Texas Automotive August 2021 by Thomas Greco Publishing, Inc.

The official publication of the Auto Body Association of Texas (ABAT)

August 2021 $5.95

THE COMPLETE SCHEDULE AND MORE!

A WIN AGAINST ALLSTATE

REVERSING A TOTAL LOSS

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Contents

AUGUST 2021

on the

cover

Official publication of the Auto Body Association of Texas

ABAT’S 2021 TEXAS AUTO BODY TRADE SHOW: The Complete Schedule and More!

ABAT BOARD OF DIRECTORS

by Alana Bonillo & Joel Gausten

DEPARTMENTS

4 5 6 7 10

11 14 20

PRESIDENT’S MESSAGE by Burl Richards The Industry’s Next Crisis ABAT MEMBERSHIP APPLICATION EXECUTIVE DIRECTOR’S MESSAGE by Jill Tuggle The 2021 Texas Auto Body Trade Show: All about the Show Floor 2021 TEXAS AUTO BODY TRADE SHOW: SAVE THE DATE! LOCAL NEWS Tesla’s Auto Insurance Plans Resurrect Allstate/Sterling Controversy ABAT Member Wins in Court against Allstate NATIONAL NEWS President Biden Issues Executive Order on Right to Repair

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

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

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

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

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

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

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

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

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

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

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

John Kopriva Kopriva Body Works jtkopriva@gmail.com (713) 923-4412

Darrell Smith McDaniel’s Quality Body Works Inc darrell-mcdaniels@sbcglobal.net (903) 753-5391

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

Mike Williams All Star Collision Center sales@allstarcollision.us (903) 589-3160

Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963 PUBLISHER Thomas Greco / thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com

JUST FOR FUN The World’s Greatest Car Songs

EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com

ASK THE EXPERT by Robert L. McDorman How Can Shops Reverse an Insurer’s Total Loss of a Safely Repairable Vehicle?

OFFICE MANAGER Donna Greco / donna@grecopublishing.com PRODUCTION COORDINATOR Joe Greco / joe@grecopublishing.com

ADVERTISERS’ INDEX 300 Advantage..................................................... 4

FindPigtails.com.................................................... 11

Auto Claim Specialists........................................ 21

Paint Works Dallas............................................... IFC

BASF........................................................................ 8

Reliable Automotive Equipment....................... 12-13

Beacon Equipment Resources......................... 9

Sherwin-Williams.................................................. OBC

CAR-O-LINER Southwest................................... 19

Spanesi................................................................... 22

Charles Maund...................................................... 9

Tasco Auto Color................................................. 18

Ecotech................................................................... IBC

USI North America............................................... 15 3 AUGUST 2021 Texas Automotive

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TEXAS AUTOMOTIVE is published monthly and is sent to ABAT members free of charge. Subscriptions are $24 per year. TEXAS AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of TEXAS AUTOMOTIVE are copyright © 2021 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Stock Images courtesy of www. istockphoto.com.

President’s Message

The Industry’s Next Crisis Burl Richards ABAT President

As we continue to move toward a post-COVID-19 world, business owners in this and many other industries are struggling to fill employee gaps. The auto body industry has always had a problem attracting and retaining workers, but the pressure many shops are feeling these days is stronger than ever. With the employee shortage getting worse, I’ve seen some pretty crazy incentives being offered in and out of our industry to get new people through the door. I’ve seen ads offering everything from a $7,000-sign-on bonus to a $500 Visa gift card just to show up for an interview! The pandemic created a new day for us all, and these are some of the things we’re fighting against as we attempt to improve our labor pool. Many shops’ budgets are already strained

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Our network of local partners allows us to scale to any sized hail event. Our technology provides real-time visibility and performance measurements to keep business moving. Our people and repair management systems ensure the least amount of business disruption as possible. Our business model protects our clients’ core business within auto dealerships, body shops, fleet companies, and insurers alike.

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by what it costs for the training and equipment we need to receive our OEM certifications – at a time when insurers are getting stingier with what they’re paying us. How are we going to compete with some of the perks being offered elsewhere to our potential hires? There was a time when we had to ask ourselves how we’d survive 10 years from now. These days, we need to ask ourselves how we’ll still be here in two years. Things are moving that fast. We think it’s crazy now, but we’ll be working in an entirely different industry 24 to 36 months from today. And we need good employees to keep us going. I don’t have the answers here; I’m in the same boat as you. But I do know one thing: We’re not going to prosper down the road unless we work together. Being a member of ABAT has been a gift to my business, and I hope the association has helped you as well. With our industry getting harder every day, we all need to participate in ABAT and share ideas, perspectives and possible solutions. None of us can afford to treat our shops like islands. We all need to stand side by side before we all start to fall. This month’s issue dives into some of the great things that will happen at this year’s Texas Auto Body Trade Show. Please check out what we’re offering and make plans to attend. This will be the place to get answers to many of the questions keeping you up at night. This is our first chance in a very long time to come together in person, get better educated and experience the networking we need to maintain our momentum. We not only want you to be there – we need you to be involved throughout the weekend. We are a community; we all need to be there for each other. Until next time, I welcome your thoughts and ideas on how we can all rise above some of the issues I bring up in this message. And if I can be of any help to a member business that’s struggling, never hesitate to reach out to me. burl@burlscollision.com

To learn more! 4 AUGUST 2021 Texas Automotive

TXA

5 AUGUST 2021 Texas Automotive

Executive Director’s Message

The 2021 Texas Auto Body Trade Show:

All about the SHOW FLOOR

Jill Tuggle

ABAT Executive Director

Well, folks, we have made ABAT history! We have a SOLD OUT show floor! And what a great year to do it too, because boy do we have so much in store for the Texas Auto Body Trade Show exhibit hall. The variety of booths themselves will satisfy your thirst for a nationally recognized trade show experience, but the sheer size of some of them is sure to impress – with FOUR oversized mega-booths packed with equipment and new technology. Considering a new frame bench? Come see live measurements set up and taken by the nations’ leading companies – yes, companies in plural, because we have options in Texas! And we like good options, too. One major equipment distributor will be making waves by boasting its newest high-end certification. Interested in glue pull repair? It’s a far cry from being a technique reserved for paintless dent repair (PDR) these days, and we have a seminar for that – and you can follow it up with a live demo on the floor. Calibrations got your brain throwing diagnostic trouble codes (DTCs)? Partake in another two-step with seminars and demos on ADAS and calibrations. Your options will be endless, but the real value comes from seeing the new products and services that just might even change the way

you do business – from the bumpers to the books and beyond! If you have ever been to the show, you know the other part of what we like to do is have fun. For the first time ever, we will be hosting a live competition. Think you’re the “Best in Texas”? Test your skills at the “ABAT Big Shots” competition and see how you stack up to your peers in the areas of estimating, painting and bodywork. THOUSANDS of dollars in cash and tools will be given away to the winners. Oh yeah, and one more thing…

FREE BEER!

This show is sure to leave you and your shop forever changed, all while thinking, “I didn’t even have to go to Vegas for this!” Bring your whole staff, come for the fun and leave with tools to change your business forever. jill@abat.com

TXA

2021 TEXAS AUTO BODY TRADE SHOW EXHIBITORS (As of July 23) 3M AAMS, LLC AirPro Diagnostics AkzoNobel ALLDATA Anson PDR, LLC asTech Audatex Auto Body Association of Texas (ABAT) Auto Techcelerators, LLC Axalta Coating Systems BASF Beacon Equipment Resources Car-O-Liner SW CCC Information Systems Celette, Inc. Collin College

Dealer Industries Eco-Tech Systems, LLC English Collision Equipment English Color & Supply, Inc. Enterprise Rent-A-Car FinishMaster Automotive Paint Garmat USA / Equipment Solutions Innovative Collision Equipment (ICE) KECO Body Repair Products Killer Tools Kritech Lift King Mitchell International NCS / Single Source Inc. Norton / Saint Gobain Nuventory Optima Automotive 6 AUGUST 2021 Texas Automotive

O’Reilly Auto Parts PartsTrader Polyvance PPG Professional Collision Equipment, LLC ProSight Specialty Insurance / Brian Buck & Associates Sherwin-Williams Solidus Equipment Spray Booth Services Summit CRS USI of North America Vale Training VeriFacts Automotive

Visit ADESHOW ABAT.US/TR & to register! for more info

7 AUGUST 2021 Texas Automotive

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9 AUGUST 2021 Texas Automotive

Local News

TESLA’s Auto insurance Plans ResuRrect Allstate/sterling controversy

Tesla CEO Elon Musk is known for his grandiose plans and ideas, and now he is making major – and highly controversial – moves in the Lone Star State. Earlier this year, the electric vehicle manufacturer received the green light from Texas regulators to offer its own auto insurance to Tesla owners in the state. Already offering such insurance in California, the company also plans to expand its insurance products to Washington and Illinois. According to Forbes, Tesla intends to issue auto coverage in Texas through Redpoint County Mutual Insurance Co., which “had a complaint level slightly higher than the industry average for auto insurance in 2020.” Tom Super, vice president of insurance intelligence at J.D. Power, told Forbes that Tesla “could represent a viable long-term threat” to Allstate, GEICO, Progressive, State Farm and other major auto insurance players. “This will largely be determined by how quickly their vehicles penetrate the market and begin to make up a significant portion of vehicles on the road,” he said. Texas Automotive’s call to Tesla confirmed that the company’s auto insurance is still limited to California but “will be available in more states over the coming months.” For potential insight into what’s to come, information on Tesla’s current insurance offering in California is available at tesla.com/support/insurance. Tesla’s entry into the auto insurance realm in Texas is a surprising move considering the state’s contentious past with

insurers’ direct involvement in collision repair. Legislation (House Bill 1131) was passed in 2003 to restrict an insurer from owning or acquiring an interest in a new repair facility after April 15 of that year. The bill was filed at the time to address Allstate’s ownership of Sterling Collision Centers, Inc., a network of shops in more than a dozen states that it had acquired in 2001. Despite a years-long legal battle by the insurer to prevent the provisions of House Bill 1131 from taking place in Texas, Allstate was ultimately stopped from opening new Sterling locations in the state. Service King purchased Sterling from Allstate in 2014. Now, as Musk plans to enter the insurance business in Texas, the parallels between Allstate/Sterling and Tesla’s intentions to provide both auto insurance and collision repair services have raised concerns. “[Musk] can fix other insurance companies’ cars, but he can’t fix his insurance company’s cars,” Larry Cernosek, ABAT Board member and owner of Deer Park Paint & Body in Pasadena, observes. “That’s true even if it’s under another name.” Texas Automotive will provide updates on this story as it develops. In related news, work continues on Tesla’s Gigafactory Texas, a 2,100-acre facility near Austin that began construction in the summer of 2020. According to a July 2020 report by Fox News, the facility will be used to produce the Model 3, Model Y and Cybertruck. TXA

ABAT MEMBER WINS In COURT AGAINST ALLSTATE

An ABAT member shop’s small claims petition against Allstate has reached a positive conclusion. Larry Cernosek, owner of Deer Park Paint & Body in Pasadena, received a June 24 judgment in his favor for $9,399.33 plus court costs. The award stemmed from a case he filed in January 2020 against Allstate that alleged “tortious interference with a contract to repair” and “dumping a total loss vehicle.” In the fall of 2019, Cernosek’s facility began repairing a damaged 2017 Toyota RAV4. “This car was hit pretty bad,” he recalls. “It had about $14,000 worth of damage.” After submitting three supplements to make up for missed items and procedures in the insurer’s original estimate, the shop was informed by Allstate that the vehicle was a total loss. Additionally, the insurer stated that it would not be picking up the vehicle – which was about 75 percent through the repair process by that time – and would instead send Cernosek the title. After never receiving

the title nor having the vehicle removed, he decided to pursue legal action. “I had responded to Allstate that I did not want the title and that they needed to pick up the vehicle and pay my charges,” he explains. “They refused, so I had no other option than to file suit because I had already filed a complaint with the Texas Department of Insurance, which said it was a fact issue that a court had to decide.” Although frustrated by this experience with Allstate, he is satisfied with the court’s decision. “The consumer got paid for the car, so it really didn’t benefit them anyway, but at least it benefitted me because I got paid for everything and got to keep the car. Allstate paid more money than if it had just picked up the car and sold it.” In another small claims matter against Allstate, Cernosek recently received a $10,000 default judgment after the insurer’s attorney failed to appear in court. TXA

10 AUGUST 2021 Texas Automotive

National News

PRESIDENT BIDEN ISSUES

EXECUTive order on right to repair

On July 9, President Biden issued an extensive Executive Order that could have a considerable impact on the independent automotive industry’s ongoing efforts to promote Right to Repair. In his “Executive Order on Promoting Competition in the American Economy,” the President urges the Federal Trade Commission (FTC) to address and remove restrictions imposed by manufacturers against independent entities that seek access to those manufacturers’ repair information and procedures. Although the Executive Order does not specifically identify the independent automotive repair and service industries, provisions found in the document could be interpreted to apply to these fields as well. In a special Executive Order Fact Sheet, the White House

noted that the President “encourages the FTC to issue rules against anticompetitive restrictions on using independent repair shops or doing DIY repairs of your own devices and equipment.” Further, the Executive Order targets “unfair data collection and surveillance practices that may damage competition, consumer autonomy and consumer privacy” and “unfair anticompetitive restrictions on thirdparty repair or self-repair of items, such as the restrictions imposed by powerful manufacturers that prevent farmers from repairing their own equipment.” The complete text of the Executive Order is available at bit.ly/ EO7921. The White House Fact Sheet can be found online at bit.ly/EO7921FactSheet. TXA

11 AUGUST 2021 Texas Automotive

JUST FOR FUN There are just as many songs on the radio about cars as there are cars on the road. It was not an easy task, but we narrowed it down to these top five picks of the best car songs around.

1 2 3 4 5

Meat Loaf: “Paradise by the Dashboard Light”

This Classic Rock staple pretty much added itself to this list with little to no thought. Written by American composer Jim Steinman (who passed away earlier this year) and featuring the powerful vocals of Meat Loaf and Ellen Foley, the epic three-part song takes the listener on a tour of a couple’s not-so-perfect romance in a car by the dashboard light. One of the longest songs to ever be released as a 45 (for those of you old enough to know what that is), the Bat Out of Hell album version clocks in at 8:38!

The Beach Boys: “I Get Around”

This 1964 number one hit by The Beach Boys surely earns a spot on our list. “I Get Around” may very well be the ultimate driving song. Its multi-part a capella opening, classic Rock ‘n’ Roll vibe, falsetto chorus and simple, singalong lyrics (“Round round get around/I get around”) set the perfect soundtrack for a drive down the highway. The song was inducted into the Grammy Hall of Fame in 2017.

Prince: “Little Red Corvette”

Prince drove this one to the masses in 1983 as a second single off his 1999 album, and the song reached the No. 6 spot on the Billboard Hot 100 chart. The lyrics showcase plenty of car and driving imagery (“I say your ride is so smooth/You must be a limousine”) that can easily be code for sexual innuendos. The song made a comeback in 2016 after the star’s untimely death.

The Beatles: “Drive My Car”

This upbeat Lennon-McCartney tune served as the opening track to the UK version of The Beatles’ 1965 Rubber Soul album. The lyrics (“Baby, you can drive my car/Yes, I’m gonna be a star/Baby, you can drive my car/And maybe I’ll love you”) tell the story of a man singing about a girl who promises the chance of love provided he serve as her chauffeur as she takes a journey toward becoming a movie star. Although the lyrics are cute and clever with some nods to sex and romance, it’s said the super songwriting duo found much difficulty in the drive to put it together. In fact, McCartney has famously called it one of the band’s “stickiest” writing sessions ever.

Bruce Springsteen: “Pink Cadillac”

Here’s one that immediately came to mind. Although it wasn’t one of his biggest hits, this little number by Bruce Springsteen was released as a B-side to his single “Dancing in the Dark” in 1984. The song’s ’50s vibe will have you singing, “Riding in the back/Cruising down the street” as you do just that. The song ranked on the Billboard Top Tracks chart for 14 weeks, hitting No. 27. The Boss’ tune would later be covered by many other artists, including Natalie Cole, Jerry Lee Lewis and Melissa Etheridge. TXA 14 AUGUST 2021 Texas Automotive

Russell & Smith Logging Big Paint Hours with USI Booths & Prep Station Buying a paint booth is a huge investment, and there are many factors to carefully consider before selecting one. Will the booth work well in a region where there’s a ton of humidity and with drastic changes in the weather? How long do you think the booth will last and will it require a lot of maintenance? Will your painters be comfortable using it every day and finally, will the company making the booth provide solid training and reliable customer service? To answer these questions before acquiring two Chronotech spray booths and a prep deck from USI ITALIA back in 2004, Collision Center Manager Kevin McIllveen at Russell & Smith Body Shop in Houston, TX spent six months studying the market. He was looking for the best booths that matched his needs to use in a brand-new 36,000 sq. ft. facility that the company built from the ground up. Mcllveen, age 56, entered the industry more than three decades ago as an estimator and has worked for Russell & Smith Body Shop since 1993. His goal with his new spray booths was to improve the efficiencies in his paint department and to accommodate his production, he said, while simultaneously saving time and energy if possible. The vetting process was arduous but worth it in the end. "We did our research so that we could make an educated decision," he said. "I went to NACE two years in a row and talked to literally everyone and asked a lot of questions. We knew that this was going to be a very significant investment, so we took the time to perform our due diligence to cover all our bases. We invested in their prep stations as well, which was another good decision, because my guys can work so much faster and effectively with five different places where we can spray. We put a curtain up in the prep booth that provides us two additional spaces that are heated and properly ventilated. So, when we are really jammed, we can handle the workload and maintain our cycle time without interrupting or slowing down our production." After using them for a very short time, Mcllveen could clearly see that his Chronotechs were more than capable as they quickly became a centerpiece in his new, high-end, modern shop. "We have four paint teams here, consisting of a painter and a painter’s helper and we consistently log approximately 600-700 paint hours weekly,” he said. “We switched to waterborne paint when we opened this facility because we want to provide a healthier climate for our employees and the community as a whole.” Why was Mcllveen able to improve his numbers by simply adding two USI booths? “In the end, it all comes down to their airflow because we never need blowers or additional air to cure these vehicles. The fans in these Chronotechs are exceptional because they feature variable speeds, so we can switch depending on the parameters of each job. Our painters are producing an impressive product day after day, so these booths are saving us both time and money. We paint an average of 400 cars every month, so

we push these booths and they never let us down.” Any issues that Russell & Smith Body Shop have encountered with their USI ITALIA booths have been rare and far between. But Mcllveen feels good knowing that if called upon, the company will respond and find solutions promptly. “If you do your scheduled maintenance and keep everything clean, these booths will last you 30 years and maybe even longer. The issues that we have encountered with the Chronotechs have been minor and quickly solved, which is impressive when you think that we have been using these booths daily for the last 16 years. I tell people that these booths will be here long after I’ve retired!” After training provided by USI ITALIA, Mcllveen’s painters were able to start spraying after one day, he said. "The Chronotechs are designed to work with waterborne paint, which makes it easier for our painters to do their work. After a very short time, all of our guys were comfortable and the results were consistently exceptional.” Mcllveen is also impressed by the Chronotech's sturdy construction and durability. "Some booths are just a box, but these are wellbuilt," he said. “I know, because I've seen them all and there isn't anything like a USI ITALIA booth." His career in collision repair industry has been a great experience and products like his USI ITALIA spray booths and prep station are a part of that, he said. “We haven’t had to furlough anybody here and that’s because we value our people and, in the end, our Chronotechs are part of the team.”

USI of North America | 565 Commerce Street Franklin Lakes, NJ 07417 | 201-405-7761 | s.moretto@usius.com | www.usius.com 15 AUGUST 2021 Texas Automotive

Cover Story

by Alana Bonillo & Joel Gausten

ABAT’s 2021 Texas Auto Body Trade Show: The Complete Schedule and More! After months of experiencing the industry over Zoom and other virtual methods, the ABAT community is thrilled to finally gather face to face thanks to the 2021 Texas Auto Body Trade Show, coming September 17-18 to the Irving Convention Center in Irving. Much more than a regional show, this two-day event will attract participation from industry leaders and members from across the country. Jeff Frye, regional manager for Texas Auto Body Trade Show Diamond/Happy Hour Sponsor BASF, is eager to return to ABAT’s flagship show this year. “It’s a great opportunity to look at tools, equipment, paint and anything related to the paint, body and equipment business, plus there are the seminars and speakers. It’s a good event for body shop folks.” Frye invites all to visit BASF’s booth and experience all the company has in store for the event. “We’re going to have an exciting booth this year, and we really look forward to people stopping by to see what is going on with us and our distributors.” Silver Sponsor AkzoNobel is also gearing up for an unforgettable show. “We are proud to continue to be a sponsor and participating in the ABAT Texas Auto Body Trade Show,” AkzoNobel District Sales Leader Jason Wall states. “ABAT’s commitment to the industry, the membership and the Trade Show brings a lot of resources, products and educational seminars all under one roof directly to the people who matter the most – the members.” AkzoNobel is especially excited to kick off the show on Friday with a special appearance by custom designer Dave Kindig, best known from the hit TV show Bitchin’ Rides. He will be on hand to share stories and talk about his collaboration with AkzoNobel to create the Modern Classikk paint brand. Visitors will also have an opportunity to learn about other AkzoNobel features, such as Carbeat (a tool that can reduce cycle time) and MIXIT (a color retrieval software). Like everyone planning to attend the Trade Show, the multinational paint company is eager to take part in a live event once again. “After the last year and a half of not getting the opportunity to be face to face with some of our key customers, we are excited to be part of this event and to interact and engage directly,” AkzoNobel Marketing Communications Manager Jen Poliski shares. “There is nothing you can compare to having an in-person event after having so many virtual experiences.”

With the industry in a state of constant evolution, ABAT has created an extensive education and training schedule that every member of the Texas auto body industry needs to experience. In today’s environment, following OEM procedures is crucial. With this in mind, repairers can’t afford to miss “Repair Planning Using the DEG and OEM Owner’s Manuals to Earn the Vehicle Owner’s Trust,” where they will gain valuable insight and resources from Database Enhancement Gateway (DEG) Administrator Danny Gredinberg. “Following OEM procedures ensures that shops will have reduced liability and will hold up in court,” he explains. Another important reason for making OEM procedures a priority is it can help build customer trust. “They brought that vehicle to you because they have the expectation it will be fixed the way the manufacturer intended. There are a wide selection of facilities in the market that can fix cars, but if you are the shop fixing cars correctly, that will make you stand out.” Gredinberg suggests that before they head out to the Irving Convention Center, repairers should take some time to review the DEG website, degweb.org, to familiarize themselves with the database and various tools. These free tools and resources are made available thanks to the Alliance of Automotive Service Providers (AASP) and the Society of Collision Repair Specialists (SCRS), who co-founded the DEG several years ago. To date, the DEG has received nearly 17,500 inquiries, with roughly a 50 percent change rate to the database. Gredinberg’s presentation will spend considerable time on reviewing vehicle owner’s manuals to find the procedures needed. A list of owner’s manuals by manufacturer is available in the Estimate Toolbox of the DEG website. “I’ll be giving an in-depth overview of where to find some of the information you won’t find in the repair manual, such as how many tires to replace after an accident, what kind of inspection may be required, information as far as ADAS functionality type and little tidbits and tricks that they can even show the vehicle owner as another way to earn that trust.” Chris White, president of Oklahoma City-based KECO Body Repair Products, will be traveling to Texas to preside over two special discussions at the Trade Show in addition to exhibiting his company’s services. “Texas is a great market for us. The Auto Body Association of Texas does a fantastic job; everything it does is top-notch and

16 AUGUST 2021 Texas Automotive

continued on pg. 18

SEMINARS & EVENTS

Premier Education Sponsor

FRIDAY, SEPTEMBER 17

1PM: TRADE SHOW FLOOR OPENS

7AM: Badge Registration Opens (Entrance Lobby)

3PM-5PM: State of the Industry (Junior Ballroom) Presented by Mike Anderson, Collision Advice Mike Anderson is back in the building! This seminar will provide you with the latest Industry-related statistics. We will look at industry trends, OEM trends, the latest insurance happenings and other association news. Mike will dive into statistics on the number of shops in Texas, average Labor hours, cycle time metrics and SO MUCH MORE! If you know Mike, then you know that this is a must-see seminar with incredible insights to jumpstart any plans that you’ve been putting off to take your shop to the next level.

8AM-9:30AM: Repair Planning Using The DEG and OEM Owner’s Manuals to Earn the Vehicle Owner’s Trust (Classroom 1) Presented by Danny Gredinberg, Database Enhancement Gateway (DEG) Do you have trouble earning customer or bill payer trust in repairing vehicles? Do you have a hard time explaining WHY you have to perform certain operations? DEG Administrator Danny Gredinberg will share the tools to find out WHY critical operations may need to be performed using information from the owner’s manuals and why it may NOT be an included operation. 8AM-9AM: The Industry’s Blind Spot (Classroom 2) Presented by Nick Dominato, adasThink Research shows that ADAS calibrations are being missed at a rate of 85 to 88 percent. This presentation will equip managers and technicians alike with the tools to know how they measure up to those statistics and how to reverse this trend in their shops and industrywide. This presentation will end with a live demonstration of what happens when a sensor is misaligned. 8AM-9:30AM: Balls and Strikes (Classroom 3) Presented by Mark Olson, VECO Experts and Robert L. McDorman, Auto Claim Specialists The Right to Appraisal – when to recommend to your client to use it and when not to. You will hear from two of our industry’s leading experts in the field of appraisals, both of whom have represented both the consumer and the insurance company. Robert and Mark will give you the understanding to recognize the correct use of the Right to Appraisal – why it works and why it sometimes doesn’t. 9:15AM-10AM: How to Make More Money with Glue Pull Repair (Classroom 2) Presented by Chris White, KECO Products Glue Pull Repair (GPR) is gaining popularity in shops as new products are hitting the market. The evolution of this less-invasive dent repair process is exploding; in this session, you will learn how estimating needs to evolve with it. Learn how dent repair impacts all areas of the shop – from the initial estimate through the course of the repair plan – and how to charge properly for the hours involved. 10AM-11:30AM: Closing the GAAP (Classroom 1) Presented by Mark Olson, VECO Experts This course will explore the use of GAAP to get paid for necessary operations during the course of a repair. Generally Accepted Accounting Principles (GAAP) refer to a common set of accounting principles, standards and procedures issued by the Financial Accounting Standards Board (FASB). Public companies in the United States, including insurance companies, must follow GAAP when their accountants compile their financial statements. You will learn to use the same principles and standards that they operate within to build the case for how you set your Labor Rates and operational requirements to fix cars properly – and how these principles roll into the customer’s Right to Appraisal. 10AM-11:30AM: Collision Repair 2035 (Classroom 2) Presented by Frank Terlep, Auto Techcelerators, LLC By participating in this session, attendees will be introduced to more than 20 trends and technologies that will dramatically change the industry by 2035 and understand how these same trends and technologies are affecting the industry today. Frank will discuss what the industry needs to do between now and 2035 to survive and thrive and help attendees generate their own list of actionable ideas. 10AM-11:30AM: Certified Repair Networks vs. Direct Repair Programs: The Differences and What the Future Holds (Classroom 3) Presented by Pete Tagliapietra, NuGen IT Take a deep dive into two popular methods for getting repairs into the pipeline: OEM Certified Repair Networks (CRN) and Insurance Direct Repair Programs (DRP). The future of these programs are very fluid, and Pete shares insight and knowledge worth their weight in gold. 11:30AM-12PM: FREE Mini Session (Junior Ballroom) Presented by Pete Tagliapietra, NuGen IT A special 30-minute demonstration on accessing ADAS information from OEM Engineering Build Sheet Data.

8PM: TRADE SHOW CLOSES

SATURDAY, SEPTEMBER 18 8AM-8:50AM: Calibration Discussion Panel (Classroom 1) Featuring Nick Dominato (adasThink), AirPro Diagnostics, Jake Rodenroth (asTech), Frank Terlep (Auto Techcelerators, LLC) Moderator: Mike Anderson Calibration is the new hot topic of the industry, and implementing it in your shop can be about as clear as mud. What tools and targets to use? Sublet or in house? In this hourlong panel discussion, we will hear from leaders in the industry who will guide you through the process of implementing a solid plan for your shop to keep up to date with this everchanging technology. 8AM-8:50AM: How to Choose an OEM Certification That’s Right for Your Shop (Classroom 2) Presented by VeriFacts Automotive So many considerations need to be taken when choosing the right certifications – tooling and equipment is not always the biggest factor, though. VeriFacts Automotive, leaders in the certification and shop inspection business, will guide shops on how to make decisions that will set their shop apart from the rest through certifications that are a perfect fit for them. 8AM-10AM: Conventional vs. PDR: The Great Debate (Classroom 3) Presented by Chris White, KECO Products This two-hour session will include a dynamic presentation about dent repair followed by an open-mic session where all technicians are invited to join in on the discussion. We will discuss how the two repair methods really aren’t as far apart as they may seem and open up dialog about what it takes to make a proper repair. 9AM-9:55AM: Cyber Insecurity (Classroom 1) Presented by Mark Claypool, Optima Automotive This session covers the threats to businesses from outside sources that can do major damage to a company through hacking, ransomware, spyware, etc. 9AM-9:55AM: Electric Vehicle Readiness: Preparing for the Battery-Powered Future (Classroom 2) Presented by Greg Burkhardt, VeriFacts Lead Coach It’s no surprise EVs are gaining traction, but what does that mean for shops today as they prepare for more EVs on the road and ultimately in their shop? VeriFacts will highlight some of the critical considerations to repairing EVs – from basic safety to more specific nuances that are emerging in today’s cutting-edge vehicle manufacturers – and what a shop can do to not only be prepared but to excel at repairing today’s EVs. 10AM: TRADE SHOW FLOOR OPENS 3PM-5PM: It’s Not Just about DTCs (Junior Ballroom) Presented by Mike Anderson, Collision Advice In this session, Mike Anderson will share how to research, document and justify the need for a scan and other tool-related operations on your estimate in a way that will help you get reimbursed. In addition, he will cover common operations that trigger the need for calibrations or initializations requiring a scan tool, such as disconnecting the battery, seat sensor calibrations, R&I of glass and more. The goal is to share real-world examples of why you need to also check the values of the ADAS components themselves in some cases. This class will explain why you can’t rely on just looking for DTCs and how or why you need to also view the LIVE data. 6PM: TRADE SHOW CLOSES

17 AUGUST 2021 Texas Automotive

Visit ABAT.US/TRADESHOW for more info & to register!

Cover Story continued from pg. 16 first class. When I became aware of the Trade Show, I thought, ‘Yes, absolutely! We want to jump in and get some exposure in the State of Texas!’” White’s first presentation, “How to Make More Money with Glue Pull Repair,” will enlighten attendees on how dent repair impacts all areas of the shop – from the initial estimate through the course of the repair plan – and how to charge properly for the hours involved. “Glue pulling is gaining popularity; it is absolutely the least invasive, best-quality way to fix the dents.” White will also be on hand for “Conventional vs. PDR: The Great Debate,” a town hall-style gathering between body technicians, shop owners/managers and paintless dent repair technicians that aims to reach common ground on some of the controversies surrounding dent repair. “There seems to be a bit of misconception or maybe even animosity at times between conventional body technicians and paintless dent repair technicians [over] which damage is suited for which process. We just want to open that up and talk about the advantages and disadvantages of each process and give the technicians the time to weigh in […] We’re going to leave it to the crowd to ultimately decide how this presentation progresses or what comes out of it.” Away from the typical action on the show floor and in the seminar rooms, this year’s Trade Show will feature the debut of

the “ABAT Big Shots” competition, a special live event that will test attendees’ skills in estimating, painting and bodywork for prizes and bragging rights. If you’re looking for an unbeatable way to broaden your horizons in your business or gain the latest in technical knowledge and skills, the 2021 Texas Auto Body Trade Show is where you need to be – and without a Zoom log-in in sight! 2021 Texas Auto Body Trade Show Sponsors The 2021 Texas Auto Body Trade Show is being made possible through the support of the following sponsors: Diamond & Happy Hour Sponsor: BASF; Platinum/ Happy Hour/Car Show Sponsor: English Color & Supply, Inc.; Gold Sponsor: Kritech; Silver Sponsors: NCS/Single Source, Inc., Norton/Saint Gobain, PPG, PartsTrader, FinishMaster Automotive Paint; Silver/Big Shots Sponsor: AkzoNobel; Premier Education Sponsor: Axalta Coating Systems; Education Sponsor: VeriFacts Automotive; Happy Hour/Big Shots Sponsors: Innovative Collision Equipment (ICE), Sherwin-Williams; Big Shots Sponsor: KECO Body Repair Products; Happy Hour Sponsors: Car-O-Liner SW, AAMS, LLC.

For more information and to register, please visit ABAT.US/TRADESHOW. TXA

18 AUGUST 2021 Texas Automotive

19 AUGUST 2021 Texas Automotive

Ask The Expert

by Robert L. McDorman

How Can Shops Reverse an Insurer’s Total Loss of a Safely Repairable Vehicle? Dear Mr. McDorman: I own and operate a collision facility in East Texas. Several times a month, our client’s insurance carrier will deem what we know to be a safely repairable vehicle a total loss. We haven’t been successful with reversing the carrier’s position so we can repair these vehicles. Over the past few months, I’ve read several trade publications mentioning that Auto Claim Specialists, as a public insurance adjusting agency specializing in auto claims, has indeed been successful in reversing carriers’ total loss decisions for safely repairable vehicles. Can you explain to me and the readers how this process works? I am certain many other collision facilities such as ours also routinely have safely repairable vehicles deemed as total losses and would like to understand the path to getting the carrier to reverse its position, which is economically harmful to all involved except themselves. Thank you for your question, which is a good one. We do handle a number of these repair or replace-type claims each month. How we handle these types of claims changes from carrier to carrier depending on the language in the policy. However, in most motor vehicle insurance policies in Texas, the limit of liability is as follows: Limit of Liability 1. Our limit of liability for loss will be the lesser of the: a. Actual cash value of the stolen or damaged property; b. Amount necessary to repair or replace the property with other of like kind and quality; c. Amount stated in the Declarations of this policy. When an insured comes to us with a total loss claim and would like the vehicle repaired, and their insurance policy limits of liability are as listed above, we first reach out to the collision facility where the vehicle is located and confirm that it can be safely returned to its pre-loss condition. If so, we will request the collision facility’s repair plan. We then review the proposed settlement offer from the insurer and obtain an actual cash value appraisal of the vehicle. In the event the actual cash value is greater than the repair cost, we will recommend the insured hire Auto Claim Specialists as their public insurance adjuster and Vehicle Value Experts as their independent appraiser to invoke their policy’s Right to Appraisal in contest of the repair or replace loss type. In most auto policies, the Appraisal Clause states: Appraisal If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent appraiser. The two appraisers will select an umpire. The appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: • Pay its chosen appraiser; and • Bear the expenses of the umpire equally.

Once retained, Auto Claim Specialists will invoke the Right to Appraisal on our client’s behalf. That sets into motion a timeline for the proceedings mentioned earlier. Once the actual cash value is defined by Vehicle Value Experts and the carrier’s independent appraiser, this becomes the fence post for determining the proper loss type (repair or replacement). We will then circle back around and make a demand on the carrier to honor the policy limits of liability of the lesser of the two (repair or replace) and issue an authorization to repair the loss vehicle. The true actual cash value once defined is typically significantly higher than the carrier’s settlement offer based on a flawed adjusted vehicle value approach. Across thousands of claims we have worked on, the average increase we have negotiated has been over $3,600. In situations such as the example discussed here, after the defining of the actual cash value, the settlement increase often supports the policy limits of liability for repair. As always, the insurance policy itself dictates how a loss is handled. But without a correct quantification of the loss, the resolution can be detrimental to certain parties. It is our experience that the insurance carrier is seldom (if ever) the party being harmed. The under-indemnification in total loss and repair procedure claims in Texas is rampant. Besides the higher settlements for total loss clients averaging 28 percent above the carrier’s undisputed loss statement, we have also reduced clients’ out-of-pocket expenses by an average of 90 percent on repair procedure disputes, such as the example provided here. These underindemnification percentages are staggering and harmful to Texas citizens. The spirit of the Appraisal Clause is to resolve loss disputes fairly and to do so in a timely and cost-effective manner. The invoking of the Appraisal Clause removes inexperienced and biased carrier appraisers and claims handlers from the process, undermining their management’s many tricks to undervalue the loss settlement and under-indemnify the insured. 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. 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 its 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.

We do not waive any of our rights under this policy by agreeing to an appraisal. 20 AUGUST 2021 Texas Automotive

Fair settlements through knowledge and negotiation! We are experienced in negotiating claims with insurance companies. We have teamed up with Vehicle Value Experts for access to the best vehicle valuing tool available. Together, with the best knowledge and the best negotiating skills, we can ensure a fair settlement on your auto claim.

No One Else Comes Close to our Total Loss Value Assessment! Contact us from anywhere in the U.S. to have a local Auto Claim Specialist working for you! WE SUPPORT

771 East Southlake Blvd. Southlake, TX 76092 817-756-5482 Fax: 866-550-0484 Toll Free: 800-736-6816 claims@autoclaimspecialists.com

• Over 25 years of front line skilled knowledge & hands-on practical experience involving automotive mechanical repair

MEMBER

• Licensed Public Insurance Adjuster Agency with a duty to act on your behalf!

Insurance Automobile Claim Mediator • Insurance Appraisal Clause Umpire

Vehicle Value Experts is a unique Consultant Firm

that specializes in Insurance Total Loss Market Evaluation Reports; Mechanical and Body Shop Estimates and Finalized Motor Vehicle Repair Evaluations; Diminished Value Assessment and Claims as such and Motor Vehicle Fair Market Value Reports. 21 AUGUST 2021 Texas Automotive

Founder Robert McDorman

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