The official publication of the Auto Body Association of Texas (ABAT)
November 2023 $5.95
Staying Ahead of
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Contents
NOVEMBER 2023
on the
cover
Official publication of the Auto Body Association of Texas
ABAT BOARD OF DIRECTORS
A COMEDY OF UNDER-INDEMNIFICATION: Starring Progressive by Chasidy Rae Sisk
Are proper repairs a laughing matter? Definitely not to the consumer whose car is being fixed, yet some Progressive employees chuckle at the idea of paying shops for certain processes and procedures that lend themselves to ensuring the vehicle is restored to its pre-accident condition. The curtain opens on such a situation on page 14.
14
DEPARTMENTS 4 5 6 6 8 10 20
PRESIDENT’S MESSAGE by Burl Richards Staying Ahead of the Curve ABAT MEMBER APPLICATION EXECUTIVE DIRECTOR’S MESSAGE by Jill Tuggle 40 Trips Around the Sun and 20 Trips Around the Shop SCRS BLEND STUDY WEBINAR FLYER ABAT FEATURE by Chasidy Rae Sisk Valiant Hearts: ABAT Members Donate Repairs to Local Mom NATIONAL FEATURE Help Team USA’s Paint Olympian Take the Gold at WorldSkills! ASK THE EXPERT by Robert L. McDorman What is the Latest Under-indemnification Scheme?
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 “Ozzy” David McDavid Ford ozzy6384@gmail.com (817) 648-5759
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
Brandon Gillespy Park Place BodyWerks bgillespy@parkplace.com 214-443-8250
Anthony Palomo West Texas Auto Color japalomo3@yahoo.com (806) 831-7765
Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136
Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564
Greg Luther Helfman Collision gluther@helfman.com (713) 574-5060
Albert Salinas South Houston Nissan asalinas@southhoustonnissan.com 833-856-7871
Darrell Smith McDaniel’s Quality Body Works Inc darrell-mcdaniels@sbcglobal.net (903) 753-5391
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 PRESIDENT/PUBLISHER Thomas Greco / thomas@grecopublishing.com VICE PRESIDENT/SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com EDITORIAL/CREATIVE COORDINATOR Alana Quartuccio / alana@grecopublishing.com
ADVERTISERS’ INDEX 1SourceADAS....................................................4
Petty Details.......................................................23
Auto Claim Specialists....................................21
PPG......................................................................24
Beacon Equipment Resources.....................23
Spanesi...............................................................22
CAR-O-LINER Southwest...............................18
Thomas Greco Publishing..............................16
Classic Chevrolet.............................................19
Transparent Claim / Who-Owes-What........17
Ecotech...............................................................23
USI........................................................................9
English Color & Supply...................................7
VSSTA.................................................................12-13
FindPigtails.com................................................7
Womens Industry Network............................16
Paint Works Dallas...........................................IFC 3 NOVEMBER 2023 Texas Automotive
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 @grecopublishing
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.
President’s Message
A
Staying Ahead of the Curve
As I’m writing this message to y’all, I’m packing my bags for Las Vegas, but by the time this edition of Texas Automotive hits your mailboxes, I’ll likely be back home from SEMA 2023…and I hope I’m not the only Texan making the trip this year because there’s always so much to see and do; there are so many ways that we can better ourselves and our industry – from the educational classes to the exhibitors displaying their newest innovations. This is certainly an innovative industry, and if we want to be the best, we have to pay attention to the newest ways to stay ahead of the curve. With the way that technology is constantly changing, there’s a never-ending need to update our tools and equipment in the shop, and there’s also an ongoing spend associated with those updates. Back in the day when I opened my first shop 26 years ago, all you needed was a paint booth, some frame equipment and a few tools,
and you were set for the foreseeable future unless something broke and needed to be Burl Richards replaced. But now? Vehicle updates and ABAT President maintaining OEM certifications require frequent investments. Depending on the size of your shop, it’s easy to spend a couple hundred thousand dollars each year just to keep pace with all the changes happening. And then there’s the opportunity to get ahead instead of just keeping up with the crowd. The work we do is becoming increasingly challenging, and it is taking longer and longer to create a repair plan – they’re no longer merely estimates; our repair planners need to be much more detailed and precise than the “guesstimates” of the past!
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WE CAN’T WAIT FOR YOU TO SHARE YOUR IDEAS! 5 NOVEMBER 2023 Texas Automotive
Executive Director’s Message
40 Trips Around the Sun and 20 Trips Around the Shop
L
ABAT's Hosting FREE WEBINARS for the remainder of 2023!
Last month, I celebrated a milestone birthday – I turned 40 – eek! While I was not super thrilled to be entering a new decade, I did spend some time thinking about all the years that led up to this milestone and looking back at where it all started in this industry for me. I am so proud of how far I have come and how far the industry has come. I am honored to be a part of what we are doing. I have now spent half of my life in the collision industry…20 years. I started in this business as a wheel girl. Yep – I picked up and delivered wheels and tires to body shops all over DFW. I didn’t aspire to do a job like that; it definitely wasn’t the position I interviewed for, and I admittedly turned my nose up to it when the hiring manager first asked me to consider it. I interviewed for and was tentatively offered the job of receptionist on the grounds that I go ride with a driver to see if I liked it. The owner thought my outgoing and bubbly personality would fare well with customers. So I humored them and rode with a driver…and surprisingly, I loved it.
The body shop guys were not the “grease monkeys” I pictured but some of the most kind and knowledgeable people I have ever met. They treated me with respect, took the time to teach me Jill Tuggle ABAT Executive Director about what they were doing and always offered a hand to help me load my wheels. Sometimes, I’d even push my ego aside and let them! They watched me receive promotions, get married, have kids and so much more. One of them even sang at my wedding. They have championed me and pushed me to be my best. Eventually, I started my own marketing business which ultimately led to my involvement with ABAT. I volunteered a bit and was soon asked to consider the role of Executive Director. Nervous and excited, I started my new journey on what I call “the other side” of the business. continued on pg. 23
November 28, 2023 12:00 - 1:30pm
FINISH STRONG IN 2023! ICYMI: In Case You Missed It- Coloring Perspective on Blend Time: the facts behind the SCRS blend study plus SEMA bonus material
Join ABAT and SCRS Executive Director Aaron Schulenburg for an eye-opening continued look at the group’s blend study results, and much more!
ABAT is hosting FREE monthly educational webinars for the remainder of 2023! Join us & invite another shop! 6 NOVEMBER 2023 Texas Automotive
www.englishcolor.com
7 NOVEMBER 2023 Texas Automotive
1-800-664-5272
ABAT Feature
by Chasidy Rae Sisk
Valiant Hearts: ABAT Members Donate Repairs to Local Mom If an auto body professional is asked why they pursued a career path in this industry, their explanation will almost always include some variation of “I wanted to help people.” So, when ABAT Executive Director Jill Tuggle turned to social media to post a plea on behalf of a local mom-in-need, it’s really no surprise that association members jumped at the opportunity to lend their aid.
“A local ministry I volunteer for has a specific need. Please let me know if anyone is willing to help,” Tuggle addressed the Texas Collision Industry group on Facebook, requesting assistance for Valiant Hearts, an organization that “exists to heal, restore, and
empower sexually exploited women through compassionate and customized care,” according to its website, valianthearts.org. Tuggle shared the request she had received from Valiant Hearts Program Director Emily Chavez who sought assistance for “one of our women. She has three little girls, and her husband is working, but as most of us know, inflation has made things financially more difficult. I’m sure we’ve all been in places in our lives where, even with an income, being able to maintain our vehicles to get to and from work, felt impossible. This sweet lady has been with us for some time now, and they are in need of car maintenance. I will lay it all out and see how God provides: They need two front tires, their brakes checked and possibly new pads as her brakes are screeching and making awful noises, and her AC in the car went out.” In no time flat, three repairers reached out to offer their services! Comments popped up on the post from Chad Neal (Paint Works; Tyler) who commented, “The ABAT Board and members will take care of this family! Need a trustable repair shop to get her car fixed; we’ll get the bill paid!” as well as from Danny Blaser continued on pg. 16
8 NOVEMBER 2023 Texas Automotive
Russell & Smith Logging Big Paint Hours with USI Booths & Prep Station Buying a paint booth is a huge investment, and there are many factors to carefully consider before selecting one. Will the booth work well in a region where there’s a ton of humidity and with drastic changes in the weather? How long do you think the booth will last and will it require a lot of maintenance? Will your painters be comfortable using it every day and finally, will the company making the booth provide solid training and reliable customer service? To answer these questions before acquiring two Chronotech spray booths and a prep deck from USI ITALIA back in 2004, Collision Center Manager Kevin McIllveen at Russell & Smith Body Shop in Houston, TX spent six months studying the market. He was looking for the best booths that matched his needs to use in a brand-new 36,000 sq. ft. facility that the company built from the ground up. Mcllveen, age 56, entered the industry more than three decades ago as an estimator and has worked for Russell & Smith Body Shop since 1993. His goal with his new spray booths was to improve the efficiencies in his paint department and to accommodate his production, he said, while simultaneously saving time and energy if possible. The vetting process was arduous but worth it in the end. "We did our research so that we could make an educated decision," he said. "I went to NACE two years in a row and talked to literally everyone and asked a lot of questions. We knew that this was going to be a very significant investment, so we took the time to perform our due diligence to cover all our bases. We invested in their prep stations as well, which was another good decision, because my guys can work so much faster and effectively with five different places where we can spray. We put a curtain up in the prep booth that provides us two additional spaces that are heated and properly ventilated. So, when we are really jammed, we can handle the workload and maintain our cycle time without interrupting or slowing down our production." After using them for a very short time, Mcllveen could clearly see that his Chronotechs were more than capable as they quickly became a centerpiece in his new, high-end, modern shop. "We have four paint teams here, consisting of a painter and a painter’s helper and we consistently log approximately 600-700 paint hours weekly,” he said. “We switched to waterborne paint when we opened this facility because we want to provide a healthier climate for our employees and the community as a whole.” Why was Mcllveen able to improve his numbers by simply adding two USI booths? “In the end, it all comes down to their airflow because we never need blowers or additional air to cure these vehicles. The fans in these Chronotechs are exceptional because they feature variable speeds, so we can switch depending on the parameters of each job. Our painters are producing an impressive product day after day, so these booths are saving us both time and money. We paint an average of 400 cars every month, so
we push these booths and they never let us down.” Any issues that Russell & Smith Body Shop have encountered with their USI ITALIA booths have been rare and far between. But Mcllveen feels good knowing that if called upon, the company will respond and find solutions promptly. “If you do your scheduled maintenance and keep everything clean, these booths will last you 30 years and maybe even longer. The issues that we have encountered with the Chronotechs have been minor and quickly solved, which is impressive when you think that we have been using these booths daily for the last 16 years. I tell people that these booths will be here long after I’ve retired!” After training provided by USI ITALIA, Mcllveen’s painters were able to start spraying after one day, he said. "The Chronotechs are designed to work with waterborne paint, which makes it easier for our painters to do their work. After a very short time, all of our guys were comfortable and the results were consistently exceptional.” Mcllveen is also impressed by the Chronotech's sturdy construction and durability. "Some booths are just a box, but these are wellbuilt," he said. “I know, because I've seen them all and there isn't anything like a USI ITALIA booth." His career in collision repair industry has been a great experience and products like his USI ITALIA spray booths and prep station are a part of that, he said. “We haven’t had to furlough anybody here and that’s because we value our people and, in the end, our Chronotechs are part of the team.”
USI of North America | 565 Commerce Street Franklin Lakes, NJ 07417 | 201-405-7761 | s.moretto@usius.com | www.usius.com 9 NOVEMBER 2023 Texas Automotive
National Feature
Help Team USA’s Paint Olympian Take the Gold at WorldSkills! As athletes around the world busily train for the 2024 Summer Olympics in Paris, a group of talented young people are gearing up for a similar challenge in nearby Lyon, France: the 47th WorldSkills Competition (WSC), taking place September 10-15, 2024. Every two years since 1950, dozens of countries and regions from all over the globe have sent more than 1,400 competitors to test their skills in over 60 different trades, and in 2024, Team USA is slated to participate in five categories – automobile technology, auto body repair/car painting, cooking, heavy vehicle maintenance and welding – with delegates being chosen from among the SkillsUSA winners. Selection “involves a detailed analysis of SkillsUSA Championships results followed by interest surveys, individual interviews, skill demonstrations or hands-on events, followed by the creation of individual training plans for the next
year,” according to Team USA’s website. Although the group of young experts who will represent the US in 2024 has not yet been selected as of this writing, industry supporters have already begun raising funds to ensure Team USA’s “Paint Olympian” is equipped to bring his or her best. Team USA’s painter will prepare for the competition with industry expert Jamie Redd (PPG), who will accompany the fledgling trades professional to France to lend his support during the biennial event often referred to as the “Olympics of Technical Skills.” “The WorldSkills USA team is funded solely through private donations,” shares Jessica Neri (PPG). “To fully fund our auto body competitor, we need a minimum of $20,000, but we can do this – this hopeful competitor needs our support!” Competitors who will represent Team USA must qualify by
10 NOVEMBER 2023 Texas Automotive
participating in demanding competitions to demonstrate their skills in order to reach the world stage where they’ll have the opportunity to test those skills against an international standard at levels of Olympic intensity. While many industry professionals believe that’s a standard set by the US, which was built by the skilled trades, the American team has historically seen less industry support than other countries’ teams have received. “We can’t constantly complain about not having people in the trade but then not want to do anything about it,” insists former Team USA Auto Body/Paint Expert Rodney Bolton (Bolton Consulting). “You’ve got to put your money and support where your mouth is, so we can support the trade 100 percent.” Competitors need that support to grant them access to the equipment, tools and materials needed to finetune their craft in order
to compete at the level necessary to have a chance at taking home a medal, a dream that Team USA’s refinish competitors have yet to fulfill. “The USA has never medaled at the world level in refinish, but we can change that by coming together to support the Refinish USA World Skills Team – this is the Olympics of our industry, and nothing says ‘America’ like our competitor kicking butt and bringing home the gold, silver or bronze!” Neri urges. “Would you be willing to help? Would your company be willing to donate a small amount? If we broke it down by $500 increments, we only need 40 companies to donate.” Making a donation is easy. Just go and visit our website, worldskillsusa.org/donate, and type “car painting” into the field that asks “gift preference – which competition are you supporting?” And because these donations are tax deductible, don’t miss the opportunity to double your contribution if your company has a matching program! According to WorldSkills Team USA’s website, “A studentled partnership of education and industry, SkillsUSA is America’s proud champion of the skilled trades, building the nation’s future skilled workforce by delivering graduates who are career ready, day one. SkillsUSA works year-round to instill positive attitudes, build self-esteem and empower students to excel in the career path of their choice and follow their passions. The organization has 850 national partners and is integral to the training in nearly 20,000 career and technical education classrooms.” Like the Olympics inspire many athletes to aspire to greater heights, proponents of WorldSkills hope that the premiere event to showcase technical education will likewise draw young people’s attention to the plethora of career opportunities that exist within the skilled trades. The 2024 iteration anticipates attracting over 250,000 spectators, including students, public policymakers, employers, teachers, trainers, technical experts and government officials, which provides an ideal opportunity to promote the value of the trades on the world’s largest platform. A promotional video available on WorldSkills USA’s YouTube page (youtu.be/VkeGGdMQ734) sums up the importance of supporting the trades quite effectively: “The glory and beauty of athletics is undeniable, but athletics didn’t build this nation; technical skills did that…It’s time – time to show our team, America’s team, that we value them and what they represent. Because they represent us, our past, our present and our future, a future where technical skills once again receive the honor they deserve. And where America once again takes the lead in their development.” Learn more at worldskillsusa.org. TXA
11 NOVEMBER 2023 Texas Automotive
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Cover Story
“Ill deeds is doubled with an evil word.” – The Comedy of Errors by William Shakespeare, Act 3, Scene 2 Art imitates life, and sometimes, life imitates art. When William Shakespeare penned The Comedy of Errors toward the end of the 16th century, it’s highly unlikely that even the Bard could have imagined a connection between his first tragicomedy and the interactions between collision repair shops and certain insurers in 2023. Yet, it’s common for insurers to treat the topic of underindemnification as comedic when it is, in fact, quite a tragedy for the shops contending with the challenges it poses as well as the consumers who are harmed by their insurers’ refusal to compensate for necessary items. The most recent volume of this ongoing battle stars Progressive as the villain who not only refuses to pay for necessary processes but who also mocks those who stand up for the under-indemnified consumer…
Act I: A dispute between Progressive Insurance and ABAT President Burl Richards (Burl’s Collision Center; Henderson) over compensation owed for work performed, similar to what many other shops have experienced when dealing with insurers. In this scene, Progressive refuses to compensate Burl’s Collision (and many other Texas shops) for nib/polish/buff and feather/prime/block – procedures that all major paint manufacturers require when a panel is painted. Adding insult to injury, the adjuster, Christopher Hirsch, suggested the shop clean its paint booth filters. Escalating the matter to Progressive Supervisor Amy Hall, Richards wrote in an email, “This is a common response from Progressive, and although I agree dirty filters can contribute to dirt, I can also tell you that I personally have had some of the cleanest paint jobs with dirty filters. Why? Because the air flow is reduced when dirty filters restrict air movement, therefore you have less air movement over and around a vehicle. I’m not here to defend dirty filters because
14 NOVEMBER 2023 Texas Automotive
by Chasidy Rae Sisk
they cause other issues, but the point is that you nor your staff have probably NEVER worked in a paint shop environment [and don’t understand] how truly ignorant it sounds when one of your employees comes to a shop, never looks in a booth, and makes such an asinine statement, and if they did look inside, they wouldn’t know what the hell they were looking at anyway!” During a phone call with Hall, Richards asked if she expects shops to put the color directly on top of body filler or the bare metal. She answered, “No,” yet when he asked if Progressive pays for primer, she again told him, “No, nobody gets paid for that unless it’s in some other country.” “And then she laughed,” Richards recalls. He followed up their phone conversation with an email providing close to 100 claims on which Progressive paid for nib/polish/buff and over 250 examples of Progressive paying for feather/prime/block…in America. But the insurer actually paying for these procedures is a rarity, Richards acknowledges. “Progressive rarely reimburses shops for these processes…I’d guess they actually compensate for nib/polish/buff and feather/ prime/block something like one percent of the time. They insist that each claim is handled on its own merits, that they make the decision on a case-by-case basis, but that’s BS. How can you do that when this operation is required on every repair? Primer is required on every single job that involves body filler! They use Mitchell’s estimating platform, and it specifically calls these operations out as refinish operations. So, the work needs to be performed, but they don’t want to compensate the shops for doing it. They are stealing from their customers and the facilities that must pay for these materials. “It’s ludicrous how Progressive handles their business; this is an ongoing issue,” Richards laments. “There’s a layer of ignorance in this situation because they don’t truly understand the repair process, but there’s also a decision to disregard what they do know. Texas consumers need to know that Progressive is under-indemnifying them for repairs and refusing to pay for procedures that the entire collision industry knows are necessary. People pay their premiums, and they deserve a premium repair.” Over the course of several emails, Richards provided documentation, definitions and explanation upon explanation to Hall and other Progressive employees, requesting their feedback… and never receiving a response. Texas Automotive also reached out to Hall to ask about these under-indemnification issues, but she declined to respond to our inquiries; that silence speaks volumes. On the other hand, Richards stressed to Progressive, “I will not be silent on this under-indemnification issue! “At the end of the day, you know these procedures are necessary and required to restore a damaged vehicle as close as possible to its pre-accident condition,” he emailed. “Although your policy doesn’t say specifically that you must restore back to pre-accident condition,
an insurance lobbyist, Jay Thompson, testified in front of the Texas State Insurance Commission that it doesn’t have to state it because it is considered implied/industry standard. Feather/prime/block and nib/polish/buff are indemnification issues!” A Nacogdoches shop recently encountered a similar issue with another Progressive adjuster and the same supervisor when Hall responded to a supplement submitted by Nacogdoches Collision Center by mocking their inclusion of “welder setup” as a line item: “Welder set up, LOL!! Next, y’all will start putting ‘turn on lights’ and ‘make coffee’ on there too. Hahahahaha! Could not help it.” “Welder set up is taught by I-CAR, and their welding certification says it must be done,” Richards points out. “If you are a DRP for Progressive, I’m assuming that you have to be I-CAR welding certified, so does Progressive expect you to do it for free or not do it at all? It seems like they think welder setup – and consumer safety – is a laughing matter, but I don’t find it funny at all.” ABAT Executive Director Jill Tuggle agrees. “I have done a bit of research, and I am finding that this is a common problem with Progressive while most other carriers are properly indemnifying their insureds for these operations,” she weighed in. “Moreover, I took a quick poll, and over 100 shops said that they believe feather/ prime/block is a necessary operation that is not included in refinish or body time, while only two shops said it was included, and three shops said they paint directly on damaged or welded metal.” Tuggle offered to gather more information from collision repair professionals who “spend hours and tens of thousands of dollars training in their field of expertise,” but expressing doubt that her and Richards’ concerns had been addressed to “people who have the knowledge and/or authority to speak on this topic,” she requested contact information for the Progressive authorities who are able to help get these issues resolved “on behalf of the 1,000-plus auto body professionals we represent across the state of Texas.” “Consumers purchase insurance policies to ensure that they’re made whole after an accident,” Richards stresses. “That’s the insurer’s job. But if they’re not paying for processes and procedures to restore the vehicle to its pre-accident condition, they’re not making them whole. They’re not living up to their end of the contract. And Progressive may think it’s funny, but I just see it as tragic and believe that Texas consumers deserve better.” Does Progressive pay your shop for nib/polish/buff and feather/ prime/block? Or are they under-indemnifying your customers on these procedures (or others)? Texas Automotive invites YOU to chime in and tell your story. Share it via email with chasidy@ grecopublishing.com to help ABAT fight for your industry and your right to receive fair compensation for ALL the work you perform! TXA
15 NOVEMBER 2023 Texas Automotive
Local Feature continued from pg. 8 (Wheel Technologies; Dallas) who offered to “help with some tires and check brakes while we are at it.” Meanwhile, Brandon Gillespy contacted Tuggle privately to let her know that Park Place Bodywerks (Dallas) wanted to get involved too. “I texted Jill that Park Place would be willing to handle the repairs and donate up to $1,500,” Gillespy shared. “Chad Neal matched our $1,500, and Scott Dietz with Global PDR Services donated $500 worth of paintless dent repair. Danny Blaser with Wheel Technologies (Dallas) donated four tires, so all-in-all, we were able to replace all four tires, get her new brakes, rotors, lower control arms and tie rod ends, plus do a four-wheel alignment. We also replaced the A/C blower motor and resistors, as well as her O2 sensors and catalytic converter which were causing a ‘check engine’ light. “Lastly, we did a full detail before delivering the vehicle back to the owner free of charge. We also provided her with a rental car to drive while the repairs were being completed,” he added. “The best part is Park Place Bodywerks Assistant Manager Ted Wernimont, who is a former master technician and has been with Park Place Dealerships for 33 years, donated his time and performed all the labor free of charge! The retail price of everything donated was $6,000, but the feeling of giving back to someone in need… priceless for all of us who got involved.” “Everything snowballed in such an amazing way,” Tuggle
applauded the shops’ efforts. “One person after another stepped up to ask ‘what do you need, and how can we take care of it?’ until all this lady’s needs were met – and as usual, the industry went above and beyond, making sure to address some underlying issues as well.” “For the ladies in our program, this type of generosity goes so far beyond just the dollar amount of the donations. These women come from traumatic backgrounds which is what led them down the path of being sexually exploited, so they don’t always value themselves very highly, and they don’t expect others to value them either,” Chavez explained. “For these businesses to come together in support of this mother out of the goodness of their hearts, without asking for anything in return, it truly reinforces that she IS worth more. I’m so grateful to ABAT for stepping up to the plate and hitting this out of the park. You didn’t just donate your time, parts and repairs…you gave her the chance to take care of her children without turning back to the easiest way she knows to cover the cost of the repairs. You showed her that she is someone who matters. Thank you for having such kind hearts.” “I’m proud to be part of such an amazing association and a wonderful industry, and I want to make sure we give credit where credit’s due,” Tuggle added. “Chad, Brandon, Scott, Danny, Ron and Ted really did some amazing work for someone who needed the help, and I’m so grateful to them and their caring hearts. Thank you all for making a difference for this family!” TXA
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Why Join WIN? WIN offers education, mentoring and leadership development opportunities to build critical skills for success in the collision repair market. • Local/Regional Networking Events • Annual Education Conference • Educational Webinars
Greco Publishing has successfully served the automotive repair industry for over 30 years in print, online and as an association liaison. Our team handles all pre-press production in-house, from ad design to editorial layout. Greco Publishing also provides a variety of services to cover our clients needs and facilitate their day-to-day business.
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info@grecopublishing.com 16 NOVEMBER 2023 Texas Automotive
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UPCOMING ONE-OF-A-KIND CLAIM MANAGEMENT SOFTWARE FOR BODY SHOPS Currently in testing with 3 highly rated body shops
Expected availability late 2023
Recent and ongoing changes in the auto collision claim process such as remote appraisals based purely upon photos have made the claim process significantly more challenging and frustrating for body shops, using up more and more of your scarce and costly administrative resources. TRANSPARENT CLAIM was developed to move control of claims from the insurance carriers into the hands of the body shop and make the entire collision claim process transparent for all parties involved. For additional information and updates on availability, please visit TransparentClaim.com.
OUR MOTTO: IF IT’S FAIR, EXPOSE IT! Transparent Claim is a division of Claim Transparency Innovations, LLC
UPCOMING ONE-OF-A-KIND CLAIM MANAGEMENT SOFTWARE FOR AUTO DEALERSHIPS
Who-Owes-What is designed to help a wide range of institutions frequently involved in primarily liability auto claims (auto lending institutions, auto dealerships with loaner fleets, etc.) determine in a transparent way who owes what following a partial or total vehicle loss. Simplify your business, improve client relationships, and save money using Who-Owes-What. Currently in testing with a major automotive dealership group!
EXPECTED AVAILABILITY LATE 2023 For additional information and updates on availability, please visit Who-Owes-What.com Who-Owes-What is a division of Claim Transparency Innovations, LLC
17 NOVEMBER 2023 Texas Automotive
18 NOVEMBER 2023 Texas Automotive
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19 NOVEMBER 2023 Texas Automotive
Ask The Expert
by Robert L. McDorman
What is the Latest Under-indemnification Scheme? Dear Mr. McDorman, I own and operate several collision facilities in East Texas. We routinely refer our clients to you for help when they have a dispute with their insurance carrier over the covered loss. Recently, we have referred several clients to you after their insurance carrier deemed their vehicle a total loss after accepting liability and issuing an estimate of record followed by at least one supplement. In these cases, with a change in the loss type from repair to replace, the carrier then elected to withhold our fees associated with the previously authorized repair. Then, to add further insult to injury, the carriers told our clients that if we did not agree to their terms to release the vehicle to them, they would elect to deduct the presumed salvage value from their settlement and fund what they believe the liability is, leaving the policyholder with the salvage. Are you seeing this type of sinister action in other areas of Texas? Thank you for your question. Yes we are, and we are also seeing this aggressive, disturbing behavior by the insurance carriers in other states besides Texas. Most of the policies we have in our library, under the duties of the insured after the loss, require the insured to preserve and protect the loss vehicle. It is our position that this section of the policy points to the carrier’s liability for associated loss expenses after the vehicle has been deemed a total loss. We have referred several of our clients with similar optics in their loss dispute to law firms once the liable carrier arrogantly dismissed our demand. In every case, these claims have been settled prior to trial for substantial settlements from the unlawful carriers. Our advice to our clients who have been harmed and cheated by their insurance carriers is to fight like the third monkey in line to get onto Noah’s Ark when it has already begun to rain…and we will help! We will continue referring clients to legal teams who can help them to be made whole for their loss. In my professional opinion, the more times these systematic under-indemnification schemes are exposed and monetary punishment is levied, the quicker change will come about to help us all. It is my adamant position that any covered loss should be subject to appraisal. Appraisal is the guardrail for indemnification of the loss when a dispute arises between the insurer and the insured over the loss. Without legislation in place requiring mandatory time-sensitive appraisal rights, we can expect to see continued efforts by carriers to develop cost-cutting schemes such as this as unlawful insurance carriers seek to reduce liability via under-indemnification of their policyholders losses. The under-indemnification in total loss and repair procedure 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.
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 in the example provided above. 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 invocation 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
20 NOVEMBER 2023 Texas Automotive
WE SUPPORT
MEMBER
We are experienced in negotiating claims with insurance companies.
As a Licensed Public Insurance Adjuster Agency, we can ensure a fair settlement on your auto claim. It is our duty to act on your behalf!
CONTACT US FROM ANYWHERE IN THE U.S.! 201 Main Street Suite 600 Fort Worth, TX 76102 817-756-5482 Fax: 866-550-0484 Toll Free: 800-736-6816 claims@autoclaimspecialists.com
WWW.AUTOCLAIMSPECIALISTS.COM
Founder Robert McDorman
If you need a recognized and qualified expert to provide testimony for you or your client, make sure you select one who’s certified! Choose The Vehicle Value Experts! Look for the VVEverified™ seal
Vehicle Value Experts is a unique appraisal firm specializing in Actual Cash Value Appraisals; Insurance Total Loss Market Evaluation Reports; Collision & Mechanical Repair Estimates, and Diminished Value Claims.
ALLOW US TO ASSIST YOU WITH:
When you see the VVEverified™ seal, you can rest assured that the accompanying valuation comes from an expert auto appraiser, not from a faceless black box pricing algorithm. That is our promise!
TOTAL LOSS: If your vehicle was totaled following an accident, we’ll examine the market value comparison report, collision repair estimate and settlement offer prior to settlement.
DIMINISHED VALUE: We have been helping people with Diminished Value claims since 1999. Do you qualify for a diminished value assessment? Contact us!
APPRAISALS: Our comprehensive auto appraisal reports offer a documented value assessment based on the subject vehicle’s condition at the time of the incident or loss. WE SUPPORT
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Settle with Confidence!
PH: 409-200-2226 F: 409-750-7160 appraisals@vehiclevalueexperts.com 777 Main St., Suite 600 Fort Worth, TX 76102 www.vehiclevalueexperts.com
21 NOVEMBER 2023 Texas Automotive
President’s Message continued from pg. 4 We all know that insurance companies are not sending adjusters out to the shops like they used to, so we are forced to do more and more of the administrative work. Now, we’ve found that the more documentation we provide on the front end, the less we have to deal with supplements on the back end, but either way you look at it, it’s adding a big administrative strain on the business. Even worse, there are constant interruptions when we’re trying to write a repair plan in the shop, making it nearly impossible for an inexperienced repair planner to write consistent, reliable, accurate repair plans in a timely fashion. So right now, we’re conducting an experiment across my three shops where on-site employees at each location submit photos, videos and other documentation to one central location where the repair plan can be written. Our repair plans need to be consistent and accurate, but we also need to reduce our administrative costs which just keep going up and up and up, making it more important than ever for shops to be properly reimbursed for the work we perform. So, one of the things I’m hoping to discover during SEMA this year is whether there’s a way to streamline that process and gather the necessary documentation more effectively, whether that’s through the use of new technology or if there’s something
helpful that can be learned from one of the great Repairer Driven Education classes put on by the Society of Collision Repair Specialists (SCRS). Of course, Las Vegas is quite a hike from the Lone Star State, so it’s not feasible to think that everyone can just pick up and fly out for SEMA every year, which is why ABAT will be bringing a taste of that level of education to Texas on November 28 when we host our webinar on “Coloring Perspective on Blend Time: The Facts Behind the SCRS Blend Study Plus SEMA Bonus Material” with SCRS Executive Director Aaron Schulenburg (see the flyer on page 6 for more details, including information on how to register). So far, I’ve found the information providers’ response – or lack thereof – to the SCRS blend study to be pretty telling, so I’m curious to see what’s going to happen next, and I hope you’ll sign up to attend from the comfort of your own office!
22 NOVEMBER 2023 Texas Automotive
burl@burlscollision.com
TXA
Executive Director’s Message continued from pg. 6 My eyes were opened to so much. I was surprised to learn about things that had never even been mentioned to me before: things like OEM procedures, position statements, CRIBs, insurance companies not paying for everything and so on. Honestly, I felt like “how the hell have I not learned any of this?!?” But I hadn’t. I only knew what I knew. And then John Eagle happened. That’s what gives me passion in my role now. I know that there are still shops and employees out there who only “know what they know” and they haven’t been taught it all – not even close. This industry can be cruel at times; words like “hack” and “clown” often get thrown around. Yes, some shops ignore procedures, choose not to seek training, bend the knee and worse. But there are also shops out there who are simply still in the dark, and some are just now trying to climb out. ABAT wants to be there to meet shops right where they are. Be there to answer the questions, to provide the training, to help show them their choices and to demonstrate how other successful businesses operate. We are crashing down the walls of competition and debunking the lies we have been told. That’s something I have gotten fully behind. This industry is full of good people – find them and learn from them. My role in the industry has evolved so much throughout the
20 years I have been in it, and yet, it still feels like I’m swallowing the ocean. Our Board of Directors are my mentors and cheerleaders. People like Aaron Schulenburg, Ron Reichen and Danny Gredinberg have been counselors and confidants. I owe all the thanks in the world to the folks who believed in me and pushed me to get where I’m at. Cheers to continuing this journey around jill@abat.com the sun and the shops! TXA
23 NOVEMBER 2023 Texas Automotive
24 NOVEMBER 2023 Texas Automotive