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PartsTrader Costs “$800 in Unseen Business a Month” Says Michigan Parts Wholesaler by Melanie Anderson
Tom Kellogg—the wholesale director for the Zeigler Automotive Group’s 13 franchises in Grandville, MI—has been using PartsTrader the past several months as one of the first test markets in State Farm’s PartsTrader program. Kellogg has been with Zeigler since 2003 and in the industry since 1975. He says he wishes programs like PartsTrader would just go away. “We all know that PartsTrader isn’t the greatest thing out there,” said Kellogg. “I don’t know what I am
going to do to stop it, because from what I understand, it’s pretty much here to stay. We’ve got to figure out how to work around it. Not enough writing was done on it. It’s just going to be the pathway of all things in the future to come. It’s PartsTrader today, and tomorrow it’s going to parts for you, parts for them, and pretty soon there’s a plethora of third-party people involved in our business,” he said. “The ‘beautiful part’ is they are going to allow me to do business with the same people I’ve been doing business with for the past 10 years and See PartsTrader Costs, Page 33
California Department of Insurance Approves New Aftermarket Part Regulations, Onus on Insurers
released by CDI in June 2012, are to go into effect on January 30. Insurers will be required to comply on and after March 30, 2013. “The amendments build on existing protections by requiring insurers to settle automobile insurance claims using repair standards described by the Bureau of Automotive Repair, and not the insurer’s own standards of repair,” said Commissioner Jones. “This also places greater accountability on the insurer when they require use of an aftermarket replacement part so that damaged automobiles are repaired properly and safely.” See Calif. Aftermarket, Page 36
Change Service Requested
P.O. BOX 1516, CARLSBAD, CA 92018
California Insurance Commissioner Dave Jones announced that the Office of Administrative Law (OAL) approved amended regulations submitted by the California Department of Insurance (CDI) regarding the use of non-original equipment manufacturer (OEM) replacement crash parts, generally known as aftermarket parts. These regulations were sought by Commissioner Jones to further protect California consumers from physical and financial harm caused by defective or inferior aftermarket parts and to enhance insurer accountability in the claims process, said CDI. The new regulations, originally
VOL. 1 ISSUE 6 FEBRUARY 2013
IABA Hosts 3rd Bi-Annual Convention and Technology Showcase Feb. 22–23 On Feb. 22–23, the Indiana Auto Body Association hosts its 3rd Bi-Annual IABA Convention and Technology Showcase at the Lincoln College of Technology in Indianapolis, IN.
The convention sessions run from 8 a.m. to 8 p.m. on Friday, Feb. 22 and from 8 a.m. to 3 p.m. on Sat-
Rich Evans Custom carbuilder
Over 60 exhibitors will present their latest products and services, and the showcase includes numerous educational opportunities and live demonstrations as well.
Mike Anderson, Collision Advice
urday, Feb. 23, with the tradeshow floor opening at noon on Friday and 10 a.m. on Saturday. Educational sessions begin on Thursday evening, Feb. 21, with the latest I-CAR Program, NEW13. World-renowned customization See IABA Hosts Showcase, Page 32
Greg Coccaro Settles with Progressive Insurance
After eight years of battling each other in court, Progressive Insurance and Greg Coccaro, owner of North State Custom in Bedford Hills, NY, have reached a settlement ahead of a Jan. 28 trial date. Coccaro said he could not discuss the specifics of the settlement agreement, but he did express relief that he could finally put this behind him now. “After eight years, it’s pretty weird not having to think about this anymore,” said Coccaro. “I basically can now have my life back and spend a little more time working on my business. You would have to go through the stress that I did to understand it. Once it was over, I still couldn’t stop thinking about it. It took me two to three weeks to get out of ‘legal mode.’ It never left me night or day for those eight years. It was very difficult for everyone involved, but we did what we did, stood up and didn’t cave. “I think a lot of good came out of the whole thing for the industry in a lot of ways. Anyone who has followed this can understand why. I’m
very glad it’s over, and so is my family. It was a little difficult to live through some of the more stressful times, but I’m back and trying to get back to myself and how I was before.” Asked what advice he has to other shops considering legal action against insurers, Coccaro said it depends on the circumstances. “One has to think long and hard before taking on a billion-dollar corporation,” he said. “In my case, I felt I had no choice. The problem is that it has to be something that’s pretty egregious for you to do it. I felt if I didn’t do it, I had a chance of losing my business, so that’s why I did it. I don’t think it’s Greg Coccaro something that a single shop wants to take on. Anything similar to what I did would have to be done on a class-action where there are multiple shops rather than laying it on the shoulders of one individual shop. Don’t take anything on alone unless you absolutely have to.”
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