Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564 Albert Salinas South Houston Nissan asalinas@southhoustonnissan.com 833-856-7871 Darrell Smith McDaniel’s Quality Body Works Inc darrell-mcdaniels@sbcglobal.net (903) 753-5391
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Corporate: (973) 667-6922 / FAX: (973) 235-1963
PRESIDENT/PUBLISHER
Thomas Greco / thomas@grecopublishing.com
VICE PRESIDENT/SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com
EDITORIAL DIRECTOR Alana Quartuccio / alana@grecopublishing.com
SR. CONTRIBUTING EDITOR Chasidy Rae Sisk / chasidy@grecopublishing.com
PRODUCTION COORDINATOR Joe Greco / joe@grecopublishing.com
OFFICE MANAGER
Donna Greco / donna@grecopublishing.com
SPECIAL CONTRIBUTORS: Burl Richards / Jill Tuggle
Robert L. McDorman / Mike Anderson
www.grecopublishing.com
by Chasidy Rae Sisk
President’s Message
What is ABAT Doing for You?
IIt seems like a lot of Lone Star shops want to know what ABAT is doing for them, so it’s no surprise that was an important topic of conversation at our recent Board meeting. A very small portion of the many shops in Texas have joined the association, and one of our main focuses in 2025 is to grow that membership because we know there’s strength in numbers, and we cannot accomplish everything we want to do without the support of more industry professionals. But we also recognize that, in order to attract more members, we need to make sure y’all understand what we have to offer.
And ABAT has a lot to offer!
When we first started this group in 2014, we recognized the many needs this industry has. Of course, we all want to be profitable, but any successful shop knows that begins with safe repairs. That means that we need to invest in the training and equipment needed to perform those processes properly…and if we aren’t getting reimbursed the way we should, none of that is possible. That’s why one of our main goals has always been to
provide Texas shops with a forum for education, communication and sharing information so we can all be successful.
We’re going to keep doing that, but we’re working on ways to make it more accessible to every shop across the 268,597 square miles that make up this great state. For the past several years, we’ve held a lot of our meetings virtually, and while we’ll continue to do that to give everyone a chance to participate, there’s a lot of value in getting together face to face as well.
Each quarter, we’re going to switch it up; we’ll hold a Zoom meeting one quarter and then an in-person meeting. Then, we’ll repeat. We’re also discussing the possibility of holding some chapter meetings in different geographical regions to give repairers more opportunities to connect with their local peers.
Burl Richards ABAT President
Executive Director’s Message
ABAT Needs YOU and Your Slingshot at the Capitol
TThe story of a small hero beating the giant villain is a tale as old as time. David and Goliath, the Trojan horse, Rocky Balboa…the American revolution. These stories pull on your heart strings and ignite a piece of you that believes good will always win and that sometimes the underdog is worth cheering on. ABAT often feels like the underdog during a legislative session. We are up against the “suits” who fly in from the big city with a briefcase full of
money. And so far – the bad guys have won every battle in this long war.
But if you are familiar with those stories, the road to victory was a long, rough one with losses and setbacks along the way. Nevertheless, they all ended in victory.
Why? Because buried in the chest of each of those unassuming victors lies the heart of a giant, a wit to outsmart and the refusal to never give up. And that’s what we have in ABAT members.
While our Goliath is absolutely the “rich guys in suits” who will show up in Austin to testify or make a promissory phone call from an ivory tower in Fort Worth, there is one key component that they lack. The good news is that it really is the ultimate trump card…the ace of spades, if you will. That’s district voters. Us
Money and power will go a long way in politics, but at the end of the day, our legislators know that they must answer to their constituents. They swear an oath to execute their duties to the state of Texas. To cities like Longview and Lubbock, to San Antonio and Salado, to Brenham and Beaumont and everywhere in between – not to Illinois
Collision Day at the Capitol is a day for us to climb into the proverbial Trojan horse and visit offices. ABAT will arm you with all the information and talking points you need to deliver the clear, concise message to your legislators: that every consumer should be able to afford a safe and proper repair.
This session is more important than ever, so please join us at the Capitol to slay the giant and keep claims practices fair in Texas.
Jill Tuggle ABAT Executive Director
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 ever y day and finally, will the company making the booth provide solid training and reliable customer ser vice?
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 industr y 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 ever yone and asked a lot of questions We knew that this was going to be a ver y 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 ver y 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 ever ything 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 ever y 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 ver y 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 industr y 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 ”
Local News
Miles Apart But Of Like Mind: How Two Shop Owners Grew a Friendship and Partnership
Sometimes life just has a way of bringing the right people together.
When ABAT’s Burl Richards took a seat in a BASF 20 group nearly 15 years ago, he had no idea he was about to build a lifelong friendship and discover a future business partner in a body shop owner from New Jersey.
He’d soon learn that Jerry McNee of Ultimate Collision and Repair (Edison, NJ) just so happened to share many of the same visions Richards did – a passion for the industry, for fixing cars correctly and for turning out nothing less than safe and proper repairs.
Richards and McNee may live many miles apart, but their shared business objectives could not be any closer.
The pair very quickly went from colleagues talking about shop issues to close friends taking family vacations together. Now, Richards and McNee have partnered up as owners of three body shops in east Texas.
Their like-mindedness wasn’t just obvious to them but to those around them as well. McNee has been referred to as the “Burl of the North” by colleagues – and even by his wife!
“When you’re with other likeminded folks in these 20 groups sharing thoughts and visions, it becomes apparent that we have a lot more in common than the 20 Group itself,” reflects McNee.
someone you know and trust and who has been through it before. In their case, it made for a good friendship.
So, when Richards asked McNee if he would be interested in opening a shop with him in Texas, “he was on board with it from day one.”
Two years ago, they purchased the first shop – Doug’s Paint and Body (White Oak). They’ve since purchased two more – Fishburn’s (White Oak) and Laserline Collision Center (Lindale)
It’s a different learning experience for both as Richards explains, “We're involved in the business, but we're not there every single day, like we are at our other shops. It was an investment, but also a business model that we could see if we could duplicate. So, it’s been very interesting, and we’ve learned a lot. I’ll tell you I have a whole new perspective of the larger MSOs and the way that they're organized with a manager and a regional manager and other managers.”
“Jerry was very like-minded in doing similar things at his shop that I did at mine,” recalls Richards. “Nether of us were DRP-oriented. Not to say we didn’t have DRPs, but that wasn’t the focus of our businesses which was more about taking care of the customer, maximizing repair efficiency while ensuring safe and effective repairs. Jerry and I just really hit it off because we’ve been doing the same things, him up in Jersey and me here in Texas. After these group meetings, we’d all go out to dinner and hang out. Jerry is one of my best friends, and I can honestly say I’ve met others from those groups who I consider some of my best friends.”
Even though they were in different states, they were both doing the same thing in their shops, and it was easy to pick up the phone, call the other and talk things through. “It can make a world of difference,” says McNee of the benefits of talking things out with
Richards also noted the importance of KPIs. “We have certain KPIs that we look at every month, but those large MSO shops are really on it every day. They’re so admin heavy that they are looking at certain numbers and metrics every single day, and I’ll tell you that is what it takes. You have to stay on top of it.”
Currently, they are focused on building up the most recent shop they purchased in Lindale. That will remain their focus until the shop is off and running, and then they consider growing their brand further. They have created White Sands Collision as the holding company, but currently, the goal is to keep the shops they’ve purchased running under the names customers recognize while putting their own spin on each operation.
“I’ve had businesses with other business partners, and Jerry and I have never had a cross word ever. We are on the same page. Having someone you can work with has been a big positive. I’ll be the first to tell you that I don’t know everything, and I think Jerry would tell you the same thing. So we’re willing to try the other person’s ideas, but I’d say 80 to 90 percent of the time we are on the same page. It’s good to have that flexibility and that openness because when you own your own business, you get used to calling your own shots, so it’s definitely a different dynamic when you have
Jerry McNee and Burl Richards
a business partner. And it really helps that we are so like-minded.”
McNee agrees, “As a sole owner, you don’t have anyone to bounce things off. Every decision you make is completely your own. And in a small business, you learn the hard way. It’s a school of hard knocks. Burl and I both have our strengths. We can throw something on the table, hammer it out, punch holes in it and come up with a solution. And we've never had a disagreement.”
“Who would’ve thought 15 years ago when we met that we’d be business partners in Texas?” adds Richards. “It was never on the radar, but it’s just the way things worked out. It’s been an opportunity to branch out and try new things. We’ve both been doing this for 30-plus years. Having a business that long afforded us to be able to try other investments and do other things. We’re passionate about this industry so why not go out and try something new?
“It’s different than when we first started out,” Richards continues. “You’d have to make that check every week to pay the light bill at home, get the kids clothes for school and get a household going. This is more of an investment endeavor, but at the same time, if we can have more say out there in the industry on how to fix cars properly and do the right things, it helps spread the word.”
“It’s a different venture than we had in the past,” McNee contributes. “When I was building my place in Edison, there were
by Alana
headaches and struggles, and I didn’t know if I was making the right decision because I had nobody to turn to.”
Richards stresses how different it is to not be at these shops every day making decisions on the fly, instead depending on other people to do that; therefore, communication is key.
“It has its challenges, but it’s very interesting and very rewarding when you can have success doing it. We’re not where we want to be just yet, but we are very committed to dialing it in,” says Richards. TXA
Ladies of Collision Christina Seckinger of Anson PDR
Whether they were born into it, fell into it or signed up for it, the ladies of the collision repair world sure do prove that this industry isn’t all just about the men. Since this feature made its debut in Texas Automotive, we continue to celebrate the many women who live, breathe and eat up this work every day of their professional lives. This month, we reached out to Christina Seckinger of Anson PDR whose devotion for the industry and her family are evident.
Texas Automotive: Tell us about what you do and what your company does.
Christina Seckinger: I am the owner of Anson PDR. We provide paintless dent repair (also known as PDR) tools and accessories. Our headquarters is based in Burleson, Texas. We also have a location in Plano and one near Austin where we assemble lighting for automotive repairs.
TXA: Can you tell us more about how it got started and what led you to become a part of it?
CS: My grandfather, George Dyer, started the company back in 1996. My first
introduction to this industry was coming up to Anson to visit my grandfather. At the time, my father, Craig Dyer, worked there selling tools. My father was also a technician. Growing up, I was able to learn about paintless dent repair, watching how it’s used to repair hail damage and also with collision damage as it can be used to repair larger damage without having to correct the paint in the process. I was able to see both sides of the PDR industry as a result.
TXA: Did you ever imagine you’d one day become involved with the family business?
CS: It was not my plan to work at Anson PDR or become the owner. When my grandfather passed away from a stroke in 2014, I entered the picture. I was working in the oil and gas industry, and I had a nine-month-old baby when my grandfather passed away. As a family, we had to figure out what to do about the business, and we made the decision to band together. So, I stopped paying for full-time daycare and brought my baby up to Anson with me. It was a lot of blood, sweat and tears from that
by Alana Quartuccio
point on to move forward and revamp it into what it is today. My dad had a business repairing cars, which he eventually left to come on board with Anson full time. My mother, Lisa Dyer, retired from teaching to come work here full time. It really is a family atmosphere with everyone we have working here. Whether they’ve been here a long time or not, they are part of the family.
TXA: What do you think are the biggest challenges women face in what is often perceived as a male dominated industry? Have you experienced such challenges, and what did you do to overcome them?
CS: I have to say about 94 percent of my customers are males. When one walks into our store looking for automotive tools, I’m likely to be the person who asks, ‘What can I help you with?’ There have been times when I've been met with, ‘Oh, I don't need help,’ and then they’ll turn to a male and ask them instead. I’ve answered questions for people who then asked the same question to a male, next to me, to see if my answer was accurate and trustworthy. I experience it a lot less now, but it was a hurdle to get over. How I’ve remedied that situation is by going out and getting myself trained in paintless dent repair. I have four certificates. I’ve trained with some of the best trainers in our industry, and that has really helped bridge the gap between myself and my customers. In general, my customers respect that I’ve taken that type of care and effort into answering their questions.
TXA: What about the industry do you love the most?
CS: The community. Period. PDR may be a small side of the automotive and collision industry, but the community itself just looks
Christina Seckinger, owner of Anson PDR
George Dyer, founder of Anson Industries
Ladies of Collision
continued from pg. 12
out for each other. If I need anything, I have a list a mile long of people I can call who would be at my doorstep as soon as they could.
TXA: What is life like outside of the business? Any hobbies you’d like to share.
CS: I have two daughters who keep me very busy; my oldest is 11, and my youngest is eight. We enjoy traveling together as a family. I would say that travel is our biggest hobby, and we are blessed to be able to do that.
TXA: Any encouraging words you would give to other women who may be interested in getting into PDR or any other part of the collision repair world?
CS: Knowledge is power. Do the training. Ask the questions. Go put your hands on the tools. You don’t know what you don’t know and don’t let anyone – especially any males in this industry – make you feel like you’re less than. TXA
WIN offers education, mentoring and leadership development opportunities to build critical skills for success in the collision repair market.
• Local/Regional Networking Events
• Annual Education Conference
• Educational Webinars
• Mentoring Opportunities
womensindustrynetwork.com
• Scholarship Program
• School Outreach Program
• Most Influential Women (MIW) Award
Cover Story
Getting in a car crash tends to be a traumatic experience for any driver, but when their insurance carrier – the entity sworn to make them whole after an accident – adds insult to injury by under-indemnifying them for the claim, many vehicle owners find themselves shivering with apprehension as to how they’re going to get their car repaired or afford a replacement. But then a ray of light appears amidst the clouds for those who learn that they have the ability to contest value through their policy’s
Appraisal Clause without being forced to pursue costly litigation. Unfortunately, few consumers realize they have the Right to Appraisal (RTA), and tragically, some insurers have removed this protection from their policies to the detriment of policyholders. Texans first saw this attack against their rights in 2015 when the Texas Department of Insurance (TDI) allowed State Farm to eliminate RTA from its policies in the Lone Star State, and since then, several additional carriers have submitted policy change
applications requesting approval from TDI to remove the RTA for repair procedure disputes from their policies.
“You can tell the Appraisal Clause works and is fair because more insurance companies are removing Right to Appraisal from their policies,” notes ABAT Lobbyist Jacob Smith (Longleaf Consulting). “Only two percent of all policyholders with denied claims are willing to fight it in court, and when they do, carriers have the funding to simply wait them out.”
Ware Wendell, executive director of consumer advocacy
by Chasidy Rae Sisk
group Texas Watch, agrees that RTA is vital for protecting consumers from under-indemnification. “Consumers need a mechanism to ensure safe repairs will be made to their vehicle after a loss. Fair appraisal gives them the ability to bring things before an independent expert – the appraiser – who can determine the correct cost of the repair according to the original equipment manufacturer's specifications.
“We advocate for the consumer, and we want to make sure consumers have the ability to take their vehicle to a repair shop of their choice, free from intimidation or influence by the insurance industry,” he adds. “Once the repair professionals have the vehicle, we want to make sure they can do the job the right way without pressure from insurance adjusters to cut corners. Fair appraisal can help to make this happen.”
While mandatory RTA is absolutely necessary to protect consumers, it’s not necessarily anti-insurer, according to Robert McDorman (Auto Claim Specialists). “This is not a one-sided initiative. It’s designed to protect both parties – the insurer and the insured. The Right to Appraisal solves problems in an amicable way.”
“It is a fair bill for any party. The same right that the consumer has is the same right that the insurance company has,” Smith explains. “What we’re asking for is already in 97 percent of all auto policies in the state; we’re just asking that it is mandated in all policies so people don’t have to guess if they have this dispute resolution in their particular policy. The Appraisal Clause is not something that’s unique to the auto industry; it’s in a lot of insurance policies. It’s a great process that brings in a third-party umpire to determine who was accurate and who wasn’t.”
“The goal is simply to provide a fair and level playing field for the consumer, which they typically don’t have without going through the burdensome process of suing their carrier,” he continues. “If insurance companies are operating in good faith, they never even have to worry about the Appraisal Clause. Insurance is not a free market; it’s a mandate. We don’t get to negotiate what’s in those contracts; we get to choose from various levels we’re offered. Consumers don’t have many tools in their toolbox, and no one wants to go into litigation – especially over a few thousand dollars. But those few thousand could mean a part on the vehicle that impacts an individual’s safety. If we can ensure safety and a level playing field for the consumer, then we’ve done our jobs.”
Wendell believes, “All drivers should have the right to fair appraisal, allowing either party to begin the process and providing reasonable deadlines to avoid delay. This will help to resolve property damage claims promptly and safely.”
“Appraisal has to be fixed in Texas,” Smith insists. “It’s going to be one of the biggest issues this session on multiple fronts from multiple organizations.”
ABAT recognizes how important it is for Texas consumers’ cars to be repaired correctly and to pre-loss condition, and they understand that when there’s a value dispute with an insurer,
continued on pg. 18
Cover Story
continued from pg. 17
RTA offers an invaluable means of resolving that dispute. During the past two legislative sessions, ABAT has supported legislation that would mandate the inclusion of the Appraisal Clause in all Texas insurance policies, ensuring that Texas drivers receive the full value of their vehicle in the event of a loss.
As a result of those efforts, both TDI and the Office of Public Insurance Counsel (OPIC) released reports in recent years which indicated the value of RTA (additional information available at grecopublishing.com/txa0223coverstory). Wendell sees these acknowledgements as progress in the right direction. “It shows that regulators understand the dangers to the public when drivers are unable to recover the correct cost of the repair under the terms of the insurance policy and our laws. We aren't asking for drivers or repair professionals to be overpaid. We just want to make sure policyholders receive the verified and justified amount of money for their loss so their vehicle can be repaired safely.”
During the current legislation session, the association is throwing its weight behind Senate Bill 369. This proposed legislation, pre-filed in November 2024 by Senator Charles Schwertner (R-District 5) and referred to the Senate’s Business and Commerce Committee on February 3, includes similar goals and language as the bills proposed in the last two legislative sessions. First and foremost, it would mandate that all personal automobile insurance policies written in Texas “contain an appraisal procedure that complies with this subchapter.”
That procedure would permit the insured or insurer to demand an appraisal within 90 days from when “the insurer accepts liability and issues the insurer's undisputed liability offer,” at which point, both parties would have 15 days to appoint an unbiased appraiser and share that appraiser’s identity with the other party. Those appraisers would collaboratively determine the true amount of the loss, but if they fail to agree upon the amount of loss, they would select an umpire to determine the true cost of repairs. (The bill is available in its entirety at bit.ly/RTA-SB369.)
“When a repair shop and the insurer cannot agree on the terms of a repair bill, it’s imperative that consumers be able to invoke RTA to ensure they are not being taken advantage of by greedy insurance carriers,” ABAT President Burl Richards stresses. “RTA puts the consumer back on equal footing and gives them an opportunity to have their car repaired properly. When an insurer refuses to pay for proper repairs, it hurts the vehicle owner and creates the potential to hurt others on our roadways! Yet, insurers are only interested in their own profits, and that’s also why they want to remove the Appraisal Clause from their policies, preventing consumers from being able to have a fair method for value disputes with their carrier. It’s not about the money; it’s about making change and hoping insurers will start treating people right.”
“SB369 is vital safety legislation that guarantees auto policyholders the right to a fair appraisal,” according to Wendell. “Reasonable deadlines and procedures are put into place under the bill to resolve disputes about the correct cost of the repair. It is crucial that this legislation pass into law this session. Fair
appraisal legislation made big progress last session at the Capitol. It is so important that we all push the legislation across the finish line this time and onto the governor's desk for his signature in 2025. Now is the time to raise our voices for fair appraisal because it leads to safe repairs, and safe repairs save lives!”
“This appraisal issue is 100 percent a safety issue,” McDorman concurs. “Appraisal is about getting it right; it’s about finding the number. The Right to Appraisal should be mandatory. If there’s a loss dispute, it should be subject to appraisal. My unwavering position is that removing the Right to Appraisal on repair procedure disputes will be the enemy of a safe repair and become the stake in the coffin for safe roadways for us all.”
“ABAT will always do our utmost to protect consumer safety, including when they need us to protect their rights,” ABAT Executive Director Jill Tuggle asserts. “If insurers are permitted to remove the Appraisal Clause from their policies, it will also negatively impact the collision industry. When we allow insurance companies to self-police and manipulate the system, their accountability wanes, and shops are put under even more pressure to cut corners.”
In contrast, Tuggle asks shops, “Can you imagine getting paid for all OEM recommended procedures? Can you imagine using parts that all fit correctly and have been safety-tested and really are of like kind and quality? For too long, our industry has convinced ourselves that we don’t stand a chance against the insurance industry because they’re so much bigger than us, but our voices do MATTER.”
Later this month, ABAT will use their voices during its 2025 Collision Day at the Capitol (a recap of the event will appear in an upcoming edition of Texas Automotive, so stay tuned), and you’re invited to join in! But there’s still more to do.
“Everyone who cares about safety and protecting folks on Texas roads should support SB369,” Wendell weighs in. “It will ensure damaged vehicles are repaired properly and promptly. You can tell your lawmakers to support this legislation by going to texaswatch.org/campaigns/safe-repairs-save-lives. Take one minute to sign our petition. Lawmakers need to hear from you and not just the insurance lobbyists walking the hallways in the Capitol.”
“To protect consumers, we need to continue making some noise to alert legislators to this issue so they can help,” Smith urges. “We must protect consumers, and creating awareness is the best way to do that. Legislators want to hear about their constituents’ problems. Auto body shop owners are voters and their constituents, so you can make a difference by voicing your concerns!”
He encourages shops to contact their state representatives and senators, whose contact information can be found at wrm.capitol.texas.gov, to share their concerns and garner their support for SB369. TXA
Ask The Expert The Importance of Mandatory Right to Appraisal Time Triggers
Dear Mr. McDorman,
by Robert L. McDorman
I own and operate a collision facility in North Texas. Your December article about Senator Charles Schwertner’s Senate Bill 369 concerning mandatory appraisal rights in Texas mentioned time triggers in his appraisal bill. For repair procedure disputes, I believe I can see where these are a needed component of the bill. How do you view the importance of time triggers, and how do you see them helping insureds in loss disputes? Also, does Auto Claim Specialists keep data on typical cycle times for clients with claims going through appraisal? If so, can you share this with the readers so we can see how these compare with the time triggers in Senator Charles Schwertner’s Bill?
Thank you for your comments and questions. We view the need for mandatory time triggers in the Right to Appraisal (RTA) bill as being essential. We do record the average time it takes for our clients’ repair procedure claims to make it through the entire appraisal process, from date of loss to final settlement date. For repair procedure RTA disputes where claims do not require an umpire, our records show that from the date of loss to final settlement takes 280 days on average. It is broken down as follows: from date of loss until the carrier issues their estimate of record takes 32 days on average; from the estimate of record date until the last supplement by the carrier is issued also takes an average of 32 days; from the date of the last supplement is issued by the carrier until the RTA is invoked takes another 47 days; from the date the RTA is filed until the carrier appoints their independent appraiser takes 48 days; and finally, from the date the carrier appoints their independent appraiser until the appraisers agree on the amount of loss averages 121 days (see graph).
Senator Schwertner’s bill contains critical time-sensitive triggers that prevent the harmful delays in the insurance claim process we see and deal with daily, as outlined above. As noted in the bill, should there be a dispute in the amount of loss, either party – the insurer or the insured – must invoke this RTA within 90 days after the insurer accepts liability and issues their undisputed liability offer. Also, it sets a timeline that requires the parties to appoint and name their appraisers no later than the 15th day after the appraisal is demanded. The bill requires that the appraisers agree on the amount of loss on or before the 30th day following the date both appraisers are appointed. The bill sets a drop-dead date on the timeline for which the appraisers must select an umpire if they cannot agree on the loss. The appraisers must choose an umpire on or before the 15th day after the date the appraisers determine an umpire is needed. Should the appraisers not be able to decide on an umpire, the insurer or the named insured may request that a court in the county in which the named insured resides select the umpire. The appraisers and umpire must determine the amount of loss not later than the 30th day after the date the umpire is selected.
As you can see from comparing these time triggers in Senator Schwertner’s bill to our historical average cycle times, just the decrease in time from filed RTA to the date appraisers are appointed (our historical 48 days versus the bill’s 15 days) and from the date appraisers are appointed to the day appraisers agree on the amount of loss (our historical 121 days versus the bill’s 30 days) would drop the total repair claim cycle time by 124 days, which is close to half the current average total cycle time! This would be a huge relief for insureds in Texas.
In addition to these time-sensitive triggers, Senator Schwertner’s bill also contains a fee-shifting component that will also provide relief to Texas insureds. This component reads, “If, at the end of the appraisal process, the amount of loss is determined to be more than 10 percent greater than the amount of the insurer’s last offer, the insurer shall refund the named insured’s reasonable out-of-pocket expenses for the insured’s appraiser’s fees and expenses.” To make it fair for the insurers as well, and prevent excessive, unnecessary appraisal demands, it states that if, at the end of the appraisal process, the appraisal award is more than 10 percent less than the amount the insurer last offered, the named insured shall pay the insurer appraiser’s reasonable fees and expenses. We believe this is fair.
The under-indemnification in repair procedure claims in Texas is rampant. Most of the estimates and supplements we see for repair claims have many overlooked (by design) safety and OEM-required operations needed to restore the loss vehicle to its pre-loss condition
Robert is a recognized Public Insurance Adjuster and Certified Vehicle Value Expert specializing in motor vehicle-related insurance claim resolution. Robert can be reached by phone at (800) 736-6816, (817) 756-5482 or via email at AskTheExpert@autoclaimspecialists.com. continued on pg. 22
Ask The Expert
continued from pg. 20
to the best of one's human ability. Limiting or removing the insured’s right to appraise a repair procedure is a serious safety issue. The limitation or elimination of the RTA by the insurance carrier in a repair procedure dispute will be the nail in the coffin for safe roadways in Texas.
As I have written many times, we at Auto Claim Specialists understand your concerns about under-indemnification. Until legislators pass laws to make the Right to Appraisal mandatory in Texas for all motor vehicle policies, we have no choice but to continue to advise our clients who have been harmed and cheated by their insurance carriers to fight like the third monkey in line to get onto Noah’s Ark when it has already begun to rain, and we will help. In my professional opinion, the more times these systematic under-indemnification schemes are exposed and monetary punishment is levied, the quicker change will come to help us all.
Our position at Auto Claim Specialists is that RTA should be a mandatory contractual right in every policy. For the 89th Texas Legislative panel, we have teamed up with lobbyist Andrew “Drew” Graham to educate lawmakers and help secure mandatory contractual appraisal rights for all insured Texans. We, the insureds, are many, and I am confident that if we join forces and all do what we can, we can be successful in securing our rights and our children’s rights to contest insurance settlement offers that would result in underpayment of losses and/or shoddy and dangerous repairs.
The spirit of the Appraisal Clause is to resolve loss disputes
fairly and to do so in a timely and cost-effective manner. Invoking the Appraisal Clause removes inexperienced and biased carrier appraisers and claims handlers from the process, undermining their management’s many tricks to undervalue 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-party 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 claim handling 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 reviewed by an expert before accepting. There is never an upfront fee for Auto Claim Specialists to review a motor vehicle claim or proposed settlement and give their 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 library. Always remember that safe repair is a quality repair, and quality equates to value. I thank you for your question and look forward to any follow-up questions that may arise.
Sincerely,
Robert L. McDorman TXA
THE ITALIA
Designed for high production, the Italia comes with the Timeless Series Direct Drive Air Make Up Unit, completely integrated intake, heat, and exhaust system.
The Italia includes (2) 10hp VFDs, digital PLC control panel, full lower LED lighting package (every wall), and SmartPad digital control panel with EnergySmart Package, which automatically drops to idle when no spraying is detected.
The exterior of Accudraft’s Dual Skin Finishing Equipment is available in FOUR colors:
And on September 12-13, we’ll host our 2025 Texas Auto Body Trade Show at the Marriott Dallas Allen Hotel and Convention Center in Allen, so make sure you mark your calendars and stay tuned to Texas Automotive for more details as they become available. You don’t want to miss it!
Training is vital, but ABAT also realizes that questions may arise throughout the course of business that require a more immediate response, so we’re working on creating a forum through our website where members can ask questions and get responses from anyone who might be able to add value to the conversation. We’ve got a great Board that consists of shop owners, managers and jobbers from all different parts of the state who can offer a lot of insights to help shops make better decisions on the day-to-day issues that pop up.
I encourage all of our members to make sure you’ve got access to our updated website to be able to take advantage of this feature once it becomes available. And if you’re not a member, we want you to be! ABAT introduced new levels of membership earlier this year to provide more people with the opportunity to join (for more information, visit grecopublishing.com/txa0225presmessage to read my February 2025 message), and we’ll be testing out a new social media marketing campaign to make sure we’re reaching more industry professionals who need to hear our message.
Because insurers seeking to under-indemnify policyholders continues to be a pressing concern for many shops, ABAT will also be supporting Senate Bill 369, proposed legislation to mandate that all Texas insurance policies include the Appraisal Clause (more details on page 16 about why this is so important). Right now, we are gearing up for our 2025 Collision Day at the Capitol later this month (information on page 14). We’d love to have you come out and help us educate legislators about how SB369 impacts our small businesses!
So, what is ABAT doing for you? A lot! But after 11 years of doing this, I know there’s no magic wand that we can wave to address everyone’s concerns. ABAT was created to serve the Texas collision industry, and our Board is trying our best to do just that. If everything we have to offer hasn’t made you join yet, I want to know what we’re missing. What can we do to better serve this industry? How can we better support and share your thoughts.
