Official publication of the Auto Body Association of Texas
(281) 930-1539 Kevin E l son
PUBLISHER
Thomas Greco / thomas@grecopublishing com
SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing com
GRAPHIC DESIGNER Lisa M Cuthbert / lisa@grecopublishing.com
EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing com
EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing com
OFFICE MANAGER Donna Greco / donna@grecopublishing.com
Published by: Thomas Greco Publishing, Inc
07110
A True Victory for Our Industry
Tis hasn’t been a year of victories for collision repair or many other industries, but there is an important piece of great news that I’m ver y happy to share with you.
As this issue of Texas Automotive was being finalized, the Society of Collision Repair Specialists (SCRS ) – a national group comprised of 40 affiliate associations (including ABAT) that represent 6,000 collision repair businesses and 58,500 specialized professionals – announced that it had received assurances from contacts in the US Department of Justice (DOJ) and Senate Judiciar y Committee that the 1963 Consent Decree will be maintained with no plans to terminate the agreement.
In April 2019, the DOJ announced plans to review nearly 1,300 antitrust judgments enacted without end dates. Four months later, the 1963 Consent Decree was identified as part of the larger deregulator y initiative ABAT joined SCRS and several other auto body associations across the countr y in pushing for support of the document. is extensive campaign included members of the ABAT community writing and/or signing on to letters to key lawmakers
(3) exercising any control over the activities of any appraiser of damage to automotive vehicles;
Burl Richards ABAT President
(4) allocating or dividing customers, territories, markets or business among any appraisers of damage to automotive vehicles; or
(5) fixing, establishing, maintaining or other wise controlling the prices to be paid for the appraisal of damage to automotive vehicles, or to be charged by independent or dealer franchised automotive repair shops for the repair of damage to automotive vehicles or for replacement parts or labor in connection therewith, whether by coercion, boycott or intimidation or by the use of flat rate or parts manuals or other wise
The survival of the Consent Decree is a huge win for all of us.
In a nutshell, the 1963 Consent Decree forbade three insurance trade associations and their members (more than 250 at the time) from engaging in several practices, including setting prices and steering automotive repair work away from certain auto body facilities. e insurers and co-conspirators involved in the Decree were permanently barred from (among other things) placing into effect any plan, program or practice that had the purpose or effect of:
(1) sponsoring, endorsing or other wise recommending any appraiser of damage to automotive vehicles;
(2) directing, advising or other wise suggesting that any person or firm do business or refuse to do business with (a) any appraiser of damage to automotive vehicles with respect to the appraisal of such damage, or (b) any independent or dealer franchised automotive repair shop with respect to the repair of damage to automotive vehicles;
e sur vival of the Consent Decree is a huge win for all of us. I applaud all the members of ABAT who took the time to send in letters and push to keep this important document alive I also applaud SCRS – specifically Executive Director Aaron Schulenberg and its Board of Directors – for leading the charge in making this happen. Without SCRS, the initial attempts to dismantle the Consent Decree and all that it stands for would have gone unnoticed
is shows us what the collision industr y is capable of through true unity, and it should inspire and encourage ever yone reading this message We got this done together
Ever y association in this industr y is only as strong as its members. As repair professionals, we are only controlled as much as we allow others to control us. Take the initiative as an independent shop to stand up for yourself and join others working to make things better A united industr y can move mountains.
Exec utive Direc tor ’ s Message solving our biggest problem
T h i n g s h a ve n o t l o o k e d “ n o r m a l” a ro u n d h e re f o r s o m e
t i m e n ow W h a t a w i l d w o r l d t h i s h a s b e c o m e b e c a u s e o f
C OV I D - 1 9 . If yo u h a d a s k e d m e l a s t ye a r w h a t 2 0 2 0 w o u l d
b e l i k e , I c e r t a i n l y w o u l d n ’ t h a ve s a i d , “ Oh , we w i l l p ro b a b l y
c a n c e l e ve r y e ve n t , b r u s h u p o n s a f e t y p re c a u t i o n s f ro m t h e
C D C a n d o rd e r f a c e m a s k s f o r o u r m e m b e r s ” Bu t
Th e re we a re . T h e o n e t h i n g t h a t i s not c a n c e l e d i s
t h e 2 0 2 1 l e g i s l a t i ve s e s s i o n So , i f I c a n f i n d
a s i l ve r l i n i n g i n a l l t h i s , i t i s t h a t we a re
a b l e t o f o c u s e ve r y o u n c e o f o u r e f f o r t
i n t o g row i n g A B AT m e m b e r s h i p a n d
g e a r i n g u p f o r l e g i s l a t i o n
I w o u l d ve n t u re t o s a y t h a t t h e
s i n g l e b i g g e s t p ro b l e m i n t h e c o l l i s i o n
re p a i r i n d u s t r y i s t h e l a c k o f c o n s u m e r
e d u c a t i o n o n s a f e t y i s s u e s
Un f o r t u n a t e l y, t h e va s t m a j o r i t y o f
c o n s u m e r s e i t h e r d o n ’ t u n d e r s t a n d t h a t n o t
a l l b o d y s h o p s m a k e s a f e re p a i r s o r f r a n k l y d o n ’ t
c a re , a n d t h a t ’ s a p re t t y b i g p a r t o f o u r b a t t l e f o r “ s a f e
a n d p ro p e r ” t h a t n e e d s t o b e a d d re s s e d . Cu s t o m e r s o f t e n d o n ’ t
re a l i ze h ow m u c h t h e s e i n s u r a n c e
c o m p a n i e s a re t a k i n g a d va n t a g e o f t h i s
l a c k o f k n ow l e d g e by g ro s s l y u n d e r -
i n d e m n i f y i n g t h e m . T h e l a w m a k e r s
d o n ’ t e i t h e r
A B AT Pre s i d e n t Bu r l
R i c h a rd s a n d s e ve r a l o f o u r B o a rd m e m b e r s
h a ve h a d m e e t i n g s ove r t h e p a s t f i ve ye a r s
w i t h t h e Te x a s De p a r t m e n t o f In s u r a n c e
( T D I ) a n d Te x a s l a w m a k e r s , a n d t h e i r
re s p o n s e h a s b e e n t h a t t h e y n e ve r h e a r
o f a n y o f t h e s e i s s u e s So , we s t a r t e d
w r i t i n g t h e m f ro m o u r s h o p s . T h e
n e x t re s p o n s e w a s , “ We l l , we n e ve r h e a r a n y c o m p l a i n t s f ro m t h e
Jill Tuggle ABAT Executive Director
i n s u r a n c e c o m p a n i e s T h e s e c o n d w a y i s t h a t we w i l l g a t h e r
i n f o r m a t i o n f ro m t h e c u s t o m e r a b o u t a n y u n f a i r o r u n l a w f u l
c l a i m s p r a c t i c e s t h e y e x p e r i e n c e . We w i l l h a ve t h e m i n i t i a l a n d
s i g n t h e d o c u m e n t , a n d we w i l l s e n d i t t o T D I a n d t h e
e following issues (and much more) are addressed in the checklist-style letter your customer can sign:
u e insurance company requested the use of aftermarket parts and you had to go out of pocket for OE
u e insurance company refused to reimburse you for ANY safety-required procedure, therefore causing you to suffer a loss for that item/procedure (scans, P-Page research, admin fees, etc )
u e customer had to come out of pocket for anything other than their deductible
u e insurance company totaled the car at less than 100 percent of value OR under valued the customer ’ s totaled car.
u e customer or shop was forced to use aftermarket parts to repair a vehicle.
c u s t o m e r ’ s l o c a l s t a t e re p re s e n t a t i ve a n d s e n a t o r o n t h e i r
b e h a l f T h i s h a s t h e p o t e n t i a l t o b e ve r y i m p a c t f u l . Ou r g o a l i
over Editor ’ s Message
nothing
Tis was supposed to be the month when ABAT hosted its 2020 Texas Auto Body Trade Show is was also supposed to be the month when I finalized my trip to Las Vegas to attend the SEMA Show in November Well, neither event is taking place this year Ver y little about the industr y these days feels the least bit normal. I’m sure your days at your business are being spent in ways you could not have imagined 12 months ago
Although COVID-19 has been a major shock to all of our systems, there is something major to be happy about As we were wrapping up this issue, news hit that the 1963 Consent Decree was no longer in danger of being terminated by the Department of Justice Saving this document was an extensive process that was made possible by the strong efforts of ABAT and industr y groups across the countr y It’s great to have such a powerful win for the industr y right now, and ever y ABAT member who took part in it should be proud of what they accomplished You can read more
about the Consent Decree in this month’s message by ABAT President Burl Richards
ere are four months left to this year, and there will surely be a lot of things out of our control Fortunately, the positive movement surrounding the Consent Decree proves that a connected industr y can still move for ward despite tremendous obstacles. Sure, we ’ re using Zoom instead of meeting rooms these days, but the spirit of ABAT and what the Texas automotive community can achieve together remains the same
Until next time, please stay safe and do all you can to remain optimistic. Years from now, we will look back at 2020 as both the industr y ’ s greatest challenge and its greatest victor y
VEND OR SP OTLIGHT
PPG is one of the oldest and most trusted names for paint and refinish products in the Lone Star State and across the entire collision industr y
Founded 137 years ago, PPG has been involved with paint and coatings since the early 1920s e company has been ser ving the Texas market since collision centers first opened their doors and paint shades had yet to evolve beyond basic black. Today, PPG products are available through independent distributors, which gives them a presence in ever y corner of Texas
“ Whenever anyone needs a product, we always have a way of getting it to them,” comments Senior Regional Manager Tim Pearce
PPG works to stand by its motto to “strive to do better today than yesterday, ever y day ” It is what has solidified PPG’s status as a leading brand around the globe
“PPG’s specialty starts with our dedicated, experienced team of professionals and distributor partners – not only in Texas but in all markets we ser ve – who are committed to providing the highest level of support to meet the needs of our customers, ” Pearce says “is involves products, programs, training or ser vices like layout and design or process improvement. I strongly believe it is the PPG team ’ s commitment to the success of our customers at ever y level that stands out.
”
Always looking out for the best interest of its customers, the company recognized a need back in the 1990s to develop programs that would help shops grow their businesses.
“PPG has been a pioneer and industr y leader for many years in developing and providing essential comprehensive training programs for our collision repair partners PPG is strongly committed to providing the highest-quality products, ser vices and support to assist all stakeholders in maximizing and sustaining their efficiencies, processes and performance at all levels of the repair process ”
rough its online Business Solutions portal, PPG offers courses
Providing industry training is a key factor in PPG's customer support.
By Alana Bonillo
designed for collision repairers to expand their knowledge in areas including marketing, business development/solutions and repair-related training
Valuing the importance of ABAT, PPG has been working closely with the association since its inception five years ago e company recognizes the key role ABAT has played in addressing and supporting the needs of the collision industr y on multiple levels Taking part in ABAT ’ s annual Texas Auto Body Trade Show gives PPG representatives the chance to interact with the ABAT members/supporters and their statewide customer base As the industr y grapples with COVID-19, PPG will continue to be there to assist association members in doing what’s needed to keep the ball rolling
“e industr y is currently experiencing never-before-seen challenges for all participants. It’s now more important than ever to support associations like ABAT to explore new and innovative ways to keep up with and understand the changes that are affecting our industr y daily. ABAT plays a major role in raising awareness and communicating those changes and needs that will benefit all of us ”
Virtual learning is one of PPG’s most popular offerings
T S Y A S EBO R EM N OR
t s y inish s f e in a r ou hing y yt er v h e it w
y enc t onsis c
P K AP IC ER AV M . ools y and t olor c – em or ed f k s u a
Membership Mat ters: Shops Share What ABAT Means to Them
As we ’ ve learned in both our professional and personal lives in 2020, a problem shared is a problem halved
is has always been one of the main philosophies driving ABAT ’ s work in the Lone Star State. rough grassroots advocacy for shops and maintaining contact with key national industr y groups, the association has remained active throughout the year in staying one step ahead of the ups and downs affecting repair facilities and the consumers they work to protect Fortunately, these actions have resulted in increased membership and a growth in positive feedback from member shops as a rough year carries on.
Over in Mansfield, Rick Gardner at Auto Tech Ser vices, Inc (ATS) credits ABAT for making a rocky era for the industr y much easier to navigate
“ABAT has most certainly helped ATS during this difficult and uncharted moment in time. It is difficult to place a value on the advice and direction from ABAT concerning our ability to maintain operations while protecting the health of our clients and staff Zoom meetings set up by ABAT have proven extremely beneficial in the fight to provide a safe ‘working environment’ while maintaining sustainable productivity levels ABAT provides the opportunity for shops to learn from other members by sharing successes and procedures concerning COVID-19 that would other wise be individually learned through ‘trial and error. ’”
Although ABAT ’ s ongoing work to assist its members through the pandemic has been of tremendous value to Gardner in recent months, he cites the association’s commitment to fostering a unified industr y as the greatest benefit of his membership.
“ We all know that the insurance industr y has the upper hand against ever y shop that stands alone Animals of prey know they can ’ t win if they take on the herd, but the feast is on when they cut one individual target out of the protection of the group as a whole We must unify and demand as a group that all insurance companies address all issues pertaining to the proper repair of each vehicle. Insurance companies are currently feasting on shops right now because we do not have a herd mentality
know that they can get away with not paying for required procedures by telling us the age-old line, ‘ You are the only shop asking for that,’ or worse yet, ‘ We know you have to do it, but we don’t pay for that.’ ABAT is bringing us together.”
Gardner’s partner at ATS, Brian Brunson, agrees that ABAT ’ s presence has had a substantial and positive impact on the Texas automotive community
“Being a member of ABAT helps us accomplish our goals by helping us stay on top of training for our staff of technicians and estimators ABAT also provides us with contacts throughout the industr y – from other shop owners and managers to vendors. is allows us to work at staying on top of changes in the industr y and focus on not just doing repairs the right way, but also documenting those repairs, keeping the customer informed and doing what's right for them - not what's the cheapest "
In business since 1989, Ed Griffin of Griffin’s Paint & Body, Inc (Winnsboro) was one of the first repair professionals in his area to sign up when ABAT got off and running. No stranger to common battles with insurers, he was quick to become involved in the entity created to represent and strengthen businesses like his own
“is industr y is topsy-tur vy It has so many issues, and the insurance industr y is way too powerful and controlling We needed to band together as a group of brothers and sisters and tr y to gain some power so that we could get paid for the hard work that we do.”
Griffin saw his daily business life improve almost overnight once he started attending ABAT meetings and interacting with fellow members e key to this advancement was taking advantage of ABAT ’ s focus on informing shops on the latest in industr y research and repair procedures.
“It just changed the way we ran [our] business. Our mentality changed, and our approach to repairs changed. e association educated us, and it’s still educating us on repairs and standing on the frontline of changes ”
Encouraged by all that ABAT has accomplished since its formation, Griffin urges other shops to support the association through membership and take part in the training and social events it offers.
“[ABAT President] Burl [Richards] is leading this organization and handling it in such a professional way It does take a lot of time to organize and get groups like us together, because we ’ re all so busy just tr ying to keep our heads above water It’s really a challenge to pull together an industr y like this and have [people] attend [events]
and gain the knowledge to fight an industr y that sits around in meetings all day and tries to plan how to get richer We still need a lot of members to follow suit and get on board with us so we can gain some more strength in numbers. But that’s a really tall challenge; it’s really tough. Fighting the insurance companies against their will is not a ver y popular thing. Doing what’s right isn’t always easy, but it’s really what needs to be done ”
For new member Chris Recker (Advantage Autoworks; North Richland Hills), becoming part of ABAT was a reflection of considerable changes in his career Formerly with Caliber Collision, he sought a means of receiving assistance and information to help his independent, Tesla-certified facility thrive.
“I was having an issue with one of my DRPs tr ying to force me into some stuff and basically bullying me [ ] When you ’ re an
“This industry is topsy-turvy. It has so many issues, and the insurance industry is way too powerful and controlling." - Ed Griffin
independent, you don’t have a lot of people to go to with questions. [ When I was with Caliber], they’d have regional guys in 10 different states to ask questions to. Nowadays, when you ’ re an independent, who do you have to help you? Who gives you advice? at’s one positive I can see about joining this organization I’m not just totally alone One of the things that attracted me to ABAT was that I missed having someone to [contact] if I had a question or needed advice or suggestions on how [other shops] handled a situation.”
With ABAT always available to offer support, Recker is more confident in moving for ward at the helm of his own business instead of working under a corporate umbrella
“Being independent can be harder in a lot of aspects, but if you ’ re the owner and the guy running the show, it kind of stops with you. You have a little more control over where you ’ re going to end up. ”
While it will be some time before things return to “normal” in Texas and beyond, ABAT has succeeded in giving its members the hope and direction they need to make the best out of where things are now
For information on ABAT membership, please contact Executive Director Jill Tuggle at (817) 899-0554 or jill@abat.us.
Russell & Smith Logging Big Paint Hours with USI Booths & Prep Station
Buying a paint booth is a huge investment, and there are many factors to carefully consider before selecting one. Will the booth work well in a region where there’s a ton of humidity and with drastic changes in the weather? How long do you think the booth will last and will it require a lot of maintenance? Will your painters be comfortable using it every day and finally, will the company making the booth provide solid training and reliable customer service?
To answer these questions before acquiring two Chronotech spray booths and a prep deck from USI ITALIA back in 2004, Collision Center Manager Kevin McIllveen at Russell & Smith Body Shop in Houston, TX spent six months studying the market. He was looking for the best booths that matched his needs to use in a brand-new 36,000 sq. ft. facility that the company built from the ground up.
Mcllveen, age 56, entered the industry more than three decades ago as an estimator and has worked for Russell & Smith Body Shop since 1993. His goal with his new spray booths was to improve the efficiencies in his paint department and to accommodate his production, he said, while simultaneously saving time and energy if possible.
The vetting process was arduous but worth it in the end. "We did our research so that we could make an educated decision," he said. "I went to NACE two years in a row and talked to literally everyone and asked a lot of questions. We knew that this was going to be a very significant investment, so we took the time to perform our due diligence to cover all our bases. We invested in their prep stations as well, which was another good decision, because my guys can work so much faster and effectively with five different places where we can spray. We put a curtain up in the prep booth that provides us two additional spaces that are heated and properly ventilated. So, when we are really jammed, we can handle the workload and maintain our cycle time without interrupting or slowing down our production."
After using them for a very short time, Mcllveen could clearly see that his Chronotechs were more than capable as they quickly became a centerpiece in his new, high-end, modern shop.
"We have four paint teams here, consisting of a painter and a painter’s helper and we consistently log approximately 600-700 paint hours weekly,” he said. “We switched to waterborne paint when we opened this facility because we want to provide a healthier climate for our employees and the community as a whole.”
we push these booths and they never let us down.”
Any issues that Russell & Smith Body Shop have encountered with their USI ITALIA booths have been rare and far between. But Mcllveen feels good knowing that if called upon, the company will respond and find solutions promptly. “If you do your scheduled maintenance and keep everything clean, these booths will last you 30 years and maybe even longer. The issues that we have encountered with the Chronotechs have been minor and quickly solved, which is impressive when you think that we have been using these booths daily for the last 16 years. I tell people that these booths will be here long after I’ve retired!”
Why was Mcllveen able to improve his numbers by simply adding two USI booths? “In the end, it all comes down to their airflow because we never need blowers or additional air to cure these vehicles. The fans in these Chronotechs are exceptional because they feature variable speeds, so we can switch depending on the parameters of each job. Our painters are producing an impressive product day after day, so these booths are saving us both time and money. We paint an average of 400 cars every month, so
After training provided by USI ITALIA, Mcllveen’s painters were able to start spraying after one day, he said. "The Chronotechs are designed to work with waterborne paint, which makes it easier for our painters to do their work. After a very short time, all of our guys were comfortable and the results were consistently exceptional.”
Mcllveen is also impressed by the Chronotech's sturdy construction and durability. "Some booths are just a box, but these are wellbuilt," he said. “I know, because I've seen them all and there isn't anything like a USI ITALIA booth."
His career in collision repair industry has been a great experience and products like his USI ITALIA spray booths and prep station are a part of that, he said. “We haven’t had to furlough anybody here and that’s because we value our people and, in the end, our Chronotechs are part of the team.”
Lifetime Warranty
Fully Insured Repairs
Customer Satisfaction
Independent Lab Tests
A sk the Exper t
“How
Did My Client’s Repairable Vehicle Get Recorded by the Texas
Department of Transportation as Non-Repairable/Salvage?”
Robert is a recognized Public Insurance Adjuster and Certified Vehicle Value Expert specializing in motor vehicle-related insurance claim resolution. As the general manager of Auto Claim Specialists, Robert expertly leads this National Public Insurance Adjuster Agency, which is currently licensed in over 25 different states and specializes in providing automotive-related claim liquidation techniques, strategies and motor vehicle valuation services to all parties, including individual consumers, body shops, auto dealers, repair facilities, towing and storage operations, lenders, finance companies, banks, legal professionals, governmental agencies and others. The firm’s consistent success can be attributed to Robert’s 35-plus years of automotive industry knowledge, practical hands-on experience and multiple certifications, including licensure by the Texas Department of Insurance as a Public Insurance Adjuster. Auto Claim Specialists clients can absolutely trust that they will be provided with analytical, sophisticated, state-ofthe-art, comprehensive, accurate, unbiased and up-to-date data and information that all parties can rely upon as both factual and objective Robert can be reached at (800) 736-6816, (817) 756-5482 or AskTheExpert@autoclaimspecialis tts.com.
Dear Mr. McDorman:
The insurance carrier incorrectly deemed my client’s vehicle an economic total loss, and my client elected to keep that vehicle and had us return it safely to its pre-loss condition. Now, the state has it documented as a non-repairable or salvage-titled vehicle. Under the Texas Department of Transportation 501 guidelines, the vehicle did not meet the definition of salvage or non-repairable since its repair cost was below the actual cash value. This situation not only destroyed the value of my client’s truck, but he is also now unable to get insurance coverage. Can you help me understand how this happened and what my client can do to resolve this unlawful situation? Have you experienced this situation? If so, can you share how you resolved it and the outcome?
Thank you for your question, which is par ticularly good and brings up a serious problem in Texas. The only way this situation could have happened is by the insurance carrier unlawfully turning in an Owner Retained Repor t ( VTR-436) to the Texas Depar tment of Motor Vehicles and disclosing the vehicle as non-repairable or salvage. If the vehicle did not meet the Texas Transpor tation Code 501 definition of non-repairable or salvage, then the authorized agent who signed the Owner Retained Repor t ( VTR-436) as listed on the document has falsified information and committed a third-degree felony. Never theless, we routinely see carriers per form this unlawful action.
The Texas Transpor tation Code, not the insurance carrier, defines a non-repairable or
salvage motor vehicle. Texas is a 100 percent total loss threshold state and does not recognize the total loss formula to define what constitutes a non-repairable or salvage vehicle The 100 percent threshold definition states that should the repair cost not exceed the tr ue actual cash value of the vehicle (not the perceived actual cash value arrived at by the market valuation firm), and if the vehicle is not missing a major component, then the vehicle is salvage or non-repairable
Additionally, Texas Transpor tation Code 501 takes the equation one step fur ther and says that the repair cost – including par ts and labor other than the cost of materials and labor for repainting (and excluding sales tax on the total cost of repairs) – must exceed the actual cash value of the motor vehicle immediately prior to being damaged In other words, before the calculation of determining if the vehicle fits the Texas Transpor tation Code definition of a non-repairable or salvage vehicle, all refinishing time, paint materials and sales tax must be deducted from the final repair invoice. The accumulated dollar amount of these three components typically average approximately 25 percent of the total estimate, which in return drastically decreases the severity percentage. Once this value is determined, should it be less than the tr ue actual cash value of the vehicle, that vehicle does not meet the Texas Transpor tation Code 501 definition of a non-repairable or salvage vehicle. Arriving at the tr ue actual cash value of the vehicle is paramount.
We currently have a client in the same situation Our client is going through the judicial system to seek relief and damages for the carrier’s unlawful actions of deeming his repairable tr uck an economic total loss and then issuing an unsuppor ted Owner Retained
Repor t ( VTR-436) to fur ther penalize him This unlawful issuance of the VTR-436 caused the state to deem the tr uck a salvage-titled vehicle This has not only prohibited our client from getting insurance on his tr uck, but it also destroyed the market value of the tr uck. We have requested the state provide us with a complete cer tified copy of the complete motor vehicle title histor y. The cer tified request for Texas Motor Vehicle information ( VTR-275) will disclose the authorized agent with the insurance carrier who falsified the Owner Retained Repor t ( VTR-436) and fur ther harmed our client.
Recently, the Judge asked me to outline how this situation could have happened and if I see this unlawful situation occur often. My immediate response was, “ Yes, your honor, I do.” This problem is deep-rooted and harms many interested par ties daily in Texas. In the upcoming months as my client’s case progresses through the judicial system, I will update the readers to the last par t of your question, “If so, can you share how you resolved it and the outcome?”
The under-indemnification in total loss and repair procedure claims in Texas is rampant. In my professional opinion, this is the fence post in the economic total loss scheme carried out by the carriers We have been increasing the total loss settlement for the eight out of 10 contacts who we end up retaining as clients an average of 28 percent We have also reduced clients’ out- of-pocket expenses an average of 35 percent on repair procedure disputes, such as the example provided in this response These under-indemnification percentages are staggering and harmful to Texas citizens
The spirit of the Appraisal Clause is to resolve loss disputes fairly and do so in a timely and cost-effective manner The invoking of the Appraisal Clause removes inexperienced and biased carrier appraisers and claims handlers from the process, undermining their management ’ s many tricks to under value the loss settlement and under-indemnify the insured Through the Appraisal Clause, loss disputes can be resolved relatively quickly, economically, equitably and amicably by unbiased experienced, independent third-par ty appraisers as opposed to more costly and time-consuming methods, such as mediation, arbitration and litigation.
In today’s world regarding motor vehicle insurance policies, frequent changes in claim management and claimhandling policies and non-standardized GAP Addendums, we have found it is always in the best interest of the insured or claimant to have their proposed insurance settlement revie wed
by an exper t before accepting There is never an upfront fee for Auto Claim Specialists to revie w a motor vehicle claim or proposed settlement and give its professional opinion as to the fairness of the offer.
Please call me should you have any questions relating to the policy or covered loss. We have most insurance policies in our librar y. Always keep in mind that a safe repair is a quality repair, and quality equates to value. I thank you for your question and look for ward to any follow-up questions that may arise.
Sincerely,
Rober t L. McDorman
PS: In further support of this editorial, please see the enclosed Texas Department of Motor Vehicles Request for Texas Motor Vehicle Information (VTR-275) and Owner Retained Report (VTR436) on pages 24 and 25 If you should need any help completing these forms or have any questions, please call me
Our network of local partners allows us to scale to any sized hail event.
Our technology provides real-time visibility and performance measurements to keep business moving.
Our people and repair management systems ensure the least amount of business disruption as possible.
Our business model protects our clients’ core business within auto dealerships, body shops, fleet companies, and insurers alike.
THE BES PAR A
AR RY PAR AR .
There’s only on fit right the first
T Y P T IS EVER
ne choice for Collision Repair par ts fo t time, function perfectly and restore
Glass - Windshield glass pr average car. Pass to keep your custo
ld provides nearly one third of the roo senger air bags rely on windshield integrity f omers safe.
Fascias - Fascias are more than cosmetic par ts. With more collision avoidance sensors now mounted to fascias or aiming through them, they need to fit precisely for the systems to work accurately. A proper fit ensures your customers’ fascias do not warp or bind with body panels, causing them to rust or delaminate.
Sheet Metal - Par ts such as hoods and quar ter panels can be integral to chassis structure and safety designs. Issues with corrosion, fit and appearance can eat up extra labor hours to finish the job and cause callbacks due to customer complaints — avoid that str r® sheet metal.
• FCA US LLC engineered
• Manufactured to proprietar y specs and tolerances
• Par t of a system that values safety and performance technologies
L or FCA US LLC v C vehicles - Authentic Mopar e the vehicle to its original condition. The top fiv
f fit all af ghting of strength on the for proper deployment Lifect saf ect lamp assemblies ar , R r® Par ts. And here’s the best par five high volume crash par ts tomer satisf f Alignment, NVH (noise, vibration and harsh safety, per o ormance and cus faction. P a mblies are prone to condensation, corrosion and diminished output r t, they are guaranteed to s:
ness) resistance and proper ction. Poor seals and leaky n
uthentic Mopar erior af f f f - T f w or f ess with Mopar
Lens composites that yello o og can dramatically reduce light output. Protect your customers from these af e ects by choosing Mopar
Mirrors Todaoday’s mirrors are increasingly sophisticated. Aside from convenience features, reflective sur a aces also affect saf ect safety and performance. Crash avoidance and lane depar ture systems are housed in the mirror assemblies and are prone to failure due to in e t termarket par ts. A r® Par ts are built to fit perfectly and function properly every time.
• O.E. crash par ts fit right the first time Tesested to be better – we can prove it
