Texas Automotive August 2023

AUGUST 2023

BIG OPPORTUNITIES, RESOURCES AND FUN AWAIT AT THE TEXAS AUTO BODY TRADE

Alana Quartuccio

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 “Ozzy” David McDavid

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

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 / 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

It’s Nearly Here… Did You Register Yet?

WWe’re just days away from the biggest and best auto body show in Texas…the 2023 Texas Auto Body Trade Show will be taking place at the Irving Convention Center on August 25-26, and I couldn’t be more excited! Every year, ABAT works to improve upon the previous year’s event…and we succeed in those endeavors time and time again.

If you haven’t already registered, it’s time to head on over to abat.us/tradeshow to get on the list – you definitely don’t want to miss out on this rare opportunity to check out new products from local and national exhibitors with everything you might need to run a successful shop. Visit with information providers, learn more about different management systems, check out the newest welders on the market, and compare paint booths and refinishing brands. It’s all right here, in your own backyard, and it’s well worth the trip. But being equipped for success means that you also need the

training and knowledge to run your shop, so you’ll also have the chance to learn from renowned collision repair educators like Mike Anderson (Collision Advice), Aaron Schulenburg (Society of Collision Repair Specialists) and Danny Gredinburg (Database Enhancement Gateway). With industry leaders flying in from all over the country, Texas Auto Body Trade Show attendees get to rub elbows with the finest folks collision repair has to offer!

Burl Richards ABAT President

During several of these educational sessions, ABAT is particularly excited to discuss the recent $248,000 jury verdict against State Farm in response to the insurer’s decision to reduce the vehicle owner’s total loss payout by $1,751.96. The jury found that State Farm knowingly and intentionally acted in bad faith,

It’s Not Too Late to Come to the Texas Auto Body Trade Show!

WWell, as long as you don’t want a booth in the exhibit hall, that is. The exhibit hall is sold out of booth space for exhibitors, which means it will be jam-packed with excitement – all planned with YOU in mind. There will be something for everyone at the 2023 Texas Auto Body Trade show; allow me to share with you some of my favorite things…

THE BIG SHOTS COMPETITION. This skill-based competition was developed three years ago and has grown into the one of biggest draws of the show. We have placed the “competition ring” in the center of the trade show hall, where spectators can watch in 360 degrees as their family and friends weld, paint, pull and estimate for their shot at the title “ABAT BIG SHOT” and THOUSANDS of dollars in cash and prizes. Attendees can compete in any one of the categories of paint, body, estimating and glue pull repair.

HIGHER LEVEL EDUCATION. I spend the entire year attending conferences, shows and meetings around the country to find the best of the best to present at our show. The waitlist to speak at “the Texas Show” is quite long, so we are able to hand-select the most current and leading-edge topics and speakers for you and your staff. We have classes for everyone and the symbols on our registration pages show you which member of your team would

benefit the most from each particular class.

CAR SHOW. Brought to you every year by our dear friends at English Color and Supply, this car show keeps growing every year and includes hot rods, classics and creative cars and trucks from all over the region. Head straight out the back doors of the exhibit hall on Saturday to cast your vote on which one should win the audience choice award!

CELEBRITY GUEST, “SHORTY”!

Jill Tuggle ABAT Executive Director

Last year, we saw the likes of Horny Mike and Dave Kindig; this year we will mix it up a bit with a local celebrity appearing at the show! Lift King Products is bringing Shorty in on Friday AND Saturday to sign autographs and help with the BIG SHOTS competition. Make sure you stop by booth 620 to meet the local legend, owner of Shorty’s Custom Paint and star of the show Iron Resurrection!

FRIDAY NIGHT AFTER PARTY. It’s our tradition to end a long and successful first day at Bar Louie. Guests at our After Party are invited to grab a complimentary appetizer and cocktail and mix

continued on pg. 17

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Shop of the Future: A Q&A with ABAT President Burl Richards

From electric vehicles (EVs), ADAS and diagnostics to OEM certification, DRPs and consolidation, the future of the collision repair industry is rife with challenges for shops that want to remain competitive amidst these never-ending changes. Retaining employees has become even more important than attracting clients, but simultaneously, no business can be successful without maintaining a superior level of customer service. So, how can auto body facilities navigate the myriad aspects of the business to become a “shop of the future?”

ABAT President Burl Richards shares his thoughts on some of the industry’s most pressing topics with Texas Automotive readers.

Texas Automotive: How big is the EV wave going to be? How much of that wave is already here? Is the industry ready for this in terms of getting proper training from the OEMs, I-CAR, etc.? What are the major training resources now and planned for the future? What new safety concerns do they present to technicians? Will shops need to be specialized/certified to properly handle EVs?

Burl Richards: I believe the wave will be substantial and unless the tide turns, it could be a tsunami. It’s definitely already started to gain momentum. My shop is in a rural market, and we’re seeing a steady increase over the last three years. I believe that the industry is ready, at least some of us, but it definitely takes preparation, especially from the OEMs. Fortunately, training resources are available directly from the OEM, and the vast majority is available online. The training they offer is very extensive and well laid out. We certainly want to be careful to recognize the safety hazards related to working on EVs though. For example, electrocution is a big concern as is the weight of the vehicles and their batteries. I 100 percent believe that shops will need to specialize and seek certification to properly handle EVs.

TXA: How much of a player will OEM-certified shops be in the future? Are they going to replace DRPs? What do shops most need to do to become certified – and maintain that certification down the road?

BR: OEM certification will definitely play a role in the future, especially for shops that are not dependent upon DRP referrals. Shops that want to set themselves apart and offer certified repairs will have a revenue stream not dependent upon the insurance companies. I don’t think OEM certification will actually replace DRPs because the insurance companies will always look at ways

to control pricing and keep a hand in how repairs are made. Certification requires shops to invest in a lot of training, then some more training and also continued training as well as major equipment investments and trained staff.

TXA: Where is the industry headed when it comes to the scan tools needed to perform diagnostics? Are non-OEM-approved tools going to be enough? Where does the insurance industry come into play?

BR: Scanning and diagnostics is going to require continued investment in purchasing the tools and being prepared to upgrade. In today’s technologically advanced era, these tools (like computers) become outdated very quickly. Will non-OEM-approved scan tools be enough? That’s a great question, and only time will tell, but my gut is these types of tooling will continue to be used for a large portion of repairs. The insurance companies (with a few exceptions) will continue to try and control pricing and the repair process based on the PCP that “THEY” deem to be true, not necessarily the true PCP.

TXA: How prevalent will consolidation be down the road? Are we going to see a bigger wave in your market in the future?

BR: Consolidation will likely continue to be prevalent, and I believe it will even increase in Texas in the future. There are new players popping up all of the time, and the consolidators continue to grow in smaller rural markets. When I say grow, I mean we can expect to see a larger presence from these MSOs down the road.

TXA: How will consumer marketing need to change in the future? How will our efforts to educate consumers in the future differ from what we’re doing now?

BR: It depends on the individual shop’s business model. Heavy DRP models have insurers steering work to them so they won’t need to change as much, while less heavy DRP shops will have to find ways to do creative marketing. As insurance companies have fewer employees and use the shops to do a lot of their admin work, we have to educate customers on the claims process and repairability differences on the modern vehicles.

TXA: What will shops need to do to attract and retain young employees in the future vs. what worked in the past? What role does shop culture play in employee retention?

BR: Great question, but I don’t have the answers. I think letting employees know how successful they can become in this industry – with or without a college degree – is a good start. From there, making sure that you have a great culture within your shop will be key. TXA

ABAT President

Burl Richards

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Jury Gives State Farm a Quarter Million Reasons to Do the Right Thing

A Rusk County District Court jury recently gave State Farm a quarter million reasons to be a better neighbor to its policyholders when 12 Texans found the insurance giant had knowingly or intentionally engaged in unfair and deceptive acts or practices in Joseph Wayne Collins v. State Farm Mutual Automobile Insurance Company, awarding the plaintiff $248,517.59!

Collins’ journey to this decision began over three years ago when he took his 2009 Toyota Tacoma pickup truck to Burl’s Collision Center (Henderson) to repair hail damage. Although the vehicle owner wanted the truck repaired, State Farm declared it a total loss and initially offered $13,450 for the truck, until Collins invoked the Appraisal Clause and hired Robert McDorman (Auto Claim Specialists) who determined the vehicle had been undervalued, causing the insurer to increase the actual cash value to $16,100.

“State Farm was taking advantage of our mutual client, their insured,” noted Burl Richards, owner of Burl’s Collision Center. When the insurer retrieved the Toyota Tacoma from the shop, they reimbursed Burl’s in the amount of $1,751.96 for a number

of charges, including blueprint fees – an amount that was later “wrongfully deducted from the proceeds due and payable under the policy,” according to a court document.

The insurer paid Collins $15,398.05 for the totaled vehicle, refusing to compensate the vehicle owner for the deducted amount. After Collins’ attempts to reason with State Farm proved unfruitful, he decided to take civil action and retained attorney Rusty Phenix (Phenix & Crump, PLLC).

“The vehicle was repairable, but when the cost of repairs started increasing, State Farm totaled the truck,” Phenix recalled. “State Farm routinely uses an algorithm that undervalues these vehicles, and then the insurer uses a constructive total loss formula to declare vehicles a total loss when the repairs reach 70 percent of what State Farm claims to be the actual cash value. The total loss formula is not in the language of the insurance policy.

“After the Appraisal Clause was invoked, the ratio of repairs to actual cash value decreased to 62.29 percent, but State Farm still refused to repair the vehicle,” he added. “A month after it arrived at Burl’s, the insurer retrieved it and compensated the shop for the

repair fees associated with the claim.”

Learning of this, Collins and McDorman reached out to a State Farm adjuster who promised that the amount paid to Burl’s Collision would not be deducted from the insured’s settlement.

“State Farm said they weren’t going to make any deductions, but they did it anyway,” Richards noted. “The insurer elected to do the wrong thing every step of the way. They took $1,750 out of the client’s settlement, but the bigger error was that the vehicle should have been repaired as evidenced by the fact that the truck was sold at auction with a clear title. This whole thing could have been avoided if the vehicle had just been repaired in the first place like it should have been.”

When Joseph Wayne Collins v. State Farm Mutual Automobile Insurance Company was heard in the Fourth Judicial District Court of Rusk County, 10 of 12 jurors found that State Farm had failed to comply with its policy agreement and that State Farm knowingly and intentionally engaged in unfair and deceptive practices. The jury awarded over $175,000 in additional damages against State Farm for its knowing and intentional conduct. When combined

with court fees and the original under-indemnification, resulted in a total jury verdict of $248,517.59.

“The jury determined that State Farm had unfairly withheld money owed from their policyholder’s settlement and knowingly engaged in wrongdoing,” Richards stressed. “Those jurors made a statement through their jury verdict: insurance companies need to take care of their policyholders.”

Richards believes the jury verdict is a “big deal to us and our customer, but it’s not about the money; it’s about making change and hoping insurers will start treating people right. Mr. Collins felt like this was something he needed to pursue from a moral standpoint. It means a lot to have customers who are so passionate about doing the right thing and standing up against bullies like State Farm.”

“Joe didn’t do this for the money,” Phenix agreed. “He did not want to see this happen to other people, so he did his part to put a stop to it. Joe Collins is a hero. The problem is that the insurer’s computer systems which control all these claims are set up to ensure the insured loses at every phase of the claims process. The insured is under-indemnified, while the insurance company retains their profit. And it will keep happening unless more good people stand up, object to this wrongdoing and refuse to stand for it. This turns into a game that consumers cannot win unless we’re willing to change the system.”

Phenix believes change will happen case by case in the court “with 12 citizens rendering a verdict. That’s where the power lies unless legislators or the Texas Department of Insurance decide to take action. Until these unfair practices become less profitable than doing the right thing, they’re going to continue.

“When the insurer makes $3,000 to $5,000 per claim using these tactics, a $100,000 case here and there may not change anything. But if we have a whole bunch of those – or perhaps something much larger – we might see some change,” he added, promising that there are more cases to come. “This is not the last one. We’re not finished yet; I’m passionate about consumers being treated fairly and plan to keep championing this cause. And the people on the jury were certainly interested in seeing some change.”

Richards believes this case is a step in the right direction: “We constantly file complaints with the Texas Department of Insurance (TDI) and tell them that insurance companies shouldn’t be making these types of deductions, but this issue has been going on for years. Each complaint yields the same generic letter that TDI doesn’t make these decisions; it’s up to a finder of fact to determine what’s fair and reasonable. Well, that’s exactly what happened here. A district judge and the jury – finders of fact – felt like this award was warranted. I feel really vindicated by their finding.”

And Phenix intends to keep fighting the good fight. “The more we dig and the deeper we go, the more problems we see…the more cancer we expose. The insurance industry implements so many schemes, but we’re finding different ways to utilize their systems against them each time we dive deeper into these cases. It’d be nice to go back to the days when insurance companies dealt in good faith, but as long as filing a claim remains an adversarial process, we’ll fight to protect consumers from these egregious actions.”

TXA

Big Opportunities, Resources and Fun Await at the Texas Auto Body Trade Show!

We all know everything is bigger in Texas, and that statement most certainly applies to ABAT’s Texas Auto Body Trade Show. The 2023 iteration promises no less than BIG learning opportunities, a BIG showcase of the finest equipment and tools on the market today and of course, BIG fun!

By now, you should have your reservations set and are planning to head on over to the Irving Convention Center August 25 and 26 for the annual event - as this year’s show promises to be the best one yet!

ABAT Executive Director Jill Tuggle is boastful about the many things this year’s show promises to deliver.

“In addition to the heavy duty slate of educational seminars and repair information, we got some really fun stuff planned,” shares Tuggle. “No one will want to miss the ‘Industry Over a Pint’ collision happy hour, featuring a casual conversation on stage with some of the industry’s leaders. It’s an opportunity to make your way around the room and get the ear of industry experts and chat them up on a variety of topics.”

That’s just one component of the exciting educational offerings on deck! This year’s slate features some of the biggest industry names around, including Mike Anderson (Collision Advice), Aaron Schulenburg (Society of Collision Repair Specialists) and Danny Gredinberg (Database Enhancement Gateway). Gredinberg will team up with Logan Payne (Payne & Sons Paint and Body Shop; Dallas) to present “Repair Planning,” where they will break down the importance of adhering to OEM repair information to develop a repair plan packet for a proper repair.

“Just because you can doesn’t mean you should,” states Gredinberg on the subject of a repairer deviating from OEM procedures to make something “pretty and shiny” in their own way. “The goal of this conversation is to allow repairers to make better informed decisions adhering to OEM repair information, and to understand that it’s going to take time to research and digest this information from the OEM. There are multiple steps that go

into understanding what each repair requires. Just because you did something yesterday may not be applicable on the vehicle you are going to work on next.”

Attendees will also catch the latest developments on the SCRS blend study as Schulenburg plans to bring the newest findings reported at last month’s Collision Industry Conference to the Texas table. Meanwhile, Anderson will inspire and influence collision repair professionals to “Be Extraordinary.” This year’s show also includes some of the Lone Star State’s finest presenters like Robert McDorman (Auto Claim Specialists) and ABAT’s very own president, Burl Richards.

ABAT always sets out to have their finger on the pulse of the latest happenings throughout the industry, not to mention helping to put things in motion. In response to the recent verdict in Collins vs. State Farm, in which the insurer had to pay over $248,000 to a customer who was wrongly indemnified for his vehicle, McDorman and Richards will team up to inform attendees about the case and why this victory is so important for the industry.

According to McDorman, collision repair professionals can expect to learn about the verdict and how they too can help their customers. “We will set out to inform body shops how they can better help their clients be properly indemnified.”

“I’ve always been keen on the educational aspect of our show,” adds McDorman. “I think it’s important for all of us to share information, enjoy the camaraderie and learn about what is going on in the state and elsewhere. Sharing with others is a great opportunity to learn more about our industry.”

The fun and action continues on the trade show floor with plenty of opportunity to take a close look and interact with the industry’s latest technology and advances in equipment brought to you by some of the biggest brands around. This year’s show marks the return of many familiar faces, while a number of newcomers are excited about making their debut on the show floor.

While of course most attendees will be spending their time on the sold-out trade show floor or participating in valuable industry training, let’s not forget all there is to do OFF the floor. Piggybacking on the success of last year’s ladies event designed to celebrate the women in the industry, ABAT will be presenting what’s sure to be another huge hit with this year’s ladies event! Pool time, signature drinks and trinkets are just part of the fun - bonding and togetherness is what it really is all about.

“I really want to see all the women at this event,” shares Tuggle. “The women in this business are a special breed. I love the women in this industry. We are a different caliber; we are unique and we chose to be in this business of collision repair. I think there is a lot of power and synergy and as a female-run association, we want to bring the females in our business together to get to know each other.”

This year there is even fun for the little ones making this a true destination event for the whole family! A scavenger hunt in the exhibit hall will keep them entertained and they will walk away with prizes. The return of the Car Show will also provide fun for the whole family!

A packed-show floor, top of the line national education (let’s not forget that happy hour portion) and - of course - the return of the Big Shots competition are more than enough reasons to get yourself over to the Irving Convention Center on August 25 and 26. Be sure to check out the educational slate on page 18 and register to attend the show at abat.us/events/tradeshow.

ABAT thanks the following 2023 sponsors for their generous support!

Diamond Sponsors: All Clear Diagnostics & Calibration, BASF, English Color & Supply. Platinum Sponsor: VSSTA. Celebrity Sponsor: Lift King. Gold Sponsor: 1Source ADAS. Silver Sponsors: ALLDATA, Dents Co., The Best Claims Solution. Happy Hour Sponsors: Car-O-Liner SW, Innovative Collision Equipment (ICE), Podium. Big Shots Sponsors: 3M, AkzoNobel, Anson PDR. LLC, Car-O-Liner SW, CCC Information Systems, KECO Body Repair Products, Norton/Saint Gobain, Polyvance and Sherwin-Williams. TXA

2023 TEXAS AUTO BODY TRADE SHOW EXHIBITORS

1Source ADAS

3M

AAMS, LLC

ADAS Aiming

Akzo Nobel

All Clear Diagnostics and Calibration

ALLDATA

Anson PDR, LLC.

Auto Body Association of Texas (ABAT)

Autel

Axalta Coating Systems

BASF

BETAG Innovation

BodyShop Marketing

Car-O-Liner SW

Carworx

CCC Information Systems

Celette Inc.

Consolidation Coach

Dents.Co

Eco-Tech Systems, LLC

Elitek Vehicle Services

English Collision Equipment

English Color & Supply, Inc.

Evercoat

DON’t forget To sign up for the annual BIG SHOTS COMPETITION!

Scan the qr code below to sign up now!

High Lift Financial

Horner Lighting Group

I-CAR

Innovative Collision Equipment (ICE)

John Bean

KECO Body Repair Products

Kent Automotive

Killer Tools

NCS / Single Source Inc.

Lift King

Norton/Saint Gobain

OE Connection

Parts Trader

Podium

Polyvance

PPG

Sherwin-Williams

SOCUR, inc.

Solidus Equipment Systems

Start2finish

Summit CRS

Teroson

TheBest Claims Solutions

USI of North America

Vale Training

VSSTA

Executive Director’s Message

continued from pg. 6 and mingle with friends, speakers and even our celebrity guest! The event is by invitation-only, so be sure to stop by the ABAT booth for your free ticket.

LADIES EVENT. This intimate gathering of “shop gals” is one of my favorite parts of the weekend. Sneak over to the pool area of the Texican Court Saturday afternoon for craft margaritas and conversation that sometimes is only understood by women who are a part of the collision business – either by employment OR marriage! We are a special breed, and the camaraderie among us can be quite amazing for a bunch of girls who are used to being “one of the guys.”

KIDS SCAVENGER HUNT. NEW for 2023! We want you to bring the whole family to the show, and to help you do that successfully, we’ve tried to make it a little fun for the kiddos, too. They can enjoy a special scavenger hunt in the exhibit hall and claim a prize at the registration desk when they are done!

I could go on and on about all the amazing things we have planned. You do not want to miss the show that brings all the excitement of a national show right here to the Lone Star State – and it only happens once a year! Register today at abat.us/tradeshow

jill@abat.com TXA

2023 Seminar & Events Schedule

FRIDAY, AUGUST 25 (SHOW HOURS 1pm-8pm)

7AM: Badge Registration Opens (Entrance Lobby)

8:30am-9:30am | Classroom 3 (O, M, E)

Attracting Talent with Process Improvement

Tom Heorner (Sherwin Williams)

Good processes can improve tech pay, reduce chaos, improve quality of life, and at the same time, optimize labor and increase profit. We will connect cycle time, touch time and tech productivity to production output and examine the importance these KPIs have on the collision repair business. We will also discuss three simple steps to improve cycle time performance by eliminating the most common production delays.

8:30am-9:30am | Classroom 4 (O, M, E)

Customer Copay Coaching

Logan Payne (Payne and Sons)

Implementing a copay system can be tough to navigate. Come join the discussion as Logan Payne walks you through both the pains and pleasures of the copay approach.

10am-11:15am | Classroom 3 (O, M, E, T)

Coloring Perspective on Blend Time: The Facts Behind the SCRS Blend Study

Aaron Schulenburg (SCRS)

The conclusions of the SCRS Blend study indicated that blending, on average, took 31.59 percent more time than a full refinish, rather than the 50 percent less time allocated in the three IP estimating systems. To mark the one year anniversay of the SCRS blend study we will revisit the study in detail from “the man” himself, Aaron Schulenburg.

10am-11:15am | Classroom 4 (M, E, T)

ADAS 101: Back to the Basics

Tommy Ames (Auto E Solutions)

In this 101 class, Tommy will discuss the basics of scanning and calibrations. Your staff will be ready to implement an efficient ADAS plan and take your shop to the next level.

1PM: TRADE SHOW FLOOR OPENS

11:30am-1:30pm | Junior Ballroom (O, M, E, T)

Lunch & Learn with Mike & Danny Mike Anderson (Collision Advice) & Danny Gredinberg (Database Enhancement Gateway)

This is a special luncheon featuring the dymanic duo as they “tag” in to talk about important repair information.

4pm-6pm | Junior Ballroom (O, M, E, T)

The Industry Over a Pint: An Auto Body Happy Hour Seminar

Aaron Schulenburg, Mike Anderson & Friends

This special session begins with a casual discussion “over a pint” and will transform into a group happy hour where you will have the exclusive opportunity to join casual chats with the industry powerhouses.

8PM: TRADE SHOW CLOSES

SATURDAY, AUGUST 26 (SHOW HOURS 11am-6pm)

9am-10am | Classroom 3 (O, M)

The Practicality of EV Repair Implementation

Gabe Morley (DEKRA)

Is EV repair right for your shop? In this class you will explore the realities and implications of “turning on the electric” at your shop with and without OEM certification.

9am-10am | Classroom 4 (M, E, T)

Repair Planning

Logan Payne & Danny Gredinberg

Join ABAT Board member Logan Payne and the DEG’s Danny Gredinberg as they explore how to improve cycle time and quality of work through proper repair-planning methods.

10am-11:30am | Classroom 1 (O, M)

Technician of The Future: ADAS edition

Bobby Beason (VSSTA)

This class will explore the evolving job description of today’s technician as we bridge the gap to tomorrow. This includes a discussion on the value of adding another technician through the proper use of repair procedures, scanning and ADAS calibrations.

11AM: TRADE SHOW FLOOR OPENS

10:30am-11:30am | Classroom 3 (O, M, E, T)

“Procedures? I’ve done it a million times.”

Erin Solis

A closer look through the auditor’s lens on repair procedures may reveal things you’re missing on everyday repairs. Hear from Erin Solis of Certified Collision Group as she uncovers some of the most often missed but very important OEM repair procedures.

3pm-4pm | Junior Ballroom (O, M, E, T)

Legislation in the Collision Space

Robert McDorman (Auto Claim Specialists), Burl Richards (ABAT President/Burl’s Collision) Bob Redding (The Redding Firm), Jacob Smith (Longleaf Consulting/ABAT Lobbyist)

Moderated by Aaron Schulenburg

This will be a comprehensive look at the legislative efforts happening here in Texas as well as nationally. As the legislative session here in Texas unfolds we will report on what was submitted, what passed, what the future holds and so much more! Be prepared to feel empowered by the knowledge you’ll gain about our industry from red dirt to white house!

4pm-5:30pm | Junior Ballroom (O, M, E, T)

Be Extraordinary!

Mike Anderson, Collision Advice

In today’s collision repair industry, it is no longer enough to just be average. You have to be extraordinary! You have to be extraordinary and deliver not just great customer service, but an extraordinary customer experience. You must be extraordinary and build a culture where people want to be a part of your organization, to put in the effort and to deliver extraordinary quality. You have to be extraordinary in your researching of OE repair procedures. You have to be extraordinary by staying abreast of the new developments in the collision repair industry. Remember, being average is just as close to the bottom as it is to the top. So be extraordinary!

6PM: TRADE SHOW CLOSES

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!

Stay tuned for updates by visiting abat.us/events/tradeshow

Consumer Rights and the $248,000 Way To Relief When Cheated By Your Insurance Company

Dear Mr. McDorman,

I own and operate a collision facility in Texas. This past week, I read several trade publication articles about the Collins vs. State Farm jury verdict for $248,000. In my view, this could not have happened at a better time to a more deserving insurance carrier. The articles mentioned that Auto Claim Specialists represented Mr. Collins. Auto Claim Specialists has also represented several of our clients over the years when their insurance carrier wrongfully deemed their vehicle an economic total loss. After defining the true actual cash value, Auto Claim Specialists were able to have the carrier switch the loss type from replace to repair. I also read that Mr. Collins wanted his vehicle repaired. What was different about Mr. Collins’ loss situation that led to this remarkable verdict?

Thank you for your question. The optics in Mr. Collins’ case were a little different than the loss disputes between your clients and their insurance carrier. Interestingly, the driving factor in the Collins vs. State Farm case was that the jury found State Farm’s knowing and intentional conduct violated the Unfair Claims Settlement Practices Act, and the Texas Deceptive Trade Practices Act. It was the knowing and intentional bad conduct on the part of State Farm that led the jury to the awarding of attorney fees and actual damages.

Regarding the ability to submit the loss type repair or replace to appraisal, the Texas State Farm auto policy does not allow any loss dispute other than disputes over the actual cash value to be submitted to appraisal. Most Texas auto policies allow all covered loss disputes under the policy to be submitted to appraisal if the insurer and insured cannot agree on the loss. State Farm, sometime in or around 2017, elected to limit the Right of Appraisal to actual cash value disputes only.

See the boxes at right for the Texas State Farm Auto Policy Limits and Loss Settlement-Comprehensive Coverage and Collision Coverage and the most common Texas Motor Vehicle Limit of Liability and Appraisal Clause for other insurance carriers.

STATE FARM TEXAS AUTO POLICY LIMITS AND LOSS SETTLEMENT –COMPREHENSIVE COVERAGE AND COLLISION COVERAGE:

1 We have the right to choose to settle with you or the owner of the covered vehicle in one of the following ways:

a. Pay the cost to repair the covered vehicle minus any applicable deductible.

(1) We have the right to choose one of the following to determine the cost to repair the covered vehicle:

(a) The cost agreed to by both the owner of the covered vehicle and us;

(b) A bid or repair estimate approved by us; or

(c) A Repair estimate that is written based upon or adjusted to:

(i) the prevailing competitive price;

(ii) the paintless dent repair price that is competitive in the market; or

(iii) a combination of (i) and (ii) above.

The prevailing competitive price means prices charged by a majority of the repair market in the area where the covered vehicle is to be repaired as determined by a survey made by us. If asked, we will identify some facilities that will perform the repairs at the prevailing competitive price. The estimate will include parts sufficient to restore the covered vehicle to its pre-loss condition.

You agree with us that the repair estimate may include new, used, recycled, and reconditioned parts. Any of these parts may be either original equipment manufacturer parts or non-original equipment manufacturer parts.

(2) The cost to repair the covered vehicle does not include any reduction in the value of the covered vehicle after it has been repaired, as compared to its value before it was damaged.

(3) If you and we agree, then windshield glass will be repaired instead of replaced;

b. Pay the actual cash value of the covered vehicle minus any applicable deductible.

(1) The owner of the covered vehicle and we must agree upon the actual cash value of the covered vehicle. If there is disagreement as to the actual cash value of the covered vehicle, then the disagreement will be resolved by appraisal upon written request of the owner or us, using the following procedures:

(a) The owner and we will each select a competent appraiser.

(b) The two appraisers will select a third competent appraiser. If they are unable to agree on a third appraiser within 30 days, then either the owner or we may petition a court that has jurisdiction to select the third appraiser.

(c) Each party will pay the cost of its own appraiser, attorneys, and expert witnesses,

as well as any other expenses incurred by that party. Both parties will share equally the cost of the third appraiser.

(d) The appraisers shall only determine the actual cash value of the covered vehicle. Appraisers shall have no authority to decide any other questions of fact, decide any questions of law, or conduct appraisal on a class-wide or class representative basis.

(e) A written appraisal that is both agreed upon by and signed by any two appraisers, and that also contains an explanation of how they arrived at their appraisal, will be binding on the owner of the covered vehicle and us.

(f) We do not waive any of our rights by submitting to an appraisal.

MOST TEXAS MOTOR VEHICLE POLICIES’ LIMIT OF LIABILITY AND APPRAISAL CLAUSE:

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.

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:

1. Pay its chosen appraiser; and

2. Bear the expenses of the umpire equally.

We do not waive any of our rights under this policy by agreeing to an appraisal.

As we see from the State Farm policy insert (“STATE FARM TEXAS AUTO POLICY LIMITS AND LOSS SETTLEMENT – COMPREHENSIVE COVERAGE AND COLLISION COVERAGE”), the insurer or the insured may only submit for appraisal an actual cash value dispute. A small change in contract language can have significant consequences. If State Farm had not removed the Right to Appraisal for covered losses other than actual cash value loss disputes, Mr. Collins could have submitted the loss type repair or replace to appraisal.

When the insured’s insurance policy has the limits of liability and Appraisal Clause such as listed above under “MOST TEXAS MOTOR VEHICLE POLICIES’ LIMIT OF LIABILITY AND APPRAISAL CLAUSE,” their right to relief if a dispute arises over the loss almost always has a positive outcome. The Right of Appraisal is always the first line of defense against under-

indemnification in loss disputes. Appraisal is about finding the right number.

However, the Right to Appraisal is only available to the insured and not to a claimant who has filed a claim with the atfault party’s insurance company. We are working vigorously with lawmakers to pass legislation requiring every personal auto policy to have a structured Right to Appraisal. Appraisal is the guardrail for indemnification of the loss when a dispute over the loss arises between the insurer and the insured. Without legislation in place 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. In this respect, they can be seen as beavers to running water. They see the insured getting some economic relief for their loss and they quickly act to dam up the source of the relief.

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 on repair procedure disputes such as the example provided. These under-indemnification 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 independent third-party appraisers as opposed to more costly and time-consuming methods such as mediation, arbitration and litigation.

In today’s world regarding motor vehicle insurance policies, frequent changes in claim management and claim handling policies and non-standardized GAP Addendums, we have found it is always in the best interest of the insured or claimant to have their proposed insurance settlement reviewed by an expert before accepting. There is never an upfront fee for Auto Claim Specialists to review a motor vehicle claim or proposed settlement and give their professional opinion as to the fairness of the offer.

Please call me should you have any questions relating to the policy or covered loss. We have most insurance policies in our library. Always 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 by phone at (800) 736-6816, (817) 756-5482 or via email at AskTheExpert@autoclaimspecialists.com.

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 ”

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 ”

President’s Message

continued from pg. 4

resulting in a verdict from a “finder of fact.” Read more details about the jury verdict on page 12, but make sure you sign up for the educational session at the trade show where we’ll dive in a little deeper and discuss what this means for Texas auto body repairers in our ongoing battle to convince the Texas Department of Insurance (TDI) to protect Lone Star consumers!

And you’ll also get to meet and greet this year’s celebrity guest on the trade show floor, “Shorty” of Shorty’s Custom and star of Iron Ressurection. Don’t forget to head out back to check out this year’s car show, featuring some of the hottest rides in the DallasFort Worth area…maybe you’ll even want to enter your own sexy beast for a chance to win a prize.

Whether you’re a body technician, painter or estimator, you’ll want to shoot your shot at earning bragging rights by participating in ABAT’s third annual BIG SHOTS Competition! BIG SHOTS is a great opportunity to show off your talents, compete with others in the Texas market and possibly walk away with some really cool prizes. This is a true competition between skilled professionals, so don’t think that just anyone can win! You have to have the skills to get there, so be sure to step up, stand out and shine.

Before the day ends, make sure to stop by the ABAT booth and say hi to Executive Director Jill Tuggle and ask for a ticket to the after party because even when the show floor closes for the evening, it’s not really over…We’ll be heading down to Bar Louie again for an evening of drinks and fun. Be sure to enjoy the photo booth –but know that Jill gets copies of all the pictures and WILL share her favorites in future editions of Texas Automotive (just check out the June edition for proof at grecopublishing.com/texas-automotivejune-2023)!

And there’s still plenty of fun to be had in the vicinity. Between the Toyota Music Factory, movie theater, various dining (and drinking) options and even axe-throwing, the possibilities are endless – both within and outside of the show.

The Texas Auto Body Trade Show only comes around once a year, so get your @$$ here! Did you register yet? If not, what are you waiting for? Go to you’re at the forefront of the industry…because if you’re not here, you’re bound to get left behind.

burl@burlscollision.com

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