New Jersey Automotive May 2017

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THE OFFICIAL PUBLICATION OF THE ALLIANCE OF AUTOMOTIVE SERVICE PROVIDERS/NEW JERSEY (www.AASPNJ.org) AND THE AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY (www.ARANJ.org)

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P.O. Box 734 Neptune, NJ 07753 EXECUTIVE DIRECTOR Charles Bryant 732-922-8909 / setlit4u@msn.com 2015 - 2017 OFFICERS PRESIDENT Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com COLLISION CHAIRMAN Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net MECHANICAL CHAIRMAN Keith Krehel, Krehel Automotive Repair, Inc. 973-546-2828 / krehelauto@aol.com TREASURER Tom Elder, Compact Kars, Inc. 609-259-6373 / compactkars@aol.com SECRETARY Thomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / thomas@grecopublishing.com BOARD Dennis Cataldo, Jr., D&M Auto Body 732-251-4313 / jr@dandmautobody.com

Dave Laganella, Peters Body and Fender 201-337-1200 / petersbandf@gmail.com

Sam Mikhail, Prestige Auto Body 908-789-2020 / mikhail@goldcar.com

Ted Rainer, Ocean Bay Auto Body 732-899-7900 / trainer@verizon.net

Anthony Sauta, East Coast Auto Body 732-869-9999 / ecabofnj@aol.com

Randy Scoras, Holmdel Auto Body 732-946-8388 / randy@holmdelautobody.com

Anthony Trama, Bloomfield Auto Body 973-748-2608 / anthony@bloomfieldautobody.com BOARD ALLIED Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.com

Mike Kaufmann, Advantage Dealer Services 973-332-7014 / mkaufmann@advantageds.com PAST PRESIDENT ATTENDING Tom Elder, Compact Kars 609-259-6373 / compactkars@aol.com

PUBLISHER Thomas Greco (thomas@grecopublishing.com)

SALES DIRECTOR Alicia Figurelli (alicia@grecopublishing.com)

EDITORIAL DIRECTOR Joel Gausten (joel@grecopublishing.com)

CREATIVE DIRECTOR Lea Velocci (lea@grecopublishing.com)

EDITORIAL ASSISTANT Nick Fernandes (nick@grecopublishing.com)

CONTENTS

VOLUME 47, NUMBER 5 | May 2017

10 OUT OF BODY (AND MECHANICAL) EXPERIENCES 12 PRESIDENT’S MESSAGE

COVER STORY

16 EXECUTIVE DIRECTOR’S MESSAGE 22 I-CAR CALENDAR 62 NJA ADVERTISERS’ INDEX

by Joel Gausten

36 Great Techs, Bad Grades: Are We Testing Repairers the Wrong Way? LOCAL NEWS by Nick Fernandes 26 Collision Students Compete in NJ SkillsUSA Championships NATIONAL NEWS 31 AASP/NJ Honored at SCRS Awards Luncheon NATIONAL FEATURE by Tom Slear 42 Collision Reporting Centers: Another Possible Trap for Shops?

ASK MIKE 50 “What Do I Do When an Insurer Won’t Pay Me for What I Want or Need?”

AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY 56 Wharton Insurance Briefs LEGAL PERSPECTIVE by Mitchell Portnoi 59 Five Things to Do If You’re Involved in a Motor Vehicle Accident

OFFICE MANAGER Donna Greco (donna@grecopublishing.com)

CONTRIBUTING EDITORS

Charles Bryant • Mario DeFilippis • Jeff McDowell Mitch Portnoi • Ron Ananian • Keith Krehel • Jerry McNee

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 JERSEY AUTOMOTIVE is published monthly and is sent to AASP/NJ and ARANJ members free of charge. Subscriptions are $24 per year. NEW JERSEY AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of NEW JERSEY AUTOMOTIVE are copyright © 2017 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Cover © John Argueta / Jargapix Photography. Stock Images courtesy of www.istockphoto.com.

Joe Amato, Sr. Ron Ananian Jim Bowers Charles Bryant Don Chard Guy Citro Pete Cook Ed Day Dave Demarest Phil Dolcemascolo Tom Elder

Bob Everett Thomas Greco Dan Hawtin Rich Johnson Wes Kearney Nick Kostakis Jim Kowalak Joe Lubrano Michael Lovullo Sam Mikhail Ron Mucklow

George Petrask Russ Robson Jerry Russomano George Threlfall Cynthia Tursi Lee Vetland Paul Vigilant Rich Weber Brian Vesley Glenn Villacari Stan Wilson

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OUT OF BODY (AND MECHANICAL) EXPERIENCES

Hair Today, Gone Tomorrow I have never really been one of those “hair” guys. You know, the ones who can never walk by a mirror without stopping and checking their ‘do? Nah, that was never me.

For the first 14 years of my life, I basically relied on my parents to determine what kind of hairstyle I’d have. My dad was a staunch conservative, so until high school, I was stuck with the standard boy’s haircut that was popular in the 1950s. Unfortunately, I grew up in the ’60s and ’70s. I guess I never cared except for the time my dad decided to allow my brother Ralph to take me to the barber shop.

Ralph had a sadistic streak in him. And he was one of those “hair” guys. The Brylcreem, the hot comb, the nary-ahair-out-of-place look. So when he took me to his buddy Nicky Zinn (Goodfellas, anyone?) and put me in the chair, I can still hear his words: “Take it all off.”

Since I was only around eight at the time, I didn’t truly understand the consequences of those words until I looked up from my Batman comic and saw a cue ball with my face and body below it in the mirror. He dragged me out of there

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by THOMAS GRECO, PUBLISHER

screaming all the way home. Of course, he laughed his ass off and never fails to bring it up to this day.

I also remember (and I’ve told this story before) around the same time being infatuated with a band called Paul Revere & the Raiders. The band used to dress up in Revolutionary War red coats, and their lead singer, Mark Lindsay, had a ponytail. I had a 45 record of theirs called “Don’t Take It So Hard” (which I still love), and I used to lock my bedroom door, lip sync and play a tennis racquet to my adoring fans. But before the show went on, I found a red jacket in my brother’s closet and asked my mom to tie the back of my hair into a ponytail with an elastic band.

She spun me around and went through the motions, and I became Mark Lindsay. It was years before I realized I had a crewcut at the time.

By the time I got to high school, my dad had thrown in the towel on the hippies and let me grow my hair the way I wanted to. I still didn’t have a clue. I went to the barber…I mean hair salon…and asked my cousin Karen to make me

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By the time I got married in 1991, it was time to stop worrying about the style and instead start focusing on how to stop it from falling out. look like Roger Daltrey of the Who. She laughed and said, “Come back in six months.” So I let my hair grow out, hoping I could get those long curly locks that made Daltrey a rock and sex god. So yeah, there I was in curlers under a hair dryer with 10 or so middle-aged women looking at me as if I was Elton John instead of Daltrey. Again, unfortunately, I didn’t realize that you need long hair to let the locks flow.

When she was done, I looked more like Ginger Rogers than Roger Daltrey.

After that episode, I went back to not really paying too much attention to my hair. Like any smart horny guy, I let my girlfriends dictate what style I wore. Of course, that meant the disco look through the late ’70s and the mullet during the ’80s. By the time I got married in 1991, it was time to stop worrying about the style and instead start focusing on how to stop it from falling out.

I didn’t know what was in store for me. They say your grandfather determines your hairline. Well, one of mine had a full head and the other was bald as a, sigh, cue ball. My dad was somewhere in between. He had a receding hairline most of his life (and then became balding in the

center), but he never lost it on the sides. Brother Ralph (OF COURSE) has the hair of a Greek God. Brother Steve started losing his hair when he hit puberty and never stopped. Me? I guess I’m somewhere in between. I still have a lot on the sides, but (like my dad) the middle is disappearing fast. It kind of looks like a horseshoe-shaped football stadium with the stands full and a few scattered players on the field, if you know what I mean.

I was never self-conscious about it. But lately, I find myself spending more and more time in front of the mirror trying to make what’s not there stretch just a little bit further so as not to totally blind people with the glare. It’s not working. A friend of mine always tells me to shave it all off because now being bald is a fashion statement. Maybe if you’re skinny and tan it is. Hell, I’ve kept a goatee for 30 years just to hide my chins.

I guess I am finally one of those (not so much) “hair” guys.

NJA

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PRESIDENT’S MESSAGE

A HUMBLING HONOR I write this message having just returned from a trip with AASP/NJ Executive Director Charles Bryant to the Society of Collision Repair Specialists’ “SCRS Week” in Pittsburgh. The convenience of the

location combined with the quality of information presented for a truly eyeopening and valuable time among industry peers. AASP/NJ was also honored with the SCRS Affiliate Association Award while we were out

by JEFF MCDOWELL

there, and I’d like to take this moment to express our gratitude on behalf of AASP/NJ for being recognized in this way. SCRS Past Chairman Barry Dorn mentioned in his presentation that only five other groups have received this award. To be part of such an exclusive group is a real honor; on behalf of our association, I’d like to thank everyone at SCRS who chose AASP/NJ to be the recipient of this award. We are humbled and grateful to be recognized in this way, and we are even more inspired than before to continue our efforts of improving the automotive repair industry in New Jersey and beyond.

Closer to home, AASP/NJ has two events lined up (and more on the way) that will help bring our members together for a good cause and a fun time out of the shop. Our Sixth Annual Race Night is coming up on June 13, once again to be held at Pole Position Raceway in Jersey City. Space is extremely limited, so if you’d like to attend this year’s event, please contact the AASP/NJ Administrative Office today at (973) 667-6922. Looking further ahead, our Lou Scoras Memorial Golf Outing will be coming up in September. This event is still a few months away, but our members and supporters should take note that our Golf Outing is scheduled for the month of September (versus previous years’ events, which were held in May).

If you have any questions or would like further information on sponsorships for this year’s Golf Outing, please contact Charles Bryant at (732) 922-8909. As always, to learn more about AASP/NJ activities and events, please visit us online at aaspnj.org.

NJA

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EXECUTIVE DIRECTOR’S MESSAGE

ARE WE OUR OWN WORST ENEMY? CAN IT BE? YES, IT CAN! by CHARLES BRYANT Ever hear that old saying, “You are your own worst enemy”? Can it possibly be that the collision industry is its own worst enemy? Sadly, yes is the correct answer! Almost everyone in the collision industry seems to blame insurance companies for the many problems that collision shops deal with on a daily basis (myself included sometimes). But the reality is, if the shops would learn to “just say no,” many (if not most) of the problems would actually just go away.

Here is where the problem lies. The collision industry has been brainwashed to believe that whatever an insurer says is the way things actually are (or are supposed to be). In reality, many times, nothing could be further from the truth. Let me give you a prime example: An appraiser from an insurance company comes to a collision shop.

While attempting to negotiate an agreed price to repair a damaged vehicle, the shop owner requests payment for a procedure that is necessary to repair the vehicle safely and properly. The appraiser’s response is, “We don’t pay for that.” What do you think the shop owner’s response is?

You guessed it: “Oh, okay,” and they go on to the next item. The shop owner knows this is wrong, but he or she just accepts it as okay. Well, guess what? It’s not okay. The practice of saying, “We don’t pay for that” has taken place for so long that many collision shops seem to think that insurers have the right to say things like this and they just have to accept it, even though the shop still has to perform the procedure.

Another example of this type of abuse is when an insurer refuses to pay for a particular procedure that is necessary to repair a damaged vehicle safely and properly. Their reasoning for not paying for the procedure is that they claim that there are many other shops in the area that do not charge for it, so they won’t pay the shop requesting payment. This practice is commonly recognized in the collision industry by the phrase, “You are the only one that charges for that” or “We only pay for what is usual and customary.” Too often, the shop’s response is, “Oh, okay.”

Now, listen carefully collision repairer. WAKE UP! It is not okay! In these two cases, the insurance industry is not to blame. The insurance industry is in business to make money, just like any other business. The insurers are allowed to attempt to negotiate the cost of repairs with the shop of the vehicle owner’s choice. If you are one of the shops that says “okay” to things like this, you are the one to blame for practices like this taking hold in the collision industry. If you are a member of AASP/NJ, you probably already know that there are rules that prevent these practices from taking place. If not, maybe now would be a good time to join. Just so everyone knows, I am referring to the regulations that govern fair claim settlement

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practices that require that negotiations be conducted in good faith and fair dealing. (See regulation below)

N.J.A.C. 11:3-10.3 Adjustment of partial losses (a) If the insurer intends to exercise its right to inspect, or cause to be inspected by an independent appraiser, damages prior to repair, the insurer shall have seven working days following receipt of notice of loss to inspect the insured’s damaged vehicle, which is available for inspection, at a place and time reasonably convenient to the insured; commence negotiations; and make a good faith offer of settlement. (b) Negotiations must be conducted in good faith, with the basic goal of promptly arriving at an agreed price. Early in negotiations, the insurer must inform and confirm in writing to the insured or the insured’s designated representative all deductions that will be made from the agreed price, including the amount of applicable deductible.

Statements like, “We don’t pay for that,” “You are the only one who charges for that” or “We only pay for what is usual and customary” are not statements that represent an

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EXECUTIVE DIRECTOR’S MESSAGE example of good faith negotiations. In other words, what the shop down the street charges for or does not charge for has nothing to do with what an insurer owes you, as the procedure is necessary to repair a damaged vehicle safely and properly. Again, if you are a member of the AASP/NJ, you should already be aware of things like this; if not, you should be aware that the AASP/NJ runs a Hot Line that

members can call every day, all day to get answers or assistance on issues like this. If you are one of the shop owners who simply says “okay” to things like the issues referenced in this message without putting up a fight, you are a prime example of being your own worst enemy.

Another example of certain shop owners being their own worst enemy is a practice that was just recently

reported to the AASP/NJ Hot Line. A member recently told me that he was investigating the possibility of making the investment in the equipment, training and certification to become an OEM-certified shop for a particular OEM. It was reported that the investment would be in a range well beyond $100,000. However, it was also reported that the shop was told that part of the agreement would require the shop to accept extremely little profit on the parts required and to give the OEM/dealer back 20 percent of the labor charges on any repair referred to them. It happens that the owner who reported this knows his cost of doing business very well.

Therefore, he immediately refused the offer and explained that it would be impossible to run a legitimate business and operate under these terms. It was at that point that he was informed that there were many other shop owners who were willing to make this deal and are already engaged in this arrangement at the present time.

Now, I only have this one shop telling me that this is how these type of programs work (and I am not out there in the field), so I would ask any other shops that can verify or disclaim that this practice is actually going on to contact me and let me know. If this is in fact the case, I can tell you this: If you are one of the shops that are participating in such a program, you absolutely need to attend a “cost of doing business” seminar or get some immediate consulting on how to run your business, because you are the problem. It will eventually catch up to you. Another thing that is for sure – you are your own worst enemy, as well as the worst enemy of the collision industry. If anyone would like to discuss any issue addressed in this article, I can be reached on the AASP/NJ Hot Line at (732) 922-8909.

NJA

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CALENDAR

MAY 3, 2017 Squeeze-Type Resistance Spot Welding CollisionMax of Pennsauken, Pennsauken Hazardous Materials, Personal Safety & Refinish Safety Allstate Insurance, Wall Township MAY 4, 2017 Sectioning of Steel Unitized Structures Dobbs Auto Body, Springfield MAY 9, 2017 Understanding the Cycle Time Process Innovative Solutions & Technology, Lincoln Park Squeeze-Type Resistance Spot Welding Reliable Automotive Equipment, Belford MAY 10, 2017 Sectioning of Steel Unitized Structures Allstate Insurance, Wall Township MAY 11, 2017 Aluminum Exterior Panel Repair & Replacement Holiday Inn & Suites, Parsippany Understanding the Cycle Time Process Ramada Inn-Newark Airport, Newark MAY 16, 2017 Full-Frame Partial Replacement Allstate Insurance, Bridgewater MAY 17, 2017 Recycled Parts for Collision Repair CollisionMax of Pennsauken, Pennsauken MAY 18, 2017 Aluminum Exterior Panel Repair & Replacement Dobbs Auto Body, Springfield Automotive Foams MGM Auto Body Supplies, Hawthorne MAY 23, 2017 Adhesive Bonding Innovative Solutions & Technology, Lincoln Park MAY 24, 2017 Corrosion Protection Allstate Insurance, Wall Township Hail, Theft & Vandalism Damage Analysis CollisionMax of Pennsauken, Pennsauken MAY 25, 2017 Plastic & Composite Repair Ramada Inn-Newark Airport, Newark Structural Straightening Steel Reliable Automotive Equipment, Belford MAY 30, 2017 Vehicle Technology Trends & Diagnostics Overview Allstate Insurance, Bridgewater

For more information, visit i-car.com NJA

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LOCAL NEWS by Nick Fernandes

Collision Students Compete

in NJSkillsUSA Championships

Using the talents they’ve learned in their classes, the student repairers competed in departments including estimating, welding, adhesives and bumper repair.

Last month, the state’s nine best collision repair high school students participated in the New Jersey SkillsUSA competition at Somerset County Vocational and Technical High School in Bridgewater. Using the talents they’ve learned in their classes, the student repairers competed in departments including estimating, welding, adhesives and bumper repair.

After placing second in his SkillsUSA debut last year, Joseph Ruggiero, a senior at Morris County School of Technology, took home first place.

“He has worked very hard and has pretty much mastered all of the information I introduced to him,” said Louis Rosso, the student’s instructor. “His performance in the classroom and shop is excellent, and he carried that with him into the competition. He performed exactly as I thought he would, with professionalism and attention to detail in all areas of his competition. I couldn’t be more proud of him.”

As in past years, AASP/NJ was one of sponsors of this year’s event, and two of its

Industry volunteers gathered to support members of tomorrow's workforce.

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Board members – Jerry McNee and Ted Rainer – donated their time to serve as judges for the competition.

McNee explained that the program gets the top students ready for careers in collision repair, giving them the opportunity to face competition for the first time.

“When they get out there and they’re working, it’s going to be the same pressures,” McNee said.

“Everyone’s going to be looking at the new kid on the block and seeing what they’re capable of doing.”

Rosso believes the contest confirms that Ruggiero will grow up to be a top-notch repair professional.

“In my eyes, it is validation that he can and will be an excellent technician.”

Michael Bonsanto of I-CAR was happy to serve as the New Jersey SkillsUSA collision repair program director because he wants to help the younger generation enter the industry.

“I enjoy giving back to what I can to help create new life coming into the industry. This is about finding the best, letting them compete, sending them off to nationals and then helping them find a way to get where they’re going. Any way we’re able to help them get forward in their life is great.”

Bonsanto added that it is important for younger people to become a part of the collision industry, as the demand for new workers is high.

“A problem is certainly that people are retiring and less and less young folks are coming in.”

New Jersey SkillsUSA organizers would like to thank this year’s judges: Ted Rainer, Peter Fryzel, Ed Mayer, Mal Ginsberg, Jerry McNee, Edgar Chaves Jr., Mike Esquivel, Ray Esler, Chuy Barrera, Anthony Thompson, Charity Ritter and Michael Bonsanto.

NJ SkillsUSA would also like to thank the sponsors of the event: AASP/NJ, I-CAR, Bridgewater Auto Body, Karen Breidt of Auto Body Distributing, Anthony Trama of Bloomfield Auto Body, Tom Smetanka of Central Paint, Ed Winkens of National Oaks Distributors, Jerry McNee of Ultimate Collision Repair and Wayne Wagner of Walter’s Auto Body.

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NATIONAL NEWS

AASP/NJ Honored at

SCRS Awards Luncheon AASP/NJ was honored at last month’s Society of Collision Repair Specialists’ Awards Luncheon at the Sheraton Station Square Hotel in Pittsburgh, PA. AASP/NJ received the SCRS Affiliate Association Award, which was presented by SCRS Past Chairman Barry Dorn.

“The Affiliate Association Award is intended to recognize affiliates that stand as an example to others who exemplify exemplary actions on behalf of the collision repair professional,” Dorn said. “There are very few groups that we have ever awarded this to. In fact, it’s only been presented on five other occasions. AASP/NJ has spent decades focused on pulling together

not just their own members, but also their peers in other associations. They have placed an emphasis on collaborating with other associations that stay on the forefront, and they have established themselves as a shining example throughout the Northeast. As the host of the East Coast Resolution Forum and Leadership Meeting and the NORTHEAST® Automotive Services Show, and as a vocal advocate for the collision repair professional in the state of New Jersey and beyond, AASP/NJ continues to impress and deliver.”

AASP/NJ President Jeff McDowell and AASP/NJ Executive Director Charles Bryant accepted the award

on AASP/NJ’s behalf.

“It is truly an honor for AASP/NJ,” says McDowell. “Not only for me, but for all the past members of the association who have done all the hard work to get us to where we are now. It’s for everyone who fought through all the struggles over the years. To be honored in this way is really wonderful.”

“It is a real honor to be recognized for the things that we do in New Jersey,” added Bryant. “We do our very best to help all segments of the industry, and to be honored by a peer group like SCRS is very special to all of us.”

For more information about AASP/NJ, visit aaspnj.org.

NJA

Congratulations to AASP/NJ, recipient of the 2017 SCRS Affiliate Association Award!

Left to right: SCRS Chairman Kye Yeung, AASP/NJ Executive Director Charles Bryant, AASP/NJ President Jeff McDowell, AASP/NJ Administrator Alicia Figurelli (Greco Publishing), SCRS Executive Director Aaron Schulenburg and Past SCRS Chairman Barry Dorn.

New Jersey Automotive | May 2017 | 31

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COVER STORY

GREAT TECHS,

BAD GRADES: Are We Testing Repairers the Wrong Way?

By Joel Gausten

36 | New Jersey Automotive | May 2017

ASE B5 Sample Test Questions (Note: This was taken from The ASE Collision Repair/Refinishing Official Study Guide and may not reflect what will appear in the actual test.)

Technician A says that a bent MacPherson strut rod can be seen when it is rotated from the top.

Technician B says that a bent MacPherson strut rod can cause a toe problem. Who is right?

(A) A only (B) B only (C) Both A and B (D) Neither A nor B

The caster on the left side of a unibody vehicle is out of specs. The LEAST likely cause is a: (A) misaligned crossmember.

(B) bent idler arm.

(C) damaged lower control arm.

(D) damaged strut (radius) rod.

If you’ve ever read one of his bi-monthly messages in New Jersey Automotive or attended one of his NORTHEAST® management seminars with John Niechwiadowicz (QLC, Inc.), you know that AASP/NJ Collision Chairman Jerry McNee means business when it comes to finding and retaining only the best employees available in the industry. So it is understandable that he was more than a little miffed when one of his strongest technicians failed the Automotive Service Excellence (ASE) Collision Repair & Refinish Certification Test for Mechanical & Electrical Components (ASE B5) not once, but four times over a five-month period.

“Not only did he beat himself to death over it through anxiety and anticipation, but when he failed the fourth time, he literally took three days off of work because he was so emotionally drained on it,” McNee says. “After studying every single day for a half hour to an hour – and on Saturday and Sunday for two hours – he passed it by one question the fifth time he took it.”

Although his tech eventually passed the test, McNee felt bad over the effect the experience had on his worker – and angry over how the ASE system is currently structured.

“It was painful, painstaking and costly for me. And it wasn’t for the lack of trying by any means. As a tech, he’s an ace. The guy can fix something blindfolded.”

In talking with McNee about the situation, it is clear that he has a tremendous amount of respect for – and

NJA0517.qxp_NEW JERSEY AUTOMOTIVE 4/27/17 1:23 PM Page 37

belief in – his technician. So what was it that made the ASE B5 experience such a nightmare for an otherwise great team member?

“It’s the way they pose the questions,” McNee replies.

“There are three close answers, but only one is the best answer. It’s not necessarily the correct answer, it’s the best answer. You may miss one word that changes everything in the answer or question. Some of those questions are posed to try to fool you. You could have three answers that are close, but one’s the closest. It can really throw somebody for a curve. I know of shop owners who’ve just given up because they can’t get their techs to pass the ASE test.”

Want to know who else failed the ASE B5 test the first time? McNee himself. A 40-year veteran of the business, he took the test blind to get a feel for what it was about.

The experience was a huge eye-opener, to say the least.

“I studied for the ASE B4 and passed it, and then I took ASE B5 blindly. I started through the first half of the test and was thinking, ‘Man, this is easier than 4.’ Then I got to the last half, and it completely blew me out of the water.”

McNee later passed the test with no problem after studying up on it beforehand, but he points out that this second experience was nearly as frustrating as the first.

“When I went back to take the B5 again after failing it, the test was even harder because it was a whole other test.

Some questions were the same, but the majority of them were not. That’s exactly what my guy struggled with all along.” continued on page 61

ASE Resources

The ASE Collision Repair/Refinishing Official Study Guide: ase.com/MediaLibrary/Images/PDF%20folder/ collision_guide.pdf Who writes the ASE test questions?: ase.com/Tests/ASE-Certification-Tests/TestSeries/Who-writes-the-ASE-test-questions-.aspx

CBT Test Drive: ase.com/Tests/ASE-CertificationTests/Certification-Testing/CBT-Test-Drive.aspx Tips for ASE Test Taking: ase.com/testingtips/index.html

FAQ Test Preparation and Training: ase.com/AboutASE/FAQs/Test-Prep-and-Training.aspx ASE YouTube Channel: youtube.com/results?search_query=ase+campus

New Jersey Automotive | May 2017 | 37

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Collision Reporting Centers: Another Possible Trap for Shops?

NATIONAL FEATURE by Tom Slear

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” (CRCs) 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 continued on page 44

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NATIONAL FEATURE by Tom Slear continued from page 42

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

44 | New Jersey Automotive | May 2017

“Shops have a lot of leverage.

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

- John Norris

recommendations of body shops.

Posted 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.

NJA

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ASK MIKE INDUSTRY ADVICE

Do you have a question for Mike?

Contact New Jersey Automotive Editorial Director Joel Gausten at joel@grecopublishing.com or (973) 600-9288, and we’ll ask him in a future issue.

What Do I Do When an Insurer Won’t Pay Me for What I Want or Need?

For our newest regular feature, we welcome industry legend and former shop owner Mike Anderson (Collision Advice) to discuss some of the collision repair community’s biggest questions and concerns. This month, we tackle the huge topic of insurers refusing to fully compensate a shop for the services it provides. We also dive into some additional (but related) subjects as the conversation carries on. We at New Jersey Automotive hope you find this following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a subsequent issue.

New Jersey Automotive: Let’s say someone stood up in one of your seminars and asked you, ‘What do I do when an insurance carrier won’t pay me for what I want or need?’

That’s a pretty big order to fill; do you care to give it a try?

vary. Understand that while you may win the battle, you may lose the war in the long term. I’m not discouraging people from doing this, because everybody has to make the best business decisions for themselves. But if you go to court, understand that they’re probably going to start steering against you very heavily.

Mike Anderson: Sure! The first thing you You may lose; they may have deep need to do if you’re a shop in this kind of pockets where they can drag it on situation is make sure you’re prepared in forever. I’ve known people who’ve gone to court and won and done very well, advance. You need to make sure you have all your documentation prepared in and I’ve known other people who’ve gone to court and lost. There are pros advance before the insurer ever comes and cons to that. In my mind, that might out, and then you present that be a last resort. documentation to them. If they say ‘no,’ Obviously, trying to go up the chain you have a couple of options. The first option is to go up the chain of command of command at the insurance company would be the first thing to try. The to their supervisor to see if you can second option would be to try to utilize appeal to them. At that point, you either the arbitration clause. There are get a ‘yes’ or a ‘no.’ A second option is companies that will help you to do that. to make a business decision to do the items that won’t be paid for for free.

Another option is to refuse the repair and NJA: When we’ve talked to shops over the years on insurer payment issues, tell the customer they have to take it they have traditionally viewed balance somewhere else, or you can do the billing the customer as the last resort. repair and educate the consumer about Based on your experiences as a why you need to do what you do and former shop owner and on feedback charge them the difference. you’ve received from the facilities you Most states have something called consult with on a regular basis, what an arbitration clause, which is where an do you see as the benefits and arbitrator comes out to the shop and disadvantages of this practice? makes a ruling that the shop and insurance carrier agree to abide by. You also can take legal action where you can MA: When I owned my shops, balance get the customer to do an Assignment of billing was my first option. It always worked well for me. I think it comes Proceeds and you take it to court.

However, some states will not reimburse down to how you present it to the customer and how you prepare them for your legal fees. Every state is going to

50 | New Jersey Automotive | May 2017

it. When I had my shops, I had a letter that we gave to the customers at the front end. I would present it to the insurance company as, ‘This is what I need to be paid for. If you don’t want to pay for it, let’s just agree to disagree.’ I would charge the customer the difference and move on to the next one.

What I will say is that you don’t want to cut your nose off to spite your face.

Some estimates come back with a $10,000 difference, and some estimates come back with a $50 difference. There are some people who will fight for every penny no matter how much the difference is. I did that a lot in my life, and I ultimately realized I was wrong to do so. There’s a saying – ‘Do you want to be right, or do you want to be happy?’ I was trying to be right all the time, and I was making myself miserable. At the end of the day, you have to see what you can live with and what you can’t live with.

NJA: We’ve heard from a lot of shops that insurers are not paying for preand post-repair scanning procedures.

We’ve even heard that some carriers are going as far as saying that the policies they’re selling don’t cover these procedures.

MA: If someone from an insurance company told me that, I would strongly disagree. If their actuaries did not do the proper research to assess what to charge for a premium for that vehicle, then shame on them. When it comes to safety, there’s no room for negotiations.

We have a moral obligation to do the right thing. You either get paid to do it, do it for free or charge the customer.

NJA Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com).

NJA0517.qxp_NEW JERSEY AUTOMOTIVE 4/27/17 1:23 PM Page 51

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Flemington Volkswagen 213 ROUTE 202/31 FLEMINGTON, NJ 08822 TOLL FREE: 800-216-5124 FAX: 908-782-9397 rmuir@flemington.com www.flemington.com

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52 | New Jersey Automotive | May 2017

Trend Motors 221 Route 46 West Rockaway, NJ 07866 888-267-2821 FAX: 973-625-4985 www.trendmotors.com email:dreinacher@trendmotors.com

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ARANJ 2017 Board of Directors Mike Ronayne - Tilghmans Auto Parts (609) 723-7469 tilghmans@snip.net Mike Yeager - EL & M Auto (609) 561-2266 elandmauto@aol.com

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56 | New Jersey Automotive | May 2017

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The Automotive Recyclers Association of New Jersey

Wharton Insurance Briefs An ARA Member

Recently, we have had a number of questions and concerns regarding Workers’ Compensation audits. Audits are normally performed between 30 and 60 days after the expiration of your policy. You may be mailed a form to complete, contacted by phone for the information or have a scheduled visit by an auditor. Whether you complete the audit by mailing in forms, over the phone or by visit, make sure you are prepared. You should put together a breakdown of payroll by employee and classification.

You will also need supporting documentation such as WR-30s or 941s.

It is important to make the proper classification of each employee. There are several classifications: Auto Dismantler (incl. drivers), Auto Repair (mechanic), Auto Parts (counter/store), Iron or Steel (incl. drivers) and Clerical and Sales. It is crucial to classify each employee accurately. If you are directing the auditor to your accountant, you should review the information with them before it is released to the auditor.

If you have used subcontractors, you will be requested to supply: • the total cost of the subcontractor’s work; and • a certificate of insurance, evidencing the subcontractor’s general liability and Workers’ Compensation insurance.

The certificate of insurance should also name you as an additional insured; without this, the subcontractor cost will be charged as an employee payroll. Always request a copy of the auditor’s worksheets for reference.

If you should have any questions regarding your audit, please contact me.

Mario DeFilippis, AAI, Vice President (800) 221-0003 (ext. 1320) • (908) 513-8588 (cell) mdefilippis@whartoninsurance.com

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5 Things to Do If LEGAL PERSPECTIVE

by Mitchell Portnoi Certified by the Supreme Court of New Jersey as a Civil Trial Attorney

You’re Involved in a Motor Vehicle Accident

to an emergency room if you are having any physical your safety – Don’t compound a bad situation by 1 Secure 4 Go pains or problems, so that these issues may be making it worse. Pull vehicles to a shoulder or out of harm’s way if at all possible. Do not get out of a vehicle on a busy highway to inspect damage without first securing yourself and your occupants in a safe area in which to do so.

the police immediately and allow them to do their 2 Call job, which is to make a report of the incident and allow

them to take statements from those people involved in the accident. If you are unable to make a statement, you can always supplement a police report at a later date if the report includes inaccurate or incomplete information.

are injured or feel any pain or discomfort, let a po3 Ifliceyouofficer know and have them record it in the report.

No matter how insignificant this pain or discomfort may be at the time of the accident, an adrenaline rush after a stressful situation often prevents us from recognizing an injury because we are so consumed by the events that just occurred. If you have an ache or pain, let the officer know.

recorded and be causally related to the accident at a later date. DON’T be a hero and think that everything will go away. Insurance companies love to argue that the accident was so insignificant that no one even went to an emergency room afterwards.

up with your doctor (for any continuing physical 5 Follow complaints) and an attorney as soon thereafter as practical. An attorney can provide you with specific details on how to proceed, who to speak to and (more importantly) who not to speak to (hint- potential defendant representatives). Have the police report and a copy of your auto insurance policy available for review by the attorney for any meeting.

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COVER STORY continued from page 37 Additionally, McNee believes that ASE needs to broaden their horizons in how they communicate their questions to the automotive community.

“I think ASE needs to be a little more accommodating to other languages and different nationalities in this industry. It can’t just be English-only; anywhere on the coasts, a lot of people are from other nations. We probably have more foreign-born employees than we have people who were born and raised here. Even guys who have been here 15, 20 years are still struggling to read and write English.”

McNee’s struggles – and those of his tech – raise some important issues. If the collision chairman of AASP/NJ has a hard time passing an ASE test, what does that say about the format and criteria used to develop it?

At a time when the industry is so desperate for new talent to fill as many positions as possible, is it time to reevaluate ASE testing as a tool to help the collision repair workforce grow and succeed? Should ASE still be an English-only endeavor when there are many who have English as a second language (with basic reading skills but with excellent hands-on technical ability) and are willing to have careers in our field? (McNee’s tech who failed the ASE test is from Lithuania.) These were some of the questions that were rolling in longtime ASE Master Technician and industry instructor Peter Fryzel’s mind when he recently decided to let his Master ASE certification expire after more than 30 years.

“I’ve never really felt comfortable with the distractive questions; they’re convoluted,” he says. “There have been times in my life when I was graced with awards from ASE for having the highest test scores in the nation – once as a technician and once as an instructor. But the reason I could do that was because I had hands-on experience and I studied I-CAR throughout my career. I also understood how to read those convoluted and distractive ASE-type questions. I’ve never been comfortable with the style of those questions; I’ve been an advocate for our technicians and of just making it straightforward and an easy read. The industry needs technicians who can learn the information clearly and then answer a question straightforwardly. Make the questions demanding, but make them comprehendible. This would be a better measure of their knowledge, skills and abilities.”

To be fair, ASE has a tremendous task on their hands.

Let’s pick 50 technicians in this industry at random. What do you think the chances are that you’ll find 50 people with 50 different experiences and skill levels? ASE is working to at least provide a way to quantify and track technicians’ knowledge and expertise across the board, and the group’s leaders are confident that these efforts are on the right track.

“The collision series tests are reviewed every two to three years,” explains Teresa Bolton, ASE’s director of collision repair test development. “We get industry experts – meaning OEs, paint manufacturers, technicians, aftermarket providers like 3M and Fusor, shop owners and insurers – involved in the process. They look at each one of the content areas that are within the test, then we dig deeper and go into the task associated with each one of those areas. They remove old technology and add new technology. After that process is finished, they’re the ones who write the questions that the technician sees on the test.”

“Each and every one of our tests are reviewed by a technical committee of ‘subject matter experts.’ They’re technical folks who are living and working in the fields,” adds John Tisdale, ASE’s assistant vice president of test development operations. This process is done separately for each and every test; we do it in a multi-day meeting where we bring together a group of 12 to 15 technical experts who span across all areas of influence within that field…We want a good technical cross section of individuals who touch every element of the industry.”

That all sounds wonderful, but how does ASE address the very real dilemma of a fantastic technician who just can’t seem to pass an ASE test no matter what they do?

How does ASE help ensure that every promising technician stands a chance to succeed?

“Our data can’t really isolate those spaces,” Tisdale says. “Everybody’s measured based on their performance on the content associated with the test. But what we do find out from interacting with other technicians who are looking to earn our certification is that some of them are good, are working in the shop and are productive, but they may struggle passing our tests for a number of reasons. It could be just from certain skills that are not really sharp; maybe they struggle with analyzing information. You might have a ‘how-to’ technician who can do a lot of things in the shop effectively, but they may lack some foundational information that they haven’t had the benefit of learning because they haven’t been exposed to it in their career.”

To help automotive repair professionals better prepare for their tests, ASE regularly hosts free webinars (roughly once a month) that analyze various test questions in addition to providing information on a variety of collision repair and mechanical operations and procedures. The group also produces official study guides available, which Bolton insists offer far greater insight and more genuine information than the host of third-party guides available in the marketplace.

“I know that technicians purchase the books from other sources, and they tell me all the time that the questions look nothing like the ones that they saw [on the test],” she says. “We don’t write those questions; they’re written by those companies to help technicians prepare. I don’t know who writes them, so I can’t put a rubber stamp on the validity of the questions or the style of those questions. I try to tell the technicians when they call and have those concerns that they’ll never see a ‘none of the above’ on an ASE question. You’ll also never see an ‘all of the above’ or a ‘true or false.’”

While ASE stands behind what they offer the automotive repair and service industries, there are valid concerns that more needs to be done to give talented technicians a chance to shine on the shop floor and not just on a test.

As Fryzel says, “What are we trying to test – a person’s ability to read complex questions or a person’s ability to read reasonable material and have technical knowledge? Which does our industry need to have? A technician who can answer a straightforward question and properly fix the vehicle, or a technician who can comprehend a convoluted question and test well?”

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