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
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SPECIAL CONTRIBUTORS: Burl Richards / Jill Tuggle Robert L. McDorman / Mike Anderson / Jacquelyn Bauman
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A Labor of Love
In just a few days, I’ll see a bunch of y’all in Irving for the 2024 Texas Auto Body Trade Show. As always, we have a ton in store for everybody!
IThe educational slate this year is filled with classes on topics you need to know more about, taught by some pretty big names that you’re bound to recognize, including industry icon and my dear friend Mike Anderson of Collision Advice along with several folks from his team. The full schedule is on page 10, but one class I’m particularly excited about is Friday morning’s “Navigating Collision Repair Regulations and Insurance Terminology,” where I’ll be joined by Robert McDorman (Auto Claim Specialists) and Attorney Travis Clardy (Clardy Law Offices) for an interesting discussion.
Do you ever wonder why insurers pay for some things but not others? I used to, too! I’ve learned a lot, and these two premiere experts have loads of experience when it comes to some of the issues shops see, so we want to share some insights. Be prepared to discuss the issues, including why insurers pay for certain items, whether it is legal when they refuse to pay and what legal recourses shops have when carriers under-indemnify their customers. We’ll definitely be discussing the options that consumers have through Right to Appraisal (read up in advance on page 14), but we’re really looking forward to answering attendees’ questions, so be sure to jot down any issues you’re seeing and be ready for an interactive discussion. I’m confident that, between the three of us, we’ll be able to shine a lot of light on this subject and help Texas shops better understand what they and their customers are entitled to under the vehicle owner’s policies.
SOURCE1 ADAS
In between classes, our world-class vendors will be showcasing everything you could possibly need to run a successful auto body shop. From standard tools and equipment to different refinishing options and ways to handle ADAS calibrations and other pending technology, we’ve got you covered!
Of course, if you know anything about ABAT, you know our events are never all business, so we are gearing up for a lot of fun, too (get all the details in last month’s feature, available at grecopublishing.com/ txa0624coverstory)! From our Annual After-Party to a claw machine, a car show and even a NASCAR simulator on the show floor, there’s something for everyone, so bring the whole family. Introduce your kids to this industry that has been so good to us!
Among all the fun, the event that is nearest and dearest to my heart is our annual BIG SHOTS Competition. We planned this for years before figuring out the logistics that allowed us to debut it in 2021, and it just keeps getting better and better every year! If you’re a body technician, painter, estimator or paintless dent repair tech, be sure to sign up and show us what you can do! This show isn’t just for shop owners and managers; it’s important to get technicians, painters and estimators involved, and BIG SHOTS is a great way to recognize the
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• Integrates seamlessly with CCC & Mitchell estimating software
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• Meets OEM procedure calibration requirements
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Burl Richards ABAT President
Join ABAT today in our mission to promote consumer safety, proper repairs and the success of the collision repair industry!
WE CAN’T WAIT FOR YOU TO SHARE YOUR IDEAS!
Executive Director’s Message
It’s Here!
TThe Texas Auto Body Trade Show is in DAYS, and I cannot wait. We are expecting record attendance this year. And how appropriate because ABAT also celebrated a milestone birthday – we turned 10 years old this year! Since the beginning of our existence, our goal has been to have over 1,000 attendees come to the show, and this year, we will definitely surpass that goal! If you are on the fence about coming, let me give you a quick snapshot of what you will be missing out on if you don’t attend!
Education:
• Three team members from Collision Advice, including “The King” himself, Mike Anderson.
• Social media truth-bomber and mega successful shop owner, Clay Hoberecht.
• “Repairidy” - an auto body game show (What?!?)
• Classes from top-notch, national speakers on all kinds of collision repair topics.
Exhibit Hall:
• BIG SHOTS: A skill-based competition that you can sign up for on site and win $1,000 cash.
• 50,000 square feet of exhibit hall space where 60-plus auto body vendors will showcase the hottest tools, software and equipment.
• English Color’s car show.
• NASCAR simulator where the fastest lap wins two tickets to any NASCAR race in the country!
Extras:
• ABAT ladies mixer – margaritas and a free gift!
• The iconic Bar Louie After party – we’re bringing a cocktail claw machine, y’all.
Bring the whole family for a little fun, and we will be sure to have something for everyone – even the kiddos! The hotels are gorgeous, and the surrounding Toyota Music Factory is teeming with entertainment. Come one, come all –register ahead or just show up! But whatever you do, don’t stay home July 12-13!
jill@abat.com
Jill Tuggle ABAT Executive Director
All Makes and Models
24-48 hour Turnaround
Proven Color Match Database
On-site Cosmetic Repairs
Large Inventory of O.E. Replacements
National Feature
Is Time Finally Up for Total Loss
Under-Indemnification Tactics?
When a vehicle owner brings their car to a shop after an accident, they typically expect it to be repaired, so it’s a tough blow when they learn their vehicle has been deemed a total loss. It’s even more upsetting when their insurance carrier shortchanges them by undervaluing the actual cash value (ACV) of the loss. Yet, that’s a common occurrence these days as demonstrated by the prevalence of allegations, lawsuits and settlements related to under-indemnification.
While shops, vehicle owners and consumer advocates have been bringing these concerns to the forefront for a number of years through a variety of methods, a recent lawsuit in California suggests that this ongoing issue has finally captured the attention of public officials and hopefully indicates that it’s time for these lowball settlements to come to an end.
The Alameda County Consumer Justice Bureau (CJB), under District Attorney Pamela Price, recently filed a lawsuit against Progressive, USAA, CCC Intelligent Solutions and Mitchell International, which alleges that, in order to maximize insurers’ profits to the detriment of California consumers, the companies “worked together to create and use automobile valuation software to systematically undervalue ‘totaled’ vehicles and pay California insurance consumers less than the actual value owed under the policies” in violation of a number of California laws, including the Insurance Code, Unfair Competition Law and False Advertising Law.
“A vehicle is the lynchpin to life in California. Many residents live paycheck to paycheck and go deeply into debt just to buy a car,” District Attorney Price said in the press release issued by her office. “When an insurance company underpays its customers
for a totaled vehicle, that can result in missed loan payments, damaged credit scores, impacted borrowing, and the inability to buy a replacement vehicle. That can lead to job losses and even homelessness. California residents and small businesses try their best to follow the law. They expect their insurance companies and affiliates to do the same.”
According to the 69-page complaint filed in April 2024, these insurers not only failed to operate in good faith; they are accused of using specially designed valuation software –specially created by software developers as a means of manipulating and lowering the ACV of total loss vehicles by utilizing a deceptive set of “comparable” vehicles which allow insurers to lower the reported ACV and coerce customers into accepting lowball settlement offers. Additionally, the complaint indicates that insurers minimize their losses further by reselling the totaled vehicles at auction.
The lawsuit acknowledges that policyholders are only one entity being negatively impacted by this scheme. It also impacts businesses, including car manufacturers and dealers, gap insurance providers, automobile loan institutions and car repair facilities “that lose out on potential repair business when vehicles are systematically totaled instead of repaired.”
Industry leaders weigh in on this scheme and what the CJB’s lawsuit could mean for collision repairers nationwide.
“The idea that insurers under-indemnify their policyholders isn’t shocking…We’ve all known that something isn’t quite right about how insurers ‘value’ claims for years,” ABAT President Burl Richards points out. “But it is pretty exciting to see a public official taking note of this egregious wrongdoing and making an attempt to defend her constituents. I’ve
often wondered if insurance companies will ever be held accountable for shortchanging customers on total losses and also on repairable claims since they often refuse to pay for the OEM-required processes and procedures that are necessary to perform safe and proper repairs. It’s great that one state is taking notice of the under-indemnification scheme that shortchanges consumers and makes it increasingly difficult for body shops to run their businesses effectively. Hopefully, this momentum spreads across the country and creates some real change!”
“The outcome will certainly be interesting, especially if any or all of the plaintiffs are found guilty, as it could catalyze similar actions in other jurisdictions,” suggests Alliance of Automotive Service Providers of New Jersey President Ken Miller. “The systematic undervaluation of total losses is not a new issue, and I wouldn’t necessarily view this case as a solution to the problem, even with a favorable verdict. But we can hope! So, until this problem is resolved, let’s try something different. As service providers, we have a responsibility to edify our customers about the total loss process, inform them about the relevant laws and suggest potential tools to help determine a proper valuation. Armed with the correct information, savvy individuals should be able to negotiate equitable settlements with insurers and avoid being taken advantage of.”
“For far too long, here in Massachusetts, we have seen this method aggressively pursued by many insurers in an effort to unjustly mitigate their financial liability and obligation to the vehicle owners,” notes Alliance of Automotive Service Providers of Massachusetts Executive Director Lucky Papageorg. “Using the ‘official’ looking computer-generated reports, which can be difficult to navigate by the typical vehicle owner, insurers successfully deter far too many insureds from challenging the validity of the settlement offer as being fair and reasonable. From my own personal experience when approached by insureds seeking assistance, I have found that the settlement offers are significantly lower at first, but those that are challenged by the vehicle owner will typically increase significantly.
“We have been educating our member shops regarding what to look for and how they may assist their customers by providing them with information,” he continues. “I feel that the only way to thwart the underhanded
by Chasidy Rae Sisk
methods of the insurers, in combination with the information providers, is exactly what is happening in California; a lawsuit may take time to be resolved but will shine a light on the collusion between the parties, which is clearly evident and meant to under-indemnify their policyholders. This practice has allowed insurers to unjustly enrich themselves at the expense of the policyholder. I applaud the action being pursued in California.”
The CJB’s complaint estimates that the underpayment on an individual total loss claim averages $3,000 to $4,000, creating an “aggregate amount of underpayments affecting California insureds [which] is likely in the billions of dollars,” yet the “unlawful, unfair and fraudulent” scheme continues since it’s unlikely that most insureds will file a lawsuit against their carrier, a fact that insurance companies are well aware of.
“Even if insureds suspect an underpayment, most would conclude that it is not in their economic interest to bring suit against an insurance company defendant over that amount of money,” the complaint points out. “The relatively small amount of any single underpayment and the extremely large amount of the underpayments in the aggregate are some of the insidious aspects of the scheme. An insured should never have to invoke appraisal or sue their insurer to recover money stolen from them by their insurer.”
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
The lawsuit seeks civil penalties, restitution for California consumers, injunctive relief and associated fees and costs. “Public safety includes protecting consumers from powerful companies that seek only to maximize profits,” District Attorney Price acknowledged in the release. “We are seeking to level the playing field for vehicle owners who face what looks like a rigged game when their car or truck is totaled because a loss of a vehicle can destabilize a person’s life.”
Stay tuned to Texas Automotive as this situation unfolds. TXA
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ABAT Texas Auto Body Trade Show Preview: The Pathway to Success Is Here
Now, the mold may have been broken when ABAT created the original, one-and-only Texas Auto Body Trade Show, but that hasn’t stopped it from growing and getting bigger and better each year!
This is the month when collision repairers from all over the Lone Star State and thensome will make their way to the Irving Convention Center to experience the only auto body trade show that is created by collision repairers for collision repairers, and it all goes down July 12-13.
“We are so excited to see everyone,” says ABAT President Burl Richards. “This is the original auto body trade show in our area that delivers everything auto body shops need because it was designed by auto body shops with the same needs and is hosted by ABAT, the local association that supports YOU and your business. This show has got everything a collision repair professional is going to need to build the right pathway to success, and it’s going to be one helluva fun time!” (See page 4 to read more of Richard’s thoughts on this year’s show.)
There are just so many opportunities in store over the two-day span. The classrooms will feature some of the industry’s top presenters addressing just about everything from AI (Artificial Intelligence) to Z. Mike Anderson and his Collision Advice team will tackle the importance of completing a 100 percent disassembly, creating an extraordinary customer experience and thensome. This year’s educational slate will even feature a game show – don’t miss Danny Gredinberg (Database Enhancement Gateway) and Erin Solis (Certified Collision Group) as they present “Repairidy,” an interactive Jeopardy-like auto body game show you can’t afford to miss. It’s sure to be an unforgettable event!
Of course, the trade show floor itself always features some of the finest vendors showcasing top-of-the-line equipment.
“The Texas Auto Body Trade Show is an event that we keep marked on our calendars, having always benefitted from our participation,” shares Josh Cascanet of returning exhibitor AirPro Diagnostics. “The show provides AirPro Diagnostics with a fantastic opportunity to showcase our industry-leading diagnostics and calibration solutions and interact with the leaders and operators in our industry. ABAT does a terrific job coordinating one of the premier trade show events of the year.”
Snag some prizes by taking a virtual whirl around the course via a NASCAR simulator for a chance to win NASCAR tickets! Feeling pretty confident in your painting, estimating, welding or paintless dent repair skills? Then don’t miss your chance to compete in the fourth annual BIG SHOTS competition!
There is so much to do during the 2024 Texas Auto Body Trade Show weekend, the possibilities are endless! If you are not already on your way to the show as you are reading this, don’t hesitate to visit abat.us/tradeshow and register now! TXA
ABAT President Burl Richards (Burl’s Collision Center; Henderson) Robert McDorman (Auto Claim Specialists) and Attorney Travis Clardy (Clardy Law Offices)
11:30am-1:30pm | Junior Ballroom Success Today, Success Tomorrow Mike Anderson (Collision Advice)
4pm-6pm | Junior Ballroom Repairidy! An Interactive Auto Body Game Show
Hosted by Danny Gredinberg (Database Enhancement Gateway) & Erin Solis (Certified Collision Group)
8pm: TRADE SHOW CLOSES
SATURDAY, JULY 13
(SHOW HOURS 10AM-6pm)
9am-10am | Classroom 1 (Option 1) 100% Disassembly Mike Anderson (Collision Advice)
9am-10am | Classroom 4 (Option 2)
Contemporary Workforce Dynamics: What Does the Data Say and How Do History and Human Biology Play a Role?
Tony Adams (AkzoNobel)
10:15am-11:30am | Classroom 3 (Option 1)
Unveiling Trends & Reimbursement Strategies for Body Shop Materials Yanni Koutmos (Eagle MMS)
10:15am-11:30am | Classroom 4 (Option 2)
Honest Conversations: How to Be YOUR Best Clay Hoberecht (Best Body Shop; Wichita, KS)
1pm- 2:30pm | Junior Ballroom Culture Club (panel discussion) Panelists: ABAT President Burl Richards (Burl’s Collision Center; Henderson, TX), Tony Adams (AkzoNobel) & others; Moderated by Mike Anderson (Collision Advice)
6pm: TRADE SHOW CLOSES
PRECISION TOOLS FOR PROFESSIONAL REPAIRS
CUTTING TOOLS
OEM APPROVALS
CLEAN ROOMS
FUME EXTRACTION
DENT PULLING AND MUCH MORE!
Doing It Differently: The Fight for Appraisal Expands
Texans deserve to drive safe vehicles, even after their car is damaged in an accident; however, proper vehicle repairs can be costly, and it’s all-too-common for insurance carriers to use unfair methodologies to undervalue both repairable and total loss vehicles, thereby under-indemnifying their policyholders. This is no surprise to collision repairers who repeatedly witness this tragic situation, and for years, shops have taken this burden on their shoulders, encouraging customers to utilize the Appraisal Clause in their policies to get a fairer shake.
Unfortunately, in 2015, the Texas Department of Insurance (TDI) permitted State Farm to eliminate the Appraisal Clause from its Texas policies, and in 2022, GEICO sought a similar removal, which was only rejected due to a lack of sufficient information being provided by the insurer. Recently, two additional insurers submitted policy change applications to TDI, requesting approval to remove the Right to Appraisal for repair procedure disputes from their policies. Those requests have since been rescinded.
Over the past three years, this battle has grown as it’s become evident that mandatory Right to Appraisal is in the best interests of Texas policyholders. Repair facilities aren’t alone in seeking to rectify this injustice; they’ve often been joined by consumer advocacy groups in the fight to ensure vehicle owners are properly indemnified in the event of a loss. While ABAT has played a significant role in drawing attention to this matter, people are finally paying attention! As more and more individuals from various industries recognize the need for the Appraisal Clause, the fight has shifted to include consumers, legislators and more.
Where did this battle begin? In 2021, ABAT took up arms for Right to Appraisal by filing legislation that would mandate all automotive insurance policies include the Appraisal Clause, and although that bill died in a Senate committee, the charge continued with the next legislative session in 2023, led by Board member and consumer champion Robert McDorman (Auto Claim Specialists).
“The appraisal issue is 100 percent a safety issue,” McDorman insists. “Appraisal is about getting it right; it’s about finding the number. The Right to Appraisal should be mandatory. If there’s a loss dispute, it should be subject to appraisal. My unwavering position is that removing the Right to Appraisal on repair procedure disputes will be the enemy of a safe repair and become the stake in the coffin for safe roadways for us all.”
McDorman was joined by ABAT President Burl Richards in discussing the matter at the Texas House Committee on Insurance’s public hearing in late 2022. “The Right to Appraisal is important because it puts the consumer back on equal footing and gives the consumer an opportunity to have their car repaired properly,” Richards explains.
Again and again, ABAT leaders and members have appeared in public forums to educate politicians on the significance of including the Appraisal Clause in all Texas automotive policies. They educated legislators in Austin during Collision Day at the Capitol. They wrote letters and made calls, stressing the importance of proper indemnification. And their efforts seemed to make an impact.
In its Texas House Insurance Committee Report, the committee wrote, “A consumer’s right to invoke appraisal in disputes regarding the cost of repairs or the amount of a total loss has been the market standard in Texas for both personal automobile and residential property insurance,” promising to continue monitoring the situation.
When the Office of Public Insurance Counsel (OPIC) released its Report to the 88th Texas Legislature, OPIC expressed increasing concern with “restrictions on appraisal in policy forms filed by top insurers [which] can adversely impact consumers, who buy insurance to make sure damage to their property will be repaired or replaced. Without appraisal, they may be forced to choose between accepting the insurer’s offer and paying out-of-pocket for any disputed amount, or taking on the costly and time-consuming burden of going to court.”
Even the Texas Department of Insurance (TDI) acknowledged the need for legislators to “establish policy form appraisal guidance” in its 2022 Biennial Report! Most recently, TDI issued a data call on appraisal in an attempt to better understand how and when appraisal is used as well as what impact it has (stay tuned to Texas Automotive for more details once they become available).
Over the years, consumer advocacy group Texas Watch has participated in this ongoing battle for consumer rights in various ways, campaigning for the Right to Appraisal and inviting McDorman to share his thoughts on the importance of appraisal on the organization’s podcast. “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,” McDorman explained. “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!”
Last year, Texas Watch compiled a report based on collected data, “Impact of Auto Appraisal” (available at bit.ly/TXW-RTA). “Fair auto insurance appraisal allows cars to be repaired safely or vehicles to be valued accurately in the event of a total loss,” the report stresses, going on to analyze 1,246 auto insurance claims settled through independent appraisers and break down the figures in a number of insightful ways.
Invoking the Right to Appraisal on repair claims resulted in an average increase of $5,307.35 for Texas consumers, while appraisal increased the average total loss claim by $3,889.27. When all of those claims were combined, the total amount by which the settlements were increased was $5,081,431.83.
Yet, that’s a small sample of the claims that are typically filed in the Lone Star State each year. Based on the TDI’s 2023 Annual Report, automotive insurers collected over $26.5 billion in written premiums from Texas consumers for over 21 million vehicles in 2022 (and from 2022 to 2023, Texas drivers saw an average premium increase of 25 percent). According to the Insurance Information
Institute, 4.9 percent of collision insurance policyholders had a claim in 2022, which translates into an estimated one million claims made by Texans, so the likelihood that under-indemnification amounts are significantly higher seems a near certainty.
With so many consumers sharing this type of negative experience, it’s no wonder that one of them finally joined the fight for mandatory Right to Appraisal. After a jury determined last summer that State Farm had unfairly withheld money owed from their policyholder’s settlement and knowingly engaged in wrongdoing, Texas consumer Joe Collins decided to donate his winnings to the cause, in support of the fight for mandatory appraisal rights in all Texas insurance policies (full story at grecopublishing.com/txa0124coverstory).
That’s when McDorman got a new idea. “We have been fighting and fighting, but we just haven’t gotten where we need to be, so it’s time to do something different,” he suggests. Exploring the possibility of filing an administrative action, he interviewed several highly qualified lawyers who specialize in the field, ultimately hiring Joe Matetich (Matetich Law) to evaluate that option. After examining the situation closely, Matetich recommended that the legislative route is most logical.
But although this fight originated with McDorman and ABAT, it has grown beyond them. “It started as our bill, but really it’s the people’s bill,” McDorman asserts. “It’s much bigger than the association now.”
Legislators will still rely on McDorman’s expertise to draft the proposed bill, but while ABAT will support the proposal for mandatory Right to Appraisal, Auto Claim Specialists has hired its own lobbyist to work on drafting a bill for the 2025 legislative session. Drew Graham (Graham Public Affairs) is already hard at work, seeking a sponsor for the initiative. He will be working closely with ABAT Lobbyist Jacob Smith (Longleaf Consulting) to get the bill passed this time around.
“We’re getting organized and prepared for the 2025 session to make sure the bill is drafted and submitted early to ensure it stands the best possible chance of making it all the way to the governor’s desk,” Graham shares confidently. “We will work hard to educate legislators, while other entities will continue focusing on helping consumers understand why this initiative is in their best interest.”
One of those entities is Texas Watch whose aid has been enlisted to help gather more data and promote this endeavor to Texas consumers. “All of us fought our hearts out at the Texas Capitol [in
by Chasidy Rae Sisk
2023] for auto safety,” recalls Texas Watch Executive Director Ware Wendell. “The appraisal bills made it to the last day and the last hour in the Senate. We cannot let the momentum die. We must keep up the fight, and this is the logical next step. Texas Watch appreciates everyone who is taking up the charge. It is so important to protect Texans on our roads. Safe repairs save lives!”
McDorman (and Texas drivers) are relying on body shops to continue wearing that mantle for safety that they’ve always worn.
“Keep educating your customers and helping them understand their policy rights,” McDorman encourages. Shops can also take their support a step further by making a donation to help fund this ongoing battle at gofundme.com/f/texas-mandatory-contractual-right-toappraisal-for-all
“What we’ve done so far has definitely made a difference,” McDorman stresses. “Other industries have taken notice and are recognizing the benefits of the Right to Appraisal. Legislators greeted me by name during the last session. Everyone we’ve talked to has truly begun to understand why appraisal makes sense, and we’ve gained a lot of support. By bringing it to the public’s attention over and over, we’ve gone from a place where people were laughing at us to a point where legislators are acknowledging the problem and asking for advice on how to fix it. It’s obvious that our efforts have taken us in the right direction, and now we just need to keep building on that momentum. I’m confident that the shift we’re making for the upcoming session is exactly what we need to take it across the finish line.” TXA
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 ”
Ask The Expert
Why is the Mandatory Right to Appraisal in Texas So Important?
Dear Mr. McDorman,
by Robert L. McDorman
I own and operate a collision facility in North Texas. I, like your questioning reader last month, have referred many clients to you over the years, and you were able to help each one resolve the loss dispute with their insurance carrier without the carrier refusing the Right to Appraisal. Each client we have referred to you with under-indemnification and policy coverage issues has come away delighted with the ultimate outcome. I have seen how you are working diligently to help get a mandatory appraisal bill passed in Texas. Thank you!
It was alarming to hear that Progressive and Home State County Mutual filed a policy change request with the Texas Department of Insurance (TDI) to remove the insured’s Right to Appraisal on a repair procedure dispute. Are there any updates on this you can share with the readers? Can you also share some statistics on how long these claims are taking to resolve and the average under-indemnification in repair procedure and total loss claims with the readers? I believe these statistics would help all interested parties understand how vital the mandatory appraisal bill is and why certain insurance carriers are trying to remove the Right to Appraisal for repair procedure disputes from their insurance policy (like State Farm was successful at doing).
Thank you for your comments and questions. As I wrote in the May issue and the previous several months, Progressive and Home State County Mutual Insurance have submitted policy change applications to the TDI requesting approval to remove the Right to Appraisal for repair procedure disputes from their policies. Many general agencies write coverage under Home State County Mutual. I understand that Progressive and Home State County Mutual later rescinded their application requests with this modification in May when it became apparent they would not be approved at this critical point in time.
Regarding your questions related to the statistical data we harvest, I have posted below the average results we have achieved for our clients who have come to us for help with the under-indemnification of their repair procedure loss. These averages do not include the hundreds of claims we have moved to the judicial process. These numbers are only for claims where we have invoked the Right to Appraisal for our clients, and the insurance carrier honored this contractual policy right to resolve the dispute.
First, the average timelines for Texas repair procedure appraisal claims that did not go to litigation:
• Date of Loss to Filed Right to Appraisal: 99 days
• Filed Right to Appraisal to Date Carrier Appraiser Appointed: 70 days
• Date Carrier Appraiser Appointed to Date Settled Right to Appraisal: 103 days
Next, average results from these repair procedure appraisal claims:
• Average Insurance Carrier Estimate of Record: $4,526
• Average Insurance Carrier Highest Supplement: $7,104
• Average Collision Facility Final Invoice: $13,971
• Average Vehicle Value Experts Repair Plan: $13,902
• Average Right To Appraisal Award: $13,085
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.
Under-indemnification in repair procedure claims in Texas is rampant. Most of the above-referenced averages on estimates and supplements had many overlooked (by design) safety and OEMrequired operations needed to restore the loss vehicle to its pre-loss condition to the best of one’s human ability. Besides the higher settlements we have obtained for our clients with repair procedure disputes, we have increased total loss settlements on average by $4,200 or 28 percent above the carrier’s proposed final offer. These underindemnification percentages are staggering and harmful to Texas citizens. I believe limiting or removing the insured’s Right to Appraisal of a repair procedure is a safety issue. The limiting or eliminating of 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.
As I have often said, appraisal is the guardrail for indemnification of the loss when a dispute arises between the insurer and the insured. Without legislation requiring mandatory time-sensitive appraisal rights, we can expect to see continued efforts by all insurers to limit or remove economic relief for the insured when it comes to under-indemnification of a covered loss. In this respect, the insurance carrier can best be seen as a mama bear protecting her cubs and willing to fight anyone trying to take them away. Once they see the insured getting some economic relief for their loss, they quickly act to prevent the insured from getting such relief. Mandatory Right to Appraisal would stop this atrocity. Legislators should come together and pass the mandatory Right to Appraisal bill and put a stop to this before it gets out of hand.
Until legislators pass laws to make the Right to Appraisal mandatory in Texas for all motor vehicle policies, we have no choice but to continue to advise our clients who have been harmed and cheated by their insurance carriers to fight like the third monkey in line to get onto Noah’s Ark when it has already begun to rain, and we will help. In my professional opinion, the more times these systematic under-indemnification schemes are exposed and monetary punishment is levied, the quicker change will come to help us all.
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 will team up with our lobbyist, Andrew “Drew” Graham, to educate lawmakers and help us 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 thirdparty 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 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
President’s Message
continued from pg. 4
folks who are amazing at what they do every single day. Big shout out to all the sponsors who help us make this competition happen and who donate tools and prizes to recognize our winners. It’s such a big deal that a picture of the BIG SHOTS winners will appear on the cover of an upcoming edition of Texas Automotive, so be sure to brush your hair if you have any left!
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