Wisconsin Automotive News Spring 2017

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The Official Publication of the Wisconsin Auto Collision Technicians Association Ltd. Spring 2017

PLUS:  www.grecopublishing.com

Collision Reporting Centers: Another Trap for Shops?

New WACTAL Benefit - pg. 7

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2016-2018 WACTAL BOARD of DIRECTORS President Larry Terrien MJ Collision Center larry@mjcollisioncenter.com Vice President Mark Williams Williams Auto Body mark@williamsautobody.com

Spring 2017

Vol. 4, Number 3

CONTENTS

Secretary/Treasurer Ronnie Goss Goss Auto Body, Inc. ronnie@gossautobody.com

PRESIDENT’S MESSAGE ........................................................5 Thrive, Survive, Demise: Which Will Be the Future of Your Business?

Treasurer Sue Black Dean’s Auto Body suzieq@deansautobody.com

WACTAL RECRUIT-A-MEMBER PROGRAM ....................................5

Directors Eileen Haberman Glen's Auto Body, Inc. Mike Miyagawa M & M Auto Body Inc. Michael Taylor Zimbrick Chevrolet-Sun Prairie Tracy Black Dean’s Auto Body, Inc. Association Administration Sue Peterson wactal@execpc.com / info@wactal.com (800) 366-9482 Lobbyist Jolene Plautz jplautz@aol.com

by Larry Terrien

LOCAL NEWS ....................................................................7

WACTAL MEMBER SPOTLIGHT ................................................9 One Way Collision Center

by Nicolas Fernandes

TALKING TECHNICAL ................................................................10 Thoughts on Rekeying Estimates: Part 1 of 2

by Larry Montanez III, CDA & Jeff Lange, PE

HOW TO THRIVE - NOT JUST SURVIVE ..........................................12 2017 WACTAL Conference Schedule of Events 2017 WACTAL CONFERENCE REGISTRATION ..................................14 WACTAL BENEFIT PROGRAM ..................................................15 FEATURE ........................................................................16 Collision Reporting Centers: Another Possible Trap for Shops?

PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 PHONE: 973-667-6922 • FAX: 973-235-1963

by Tom Slear

WACTAL MEMBERSHIP APPLICATION ........................................18

ADVERTISING: 973-667-6922 • alicia@grecopublishing.com PUBLISHER: Thomas Greco (thomas@grecopublishing.com) SALES DIRECTOR: Alicia Figurelli (alicia@grecopublishing.com) CREATIVE DIRECTOR: Lea Velocci (lea@grecopublishing.com) EDITORIAL DIRECTOR: Joel Gausten (joel@grecopublishing.com) ASSISTANT EDITOR: Nicolas Fernandes (nick@grecopublishing.com) OFFICE MANAGER: Donna Greco (donna@grecopublishing.com) www.grecopublishing.co7 Wisconsin Automotive News is published quarterly by Thomas Greco Publishing, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of Wisconsin Automotive News are available at $5 per copy.

Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of Thomas Greco Publishing, Inc. or of WACTAL. Copyright © 2016 by Thomas Greco Publishing, Inc. Cover image © www.istock.com

Spring 2017

ADVERTISER’S INDEX Axalta Coatings........................................IFC P&L Consultants......................................10 Body Shop Supply Co. ............................4 Straight and Square ................................8 Buerkle Hyundai ......................................8 West Bend Mutual Insurance ..................OBC Dentsmart ................................................17 Zorn Compressor & Equipment ..............19 International Autos Waukesha..................19 Morrison’s Auto Parts ..............................6 3

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President’s Thrive, SUrvive, DemiSe: MESSAGE Which Will Be the Future of Your Business?

How to Thrive, Not Just Survive is the theme of the WACTAL Conference on April 28-29 in Oshkosh, Wisconsin. Collision Advice’s Mike Anderson will lead off the conference with Positioning Yourself in the Collision Repair Industry and Negotiation Best Practices.

Other topics will include pre- and postrepair scans, manufacturer certification, and more. I-CAR classes will be held both days. You won’t want to miss the Friday evening reception at the EAA AirVenture Museum.

This unique venue is one of the most extensive aviation attractions in the world.

Those committed to thrive know the value of getting out and networking. There’s a willingness to learn from competitors. They want to grow their business and grow as individuals. They want to learn and will attend the WACTAL conference. Do you want to thrive or are you doing the same thing but expecting different results?

Don’t let demise define your future – change starts today. If you’ve never attended a WACTAL conference or haven’t attended in some time, I encourage you to attend this event. The industry is changing; vehicle technology has changed and continues to change.

Manufacturer recommended / required repairs, and many other factors impact the success of your business.

Be more than a survivor; be committed to thrive – attend the WACTAL conference on April 28-29. See page 12 for complete conference details.

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Recruit-a-Member Program For each member an existing WACTAL member recruits, the sponsoring (existing) member will receive a one-time $50 credit toward their membership dues. There is no limit on the number of members an existing member can recruit. If the dollar amount of the credits exceeds the sponsoring member’s annual dues, the excess amount will carry forward to subsequent years.

No monies will be paid out and credits cannot be cashed out. Credits cannot be split amongst multiple members. The sponsoring member’s individual and business name must be listed on the new member’s Application for Membership as the sponsoring member.

If the new member had been a WACTAL member during the prior calendar year, no commission will be allowed.

This program can be rescinded or amended without prior notice. In the event the program is rescinded or amended, credits for applications received after the change will be processed under the new program.

No credits will be issued if the program is rescinded.

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Local

NEWS Would You Survive a Dumpster Dive?

A Risk Assessment

KPA, an environmental compliance solutions company, is offering a FREE Environmental Compliance Body Shop Risk Assessment to WACTAL members. This is part of the NEW partnership between WACTAL and KPA. Along with the FREE risk assessment, KPA is offering special discounts to WACTAL members.

KPA offers comprehensive compliance solutions that will allow you to control risk, streamline processes and enhance business performance. Contact KPA account representative Matt Hanaman to discuss how KPA can improve your business’ bottom line. KPA will help you limit liabilities, streamline processes to reduce hours spent on tedious bureaucratic administrative tasks and reduce your experience modifier and workers’ comp claims. Matt can be reached at (815) 538-5820 (office), (815) 414-0886 (mobile) or via email at mhanaman@kpaonline.com.

Take the plunge today and take the risk assessment. Risk Assessment can be found at: www.kpaonline.com/insights/ whitepapers/bodyshop-risk-assessment-2.

LTC Advanced Automotive Technology Center Grand Opening Scheduled for March 29, 2017

The Lakeshore Technical College Foundation will be unveiling its recently renovated Advanced Automotive Technology Center with a special grand opening and Open House scheduled for March 29, 2017. The project, which consisted of a major renovation and expansion of the College’s automotive training facilities, is the first major update made since 1974.

The new $3.5 million, 30,000 square foot Advanced Automotive Technology Center, designated as a Snap-on Center of Excellence, more than doubles the square footage for LTC’s Automotive Maintenance and Automotive Collision Repair training programs.

The Center allows for increased enrollment capacity while creating a safe and productive learning environment for students. The new collision repair and refinishing facility was an important part Spring 2017

of the recent collision program expansion to a two-year technical diploma. Enrollment capacity is now 32 full-time students each semester, up from 16 in the previous one-year program.

The 17,000 square foot Automotive Collision Shop features two new classrooms and Car-O-Liner measuring and fixture benches for vehicle structural repairs. A central Eurovac system enhances students’ learning experience and keeps the shop clean by capturing sanding dust. Other additions include a customer service area, aluminum clean room and a metal shaping area equipped to make automotive parts that are no longer in production. Garmat paint booths fill the north end of the structure to help train painters to work for automotive repair shops and local manufacturers.

The 13,000 square foot Automotive Maintenance Shop is a Snap-on Center of Excellence with 19 work stations, two new classrooms, four alignment racks, 14 rotary lifts, and five open bays.

These renovations are a direct benefit to students enrolled with curriculum centered on actual application of the skills learned. In addition, academic opportunities are available with a two-year degree program in automotive maintenance and an expanded from one-year technical diploma program to two-year degree program in Automotive Collision and Repair. With the automotive service and repair industry going through tremendous changes over the last decade, working on today’s cars requires a deeper understanding of the technology that goes into the modern, more sophisticated automobile.

The automotive maintenance program is a nationally-accredited automotive training program (NATEF). Students enrolled can also obtain numerous industry-recognized certifications such as the National Coalition of Certification Center (NC3) certification incorporating tool use and theory. In January, LTC was named a Mopar CAP (Career Automotive Program) joining a 35 college network of certified technical training sites.

“LTC’s Advanced Auto Technology Center is at the epicenter of educating tomorrow’s workforce,” said LTC Dean of Agriculture, Energy, and Transportation, Patrick Staszak. “With the auto industry thriving, auto mechanics and collision specialists continue to be in high-demand. LTC’s auto programs give students hands-on experiences in one of the most state-of-theart learning centers in the country.”

For more information on Lakeshore Technical College, please visit www.gotoltc.edu.

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Serving Northwest Wisconsin

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One Way Collision Center Merrill, WI

WACTAL

Member

SPOTLIGHT

by Nicolas Fernandes

Wisconsin Automotive News recently spoke to WACTAL member Bob Dehnel, owner of One Way Collision Center in Merrill, WI. Dehnel bought and renamed the facility in 2004 and has been expanding the business ever since.

Wisconsin Automotive News: How did you become involved in the auto repair industry?

Bob Dehnel: I’ve been interested in cars all my life. I’ve always had a car since I was 14, so I always worked on them since then. After high school, I had a couple factory jobs, but I first started working at a body shop in 1994. I worked at one shop for about seven years and did a lot of frame work. And then in late ’99, early 2000, I worked in another shop as a manager until 2004. I’ve owned One Way Collision Center since then.

WAN: How do you set yourself apart from the other shops in the area?

BD: In this area, there’s myself and one other shop. Merrill has a population of 10,000. I’m more involved in the community and I donate to certain organizations. I really get my face out there. I don’t advertise a whole lot because I don’t need to. I don’t think it would really work in this town because we already know so many people here and most of the business is word of mouth. There are only six of us working at the shop, but we do very high quality work.

WAN: How much has being a Direct Repair Program shop benefited you?

BD: You think you’re going to get a lot of jobs in the door, but we don’t have a lot of DRPs and we wind up doing just as much, if not more work than the DRP. If there was no such thing as a DRP anymore, I would be really happy. It would put everyone on an even playing field. It helps somewhat, but I get so many customers who didn’t even know that we’re a DRP.

WAN: How has the industry changed since your start in 1994?

BD: It’s changed a lot since I started. At the first shop I worked at, I did a lot of heavy frame hits. Nowadays, that frame rack is just holding parts half the time. People also don’t WAN: How has being a family operated busireplace a lower rail on a car anymore. If you ness helped you? have to replace that, the car is totaled BD: Well I have myself, my wife and my youngest because of the airbags. Airbags really son, who is my painter. He is pretty awesome at changed a lot of things. $3,500 is average for painting and really cares about what’s going on airbag damage. Cars change all the time. back there. Being a family owned business is a Working in a body shop, you never know what benefit because we do know a lot of people in this car you’ll have to fix next. It’s not like a dealtown. If we were a big name shop, I don’t think we ership where technicians work on a specific would be doing any better than we are now to be brand. We have to work on every car that honest with you, especially in a town with so few comes through the door. When it comes down residents.

Bob Dehnel to replacing airbags, a lot of times you have to take the car to the dealership and have the WAN: How has your shop changed since its module reprogrammed and hope that’s all it was. A lot of specific tools opening in 2004? are required to fix certain cars, which wasn’t the case back in 1994.

BD: It had been a body shop under the same owner since 1966. At the time that I bought it, he had two employees who I kept. One of them WAN: What is the biggest struggle for your shop? was a very good painter. He had been painting cars since 1977 and he BD: Finding good employees is the biggest struggle that I have. What I just retired a few years ago, which is when my son came in. I wish the usually do is find someone who has even just a hint of interest in the guy was like 20 years younger because he was a rare worker. I had to industry and then train them. My most recent hire is a certified welder, let the other guy go because he didn’t want to adapt to the changing which is a bonus, and he had an interest in auto body. He’s also in his industry. I hired someone to replace him and he is still with me. From 30s, so he’s still young enough to learn new skills. I have to send him to there I’ve been hiring people who either can’t get it or get really good some I-CAR classes, which are the same classes I attend. Finding [an and move on. Since I started here, we’ve improved the building quite a employee] who has a lot of experience is really tough. They’re not just bit. We added on, installed another spray booth and changed to waterwalking around the streets looking for work. borne paint a few years ago. We purchased some new equipment including a Pro Spot welder. It’s changed a lot since we first bought it.

We are now the only shop in town with two spray booths, and would like to add even more someday.

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Talking

TECHNICAL

By Larry Montanez III, CDA and Jeff Lange, PE

THOUGHTS ON REKEYING ESTIMATES: PART 1 OF 2 Rekeying is the process of manually copying an estimate originally written by an insurance company or authorized insurer photo estimating service into the collision facility’s estimating system. Generally, a customer service representative (CSR) or estimator at the facility will copy the original insurer estimate into their system, which could be different than the one the facility uses. The Big Three (CCC, Mitchell and Audatex) all have their differences, but with some practice and understanding of labor hours, operations,

overlap and the P-Pages, the estimates can be matched in labor hours to the dollar. In some cases, a manually inputted line (line adjustment) may be needed to make the actual dollar amount equal. This line adjustment is generally needed for taxed and non-taxed item/operation differences between systems.

This process is not only tedious and timeconsuming, but it requires skill to be able to check the math and make each line match.

Each line must be inputted one by one, then labor hours in each category must be matched

exactly. Additionally, replacement costs, materials and sublet charges must be matched. The copied (or rekeyed) estimate is “locked” and a supplement can now be created, utilizing the matched insurer’s estimate. Now, there may be some of you wondering why this needs to be done. To be honest, there are really only a few scenarios where this process would be advantageous, and it is my opinion that only one is acceptable.

SCENARIOS There are three scenarios when the rekeying of an estimate occurs. In all of them, the estimating systems may or may not be the same (but they are different most of the time).

Scenario #1: “The Drive-In Estimate” A customer walks in with an estimate from the insurance company (and many times, they have the check). This estimate was most likely written at a DRP shop, at the customer’s home/job or at the insurer drive-in claim facility.

(In the past two years, it may also have been written via an independent third-party photo estimating service and based on a customer taking photos and an estimate being written off those images.) Once the customer signs all the paperwork and leaves the vehicle at the facility for repairs, someone there rekeys the estimate into their estimating system. Now, a supplement can be created on the rekeyed copy of the insurer estimate so that any and all the changes and/or additional items will have an “S1” in the column. This makes the changes easily recognizable.

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Scenario #2: “Live In-Person First Write” This would occur when the facility did not write its own damage report (estimate) prior to the insurance adjuster arriving there. (Maybe the facility did not write a damage report because they didn’t have time, they forgot or they never do it.) A staff/field appraiser or independent appraiser inspects the vehicle at the shop, the facility estimator negotiates the repairs with the appraiser and the appraiser writes their estimate and hands the CSR or estimator a copy. (Sometimes they send it by email or fax.) This in-person scenario is generally the most popular reason to rekey an estimate. Again, someone at the shop rekeys the estimate into the facility’s estimating system. Now a supplement can be created, with S1s denoting all changes.

Scenario #3: “Live In-Person” In this scenario, the repair facility did the proper procedure and the vehicle was washed, photographed, scanned, partially disassembled and pre-measured. The damage report (estimate) was written, and all part prices were checked during the blueprinting/triage. A staff/field appraiser or independent appraiser inspected the vehicle at the shop, the facility’s damage assessor negotiated the repairs with the appraiser, the appraiser wrote their estimate and handed the CSR or estimator a copy. (Sometimes they send it by email or fax.) This in-person scenario is generally the second most popular reason to rekey an estimate. This time, there are choices for the shop:

Someone at the facility rekeys the estimate into the facility’s estimating system. This person creates a supplement and adds in all the operations, materials, not-included items and any deficiencies. The S1 denotes all changes.

Someone at the facility “back-keys” the estimate into the facility’s estimating system.

Back-keying is the process of taking your estimate and removing all the operations, materials or procedures not on the insurance

Spring 2017

estimate, then locking the estimate. You would create a supplement and add back in all the deleted items. Once again, the S1 denotes all changes.

In all three scenarios, the insurance company estimates were rekeyed. Who benefited from this? How much did it cost you to rekey? Think about the time spent on this when you could have been doing something more productive.

Now ask yourself, after rekeying the estimate and creating Supplement 1, how successful were the supplement negotiations with the appraiser? For example, let’s say the insurance appraiser originally wrote a $2,000 estimate of repair, and the supplement you wrote was an additional $1,500. Now, after negotiations on Supplement 1, the appraiser paid only $1,000 of the $1,500 supplement. After Supplement 1, did you need to rekey the insurer estimate again?

Look at the questions I asked in the previous two paragraphs. If you answered them in order by saying “the adjuster,” “a lot”/ “too much,” “not very” and “yes,” then you may want to read this…

There is no benefit to a repair facility to rekey an estimate – except in the case of Scenario 1 (where it may be a slight advantage to rekey). It would not be advantageous in any other situation. Scenario 2 should never be a reason to rekey, because it should never happen. You should always write your own damage analysis report (estimate). The damage assessor dropped the ball and did not do their job – no excuses. Additionally, the scheduling for the inspection was not properly reviewed; the CSR didn’t check with the assessor to see if the vehicle was written or not. The only time you would not write a vehicle is when it is an obvious total loss. In Scenario 3, the assessor wrote, by all accounts, what would be a complete and accurate cost of repairs. So why the need for a supplement? Why did they (the shop) not get the vehicle owner reimbursed for all the procedures you are charging them for? Why didn’t the insurer pay the customer for all the

procedures the facility was charging that customer for? We will not discuss the reasons why this happened.

In many cases after rekeying or backkeying, the cost for repair still is not agreed upon the second time and you must rekey or back-key again for Supplement 2. As we discussed earlier, Scenario 1 may be a reason to rekey and then create a first supplement.

Next time, I will further discuss the rekeying topic and offer a fix for your facility to stop working harder and start working smarter and more efficiently. Additionally, I’ll revisit the topic of photo estimating and explain why I think this has become a critical issue for our industry.

Larry Montanez, CDA is co-owner of P&L Consultants with Peter Pratti Jr. P&L Consultants works with collision repair shops on estimating, production and proper repair procedures. P&L conducts repair workshops on MIG & Resistance Welding, Measuring for Estimating and Advanced Estimating Skills.

P&L also conducts investigations for insurers and repair shops for improper repairs, collision reparability and estimating issues. Larry is ISO 9606-2 Certified for Audi and Mercedes-Benz and is a certified technician for multiple OEM Collision Repair Programs. P&L can be reached by contacting Larry at (718) 891-4018 (office), (917) 860-3588 (cell) or info@PnLEstimology.com.

Jeff Lange, PE is president of Lange Technical Services, Ltd. of Deer Park, NY (www.LangeTech.net). Jeff is a Licensed New York State Professional Engineer who specializes in investigating vehicle and component failures. Lange Technical Services, Ltd. is an investigative engineering firm performing forensic vehicle examinations and analysis for accident reconstruction, products liability and insurance issues. Jeff can be reached at (631) 667-6128 or by email at Jeff.Lange@LangeTech.net.

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WACTAL Spring SCHEDULE OF EVENTS

Friday, April 28

Saturday, April 29

12:30pm

registration

7:30am

registration

1:00-5:00pm

Positioning Yourself in the Collision industry and Negotiation Best Practices Mike Anderson, Collision Advice

8am-12pm

SPS10 - replacement of Steel Unitized Structures (i-CAr class)*

8am-12pm

ALT03 - Alternative Fuel vehicle Damage Analysis and Safety (i-CAr class)*

8:30am-8:45am

membership meeting with Breakfast (members Only)

9:00am-10:30am

The value of Being an Oem Collision Care Provider Bob Keith, Assured Performance

10:45am-12:15pm

SrS & Safety Systems: Keep Their ride Safe inside Jerry Tempel, General Motors

12:30-4:30pm

WCS04 - Squeeze Type resistance Spot Welding (i-CAr class)*

Friday seminar & I-CAR class will be held at Hilton Garden Inn

1:00-5:00pm

5:30-11:00pm

vT117L01 - vehicle Technology Trends & Diagnostics Overview (i-CAr class)* reception at eAA Airventure museum (3000 Poberezny rd., Oshkosh)

Location hilton Garden inn (Friday Seminars & I-CAR Classes) 1355 W. 20th Avenue, Oshkosh (920) 966-1300 Room block will be released March 28 Rate is $89 plus taxes.

eAA Airventure museum (Friday evening Reception / Saturday Seminars & I-CAR Classes) 3000 Poberezny Road, Oshkosh, WI 12

Seminars & I-CAR classes will be held at EAA AirVenture Museum

* Registration for I-CAR classes must be made directly through I-CAR (www.i-car.com)

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2017 Conference PROGRAMS

Positioning Yourself in the Collision repair industry and Negotiation Best Practices (Mike Anderson, President of Collision Advice) Do you want to Thrive or just survive?

Learn how to attract and increase sales in today’s competitive environment and the iNCreASeD role that Oem’s will play in the Collision repair industry. mike will cover Oem certifications, Who the players are, What the Oem’s are going to be doing in collision repair in the future, Telematics and much more. mike will also touch on the Who Pays for What Surveys and how to negotiate and get paid.

Friday reception at eAA relax and enjoy an evening at the unique eAA Airventure museum. Nearly 100 aircraft are on display throughout the museum. view the more than 30 pieces of rare WWii Nose Art on loan to the museum. Take Control & fly in the cockpit of the max Flight Simulator.

Availability of the max Flight Simulator for attendees is sponsored by Body Shop Supply Co.

membership meeting (for members only) A buffet breakfast will be available to members attending the annual membership meeting. rSvP reQUireD. Learn about new member benefits, WACTAL’s legislative agenda, future goals and plans. meet your board members and network with fellow members.

The value of Being an Oem Collision Care Provider (Bob Keith of Assured Performance) Learn about the value of participating in Oem certification programs, what the various programs have to offer the shops, and what the shop members need to do to get a return on their investment.

SrS & Safety Systems: Keep Their ride Safe inside (Jerry Tempel of General Motors) This clinic will cover the operation and diagnostic procedures of current Supplemental restraint Systems (SrS) and why they are needed. SrS sub-systems and components found on current vehicles, their functions and interrelated systems, such as OnStar; SrS safety procedures to be followed while making repairs, service tips and special tools; pre and post Scan information, and much more will be discussed.

SUPPORT OUR SPONSORS! ®

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BODY SHOP SUPPLY Co. 13

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WACTAL SPRING 2017 CONFERENCE How to Thrive - Not Just Survive April 28-29, 2017 1355 W. 20th Avenue, Oshkosh (920) 966-1300

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Feature

STORY

COLLISION REPORTING CENTERS:

By Tom Slear

ANOTHER POSSIBLE TRAP FOR SHOPS? Two thoughts typically come to mind when stopped for minor traffic infractions such as a broken taillight or exceeding the speed limit by a few miles per hour.

The first: “This is *#@@#**#@!”

The second: “Why aren’t the cops chasing real criminals?”

Most police would question the first reaction but not the second. Take, for example, driving accidents where no one is hurt and property damage is slight. Police typically spend up to 45 minutes at the accident scene collecting information and another hour writing a report. It’s tedious work that has little to do with protecting the community.

Small wonder that Howard Hall, the police chief of Roanoke County in southwestern Virginia, took interest several years back when he heard snippets of a revolutionary system in Canada for handling traffic accidents.

In 2014, he got the details. At a Virginia Association of Chiefs of Police conference, Accident Support Services International talked about freeing police from the burden of preparing accident reports. The drivers bring their cars to “collision reporting centers” instead of the police going to accident scenes.

ASSI takes care of the rest.

Hall was impressed, particularly since ASSI, a Canadian company headquartered in Toronto, wasn’t spouting hypotheticals. They had a 20-year track record in Canada. Most

important to Hall was the bottom line. Like all other public servants tied to a budget, his major concern was: How much?

The taxpayers wouldn’t pay a cent, he was told. ASSI would foot the entire bill for facilities, manpower, training, software…everything.

Hall was tempted to dance the Macarena.

Two years later, the first – and to this point, only – collision reporting center in the US opened in Roanoke as part of a pilot program that will last through 2017. Hall concedes that there have been some bugs with software compatibility, but they are minor and solvable.

For the most part, he gives Roanoke Accident Support Service, ASSI’s local subsidiary, two thumbs up.

But there’s a catch for body shops. ASSI makes its nut by billing insurance companies.

What Hall views as nothing but a plus for his police department and the driving public could be another trap for collision repairers.

If Canada offers a model, Roanoke’s reporting center represents a gentle introduction to a system that will ultimately refashion how police in the US deal with vehicle accidents. The rules of Roanoke’s program require a police officer at every accident scene. However, if the cars are drivable and no one is hurt, the officer will send the drivers to the reporting center. (If there is an injury or if government vehicles,

pedestrians or hazardous materials are involved, then the police will stay at the scene and complete a report no matter how minor the damage. Criminal activity, such as drunk driving or hit-and-run, also rule out the reporting center.) ASSI employees at the center will prepare the accident report and if the driver wishes, contact the insurance company.

Five months into the pilot program, the center has written reports for roughly 100 accidents per month, which equates to an extra 500 police hours. Drivers have enjoyed the luxury of a one-stop process. They leave the reporting center with the accident report done and their insurance company notified.

Insurance companies receive accident reports, including pictures of the damage, promptly.

ASSI is paid by the insurance companies either per report or a flat rate over a specified period.

At least there is a plausible case to be made for no steering taking place. ASSI’s dozen employees at the Roanoke center are local hires and have no professional relationship with any insurance company. Also, the rules of the program and Virginia law are unequivocal.

“The only thing the center is allowed to do is provide information to the car owner’s insurance company,” Hall says. “They can’t make recommendations of body shops. Posted

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in the reporting center is a notice of Virginia law that allows people to pick a [repair] center of their choice.”

Excluding extenuating circumstances, drivers in Roanoke have 48 hours to show up at the reporting center with their damaged car.

According to Ken Eagleson, ASSI’s vice president of US insurance programs, 50 percent have done so within four hours; 80 percent within 24 hours. Less than three percent have failed to show. Drivers don’t seem to mind this new way of doing things, or at least not so much to engage in any sort of civil disobedience.

As for the police, “I don’t see any downside,” says Hall. The pilot program likely will expand in scope and spread to other areas.

“Reporting centers make all sorts of sense,” says John Norris, executive director of the Collision Industry Information Assistance, a Canadian trade association with a membership of more than 300 body shops. “They will spread [in the US] like wildfire once the police realize they can save all of this money. I’m surprised it took [ASSI] 20 years.”

More worrisome for shops is what happens when the experiment in Roanoke expands. In Toronto, where reporting centers have been around for two decades, police were dispatched last year to only 19 percent of the 70,000 vehicle accidents within city limits. Reporting centers handled the rest – some 56,000. The centers started out in

Toronto in the mid-1990s just as the one has in Roanoke, but over the years the bar for using them has moved lower and lower. Current policy dictates that if a car is disabled, it gets towed to a reporting center. If drivers are injured, but not seriously enough to require an ambulance, they go to a reporting center. Meanwhile, police officers man the centers and prepare reports. (In Roanoke, police check the work of the ASSI employees.) Insurance representatives are also at the centers.

The Roanoke reporting center will be involved with roughly 1,200 accidents throughout this year, hardly enough to get the insurance industry’s attention. That will certainly change when reporting centers catch on in major urban centers in the US and Toronto-like accident numbers begin to surface.

“The collision industry has to get in on the ground level to make sure this is working fairly,” says Norris. “Shops have a lot of leverage.

The police don’t want to be seen as recommending one shop over another.”

Tom Slear is a freelance writer based in Annapolis, MD. He has written extensively about the collision repair industry over the last 30 years.

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