New England Automotive Report May 2016

Serving the New England Collision and Mechanical Repair Industry May 2016 U.S.A. $5.95

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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2 May 2016

New England Automotive Report

May 2016 • Volume 14, No. 5

CONTENTS

DEPARTMENTS PRESIDENT’S MESSAGE by Molly Brodeur 8 | What Are You Waiting For?

LEGAL PERSPECTIVE by James A. Castleman, Esq. 20 | Sending Timely Initial Lien Notices

NATIONAL FEATURE by Joel Gausten

COVER STORY 32 | STOPPING THE AIB: REPAIRERS AND TOWERS JOIN FORCES TO PROTECT CONSUMERS

26 | AASP/MA at NORTHEAST®: Area Shops Travel to the Country's Biggest Regional Show

TECH CORNER by Jacquelyn Bauman 40 | Technology Benefits and Detriments: Virtual Steering and Connected Cars

MEMBER SHOP SPOTLIGHT by Jacquelyn Bauman 48 | Harris Auto Body

ALSO THIS ISSUE 7 | TRAINING OPPORTUNITIES: I-CAR CALENDAR OF EVENTS 10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR 14 | AASP/MA PLANNED YEAR 15 | AASP/MA SPONSORS 49 | AASP/MA MEMBERSHIP APPLICATION 54 | INDEX OF ADVERTISERS

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AUT M TIVE STAFF PUBLISHER

CREATIVE DIRECTOR

Thomas Greco (thomas@grecopublishing.com)

Lea Velocci (lea@grecopublishing.com)

DIRECTOR OF SALES

MANAGING EDITOR

Alicia Figurelli (alicia@grecopublishing.com)

Jacquelyn Bauman (jacquelyn@grecopublishing.com)

EDITOR

PRODUCTION

Joel Gausten (tgpjoel@verizon.net)

Donna Greco (donna@grecopublishing.com)

PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963

www.grecopublishing.com New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report 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 TGP Inc. or of AASP/MA. Copyright © 2016 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Contact New England Automotive Report Sales Director Alicia Figurelli

LET US TURN THEM AROUND!

AASP/MA EXECUTIVE COMMITTEE

973.667.6922 / ALICIA@GRECOPUBLISHING.COM

PRESIDENT Molly Brodeur VICE PRESIDENT Adam Ioakim SECRETARY Gary Cloutier TREASURER Kevin Gallerani IMMEDIATE PAST PRESIDENT Paul Hendricks

AASP/MA STATEWIDE DIRECTORS COLLISION DIRECTOR

in Massachusetts May 4, 2016

Steering & Suspension Damage Analysis

Rick Starbard

AASP/MA DIRECTORS Alex Falzone Kevin Kyes Michael Penacho Darlene Andrade

May 10, 2016

Hazardous Materials, Personal Safety & Refinish Safety

May 12, 2016

Tom Ricci

Welded & Adhesively Bonded Panel Replacement

Ray Belsito, Jr. Peter Langone

May 26, 2016

AASP/MA EXECUTIVE DIRECTOR Jillian M. Zywien 12 Post Office Square, 6th Floor • Boston, MA 02109 Phone: (617) 574-0741 Fax: (617) 695-0173 Email: jzywien@aaspma.org

WWW.AASPMA.ORG

Aluminum Exterior Panel Repair & Replacement

All classes held at Fuller Auto Body, Auburn, MA For more information, visit i-car.com

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PRESIDENT’S MESSAGE

WHAT ARE YOU WAITING FOR? MOLLY BRODEUR

There is an entity out there, organizing on the front lines of this industry, that is working towards making your business better. Don’t you want to be a part of that?

Whether it’s through legislative action, training or bringing shop owners together to network and brainstorm solutions to industry-wide problems, AASP/MA is working on your behalf – and we can’t reach our goals without you.

If you are already a member, let me first offer you my thanks. It is your support that helps to make our objectives accessible. However, are you doing all that you can as a member to help make this field a better place for all of us? For example, do you have a shop in your town or the next town over that you have a rapport with that isn’t a part of our organization? Bring them a copy of New England Automotive Report, show them everything we’re doing for collision repairers and get them involved.

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Everything we’ve been able to accomplish with the ADALB in the past nine months has been phenomenal for us. We’ve filed complaints, stirred the pots and received answers to a number of questions that have been plaguing the industry for a while. We can’t continue to do that if we don’t have members. Do you engage with us? Do you go to meetings to have your voice heard? Do you have concerns you want addressed? We’re a resource for you. The Board of Directors is always available to anyone who wants to pose a question. We’re a robust organization that is committed to leveling the playing field and fighting for what is right. We’re the watchdog for your business. If you don’t have a watchdog – someone looking out for you – things can get out of control.

We have a lot on the table right now. We’re currently working on consumer-focused legislation to protect our

customers from the manipulation of insurers in such aspects as steering, aftermarket parts and vehicle warranties. We are advocates for the industry and advocates for our clients.

We need you to help us by being a part of it.

If you’ve been waiting for a sign, this is it. If you need a call to action, here it is. Join our ranks and help us make the collision repair field a better place for shop owners, technicians and, most importantly, our customers. Contact Executive Director Jillian Zywien for more information on becoming a member of AASP/MA. Email her at jzywien@ aaspma.org or give her a call at (617) 574-0741. To find out more about the association, go to aaspma.org.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA PRESIDENT MOLLY BRODEUR is the Chief Operating Officer of Al Brodeur's Auto Body in Marlborough, MA. She can be reached at (508) 485-1082 or molly@albrodeur.com.

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A MESSAGE FROM THE EXECUTIVE DIRECTOR

JILLIAN ZYWIEN

WHAT AASP/MA HAS PLANNED FOR YOU!

Dear Members, At the time of this writing, there is new snow on the ground and spring is taking its sweet time getting here, but that hasn’t stopped AASP/MA from working for you.

Over the next few months, we look forward to seeing you at our upcoming events and sharing our exciting news and progress.

As mentioned in previous issues of New England Automotive Report, the association has dissolved our Chapter structure. However, this has not prevented AASP/MA from visiting every part of the state. This month, we are traveling to the middle of Massachusetts for our popular BBQ event. This gathering is focused on bringing your employees and families together for a night of relaxation and fun. It is not often that you are able to get out of the shop to simply enjoy time with your fellow employees.

The BBQ is an opportunity for coworker bonding and camaraderie. As an added bonus, you can bring your families. Kids are also welcome to attend. We understand how busy your lives can be. Juggling work and family is especially difficult, and AASP/MA wants to help. Plan to attend our BBQ to win some fantastic prizes and spend time with your employees (who work so hard) and your family (who works hard to support you). For more information on the BBQ, please visit aaspma.org.

In the past, our BBQ has raised funds to support AASP/MA’s Scholarship Fund. At the direction of your Board of Directors, we are redirecting the funds to support the association’s legislative and legal efforts. As you are all aware, the association has filed five legislative matters this year, and we are working through language changes to 212 CMR and fighting on the industry’s behalf to prevent AIB policy adoptions. We hope you will support our initiatives by participating in this important fundraiser.

Later in May, AASP/MA will be in Western Massachusetts for our Statewide Meeting. Over the winter months, we had members audited by OSHA; unfortunately, some of those members were assessed significant fines. It is important that all members are following OSHA guidelines and recertifying their shops on a regular basis. This month’s meeting will feature an OSHA

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representative who will outline common mistakes and educate members on corrective action. This is an important seminar you do not want to miss. You will be kicking yourself when OSHA comes knocking at your door. Get prepared today.

Also coming this summer is the AASP/MA Annual Golf Outing. We are moving locations this year to allow for more participation. Our previous venue had a strict limit on golfers, but we have been given a bigger field this year to allow for additional players. If you are not a big golfer, you can still participate in the event. Following the day of golf, we have an awards ceremony and banquet where we encourage participants to invite their employees, fellow shop owners and spouses. Come to the banquet and find out who took home the big prize and who is crying into their new golf towels. The awards ceremony will also feature our prize raffle. Some of last year’s prizes included a tablet, a Fitbit wireless wristband, a lottery tree and a waterproof Bluetooth speaker.

You can also purchase a ticket to win a Rob Gronkowskisigned jersey.

I encourage you to participate in these events. We are creating a community that is building the success of the auto repair industry. The stronger you make us become, the better our chance for success. I would encourage each member to bring a non-member with you to any upcoming event. Show them what we are about, and I guarantee they will want to be a part of the only association working on behalf of the industry in the Commonwealth.

Sincerely,

Jillian Zywien MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA EXECUTIVE DIRECTOR JILLIAN ZYWIEN has been a senior account executive at Lynch Associates for over seven years. She can be reached at (617) 574-0741 or via email at jzywien@aaspma.org.

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MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

PLANNED YEAR

JANUARY

MARCH

January 6 Board of Directors Meeting Statewide Meeting

March 22 Board of Directors Meeting Statewide Meeting

MAY

JULY

May 24 Board of Directors Meeting Statewide Meeting

SEPTEMBER September 23 AASP/MA Clambake

September 27 Board of Directors Meeting Statewide Meeting

July 20 AASP/MA Golf Outing Blackstone National Golf Course

July 26 Board of Directors Meeting

NOVEMBER November 12

November 15

AASP/MA Casino Night & Annual Meeting

Board of Directors Meeting

For more information, visit aaspma.org or contact Executive Director Jillian Zywien at jzywien@aaspma.org or (617) 574-0741.

Check New England Automotive Report for updated event information throughout the year.

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[LEGAL] PERSPECTIVE by James A. Castleman, Esq.

SENdINg tIMEly INItIAl lIEN NotICES I got three telephone calls this week all dealing with aspects of the same issue, but from differing perspectives.

The first call was from a longtime client whose son had been charged with a serious crime. The police had the son’s car towed to search it for evidence. After the search, the car was towed to the carrier’s storage yard. It wasn’t until six months later, however, that the carrier sent out the first notice of its tow and storage lien. My client, who did not want to pay for six months of storage and who had not known where the car was, was furious that the carrier had taken so long to send a notice. He called me to ask whether the tow yard was required by law to give more timely notice.

The second call I received was from a tow carrier that had conducted a police-ordered tow nine months before, but was just getting around to sending its first notice of its tow and storage lien. The carrier had expected to be contacted by the car owner, but had not. After finally sending out the first lien notice, it received an angry call from the car owner, who claimed that he had not known where the car was. The carrier now wanted to know if it had a problem because it had waited so long to start tow lien enforcement proceedings.

The third call that came in was from a body shop that had repaired a car, but whose customer had died before he had paid for the repairs or picked up the vehicle. It was now almost a year later, and the shop owner had called the vehicle owner’s finance company to see if they would pay the bill and repossess the car. They responded that they hadn’t known where the car was, had received no prior notice and would only agree to 20 May 2016

pay 30 days of storage. The shop owner asked me whether the finance company had any right to try to limit the storage bill.

All of these matters demonstrate problems that arise when there is a delay in giving a first tow carrier or garagekeeper’s lien notice. To avoid difficulty, earlier notices should have been given in each situation. But had the tow carriers and repair shop violated any legal time requirements for enforcement of their liens? The answer is not entirely clear. If you are a tow carrier or collision repair shop, here are suggestions on how to give proper first lien notices and why each suggestion should be followed: If you are enforcing a tow and storage lien for a police-ordered tow, you should give your first notice of lien as soon as possible. For police-ordered tow liens, the governing statute requires the ordering officer to furnish the carrier with the name and address of the registered owner of the vehicle at the time that it is placed with the carrier. If the officer does not know who the owner is, then he or she is required to obtain the information and “forthwith” provide it to the carrier.

The carrier is then supposed to send out its first required lien notice “upon receipt of the information.” Since the requirement is to send the notice “upon receipt” of the owner’s contact information, it would appear that such notice is required to be sent quickly. For a recovered stolen vehicle, another statute specifically requires the carrier to send the first lien notice within five days of being provided with the owner’s identity.

For a garagekeeper’s lien, you should also send your first lien notice early. There is no language in the

New England Automotive Report

garagekeeper’s lien statute that sets a time within which notice must be given, but the lien statute only allows a lien for a shop’s “proper” charges. If you wait too long to give your first notice, your charges may no longer be “proper.”

In all cases, you should send notice to the owner of the vehicle and to any secured lender. On their face, neither the police-ordered tow statute nor the garagekeeper’s lien statute requires notice to a lienholder. But under both statutes, you have a lien that is superior to that of the finance company, and a sale of the vehicle wipes out the finance company’s lien.

Giving notice to the lender serves two important purposes: (1) It encourages them to pay your charges directly, in order for them to protect their interest in the car; and (2) It protects you from later claims by the finance company that you deprived it of its property rights in the car without due process of law – which is a constitutional rights issue.

Independently verify who the actual vehicle owner and lienholder are.

While a police officer ordering a tow is required to give a tow carrier the name and address of the “registered owner” of a vehicle, and while a repair shop may have a copy of a car’s registration, it is still wise to verify who the titled owner of a vehicle is and what secured lender may exist. It is better to be safe than to have your sale of a vehicle invalidated because you did not give notice to the proper parties. The information is not available to the general public, but it is available to tow carriers and repair shops claiming a lien by filling out an RMV Request for Personal Information form (available on the Registry’s continued on page 23

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[LEGAL] PERSPECTIVE continued from pg. 20

website) and sending it in with a check for $5. Ordinarily, you will receive back a “screen print” with the requested information in just a few days.

Send all lien notices by certified mail and by regular mail. The police-ordered tow lien statute requires that the lien notice be sent (but not necessarily received) by “registered” mail, which includes certified mail, return receipt requested. Sometimes, however, people who have had their cars towed do not accept certified mail, so sending a copy by regular mail makes it more likely that they will receive the notice. The garagekeeper’s lien statute only requires that the notice be “delivered,” which includes regular first class mailing.

But if you send a copy by certified mail, and the vehicle owner signs for it, then you have proof of receipt of the notice.

MASSACHUSETTS

Attorney James Castleman is a managing member of Paster, Rice & Castleman, LLC in Quincy, MA. He can be reached at (617) 472-3424 or at jcastleman@prclawoffice.com.

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AASP/MA at NoRtHEASt:

Area Shops travel to the Country’s Biggest Regional Show

by Joel Gausten On March 18-20, the New Jersey affiliate of AASP hosted thousands of collision repair professionals from across the country at the Meadowlands Exposition Center in Secaucus, NJ for the 39th Annual NORTHEAST Automotive Services Show. NORTHEAST 2016 delivered nothing but excitement, boasting a jam-packed show floor and the biggest slate of seminars and presentations ever found at a regional show. Not surprisingly, the event drew considerable support and participation from shops and exhibitors throughout the New England automotive repair community.

With so many industry members hitting the NORTHEAST floor over three days, the show provided an incredible platform for vendors to showcase their products and services. Being at the show made perfect sense to BASF Account Representative Ken Robbins, who made his trip down to Secaucus for a third year to be a part of the festivities.

“It’s nice having a trade show on the east coast on the

weekend,” he says. “[Shops] can take just Friday off, or go down on Friday or Saturday and see a lot of the new products that are out from all the manufacturers in the automotive trade. They don’t need to take four or five days off and fly out to Las Vegas.”

As he explains, Robbins and the BASF team enjoyed considerable foot traffic by attendees – especially body shop owners looking to learn as much as possible.

“Over the last two years, I have seen more shops from Massachusetts and even southern New Hampshire make the trip down to the show,” he offers. “They realize it is worth going to [NORTHEAST]; it’s always a great turnout for the vendors and the spectators going to check things out.”

An avid NORTHEAST exhibitor since the ’90s, Kevin Lombard of Lombard Equipment was greatly impressed by what this year’s show had to offer.

“This was probably one of the best [shows] for traffic in the last 10 years!” he says.

In Lombard’s mind, NORTHEAST presents a host of incentives for shop owners in Massachusetts and surrounding states.

“There are a lot of guys in New England who are interested in new equipment, aluminum and new technologies,”

AASP/MA Vice President Adam Ioakim represented the association at the 2016 East Coast Resolution Forum & Leadership Meeting.

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Kevin Lombard (Lombard Equipment) with AASP/MA’s Jim Marshall

Left to right: AASP/MA members Dan Lamontagne, Rick Starbard and Mike Boucher

he explains. “[This show] is very convenient in that guys can drive four or five hours at the most and be at a really great show that’s growing every year.”

With nearly 15 trips to NORTHEAST under his belt, AASP/MA Collision Director Rick Starbard knows to expect the very best from the experience. This year, he was especially interested in checking out “Body Shop Certification and You: An OEM Panel Discussion,” a special panel held on March 19 and moderated by Aaron Clark of Assured Performance Network. The discussion featured insights from representatives from Audi, Nissan, American Honda, Fiat Chrysler Automobiles and Ford Motor Company on why their respective companies launched their individual body shop certification programs. As an Assured Performance facility owner, Starbard was pleased to see such an indepth exploration of the topic available to show-goers.

“People have a lot of questions regarding OEM certifications, so that gave people a chance to listen to what [the manufacturers] are looking for and what is or isn’t on the program,” he says. “I thought that was well done.”

After learning about the show from his business group partner (and NORTHEAST presenter) Jerry McNee, Jim Marshall of Marshall’s Auto Body Experts in Billerica made his first-ever trip to the gathering. To say he was excited by what he saw there would be an understatement.

“This has been a great trade show!” he told New England Automotive Report from the floor on March 19. “The people are professional in repping their products, but they’re not leaping at you while you’re trying to walk down the aisle. You get time to look and browse without having to take your wallet out.” (The low-pressure atmosphere worked, as Marshall left the show a proud owner of a new truck bed lift from first-time NORTHEAST exhibitor ProLine Tool & Supply, LLC.) Western Massachusetts-based members Andre Marcoux (Western Mass Auto Body, West Springfield) and Don Vermette (Vermette Auto Body, Feeding Hills) made a day of NORTHEAST, traveling down to New Jersey early that Saturday morning to take in as much of the show as they

could. Marcoux brought along his technician, Chris Roy; Vermette was joined by his son, Paul.

“I had such a great time; I really enjoyed it,” offers Marcoux, who actually used to exhibit at NORTHEAST years ago when he worked with Lombard Equipment. “It was nice to connect with a lot of people who I haven’t seen in a while.”

Marcoux was among the many industry members who took in “Competing with the Talking Car – Virtual Steering,” a March 19 seminar presented by Steve Feltovich from Sherwin-Williams that explored how autonomous vehicles and other developments are already reshaping the repair world.

“It makes you wonder where you want to be and which side you want to be on,” Marcoux says. (More information on this topic is available on page 40.)

For Roy, attending NORTHEAST for the first time this year allowed him an inside look into the present and future of the collision repair profession.

“My impression was, ‘Wow!’” he says of NORTHEAST. “This trade is evolving; if you’re not going to evolve with it, it’s going to run right over you. You have to be up to date on certain things.

“I liked [the show] because it showed new and upcoming trends,” he adds. “That’s especially important in our trade because we’re always changing. Aluminum repair is around the corner, so it’s interesting to see how many vendors are coming out with equipment.”

At 26, Paul Vermette is working to learn as much as he can before someday taking over the family business from his father. Looking back at his first-ever NORTHEAST experience, he was amazed by how much knowledge and experience he gained in a single day.

“I was very impressed overall with the way that the show was put together,” he says. “There was a lot of great information that I found there. It was a very professional atmosphere without it being uptight. It showed me how much there is to running a shop and how many avenues there are to go down to try to advance the shop.”

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Like many attendees, Paul took advantage of the opportunity to try out an aluminum welder at ProSpot International’s extensive display on the show floor. Connecting with this prominent equipment manufacturer was a memorable experience for the future shop owner.

“They had a really great setup,” he says. “ All of their tools were phenomenal, and they had very helpful reps. It really made me want to try their products further.”

While walking the aisles at the Meadowlands Exposition Center was indeed intriguing, Don is quick to remind readers that if you have the right people riding with you, much can be gained before and after a show like this.

“A lot can be learned just through the drive down and the drive back,” he observes. “You talk about what equipment and techniques work in other shops. You may have something that’s working at your business, and you can share that with others. So many shop owners just stay in their shop and work, but they’re missing the boat on a lot of stuff.”

Dan Lamontagne (White Lightning Auto Body, Williamsburg) and Mike Boucher (Custom Auto Body, East Longmeadow) also rode down together to NORTHEAST to stay current on what’s happening in their trade. Both were blown away by the “Who Pays for What?” seminar given by high-energy industry speaker Mike Anderson (Collision Advice). The Axalta Coating Systems-sponsored talk drew a standing-room-only crowd eager to hear more about the quarterly “Who Pays for What?” surveys conducted by Collision Advice and John Yoswick of CRASH Network.

This special project offers clear, third-party insight into what shops charge for in the marketplace – and things their competitors are charging for that their facilities might not be at this time.

“That was the best seminar I’ve ever been to,” comments Lamontagne. “Mike knows how to wind up an audience; I thought he was excellent. If everybody who did a presentation could do it like he did it, the world would be a better place.”

“That guy’s like the Energizer Bunny!” adds Boucher, who also used NORTHEAST to purchase tools and equipment from at least six different vendors. “He had some excellent food for thought about asking insurance companies for things. I’m completely behind the idea that in this collision repair environment, you have to dig for every dime you can find. You have to be as inventive as possible about the things you ask for. The Survey that he does shows you what shops in and around your area or across the country are asking for with regard to collision repairs, and it also shows you from the percentages how many things people never ask for.”

Prior to the official start of NORTHEAST 2016, industry representatives from across the country gathered for the annual East Coast Resolution Forum & Leadership Meeting.

Co-hosted by SCRS and AASP/NJ and moderated by Ed Kizenberger (LIABRA/NYSACTA), the afternoon event showcased open and candid dialogue between state association representatives regarding their individual efforts to

Left to right: Chris Roy (Western Mass Collision, AASP/MA), James Gray (Sherwin-Williams), Don Vermette (Vermette Auto Body, AASP/MA), Paul Vermette (Vermette Auto Body)

address common issues. During his presentation, SCRS Executive Director Aaron Schulenburg urged his industry peers to focus on being proactive instead of reactive in responding to matters affecting the collision repair field and communicating with others to find solutions. “[That is] not just putting out a press release or indicating activities within your marketplace; utilize the resources to connect the dots and draw attention to them by sharing that information and turning them into stories that educate others in different states,” he said. “You have an opportunity to take what could be issues that are locally isolated and prevent them from occurring in other places by being more proactive and communicating. We have so much more at our disposal today that wasn’t there before; we have so many more places where we can tell the story from the perspective of the repairer...If you’re in this room and thinking, ‘Maybe I’m not doing that,’ please consider how you could or should.”

This year’s Leadership Meeting was of particular interest to AASP/MA Vice President Adam Ioakim (Hogan And Van Auto Body, Medford), who traveled to Secaucus with his brother, George, to be a part of the annual industry summit.

“You can’t put a price on the information that is exchanged,” Adam says. “You have other associations and other shops that are attempting legislation or finding new ways of handling things. They are there to exchange information to see what else is going on across the country, and it’s very valuable from an association standpoint. Why reinvent the wheel when someone else may have already tried or is trying something? You can build on that information going forward with your own association or your own shop. Sometimes we get caught between our four walls being as busy as we are, and I think the Leadership Meeting is a great opportunity to get outside that box.”

“If you get together with successful shop owners from other places who have been in the industry for a long time, they can offer input that you can’t just get on a daily basis from talking to local shop owners,” adds George. “When continued on page 54

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by Joel Gausten

Industry associations can make a difference.

Due to overwhelming pressure from the Alliance of Automotive Service Providers of Massachusetts (AASP/MA) and the Statewide Towing Association of Massachusetts (STA), the Automobile Insurance Bureau (AIB) withdrew the eighth edition of its controversial standard auto policy in mid-March.

As regular readers of New England Automotive Report have learned in recent months, the withdrawn AIB policy contained a number of areas of great concern for insurance consumers as well as the state’s collision repair and towing industries. In an effort to get automotive business owners up to speed on recent events, AASP/MA Executive Director Jillian Zywien welcomed executive team member Peter D’Agostino, STA Executive Director Kim Lowell and auto body industry Attorney James Castleman for an extensive discussion on the AIB’s auto policy coverage reductions at a special Statewide Meeting held March 22 at Greater Lawrence Technical School in Andover.

Originally submitted to the Division of Insurance in May 2015, the AIB policy was approved by the Massachusetts Division of Insurance in October. Insurers are not required to adopt it, but some carriers in the state have chosen to implement the revisions into their auto policy coverages.

As word of insurers adopting the AIB policy began to spread, AASP/MA and STA united for an extensive effort to address their concerns with the new plan.

“We went to the Legislature and briefed several representatives and senators, all of whom agreed to sign on a letter to the AG asking her to investigate the AIB policy,” D’Agostino explained. “We went to the DOI and launched our complaints with them, then we went to the ADALB and requested that they submit a letter to the DOI stating that they believed their regulations were being violated by the implementation of this policy.

The ADALB unanimously voted to send that letter to the DOI stating just that.”

Due to considerable pressure by AASP/MA and STA, the AIB eventually withdrew its latest policy – the first time in history it had ever done so. D’Agostino noted that AASP/MA and STA were not the only entities surprised by the AIB’s sudden change of heart.

“When I called the DOI to ask them how they were going to handle the policies that they already approved under the eighth edition, the director of the program said she didn’t know.

I believe this is because nobody had withdrawn their policy like this before,” he said.

According to D’Agostino, AASP/MA’s position on the matter is “if the underlying document has been withdrawn as no longer valid, all the documents built on it should be invalidated.”

Despite this potentially positive turn of events, Lowell cautioned that the AIB’s withdrawal came after some insurers had already adopted the policy.

“The [concern for the consumers is] some companies have already adopted the eighth edition and are enforcing it,” she said.

To make matters even more complex, the AIB has recently filed a new version of its proposed policy for DOI review. Although AASP/MA has requested a copy of this filing, D’Agostino noted that getting full disclosure of this information has been a difficult undertaking.

“The process of getting this policy approved is a completely private process,” he explained. “It’s between a private entity and the Commonwealth; there is no ability for public input.”

While AASP/MA is working to address a multitude of problems with the AIB, the STA is facing an uphill battle of its own. “[The AIB’s previous policy] said, ‘We will only reimburse consumers for a rate established by regulation or law,’” explained D’Agostino. “In the Commonwealth of Massachusetts, that’s only two things – a $90 hook fee and $35 a day for storage. By saying they will only reimburse you for something established by regulation or law, it eliminates the reimbursement for anything else.”

“Under the new policy, the insurance companies have deleted any coverage whatsoever for any kind of recovery or removal of a vehicle,” added Lowell. “If you’re a tower, you’re not going to get paid [by the insurance company] under that section if the insurance company has adopted this eighth edition.” Additionally, the consumers will be stuck paying those costs out of their own pocket.

To help educate affected parties on the potential effects of the AIB’s changes, the STA has prepared a consumer information handout for members to give people when they visit the shop. Additionally, the group has an information packet available for police departments and agencies in the Commonwealth to better familiarize them with issues facing the towing industry. Already gearing up for the next round, AASP/MA and STA plan to send their oppositions to the previous 2015 policy to the Rating Bureau for their reference.

“Last time, we didn’t get the opportunity to send those objections directly to the people who approved it,” D’Agostino said.

Above all, he encouraged attendees who might encounter problems with insurers over adoption of the withdrawn policy or the soon-to-be-new AIB policy to inform insureds of exactly what the insurance industry is trying to accomplish with these policy revisions.

“We need to start saying [to customers], ‘This is a reduction in your coverage by your insurance company, not an increase in my rate to repair or tow your vehicle,’” he said.

Unsurprisingly, Castleman agreed that widespread implementation of the AIB’s most recent policy would have been “quite disastrous” for shops and consumers in the Commonwealth. Addressing meeting attendees later in the evening, he outlined a number of observations and issues he had with the AIB’s intentions to change auto insurance in Massachusetts. One obvious area of concern for him was the addition of language to the policy that would establish that “the

Left to Right: AASP/MA's Peter D'Agostino updated members on efforts to prevent the AIB's policy changes.

Attorney Jim Castleman offered insight into why the AIB's policy would be problematic for repairers.

STA's Kim Lowell cautioned that some insurers have already adopted the AIB's changes.

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cost to repair the auto is the competiAlthough AASP/MA and STA As word of insurers tive price, which we secure from a liwere victorious in getting the previcensed repair facility under our direct ous AIB policy withdrawn, both adopting the AIB policy payment plan.” In his opinion, the groups recognize that the fight has AIB is overstepping its bounds in just begun. Members of the auto body began to spread, AASP/MA even suggesting that this proposal be industry in Massachusetts can rest asand STA united for an taken seriously. sured that their association will not be passive observer of whatever the “Under Massachusetts case law, a extensive effort to the reasonable cost is what the genAIB plans next. eral market charges – not the reduced As D’Agostino said, “We have to address their concerns amount that an insurer’s contract stop accepting what they say we can with the new plan. provider would charge in exchange for charge as a company...I understand the receiving a volume of work from the inimplications of trying to get that paradigm surer,” he said. shift to occur, but we have to start somehow or Additionally, he noted that ADALB’s regulawe’re going to have to accept what they give us.” tions state that it is illegal for an insurer to get a competitive Here are some other elements of the AIB policy that price on a repair from a shop unless that facility has seen the AASP/MA wants to you know about: car.

“How are they going to be able to tell what their referral damage to Someone Else’s Property: The model AIB policy shop would pay for that?” he observed. “Are they going to includes new language stating, “The amount we will pay does bring their referral shop appraisers around to an independent not include compensation for physical damage to your auto or shop? I suspect this is going to continue to be a big issue.” towing or recovery of your auto...” If a consumer’s vehicle is Rental car reimbursement was another controversial area in an accident in which there is property damage (for example, of the AIB policy, with the proposed language attempting to the vehicle hits a fence, guardrail, sign, house, lands in a pool establish that insurers “will pay only for a period of time or skids off the roadway and becomes stuck), under the previwhich is reasonable for having your auto repaired or replaced. ous standard policy, the recovery/extrication, clean up and If your auto is deemed by us to be a total loss, reimbursement towing of the vehicle would have been covered under the for rental charges and transportation expenses will end three Compulsory Section - Damage to Someone Else’s Property. business days after we offer to pay the actual cash value under This change will leave motor vehicle owners responsible for [collision, limited collision or comprehensive coverages].” all costs associated with removal of their vehicle AND restora“The intent is obvious; [it is] to unilaterally limit the time tion of the property to pre-accident condition. for which they’re going to pay for substitute transportation,” Castleman said.

Bodily Injury. The model AIB policy includes new language The collision repair industry’s escalating use of the Asthat “[i]nsurers will not pay punitive or exemplary damages.” signment of Rights as a remedy for reimbursement issues was This new language has troubling implications for both indimade a considerable target in the proposed policy, with the viduals who have caused accidents and, more importantly, inAIB attempting to incorporate language stating that under dividuals injured as a result of an accident.

Collision, Limited Collision and Comprehensive coverage, “an assignment of interest under this policy will not bind us withIncreased liability. Consumers, who are accustomed to their out our knowledge or consent. Any improper assignment insurance indemnifying or covering them for certain damages shall be void and invalid. The assignee shall acquire no right incurred as a result of an accident, may no longer have those under this contract and we shall not recognize any such assame protections. A large reason for mandating insurance in signment...” Castleman argued that while an insured’s insurthe first place is to ensure that motor vehicle owners are able to ance policy couldn’t be transferred per Massachusetts law, pay for any injuries caused or, alternatively, for injuries renothing prevents him or her from assigning a claim to another ceived. The model language will cost consumers more money party. in the event of an accident.

“Once a claim has been made, an insurer cannot prevent the assignment of that claim to a third party, no matter what To add your voice to this critical effort, please join the policy says,” he stated.

AASP/MA today and be part of the discussion. For the most With another AIB policy already being proposed, Castleup-to-date information on the AIB policy, contact AASP/MA man urged attendees to remain vigilant in bringing their conat (617) 574-0741. cerns before the DOI. “The Division of Insurance has not written a policy since 2008. There’s been a change in staff; the knowledge base is different up there,” he said. “Hopefully, AASP/MA and STA will be effective in getting the powers that be to realize that these changes are major [and] are anti-consumer.”

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[TECH] CORNER

by Jacquelyn Bauman

tECHNology BENEFItS ANd dEtRIMENtS: vIRtUAl StEERINg ANd CoNNECtEd CARS

In the 1980s, young actor David Hasselhoff, playing high-tech modern crime fighter Michael Knight, introduced the world to KITT – a talking, technologically advanced Pontiac Firebird Trans Am. To viewers 30 years ago, this premise was purely science fiction.

As time has progressed, however, we have slowly seen science fiction become closer and closer to science fact. For those in the collision repair industry dealing with Bluetooth systems, built-in GPS programs, interactive stereos and more, cars in their bays are looking more and more like KITT every day. But what does this mean for the repairer – or the consumer?

On March 19 at AASP/NJ’s 39th Annual NORTHEAST® Automotive Services Show in Secaucus, NJ, SherwinWilliams’ Steve Feltovich presented attendees with a seminar called “Competing with the Talking Car – Virtual Steering.”

During this discussion, Feltovich explained to attendees that today’s car has the computing power of 20 personal computers, features about 100 lines of programming code and processes up to 25 gigabytes of data an hour. While you don’t have to be a computer programmer to make every repair on vehicles these days, it is important to make sure all of these systems are being taken care of in addition to any physical repairs being made.

Feltovich shared more of his thoughts with New England Automotive Report following the seminar.

“Scanning is one of the most important parts of the repair today,” he said. “The customer is paying extra for certain convenience features in [his or her] vehicle, not to mention all of the safety features that are becoming standard. Whether these systems are damaged in the collision or during a repair, you need to know.”

Pre-scanning vehicles is becoming increasingly important, especially since the connected car market is projected to reach $98.4 billion by 2018. Autonomous, self-driving cars are likely to be commonplace by around 2025.

“If you can’t reset the backup sensors in that Toyota you have in your bay right now, you’re going to be in big trouble when an autonomous vehicle drives in just a few years down the road,” Feltovich shared. “The future is closer than you think.”

Another issue that the connected car presents for repairers is what Rick Tuuri, vice president of industry relations for AudaExplore, calls “virtual steering” – a term to explain the technology that will directly connect a driver who has been in an accident to an OEM-certified facility at the first notice of loss.

During his seminar at NORTHEAST 2016, industry giant Mike Anderson of Collision Advice depicted a hypothetical situation in which a driver gets into an accident and an OnStar-like system alerts the police, emergency medical services, a tow truck...and notifies an OEM-certified auto body shop if that driver doesn’t already have one in mind.

In an industry where steering by insurance companies is already one of the largest issues facing repairers today, bringing this kind of technology into the mix adds a whole new depth to the problem.

“My advice for shops today is to start making investments,” Feltovich says. “Invest in a scanning system to take care of the cars already in your shop now, and start getting yourself certified by an OEM to keep the cars coming into your shop down the road.”

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[MEMBER SHOP] SPOTLIGHT

by Jacquelyn Bauman

HARRIS Y D O B AUTO

any businesses come and go in 40 years, but Harris Auto Body in Worcester is thriving even after two generations of ups and

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downs.

Founded by Doug Haddad, the shop is currently operated by his son, Alex, who got his start there by coming to work after a full day of school.

“The bus home would drop me off at the shop instead of at my house,” he says. “I would do most of the things you could let a 12-year-old do around the shop. I swept, helped customers, answered phones and made lunch runs.”

Eventually, Alex was able to get into the shop and rise through the ranks, first working as a painter, then a technician and eventually as an appraiser. Less than five years ago, he took over the reins after his father retired.

Although he dove in headfirst, he wasn’t truly prepared for the rollercoaster ride.

“It’s never cut and dry when a business changes hands,” he says. “Even though my father had been teaching me how to run the shop for a while, there are still many things that can’t be taught – they have to simply be experienced. I’m really proud of where we’ve gotten in just that half of a decade. The shop is seeing growth, and that’s my main goal.”

Alex notes that the shop’s technicians are ASE-certified and keep on the cutting edge of equipment, parts and products. They boast top-of-the-line frame measuring equipment and a downdraft paint booth, and they use OEM parts in every situation they can. As can be expected, the reason for this is a focus on customer service – of which Alex is very proud.

“We have a lot of colleges in our area,” he explains.

“A lot of the customers we have coming in here are 18, 19 years old. They’re panicked and out of sorts after an accident. For most of them, it’s their first [collision] and they don’t really know how to handle it without the help of their parents. And a lot of them are from out of state. We work extra [hard] to make sure that these people are taken care of and that they get their vehicles back in a timely manner with the least amount of stress possible.”

Alex points out that one of the biggest challenges facing his shop today is dealing with insurers, particularly when handling so many out-of-state customers.

“They really do make doing business very stifling,” he says. This is the reason why he recently joined AASP/MA. “My brother Adam owns a shop in Everett [called Accurate Collision], and told me about the things the association is doing for shops in Massachusetts,” he explains. “I figured instead of just sitting back and complaining about my problems, I might as well get involved in actually looking for a solution.”

He suggests that any shop that is curious about bettering the industry consider joining the association.

“I haven’t been a member for very long, but this definitely has provided me with the opportunity to talk to other shop owners in a way that I wouldn’t have if I was on my own,” he says. “The networking is an instant benefit that I think all shops in Massachusetts should at least look into.”

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2016 MEMBERSHIP APPLICATION MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

As a member of the Alliance of Automotive Service Providers of Massachusetts (AASP/MA), I will abide by the association’s bylaws and code of ethics. I understand that membership in AASP of Massachusetts is non-transferable, and I must remain current with my dues in order to be a member in good standing. I understand that if I discontinue my membership that I must immediately cease using any association promotions, logos or materials. Additionally, I understand that as part of my AASP of Massachusetts membership, I will receive New England Automotive Report, the official publication of AASP of Massachusetts, faxes, emails and other mailings.

*** PlEASE tyPE oR PRINt lEgIBly *** Primary Contact Name: ________________________________________________________________________________________________ Business Name: ______________________________________________________________________________________________________ Street Address ________________________________________________________________________________________________________ Street

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PlEASE CoMPlEtE tHIS MEMBERSHIP APPlICAtIoN ANd REtURN It WItH PAyMENt to AASP-MA oFFICE. 12 Post office Square, 6th Floor • Boston, MA 02109 Phone: (617) 574-0741 | Fax: (617) 695-0173|jzywien@aaspma.org As required by the U.S. Tax Code, AASP of Massachusetts, Inc. informs its members that 75% of the dues paid to the association are tax deductible. The remaining 25% is allocated to legislative activities and is not tax deductible.

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[NATIONAL] FEATURE continued from pg. 28

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you talk to guys from Oregon, New Jersey, Connecticut and all over, there are things that they can offer us, and there are things that we can offer them. It serves us all well.”

Bolstered by the active support and participation of AASP/MA members, NORTHEAST 2016 proved that a great show is worth the trip. If you have yet to experience this one-of-a-

kind weekend, you know where you have to be next March.

For news and updates on the 2017 installment of NORTHEAST, visit aaspnjnortheast.com.

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AUT M TIVE AD INDEX Allen Mello Chrysler Dodge Jeep Ram ........19 Audi Group ....................................................25

MASSACHUSETTS

Audi Shrewsbury ..........................................41

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Axalta Coating Systems ..................................4 Bald Hill Chrysler Jeep Dodge Ram..............8 Balise Wholesale Parts Express ......................6 Baystate Chrysler/Jeep/Dodge ..................44 Best Chevrolet/Best CDJR..........................IFC BMW Group ..............................................16-17 BMW/Mini of Warwick ................................12 Clay Subaru ....................................................44 Collision Equipment Company ....................9 Colonial Auto Group ....................................24 Database Enhancement Gateway ................18 Empire Auto Parts..........................................10 Enterprise ........................................................51 First Chrysler-Dodge-Jeep-Ram ..................51 First Ford ........................................................51 First Hyundai..................................................51 Ford Group ....................................................35 Honda Group..................................................37 Hyundai Group ..............................................53 Imperial Ford ..................................................40 Infiniti of Norwood........................................29 Ira Group....................................................12-13 Kelly Automotive Group............................IBC Kia Group........................................................30 Linder’s, Inc. ..................................................54 Long Automotive Group ..........................OBC Mazda Group..................................................47 Mercedes-Benz of Shrewsbury ....................41 Mopar Group..................................................39 Nissan Group..................................................50 Polyvance ........................................................36 PPG ....................................................................3 Robertsons GMC Truck ................................45 Sarat Ford Lincoln..........................................45 Sentry Group ..................................................31 Subaru Group............................................42-43 Tasca Group ....................................................22 Toyota Group..................................................21 Village Auto Group........................................38 VW Group ......................................................52 Wagner BMW of Shrewsbury ......................41 Wagner Kia of Shrewsbury ..........................41 Wellesley Toyota/Scion ................................23 Wheel Collision Center ................................23

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