The official publication of the Auto Body Association of Texas (ABAT)
Countdown to the
September 2021 $5.95
S H O W RELIEF
For Wronged Consumers
COVID-19 Then & Now
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Contents
SEPTEMBER 2021
on the
cover
Countdown to the
S
COUNTDOWN TO THE SHOW:
H O
The Texas Auto Body Trade Show is (Almost) Here!
W
14
by Alana Bonillo & Joel Gausten
DEPARTMENTS
4
PRESIDENT’S MESSAGE by Burl Richards
6 7 8
EXECUTIVE DIRECTOR’S MESSAGE by Jill Tuggle
10 16 18
Expanding Our Allies
The 2021 Texas Auto Body Trade Show: All about the FUN 2021 TEXAS AUTO BODY TRADE SHOW: SAVE THE DATE! NATIONAL NEWS by Joel Gausten Auto Body Students Make Kidnapping Survivor’s Dream Come True
Official publication of the Auto Body Association of Texas
ABAT BOARD OF DIRECTORS
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
ABAT FEATURE by Alana Bonillo Coming Out of the Dark: Texas Shops See Light at the End of the COVID-19 Tunnel
PUBLISHER Thomas Greco / thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com
TEXAS AUTO BODY TRADE SHOW SEMINARS & EVENTS SCHEDULE
EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com
ASK THE EXPERT by Robert L. McDorman What Relief is Available for Consumers Wronged by Insurers?
OFFICE MANAGER Donna Greco / donna@grecopublishing.com PRODUCTION COORDINATOR Joe Greco / joe@grecopublishing.com
ADVERTISERS’ INDEX 300 Advantage..................................................... 4
FindPigtails.com.................................................... 17
Auto Claim Specialists........................................ 19
Paint Works Dallas............................................... IFC
BASF........................................................................ 9
PPG.......................................................................... 5
Beacon Equipment Resources......................... 20
Reliable Automotive Equipment....................... 12-13
CAR-O-LINER Southwest................................... 11
Sherwin-Williams.................................................. OBC
Ecotech................................................................... IBC
Spanesi................................................................... 22
English Color & Supply....................................... 17
Tasco Auto Color................................................. 8 3 SEPTEMBER 2021 Texas Automotive
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 © 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
Expanding Our Allies Burl Richards ABAT President
I
I just got back from a great meeting that reminded me of just how important it is to share and work together with others in the automotive industry. ABAT Vice President Eric McKenzie, Board member Robert McDorman and I traveled hours to Austin to meet with representatives from the Texas Automobile Dealers Association (TADA) and the North Texas Automobile Dealers (NTXAD). Our goal in doing so was to gain insight into some of the issues facing dealerships in our state and how these problems may impact us on the collision repair side. It didn’t take long for everyone in the meeting (including our lobbyist, Jacob Smith, who took the time to join us) to realize that we shared many of the same concerns. Our
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mutual push for OEM-required/recommended repair procedures was a major talking point, which isn’t surprising when considering that many dealers also have body shops. Additionally, we learned more about how undervalued total loss vehicles hurt consumers by turning their finances upside down when they attempt to get a loan for another vehicle. Of course, a lot of totaled vehicles are getting sold at auctions without having the proper salvage title. This problem is a huge worry for everyone – consumers, dealers and repairers alike. Everyone at the meeting pledged to work together to develop possible solutions to these dilemmas, and I look forward to seeing where these stronger ties with the dealer side will lead ABAT and the consumers we serve. Another takeaway from this meeting was just how dedicated ABAT Board members truly are. Robert and Eric spent time and money to be there, and nobody on our Board gets paid or reimbursed for doing stuff like this. With the exception of Jacob and Executive Director Jill Tuggle, everyone involved in leading this association is a volunteer. We’re doing this solely to fight for our industry. This is why membership is so important. You’re the ones who keep us going. We’re nothing without your support, ideas and action. On another note, you can expect ABAT to also focus on some of the discrepancies out there between what is taught through I-CAR and the actual application of these things out in the field. I-CAR has insurance industry personnel sitting on its Board of Directors; obviously, they know what the instructors are telling students to do. Why do appraisers from these carriers still fight shops tooth and nail over performing procedures that people from their own companies endorse and help develop? It doesn’t make sense, and ABAT fully intends to push I-CAR for clarity and answers moving forward. As always, let us know if you’re dealing with any struggles at your shop. It’s very likely that many other shops are dealing with the same thing. Take advantage of your membership and let us know how we can help.
To learn more! 4 SEPTember 2021 Texas Automotive
burl@burlscollision.com
TXA
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Executive Director’s Message
The 2021 Texas Auto Body Trade Show:
All about the
FUN
Jill Tuggle
ABAT Executive Director
H
Hopefully, you are reading this message as you prepare to go to the 2021 Texas Auto Body Trade Show! If not, no worries; you can still attend and register at the door. In this message, I want to highlight some of the fun things you should check out when you’re there! The first thing you will want to check out is the celebrity autograph session on Friday afternoon, where we will hear an inspirational message from Dave Kindig from Bitchin’ Rides. Dave will be available to sign autographs and take photos as well! Happy Hour in the Exhibit Hall begins at 5pm, with FREE BEER at your favorite booths all throughout the show! You will feel like you’re walking through the collision version of Disney’s Epcot, where you can grab a brew down each aisle of the show! It’s like “drinking around the world” but without the costumes. The Friday night fun doesn’t end there! Stop by the ABAT booth to score an invitation to the After Party at Bar Louie. It’s the after-hours and casual networking that makes this show so great. There will be food, drinks and lots of fun.
Saturday kicks off early with the show floor opening at 10am. English Color and Supply is hosting a HUGE Car Show that will fill the back parking lot of the Irving Convention Center. Just follow the 400 aisle to the back, where you will pass the competition area where repairers of all roles will be testing their skills at the ABAT Big Shots Competition to prove the age-old claim that they are “the best in the business.” Saturday will come to a close after we squeak in one more Happy Hour with MORE FREE BEER in the exhibit hall. Whether you come for the educational seminars, the shiny equipment or the networking, you will definitely find what you’re looking for. The Texas Auto Body Trade Show has it all – she is brains, beauty and a good time!!
jill@abat.com
TXA
2021 TEXAS AUTO BODY TRADE SHOW EXHIBITORS (As of August 17) 3M AAMS, LLC AirPro Diagnostics AkzoNobel ALLDATA Anson PDR, LLC. asTech Audatex (Solera) 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 Express Hail FinishMaster Automotive Paint Garmat USA / Equipment Solutions
Innovative Collision Equipment (ICE) KECO Body Repair Products Killer Tools Kritech Launch Tech Lift King Mitchell International NCS / Single Source, Inc. Norton/ Saint Gobain Nuventory Optima Automotive O’Reilly Auto Parts PartsTrader
6 SEPTember 2021 Texas Automotive
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 SEPTEMBER 2021 Texas Automotive
National News
by Joel Gausten
Auto Body Students Make
Kidnapping Survivor’s Dream Come True A young lady’s 16th birthday is usually a special milestone that comes with great times and fond memories. For Cleveland resident Amanda Berry, this day was meant to be when her grandfather, Troy, would give her the keys to his prized 1986 Monte Carlo SS. When Berry was a little girl, she’d often work on the car with him, developing a love of automobiles along the way. Tragically, she was kidnapped the day before her birthday in 2003 and subsequently held captive for an entire decade before finally escaping. The story made national headlines and put Berry in the media spotlight, but she was just excited to be back with her loved ones and have an opportunity to continue working on the car. Sadly, her grandfather was soon diagnosed with dementia; as a result, he struggled to remember her before he passed away. Despite losing her beloved partner in car restoration, she kept the Monte Carlo, which by that time was in a greatly deteriorated state. Thankfully, her decision to hold on to the vehicle led to a very happy ending thanks to young members of the collision repair industry. Beginning in 2019, dozens of students at Max S. Hayes High School in Cleveland put in hundreds of hours – including on Saturdays – to fully restore the vehicle as per I-CAR standards. Thanks to the Collision Repair Education Foundation (CREF), the revamped Monte Carlo was unveiled publicly for the first time
Amanda Berry reunited with a very special Monte Carlo SS during a special ceremony at the July Collision Industry Conference (CIC) in Cleveland. Appearing on stage prior to seeing the upgraded Monte Carlo, Berry expressed her deep appreciation for every student who gave of themselves to provide this special gift. “First and foremost, thank you to my grandfather, who’s now in Heaven. He’s watching down, and he watched all of you guys do all the hard work. For that, I’ll be forever grateful and thankful […] This is a dream come true that I actually didn’t think would ever come true.” TXA
8 SEPTember 2021 Texas Automotive
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ABAT Feature
by Alana Bonillo
Coming Out of the Dark: Texas Shops See Light at the End of the COVID-19 Tunnel Things are beginning to look much brighter. As we enter the final months of 2021, it’s easy to look back on the past year and a half and wonder how we survived. But as the auto body community in the Lone Star State has proven time and time again, it always comes back strong. Now that the COVID-19 threat is beginning to finally subside and a sense of normalcy is returning, body shop owners are finding themselves on the busy side once again. Looking back on the past year-plus, Alex Gonzalez of Excalibur Collision Center (Dallas) feels fortunate that his shop made it through. Sales were down about 28 percent during that time, but the facility managed to receive a lot of help via PPE loans, which afforded Gonzalez the ability to keep everyone on his staff on the payroll. Now, things continue to look up. “We are at the point where we are bursting at the seams and have actually had to add on two employees.”
manufacturing parts, therefore disrupting the supply chain. Now, shops are feeling some of that halt in their day to day. “It’s pretty frustrating when you can’t get parts; some are on indefinite hold and you can’t even find [anything] out from the OEM. Some don’t even have a projected manufacture date.” Rene Rodarte of Artisan Paint and Body in San Antonio definitely felt the effects of the pandemic, but things are looking better as his business wraps up the summer. “We survived COVID-19. It took its toll on us. We were down about 70 percent, and reserves were tapped. But we continue to serve the community.” These days, Rodarte finds himself doing a lot more administrative duties, as the pandemic left him short three estimators. While he now has fewer hands on deck than he had last year, he is quick to note that business is getting back to where it was before.
Sales are up roughly 20 percent from pre-pandemic numbers, and he’s about a month behind in work. His only main challenge these days is finding parts, as he’s had some jobs waiting about a month for items to arrive. Rick Gardner, owner of Auto Tech Services of Mansfield, says his shop is close to where things were before the pandemic. “We’re basically holding our own against the past two years for the most part. It seems like right now, things are trending in the right direction. With the new variant coming in, we have to hold our breath and see what that brings.” Although things at his shop are positive overall, he has been met with the challenge of getting certain parts. He believes that the COVID-19 shutdowns possibly affected all the steps involved in
Precision Auto Body of Arlington is also seeing business resemble how things were before the big shutdown of 2020. “As far as business goes, we are pretty much in the same position we were two years ago,” owner Bruce Lessner says. Although things are working their way back in a positive light, Lessner noted changes he sees in this almost post-COVID-19 world. Like Gardner and Gonzalez, he’s also experiencing difficulty in getting parts as suppliers are unable to get necessary materials to manufacture them. With business already trending upward and keeping shops afloat as the pandemic continues its decline, the industry is finally seeing signs of better times to come. TXA
10 SEPTember 2021 Texas Automotive
11 SEPTEMBER 2021 Texas Automotive
Cover Story
COUNTDOWN TO
THE SHOW Welcome back to the way this industry is supposed to be! We’re only days away from ABAT’s Texas Auto Body Trade Show. Boasting everything from national-level educational events to active support from the field’s most popular exhibitors, the Irving Convention Center is the best place any automotive professional can be this September 17 and 18. After more than a year of virtual events and not having the ability to meet with their customers one on one, vendors are eager to return to the Trade Show floor. “We participate in ABAT’s Texas Auto Body Trade Show because we like to help support the organization and to let people know we’re there to help meet their needs for equipment,” Chris Curran of Eco-Tech Systems states. Like most, Curran is looking forward to being able to talk and interact with his customers on a face-to-face basis. “There are a lot of things you just can’t communicate over Zoom or on the telephone.” The spray booth company plans to share some of the latest equipment offerings. These include the ALTO paint booth, which is designed for larger vehicles such as the Mercedes-Benz Sprinter van, Dodge ProMaster and the Ford Transit. Also, they will showcase full glass drive-in door fronts and will be on hand to talk about the service and maintenance they offer with all paint booths. ABAT Board member Chad Neal of Innovative Collision Equipment is excited for the big event. First and foremost, he sees it as an opportunity to showcase his company’s products. Additionally, he views his participation as a way to support the association. “It’s an opportunity [for attendees] to not only see my company but everyone who is bringing their latest and greatest widgets to the show. [They can] see what products are available to them and what fits their needs. You can do a lot of body shop
shopping and gain knowledge all under one roof.” Neal also believes seeing people in person once again is a huge reason to make sure to get down to the Trade Show. “I think it’s important we get back to living normal lives, and there is nothing like seeing old friends in the industry – some I haven’t seen since 2019. In person is the only way to go. I’ve done enough Zooms for the rest of my life!” Tim Curran of Happy Hour Sponsor Car-O-Liner Southwest feels there’s a lot of pent-up interest among repairers to get back out there and associate with like-minded people. “There is a desire to update. These shops went a year without doing anything; in many cases, shops had plans to update in 2020. So, the desire is still there to move forward, and we are seeing that activity in our growth in 2021.” Attendees can expect to see many new offerings from Car-OLiner Southwest, as the company plans to showcase three major pieces of equipment. “We’re excited that we get a chance to put forward our products and get in front of the end-user again. We’ll have live welding, live benches and measuring. We’re going full-out 100 percent!” William Godina of Happy Hour/Big Shots Sponsor Sherwin-Williams shares in the excitement. “We are longtime supporters of ABAT, and we look forward to the event because it benefits the industry as a whole with respect to the technicians and the people running these highly complex businesses today. “Given the increased complexity of these vehicles, it is extremely important that owners and technicians stay ahead of technology to ensure vehicles are restored to pre-loss condition and, most importantly, crashworthiness,” he added. “These types of events expose the industry to the latest tool trends and repair procedures, which is fundamentally important. Continuously
14 SEPTEMBER 2021 Texas Automotive
by Alana Bonillo & Joel Gausten
learning is everything.” Godina fully believes that being back in a live forum is absolutely necessary in this industry. “Our industry is accustomed to hands-on training, and I think these types of events help solidify questions that arise in the field. Most importantly, this setting enhances relationships with in-person engagement regarding new equipment and tools. Our industry requires a high level of training for proper repairs, and in-person training is sometimes the only way to ensure full comprehension. Virtual training is great, but nothing beats faceto-face engagement.” When not hitting the Trade Show floor, attendees can experience a host of courses that will provide fresh perspectives on common issues and offer insight into topics that many shops may not have considered in the past. In regard to the latter, the September 18 class “Cyber Insecurity” by Mark Claypool of Optima Automotive is destined to open eyes – and send shivers through a few bodies – by taking an in-depth look at how many shops are putting themselves at great risk without even realizing it. These days, all it takes for a business’ life to completely unravel is an absent-minded click on a link that can install spyware that tracks a user’s every keystroke and visited website – a scary thought when considering how everything from banking to photo estimating is done online these days. “In a shop, you have a database of information. You have customer contact information; sometimes, you’re storing billing information. You have birthdates and all kind of things that are gathered from driver’s licenses or whatever. That database of information is of value to hackers.” To illustrate the dangers posed to industry members, Claypool tells Texas Automotive that he’s heard of at least one repair facility that was hacked via the internet connection through its spray booth.
“If somebody can figure out a way to get past any security you have, then they can seize control of your systems. The next time anybody tries to log in, you’re informed that your system is now locked down. If you want to have access to that system again, you have to pay ‘a ransom.’” Like every class presented at this year’s Trade Show, Claypool’s presentation will provide direction and food for thought on how attendees can navigate the issue at hand. A complete schedule of this year’s seminars and events is included in this issue of Texas Automotive. ABAT’s 2021 Texas Auto Body Trade Show has been a long time coming. We can’t wait to see y’all there! For more information and to register, please visit abat.us/tradeshow. 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), SherwinWilliams; 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.
15 SEPTEMBER 2021 Texas Automotive
TXA
Powered By:
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, 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
16 SEPTEMBER 2021 Texas Automotive
Visit ABAT.US/TRADESHOW for more info & to register!
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Ask The Expert
by Robert L. McDorman
What Relief is Available for Consumers Wronged by Insurers? Dear Mr. McDorman: It’s Burl Richards, owner and operator of Burl’s Collision Center in Henderson, here about your response last month to the reader who sought information to help his and other shops’ clients when the insurance carrier wrongfully deems a repairable vehicle a total loss. We refer many clients each month to Auto Claim Specialists with under-indemnification and limits of liability issues. Many of these clients, at the end of the dispute, have called to thank me for referring them to you. They regularly tell me that not only are they receiving full compensation for our complete repair cost to return their vehicle safely to its pre-loss condition, but they are also receiving additional relief for their damages – in some cases over $20,000! As an example, we recently had a client whose carrier had accepted liability for his loss and delivered to us an undisputed liability estimate for $1,486.81 after the $251 deductible. Once the vehicle was disassembled and thoroughly inspected, a complete repair plan revealed the exact cost to return the vehicle safely to its pre-loss condition was $5,174.34 after the $251 deductible. Upon our issuing the carrier a supplement for the extra $3,687.53 in cost, the company informed our client that it was deeming his safely repairable vehicle a total loss. We referred the client to Auto Claim Specialists to assist with his loss dispute with the carrier. At the end of the dispute process, we were paid our complete repair cost of $5,425.34, which included the $251 deductible, and my client informed me his carrier was required to pay over $15,000 in additional damages. Just as the example above, we see this many times a month at our facility. Can you explain to the readers how clients can be made whole for their loss and even receive additional relief for damages caused by their carriers’ wrongful actions? I am certain many other collision facilities such as ours have clients facing similar challenges with their insurance carriers trying to circumvent liability for accepted covered losses. Thank you for sharing this example of the blatant disregard of insureds’ rights that we uncover on a regular basis. We do in fact handle a number of these repair-or-replace types of claims each month across Texas that have the same elements of damage seen with clients referred to us from Burl’s Collision Center. How we handle these types of claims changes from carrier to carrier depending on the language in the policy. However, in this example you brought to the readers’ attention, the insured had the same policy language as shown in last month’s editorial. To review, the policy limits of liability and appraisal clause for this insured are 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. 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 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.
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. When the insured in question reached out to us, we were informed the carrier had deemed his vehicle a total loss but that Burl’s Collision Center had informed him the vehicle could be safely returned to its pre-loss condition. The insured informed us he was seeking to be indemnified by his insurance company by having his vehicle be safely returned to its pre-loss condition. We then reached out to Burl’s Collision Center to verify the vehicle could indeed be safely returned to its pre-loss condition. Burl’s Collision Center confirmed and supplied us with a complete repair plan cost of $5,425.34. We then requested that the insured provide us with the Market Valuation Report issued by his insurance carrier. The CCC ONE Market Valuation Report documented the adjusted vehicle value as $2,332. We sent the CCC ONE report and other documents to our subsidiary, Vehicle Value Experts, and requested a certified actual cash value for the loss vehicle. Vehicle Value Experts returned an actual cash value estimate as of the date of loss of $5,900 for the vehicle. As we see from the insurance carrier’s policy limits of liability
18 SEPTember 2021 Texas Automotive
continued on pg. 20
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Founder Robert McDorman
Ask The Expert continued from pg. 18 shown in this article, repairing the vehicle was the lesser of the repairor-replace option. The insured retained Auto Claim Specialists as his public insurance adjuster and Vehicle Value Experts as his independent appraiser to invoke his policy Right to Appraisal to define the actual cash value in contest of the loss type (repair or replace). The carrier was put on notice that it had not defined the actual cash value, and an appraisal of the loss to define that actual cash value for establishing the contractual limits of liability repair or replace was ordered. After several time-sensitive notices, the unlawful carrier refused to honor the policyholder’s Right to Appraisal for his loss. Once this event of default occurred, we referred our client to an attorney. Once the carrier was placed on notice by the law firm, it was clearly caught off guard and finally began scrambling to resolve its violations. As noted earlier, the unlawful carrier ended up not only paying the complete repair cost of $5,425.34 to safely return the vehicle to its pre-loss condition but also paid our client over $15,000 in consequential damages. The purpose of insurance is to indemnify the insured from loss and put them back to the position they were before the loss. Just as we saw here, we routinely see insurance carriers deliberately or negligently under-indemnifying motor vehicle claims by following incompetent or intentionally deceptive claim practices. As a public insurance adjuster agency, we are allowed to represent the
insured and bring these infractions to the attention of the negligent or unlawful insurance carrier. In the event the carrier refuses to correct the infractions and abide by the policy of insurance it has sold our client – the insured – we must refer our client to a law firm to defend their policy rights. In reference to these referrals, we routinely see consequential damage settlements from the judicial process averaging $30,000 for claims that could have been settled for an average of $3,300. Consequential damages result from the negligent or unlawful carriers’ incompetent or intentionally deceptive claim practices and their ignoring policyholders’ rights to relief. The abuses, policy violations and infractions we see in our office are rampant and dangerously out of control. Since the pandemic, the lack of actual inspections of the loss has caused these violations and infractions to increase even more. 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
20 SEPTember 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.”
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