance at rapid speeds. In fact, today’s vehicles are commonly referred to as “computers on wheels.” Managing electronics is not necessarily the forte of the average body shop worker. It takes special training and equipment to scan and calibrate these cars correctly.

That is where Automotive Electronic Solutions comes in. As its name implies, the company provides the solution to all automotive electronic needs from pre- and post-scanning to ADAS calibrations and will provide service to anything and everything in the repair process that involves electronics.

“We go into the shop and take all the electrical headaches out of their hands and do it all for them,” explains owner and founder Tommy Ames. “We are a one-stop shop for all electrical needs.”

Ames comes from a long line of automotive professionals. His great-grandfather built vehicles, his grandfather was an automotive instructor and his father owned an auto body repair shop for most of his life and “once I was old enough to walk, he put me to work.”

As a result, Ames is experienced in every aspect of collision repair. But electronics happens to be the area he prefers to focus on, and he’s built quite a successful business off that niche.

“You walk into a collision shop and start talking about electrical repairs, technicians will throw their hands up in the air - they don’t want anything to do with it. They would rather fix a quarter panel dent than handle an electrical repair. It’s a niche I enjoy and most others dislike. It requires critical thinking and every situation is different. Diagnostics can be like solving a big puzzle, depending on the information you have going into it.”

Ames launched autoEsolutions in 2019 working as a one-man team going into shops to perform a complete electronic diagnostic with pre- and post-repair scanning. About a year later, he began to expand into ADAS calibrations, hiring his second employee in June 2020. In only two-and-a-half years, the business grew at an impressively rapid rate and is now a 10-man operation managed by experienced collision repairers. “My operations manager Robby Read and I have worked in every aspect of a collision repair shop, from sweeping floors to general manager.”

Having that knowledge sets them apart from the rest as every team member knows exactly what happens on the shop floor putting them in the best position to come in, performs the scans and calibrations and also train shops to know what to look for and what is required by the manufacturer.

Automotive Electronic Solutions serves eastern Texas with locations in Longview, Texarkana and Tyler serving about “an hour and half radius of each location” in addition to serving parts of Arkansas and Louisiana, with future plans to branch out even further.

Ames takes pride in the fact that they will ONLY operate by way of OEM procedures. “If a shop doesn’t want to do it all, we

won’t work on that car. If my name is going to be on the repair plan, then we have to do what the OE requires,” he stresses.

Training their customers is a big part of what they do so shops know what to look for during the repair process and how to find things early on so they aren’t running into issues on delivery day and so that they can schedule calibrations. Shops also need to know what is involved so they can get it on the supplement as in many cases pre-approval is needed by insurers.

“A lot of shops can get stuck with the bill but it needs to be done and many insurers will tell them ‘we won’t pay for it,’ yet they had the work done already.”

Prior to launching Automotive Electronic Solutions, Ames was employed with McDaniels Quality Body Works (Longview). There, he worked closely with ABAT Board member, Darrell Smith and learned about ABAT. The association’s mission is near and dear to Ames, whose father had aspired to start up an association in the early 2000s.

Automotive Electronic Solutions is proud to support ABAT. While it provides good marketing opportunities for his company, the main reason Ames is involved is to support the work of the association and the shops they represent.

“ABAT is getting everyone together so the insurers can’t control the market,” he champions the association’s efforts. “My dad left the industry because he couldn’t do honest work and make money. Insurers would only pay what they wanted to pay. Unless you cut corners, you can’t make money, so he left collision repair and went into restoration work.

“When I started this company, we jumped on board with ABAT because of their mission,” he adds. “We want shops to know that we stand behind them on these issues and we will help them fight. As a sublet for collision shops, we are fighting for the same things they are. We don’t want insurers dictating our prices either.”

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Ask The Expert

by Robert L. McDorman

Are Lawmakers Changing Their Mindset about Consumer Safety?

Dear Mr. McDorman,

I own and operate several collision facilities in west Texas, and we routinely refer our clients to you with their under-indemnification issues. We truly appreciate you and your staff for always dropping what you are doing to help. Over the last several months, I have seen articles written about you promoting safe repairs and your involvement with the mandatory appraisal bill at the Capitol. Do you see a difference in the mindset of lawmakers this session versus last? If so, what do you think sparked the change?

Thank you for your questions, and thank you for the referrals you have sent us over the years. Yes, I have seen a noticeable difference in lawmakers this legislative session. Earlier this month while at the Capitol, I had several lawmakers invite me to their office to discuss HB 1321 and HB 1437. Each had wonderful questions and comments which clearly indicated they had been researching these two important bills. I believe very strongly that this evident change in attitudes regarding the Safe Repairs Bill (HB 1321) and the Fair Appraisal Bill (HB 1437) has to do with all the efforts that my colleagues have made over the past two years to help educate Texas citizens and lawmakers on the need to change the broken motor vehicle claim process. I also believe we should give credit to our lobbyist, Jacob Smith, for all his hard work in educating lawmakers and promoting the need for the Safe Repairs Bill and the Fair Appraisal Bill. Thank you, Jacob!

Safe Repairs Bill (HB 1321) would prevent the carrier from using biased, direct repair contracted rates to determine the prevailing rate. It would not allow the insurer to consider a part to be of “like kind and quality” unless it has been safety tested using the same manufacturer (OEM) guidelines. Additionally, an insurer would be prohibited from offering any type of incentive other than a warranty. Finally, the insurance company would be prohibited from accepting a referral fee or gratuity in exchange for the referral of business.

When a dispute arises between the insurer, the policyholder and the repair professional, the Right to Appraisal is the proper relief to see to it that the vehicle is safely and properly returned back to its pre-loss condition to the best of one’s human ability. The Fair Appraisal Bill (HB 1437) requires insurers to include the Appraisal Clause in all auto policies, both for total loss and repair claims. The limiting or removal of the Right to Appraisal in motor vehicle auto

policies would be the nail in the coffin for safe roadways for us all.

It is my position that the Right to Appraisal is the guardrail for indemnification. Without this critical loss dispute resolution process becoming mandatory in the insurance code, the insurance carriers and their defense team will be like beavers to running water to reduce or remove this contractual economic relief for the insured which they have already attempted doing, and they have even succeeded in removing it from one carrier’s auto policy.

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 nonstandardized 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 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.

Sincerely,

Robert L. McDorman TXA

Robert is a recognized Public Insurance Adjuster and Certified Vehicle Value Expert specializing in motor vehicle-related insurance claim resolution. Robert can be reached at (800) 736-6816, (817) 756-5482 or via email at AskTheExpert@autoclaimspecialists.com.

National News

by Chasidy Rae Sisk

Auto Claim Specialists Educate on Appraisal at NORTHEAST 2023

As ABAT continues to fight for mandatory appraisal in Texas, Board member Robert McDorman (Auto Claim Specialists) brought the topic to a national stage by presenting at the Alliance of Automotive Service Providers of New Jersey’s (AASP/NJ) 46th Annual NORTHEAST® Automotive Services Show, which took place at the Meadowlands Exposition Center in Secaucus, NJ last month.

McDorman first appeared on the NORTHEAST 2023 stage during a panel discussion entitled “Slaying the Dragon: Manageable Actions for Shop Success” where he emphasized the importance of helping consumers understand their rights and the reality of the policies they purchased.

“The devil is always in the details. We take customers through the whole process because the more transparent we are, the better outcome we’ll have. Every customer who comes to us is mad and disappointed because they don’t know who to believe, but once we get involved, we’re able to break it down for them. My biggest advice to shops is: don’t be scared to talk to your customers about the issues you encounter because communication and transparency are key. We’re repair professionals and craftsmen who are responsible for people’s lives. We should always educate. It’s not about rate; it’s about safety procedures and processes. Change is not easy, but the only way we can change is through persistent education and data.”

He explained how ABAT’s legislative initiatives have grown over the last seven years as the association has focused on educating Texas legislators about how frequently consumers contend with under-indemnification. “Indemnification is a safety issue, but nothing changes without monetary punishment. We won’t see a change to this systematic problem unless we educate the legislators, the insurance industry, the defense attorneys and our customers.”

During the “Shop of the Future” panel discussion, McDorman reiterated that it’s “imperative for shops to get customers involved and to educate them about their policy rights. We are seeing the same problems in New Jersey that we see in Texas, and it’s happening all over the country because it’s systematic.”

Invoking the Right to Appraisal (RTA) can be an extremely effective shop resource to help customers combat underindemnification and resolve disputes in a fair, efficient manner, and McDorman teamed up with AASP/NJ President Jerry McNee (Ultimate Collision Center, Edison, NJ) to share some insights during “Inside the Appraisal Clause.”

Improper loss valuations impact policyholders, shops, manufacturers, lender and gap providers, according to McDorman. By providing inadequate valuations, insurers effectively insist on low repair costs that force shops to write off losses (or sacrifice the quality of the repair and assume the associated liability risk). Shops also lose business when vehicles are deemed total losses when they could actually be repaired. Simultaneously, lenders and vehicle manufacturers suffer from brand loyalty as a result of these activities. Most importantly, this harms the consumer who has paid for auto insurance that is intended to ensure they maintain their previous

financial situation (indemnification) following a loss.

On total loss claims, the average under-indemnification results in a reduction of $4,025 in gross profit for shops, and calculating the impact of vehicles being inaccurately deemed a total loss on Texas body shops, McDorman estimated that each shop could be missing an average of $108,273 in profits every year as a result of repairable vehicles being totaled unfairly. Invoking the Appraisal Clause in repair cost disputes has yielded McDorman’s clients an average increase of $5,312.46.

During a recent audit of 1,100 claims conducted by consumer advocacy group Texas Watch, the average total loss increase following invocation of the Appraisal Clause was approximately $3,200, McDorman explained as he stressed: “We need to fix this problem. Our customers are being harmed. Consumers are being harmed, and at the end of the day, we’re all consumers.”

Offering a shop owner’s perspective, McNee observed that while he has historically been able to negotiate with insurers, something has changed since last year. “Short pays used to be based on a variance of a couple hundred dollars, but now the differences are vast…they’re underpaying by $5,000-$10,000! Getting the customer to invoke their Right to Appraisal takes me out of the equation and helps the customer receive proper indemnification so that shops can get paid as the professional without being shortchanged on every claim.

“Because when we’re talking under-indemnification, that amount goes directly into the insurer’s pocket, leaving consumers in a worse financial position after the repairs than before,” McNee added. “These are our customers, and supporting them through these shenanigans benefits the shop in the long run. Document everything. Insurers have turned the claims process into a profit center, but the numbers and facts don’t lie.”

ABAT and McDorman are diligently working on legislation in Texas to make Right to Appraisal mandatory on all insurance policies. “Through the Appraisal Clause, loss disputes can be resolved relatively quickly, economically, equitably and amicably by unbiased, experienced and independent third-party appraisers, as opposed to more costly and time-consuming methods such as mediation, arbitration and litigation,” McDorman insisted. “Insurers originally included RTA because it discourages bad faith claims, but they started seeking to remove it once they realized that it’s a mechanism that consumers can use to ensure they are properly indemnified. Our position is not that every auto claim should go to appraisal, but with this much subjectivity and room for error, every insurance policy should include an Appraisal Clause.”

AASP/NJ is already working diligently on the plans for NORTHEAST 2024, scheduled to take place March 15-17, 2024 at the Meadowlands Exposition Center in Secaucus, NJ. Visit aaspnjnortheast.com for updates on next year’s event as they become available. TXA

Five UTI Students Receive 2023 WIN Scholarships

Universal Technical Institute (UTI) in Houston recently held a ceremony to announce, recognize and congratulate the five young ladies in its collision repair program who were named among the 2023 Women’s Industry Network (WIN) scholarship winners.

“All the UTI collision students, instructors and managers attended our celebratory event,” shares UTI Instructor Keith Schieffer. “It was inspiring to see around 150 people cheering and applauding for the five women who received WIN scholarships, and the winners were incredibly excited and fired up. UTI and our winning students thanks WIN for this wonderful opportunity to promote a healthier collision industry.”

The five students who received a 2023 WIN scholarship were:

• Renee Betz

• Taeler Coverdale

• Nikya Fields

• Alexandria Huntley

• Mariah Sherman

Each year, WIN awards scholarships to deserving students enrolled in a post-secondary collision repair technology program, and this year, the organization announced the selection of a record-breaking 20 recipients, a quarter of whom attend UTI. WIN recently expanded its signature scholarship program to offer its Student Tuition and Conference Scholarship Awards on two financial levels: Champions and Stars. In addition to a complimentary WIN student membership, “recipients are awarded a scholarship ranging from $500 up to $2,500 based on the selection team’s evaluation of their application and the

interview process,” explains WIN Scholarship Committee Co-Chair Laura Kottschade. “All recipients received tool kits valued at over $500, WIN items and complimentary registration for attendance to the virtual format of the annual WIN Educational Conference to be held in San Antonio, Texas, May 1-3, 2023.”

Complementing the updated scholarship program, WIN has also launched a new student engagement program to enhance the mentorship opportunities it provides scholarship winners while also offering more chances to network and connect with women in the industry who can share relevant experiences from their success.

Learn more about WIN and its scholarship program at womensindustrynetwork.com TXA

Collin College Awarded Glue Pull Repair System Thanks to ABAT Nomination and KECO Donation

Schools educating the next generation of collision repairers need access to up-to-date tools and equipment, and as it becomes more imperative than ever to encourage young people to enter this field to replace the retiring population, auto body companies and advocates are stepping up to the plate to make a difference through a variety of initiatives. Last summer, in recognition of the long-term value of investing in the future generation of collision professionals, Chris White (KECO Products) announced an initiative through the Society of Collision Repair Specialists (SCRS) to award a level two glue pull repair system to one vo-tech school per quarter, based on nominations from SCRS affiliate organizations.

After receiving many great submissions for the first quarter of 2023, White chose Collin College (Allen), nominated by ABAT, because “what really stood out is how much they listened to the suggestions from ABAT and a large focus group of local shops, seeking advice on their curriculum as well as the organization and layout of their program. We’re really happy to be able to award Collin College with our new system.”

“We are deeply honored and grateful to receive this system from KECO Products,” says Collin College Collision Instructor Raven Hartkopf. “ABAT is the reason we were given a KECO glue pull system with training included. I cannot express how grateful I

am for their nomination because this donation will help so many of our students and future technicians. We really have the best support for our collision program!”

In addition to being outfitted with the state-of-the-art KECO glue pull repair system last month, Collin College received training on the new equipment from Christopher Allen (PDR Express).

“We spent the day training on glue pull, and some students even joined us for the training,” Hartkopf recalls.

“Christopher did an excellent job with training. The PowerPoint presentation was very nice, and we really enjoyed all the hands-on

Five UTI students received WIN scholarships (winners and endorsing instructors pictured L-R:) Taeler Coverdale, Al Scott, Mariah Sherman, Jim Beckham, Keith Schieffer, Renee Betz, Greg Chalifoux, Lexi Huntley, Nikya Fields, Richard Hamill)

Pictured L-R: Christopher Allen, Jill Tuggle, Marcus Godinez, Raven Hartkopf

Pictured L-R: Christopher Allen, Chris Fland, Richard Hall, Winferd Vermillion, Raven Hartkopf, James Yervasi, Rodrigo Guerrero, Marcus Godinez, and Rosa Penaloza.

President’s Message

continued from pg. 4

certainly also impacts students’ willingness to pursue a collision career as well.

This is especially difficult in an environment where technology is changing so rapidly that we’re forced to invest hundreds of thousands of dollars each year to stay up-to-date with advancing vehicles. With those continued investments, we certainly have to adjust our prices to align with our costs, but how can we recoup our investment if insurers are refusing to pay for the procedures performed?

But the under-indemnification issue impacts technicians in an even more important way than their bank statements – it has created concerns with morality and with morale. When insurers reject a shop’s repair plan and refuse to indemnify our mutual customers for OEM-recommended processes and procedures, there are several ways it can be handled: the shop either does it for free, they bill the customer for the difference or they don’t perform the procedure at all.

At ABAT’s Capitol Day earlier this year, we had two technicians tell legislators that they simply don’t perform the processes when insurers refuse to pay for them…and that affects how they view their jobs. One of them is currently seeking another employer who will fight for their customers, but how many technicians simply leave the field? Craig and Rhonda Anderson joined us as well to explain to legislators how they had decided to sell their shop as a result of bullying from the insurance industry. For years, they fought to repair cars the right way and struggled to get paid properly to remain competitive, but eventually, they got so fed up that they decided to leave the industry altogether.

Executive Director’s Message

Why would that be happening? Well, it may seem like a novel concept to these insurers, but technicians have a conscience and typically want to do the right thing – they want to repair cars correctly and ensure that their customers are driving away in a safe vehicle. But when insurers repeatedly under-indemnify repairs, these professionals take a mental and emotional beating. They either accept financial losses, or they lose sleep at night because they’re unable to do what’s morally correct. Between all this fighting to get paid for their advanced skill set and pleading with an industry that knows nothing about that skill set to protect their customers, a lot of guys and gals are simply finding it easier to leave the industry and pursue a different career path.

So, it’s interesting that the same insurance industry that continues to deny shops’ requests to perform these necessary processes and procedures are then turning around and acknowledging the labor shortage in repair shops without recognizing how their under-indemnification practices contribute to that shortage. Shops need to be aware of how these two issues are related and take a minute to consider possible solutions. I’ve been asking insurers for many years, what are they going to do when there’s no one interested in fixing cars?

As a business owner or as a technician, consider how this issue impacts you and decide what you’re going to do about it. I challenge you to bring these matters to the insurers’ attention and make them aware that they’re part of the problem.

burl@burlscollision.com

Local News

continued from pg. 21

their new KECO glue pulling system. The system was generously donated to them by KECO through SCRS and chosen based on the nomination I made on behalf of ABAT. They deserve this system so much, and word has it that they will be making some exciting announcements soon about how exactly they will be implementing this glue pull training at their facility. They are an active member of ABAT that attended our day at the Capitol, the trade show and meetings. I am honored to support them in return.

Imagine for a moment if we each took five hours, once per year to attend a local high school career fair or five minutes to participate in a nomination or share of an email or social post from an organization like ABAT or CREF. How might we impact the number of employees entering our workforce? How might we impact the image our industry has? How might we inspire new products and ideas?

You do have to step out of the office and go into the kitchen to light the stove, but what’s cooking on that back burner? Take the time. The dish is satisfying and just might feed our village.

continued from pg. 6 jill@abat.com

training. We learned the fundamentals and can now show others about the six Cs to glue pull repair.”

“ABAT loves doing what we can to support Collin College because the instructors and administrators remain very active in the industry,” shares ABAT Executive Director Jill Tuggle. “It’s difficult for anyone in collision repair to get outside of their business and get involved with advocating for the industry, yet Raven does a phenomenal job of doing exactly that. Her attendance at the Texas Auto Body Trade Show each year shows that she understands how important it is to continue her education so that she can share new knowledge with her students, and her passion for the industry’s future was evidenced clearly when she attended ABAT’s Collision Day at the Capitol recently. Her passion makes her a great role model for her students, and I’m so happy we’re able to advance what she’s doing just a little further.

“This is just another way that ABAT is working to improve the future of our industry,” adds Tuggle who also made efforts to attract more young people to the industry just days before when she presented to eight groups of high school students during KEYS High School’s (Euless) career day event. TXA

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 ”

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

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!”

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.”

Russell & Smith Logging Big Paint Hours with USI Booths & Prep Station