Texas Automotive January 2024

The official publication of the Auto Body Association of Texas (ABAT)

January 2024 $5.95

Digging Deep in His Pockets to Protect the Right to Appraisal

New Year,

SAME ABAT IPs Inspired to

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Contents

JANUARY 2024

on the

cover

Official publication of the Auto Body Association of Texas

DIGGING DEEP IN HIS POCKETS TO PROTECT THE RIGHT TO APPRAISAL

by Chasidy Rae Sisk

ABAT BOARD OF DIRECTORS

16

DEPARTMENTS 4 6 7 8 10 11

President Burl Richards Burl's Collision Center burl@burlscollision.com (903) 657-8082

Vice President Eric McKenzie Park Place Dealerships emckenzie@parkplace.com (214) 443-8250

Chairman of the Board Corey Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361

Treasurer David Osburn “Ozzy” David McDavid Ford ozzy6384@gmail.com (817) 648-5759

Executive Director Jill Tuggle jill@abat.us (817) 899-0554

ABAT BOARD MEMBERS

PRESIDENT’S MESSAGE by Burl Richards New Year, Same ABAT EXECUTIVE DIRECTOR’S MESSAGE by Jill Tuggle What’s I-CAR? ABAT MEMBER APPLICATION

TEXAS AUTO BODY TRADE SHOW SAVE THE DATE ABAT 2024 WEBINAR FLYER

NATIONAL NEWS CREF’s 2024 School Benchmark Grants and Student Scholarship Applications Open

Bobby Beason DeMontrond Collision Center bobby.beason@demontrond.com (936) 577-2747

Robert McDorman Auto Claim Specialists rmcdorman@autoclaimspecialists.com (817) 756-5482

Larry Cernosek Deer Park Paint & Body lcwrecker@comcast.net (281) 930-1539

Chad Neal Innovative Collision Equipment Chadwneal@yahoo.com (817) 527-2143

Kevin Ellison Westway Ford kellison@vtaig.com (972) 584-9033

Logan Payne Payne & Sons Paint & Body logan@paynescollision.com­ (214) 321-4362

Brandon Gillespy Park Place BodyWerks bgillespy@parkplace.com 214-443-8250

Anthony Palomo West Texas Auto Color japalomo3@yahoo.com (806) 831-7765

Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136

Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564

Greg Luther Helfman Collision gluther@helfman.com (713) 574-5060

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

Mike Williams All Star Collision Center sales@allstarcollision.us (903) 589-3160

ABAT FEATURE by Chasidy Rae Sisk ABAT Finishes Strong in 2023 with Financial Fitness and Assessing AI Risk

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

14

NATIONAL FEATURE by Chasidy Rae Sisk Information Providers Inspired by SCRS Blend Study to Research Blend Times

VICE PRESIDENT/SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com

18

ASK THE EXPERT by Robert L. McDorman What Are the Next Steps Toward Mandatory Appraisal Rights?

12

PRESIDENT/PUBLISHER Thomas Greco / thomas@grecopublishing.com

EDITORIAL/CREATIVE COORDINATOR Alana Quartuccio / alana@grecopublishing.com MANAGING EDITOR Chasidy Rae Sisk / chasidy@grecopublishing.com PRODUCTION COORDINATOR Joe Greco / joe@grecopublishing.com

ADVERTISERS’ INDEX

OFFICE MANAGER Donna Greco / donna@grecopublishing.com

1SourceADAS....................................................4

FindPigtails.com................................................11

AkzoNobel.........................................................21

Goliath.................................................................23

All Clear Diagnostics & Calibration..............13

Paint Works Dallas...........................................IFC

Auto Claim Specialists....................................19

Petty Details.......................................................20

Beacon Equipment Resources.....................23

Thomas Greco Publishing..............................22

CAR-O-LINER Southwest...............................9

Transparent Claim / Who-Owes-What........15

Classic Chevrolet.............................................24

USI........................................................................5

Ecotech...............................................................23

Womens Industry Network............................17

English Color & Supply...................................6 3 JANUARY 2024 Texas Automotive

SPECIAL CONTRIBUTORS: Burl Richards / Jill Tuggle Robert L. McDorman / Mike Anderson / Jacquelyn Bauman @grecopublishing

www.grecopublishing.com TEXAS AUTOMOTIVE is published monthly and is sent to ABAT members free of charge. Subscriptions are $24 per year. TEXAS AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of TEXAS AUTOMOTIVE are copyright © 2023 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. Stock Images courtesy of www. istockphoto.com.

President’s Message

W

New Year, Same ABAT

With the New Year mere days away as I write this message, it seems like a great time to reflect on everything that went down in 2023 and to consider how we want to start off in 2024. It’s pretty common for folks to make a bunch of resolutions about all the things they want to change when they hang that new calendar each January, but I can honestly say that I don’t think ABAT needs to change a thing!

Our association has been a huge asset to the auto body industry in Texas, and I promise I’m not the only one who thinks so… body shop owners and managers from all across the Lone Star State give me a phone call periodically to let me know how much they appreciate what ABAT is doing for our industry. Although we may not achieve everything we set out to do the first time around, we’re a resilient bunch, and we keep hammering at things until we fix ‘em.

All the progress we’ve made wouldn’t be possible without the phenomenal guys who volunteer their time and energy to sit on our Board. It’s reassuring to know we’ve got the right team in

place to impact the industry in such a positive manner. The planning they do in collaboration with ABAT Executive Director Jill Tuggle is what allows us to Burl Richards offer so many vital educational seminars ABAT President and classes to our members.

We’ve gotten a lot of positive feedback from shops when it comes to those learning opportunities – and we’ve also seen some really favorable results as collision professionals are getting educated on performing proper repairs and writing better estimates. And then they’re taking that knowledge back to the shop and implementing it, which makes Texas consumers safer.

One of the biggest opportunities we offer for shops to learn all they can is at the Texas Auto Body Trade Show which just gets bigger and better year after year. Mark your calendars for this year’s show on July 11-13, and stay tuned for updates as they become available at abat.us/events/tradeshow.

1SOURCE

ADAS

The 1Source ADAS calibration platform provides seamless ADAS reports for fast and simple calibrations, with software and pricing that works with ANY scan tool!

continued on pg. 22

• Developed by collision & calibration technicians • Integrates seamlessly with CCC & Mitchell estimating software • Fast uploads for accurate, efficient reports • Meets OEM procedure calibration requirements • Usage-based pricing to meet your needs

contact@1sourceadas.com

1sourceadas.com

4 JANUARY 2024 Texas Automotive

MEMBER

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.”

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

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!”

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.”

USI of North America | 565 Commerce Street Franklin Lakes, NJ 07417 | 201-405-7761 | s.moretto@usius.com | www.usius.com 5 JANUARY 2024 Texas Automotive

Executive Director’s Message

T

What’s I-CAR?

This month’s message to you had me thinking HARD. Mostly because we will be celebrating a pretty big milestone this year – ABAT is turning 10 years old!! In true Jill fashion, a milestone birthday really calls for an entire year of celebrating, so the pressure was on to kick her off with a banger of a message. I was planning to write about what will honestly be one of our most active years to date with a truckload of fun and impactful things planned, when I got a phone call that brought me back to the center of it all – why we are here.

I received a phone call from a member shop in Texas asking me a specific question about training a technician to be certified in aluminum repair. My first response to him was, “Well, have you talked with I-CAR?” to which he responded, “What’s I-CAR?” It stopped me in my tracks…I was surprised, to say the least! It also made me realize that, while this industry has come so far, we still have so much work to do. It also makes me proud that ABAT is a place that shops can come for answers – all kinds of answers.

That same day, I got a text that said, “I was told you may be

able to help with a sales tax issue with the Texas Comptroller.” A week prior, an email said “…is there any legislation we can use to get the insurance company to agree to the terms from past claims?” and before that, “I need a printable copy of the Jill Tuggle ABAT Executive Director form that a customer can file a complaint against their insurance company. All I can find at the moment is where to fill it out online. Can you guide me in the right direction?” When I looked back at the increasing frequency of these inquiries, I realized that we have done the most foundational thing an association can hope for: We have established ourselves as a place for shops to come for answers, resources and support.

I am certainly not an expert in the above topics. As a matter of fact, I’m not an expert on any topic in the collision repair field.

What I am an expert in is finding answers and connecting people continued on pg. 22

www.englishcolor.com

6 JANUARY 2024 Texas Automotive

1-800-664-5272

Join ABAT today in our mission to promote consumer safety, proper repairs and the success of the collision repair industry!

WE CAN’T WAIT FOR YOU TO SHARE YOUR IDEAS! 7 JANUARY 2024 Texas Automotive

THE LARGEST SHOW OF ITS KIND IN THE SOUTHWEST!

SAVE THE DATE! New Dates!

July 11-13, 2024 The Irving Convention Center Irving, Texas For more information visit abat.us/events/tradeshow 8 JANUARY 2024 Texas Automotive

9 JANUARY 2024 Texas Automotive

First Webinar of 2024:

Death of the Estimator Role January 18, 2024 at 12pm (CST)

It's time to purge the antiquated job description/ title of "estimator," which obstructs accurate, safe, and comprehensive repair planning!

with Andrew Batenhorst (Pacific BMW)

For 30+ years we have been measuring the wrong metrics, that are driven by external forces outside of the shop as opposed to accountability to quality or profitability. This session will help identify and discuss these problems and establish why it's time to get rid of this job title. You’ll leave with solutions to consider and begin to implement a shift, including more effective Key Performance Indicators (KPIs), job role segmentation and paths to repair planner development.

To register, visit

abat.us/webinars 10 JANUARY 2024 Texas Automotive

National Feature CREF’s 2024 School Benchmark Grants and Student Scholarship Applications Open Collision repair facilities around the country are in desperate need of new talent to address the ongoing workforce shortage, yet a lack of qualified young professionals are entering the industry for many reasons. Many schools’ collision programs are underfunded, and post-secondary students seeking to enhance their skills and knowledge often struggle to afford tuition and tools.

The Collision Repair Education Foundation (CREF) addresses these needs through its Collision School Career Readiness Benchmark Grants and Student Scholarship awards, thanks to support from many generous industry donors and sponsors.

In 2023, CREF awarded $678,500 in grants to over 100 schools.

The Benchmark Grants recognize those programs that excel at educating students but which require additional financial assistance due to constrained school budgets, providing funds to purchase the tools, equipment and supplies necessary to enhance their students’ learning experience and elevate the caliber of their graduates.

The 2023 Student Scholarships benefitted nearly 90 students with over $130,000 awarded in financial assistance to ensure those students were able to continue their education, preparing them to pursue a successful career in body shops around the country.

Applications for CREF’s 2024 Student Scholarships are now open, with a deadline of March 8, 2024.

Sheridan Technical College (Hollywood, FL) was one of over 100 schools awarded with a CREF Benchmark Grant in 2023.

Applications for CREF’s 2024 School Benchmark Grants are open through June 28, 2024.

To apply for a Benchmark Grant or Student Scholarship, visit bit.ly/CREFapply. Learn more about supporting CREF’s efforts to promote the industry to future generations at CollisionEducationFoundation.org. TXA

11 JANUARY 2024 Texas Automotive

ABAT Feature

by Chasidy Rae Sisk

ABAT Finishes Strong in 2023 with Financial Fitness and Assessing AI Risk From ADAS calibrations to artificial intelligence, from technical skills to evaluating financial health, running an auto body business requires knowledge on a vast variety of topics, and it can be challenging for collision repairers to learn everything they need to know. That’s why associations like ABAT exist: to help strengthen its membership. And true to form, ABAT made sure to “Finish Strong in 2023” with a webinar series which ended last month. The third and final installment featured three industry experts: Rachel James (Torque Financial), David Willett (Spark Underwriters) and Diane Benting (BodyShopJobs.com).

In “Financial Planning for the Whole Shop: Technician to Owner,” James began by acknowledging that it’s typically considered “taboo” to talk about personal finances which is why so many people are uneducated on the matter. She advised, “When it comes to financial planning, the real first step is just thinking about what your future is. As a business owner, look ahead to 2024. Maybe it’s going to be your growth year where you buy a new location, expand the shop or hire more employees.

Or maybe you’re planning to sell or retire.

The idea is similar for a painter, prepper or technician – are you looking to buy a new home or add an addition? What do you want your future to look like? Thinking about it can help you manifest it and actually achieve your goals.”

She explored the five main things that people do with their money that need to be considered when thinking about financial security: save, spend, grow, protect and give. The hardest one is saving, and James explained that the goal is to save enough money to cover life’s goals and surprises and help you afford a comfortable life.

She recommended saving 20 percent of one’s income, allocating it first toward an emergency fund and then into a retirement account.

Having an emergency savings account in case something goes wrong is a key component to financial security. For businesses, it’s important to have extra cash flow in an operating account that ensures

funds are available to afford payroll and all the bills if the business endures several slow months. The general guideline is to keep the equivalent of six months worth of living expenses in an easily accessible account.

Savings is an area that the majority of technicians have an issue with, according to James, who shared a national statistic indicating 50 percent of Americans could not cover an unexpected $400 expense without using a credit card or borrowing the money. “This is something body shop owners should be aware of. If your techs are struggling at home and something goes wrong, like their water heater breaks, this is a significant stress point for them. Money can be the source of all sorts of negative emotions that show up at work if they aren’t managed, so make sure your techs are learning to protect their financial security too.”

Spending is more fun, but it’s easy for spending to eat up cash flow, so James recommended that everyone track their spending to pay attention to where their money goes each month. “The easiest way to change your finances is to observe your finances,” she noted, suggesting that everyone add 30 minutes to their calendar to review their bank statements and/or P&L every month. “A lot of shop owners don’t fully understand their profit and loss statement, but the more you observe it, the more trends will jump out at you if there’s a significant change. If you consistently track it every month, you’ll immediately catch it if something isn’t quite right.”

Growth includes investing money in ways that match one’s goals, timelines and tolerance for risk. “It’s important to understand your risk tolerance. Younger people can be more aggressive, but older folks will want to be more protective of their retirement funds,” James coached as she enumerated the benefits of starting to save earlier in life.

People want to protect their most valuable financial assets because they’ve worked hard for them, and that’s where the benefit of income protection comes into play, often in the form of disability or life insurance. It may behoove shops with 12 JANUARY 2024 Texas Automotive

multiple owners to invest in policies to protect the other party in case something happens to one of them, she said.

Lastly, when it comes to giving, James noted that it’s often easier to give to others than to take care of oneself, and although she encouraged people to donate to charities that matter to them when the funds are available, she stressed, “If you don’t take care of yourself, you’ll be the one who needs charity later, so it’s important to take care of your financial security first and then donate to the causes that mean the most to you.

The more disciplined you are at saving, the better off you’ll be in the future.”

Financial planning is a form of protection against a certain risk, but that’s not the only risk protection that was discussed during ABAT’s webinar.

Emphasizing the impact technology has on the collision repair industry, Willett emphasized the need for each shop to evaluate how to manage the associated risk with their insurer, though he noted, “A lot of times, it isn’t about purchasing insurance but getting smarter about how you control your risk.”

When it comes to ADAS, he stressed the need for shops performing calibrations to establish a separate entity, while those outsourcing calibrations should ensure they have coverage to protect them from liability. He encouraged shops to learn more about electric vehicles (EVs) rather than being afraid of them, and he recommended shops repairing EVs should increase their pollution policies. Although autonomous vehicles aren’t very common right now, Willett pointed out that some cities have already allowed them, and these vehicles will eventually make it into shops, so it’s important to evaluate that risk as well.

As shops continue to struggle to find qualified help, Benting offered a solution: bodyshopjobs.com, a nationwide job board where industry professionals can post or search for a position. She offered a 50 percent discount off a job posting for members with the coupon code “ABAT.” TXA

National Feature

by Chasidy Rae Sisk

Information Providers Inspired by SCRS Blend Study to Research Blend Times “Sometimes it takes time to get people where you need them to be, to a place where they get it,” Society of Collision Repair Specialists (SCRS) Executive Director Aaron Schulenburg acknowledged during a recent ABAT webinar as he provided an “exciting” update on responses to the SCRS blend study, which was unveiled in November 2022 and revealed that blending takes an average of 31.59 percent more time than a full refinish, instead of 50 percent less time as all three major information providers (IPs) indicated by calculating blends at 50 percent of the full refinish time.

Before diving into the recent progress made as a result of those findings, Schulenburg provided an overview of the blend study premise and all the work that went into generating credible findings for those who were unfamiliar with the blend study (if you’re one of those individuals, get caught up by reading last year’s feature on the blend study at grecopublishing.com/texas-automotivejanuary-2023, and check out our summary of Schulenburg’s previous update during the 2023 Texas Auto Body Trade Show at grecopublishing.com/texas-automotive-september-2023).

A couple weeks after SCRS addressed the industry with their findings during SEMA 2022, CCC/MOTOR was the first IP to respond with a commitment to conduct their own research on blending.

“They didn’t just update their system based on our research; they conducted their own research and based their system updates on their findings,” Schulenburg stressed. “This is an important fact for shops to understand and use as a talking point because an insurance company doesn’t need to believe what SCRS found during our blend study…those well-documented findings were persuasive enough that the IP re-evaluated its own studies and came to its own conclusion.”

In April, MOTOR’s update indicated agreement with the need to move away from the standard 50 percent of refinish calculations and suggested that the methodology for determining blend times should defer to the judgment of an estimator following an on-thespot evaluation of the specific vehicle and refinish requirements in question. An update to the estimating system was promised for October 2023 to account for variations in modern vehicle paint refinishing, and language in the estimating platform now reflects those findings that call for an on-the-spot evaluation by an estimator or appraiser. Users can edit blend times on a case by case basis, or they can modify blend rules for their facility by going to settings under the main menu and navigating to “estimating blend rules” where they can adjust the standard rule to anywhere between zero and 200 percent and also enable or disable a prompt to evaluate labor time each time a blending operation is added to a repair plan.

“MOTOR and CCC came to the conclusion that an on-thespot evaluation is necessary,” Schulenburg reiterated. “These changes are based on their decisions and are NOT the result of

the SCRS blend study; that study was merely the catalyst that prompted them to re-evaluate their own information. CCC has said they support MOTOR’s decision, that this is a good outcome and accurately reflects the variation in the process.”

Referencing press releases and a helpdesk article (available at bit.ly/CCCblendhelp) issued by CCC/MOTOR, he recommended shops access and utilize such documentation during discussions with insurers if there are necessary conversations to answer why repair facilities may be billing differently.

Similarly, Audatex/Solera’s decision to re-explore blend times yielded different conclusions from their previous 50 percent determination. When they conveyed their intent to re-evaluate their findings early in 2023, they also provided an interim solution, demonstrating how end users could adjust values for blends in their system manually. Following their research, Audatex rolled out an update in October that allows repairers to define a blend as being between 50 and 150 percent “based on what’s reasonable for their business,” Schulenburg said. “It gives the end user the authority to make that decision, and it’s clearly documented on the repair plan, so shops can see if blend times cause a discrepancy when compared to the insurer’s estimate.”

Schulenburg reviewed what the updates to Solera’s system will look like, and referring to an interview with Senior Director of Product Management in Repairer Driven News, he noted that Solera had been aware of shops’ concerns with blend times for months (or possibly years) before the SCRS blend study due to the increasing complexity of paint and refinish processes related to operations needed for matte finishes, four-stage refinishing and very deep reds, all of which require significantly more labor time.

Although Mitchell indicated that it continues to “research possible changes or modifications or enhancements to our software in this area” following the July 2023 Collision Industry Conference (CIC), they did not issue any public comments in the SEMA timeframe as expected per their statement. Nor did they have a comment when contacted by trade press. Schulenburg optimistically expressed hope that they’ll have something to share by the next CIC, though he also acknowledged that “interactions with Mitchell have looked different than with the other IPs that seemed to give more credence to the SCRS blend study.”

He encouraged customers with questions for their IP to direct them to that IP. Schulenburg also reminded everyone that SCRS creates and supports other resources to benefit shops and repairers, including the Database Enhancement Gateway (degweb.org), comprehensive health insurance (scrs.org/healthcare) and retirement savings (scrs.org/401k). TXA

14 JANUARY 2024 Texas Automotive

UPCOMING ONE-OF-A-KIND CLAIM MANAGEMENT SOFTWARE FOR BODY SHOPS Currently in testing with 3 highly rated body shops

Expected availability late 2023

Recent and ongoing changes in the auto collision claim process such as remote appraisals based purely upon photos have made the claim process significantly more challenging and frustrating for body shops, using up more and more of your scarce and costly administrative resources.

TRANSPARENT CLAIM was developed to move control of claims from the insurance carriers into the hands of the body shop and make the entire collision claim process transparent for all parties involved.

For additional information and updates on availability, please visit TransparentClaim.com.

OUR MOTTO: IF IT’S FAIR, EXPOSE IT! Transparent Claim is a division of Claim Transparency Innovations, LLC

UPCOMING ONE-OF-A-KIND CLAIM MANAGEMENT SOFTWARE FOR AUTO DEALERSHIPS

Who-Owes-What is designed to help a wide range of institutions frequently involved in primarily liability auto claims (auto lending institutions, auto dealerships with loaner fleets, etc.) determine in a transparent way who owes what following a partial or total vehicle loss.

Simplify your business, improve client relationships, and save money using Who-Owes-What.

Currently in testing with a major automotive dealership group!

EXPECTED AVAILABILITY LATE 2023 For additional information and updates on availability, please visit Who-Owes-What.com Who-Owes-What is a division of Claim Transparency Innovations, LLC

15 JANUARY 2024 Texas Automotive

Cover Story

Digging Deep in His Pockets to Protect the Right to Appraisal It’s easy enough for people to claim they’re willing to “put their money where their mouth is” when there isn’t much money involved, but few people are actually willing to invest time, energy and money – and certainly not all three! – to stand by their convictions and do what’s right to protect others. Texas consumer Joe Collins is a rare exception to that rule.

Last summer, a Rusk County District Court jury ruled in Collins’ favor in Joseph Wayne Collins v. State Farm Mutual Automobile Insurance Company. During the trial, 12 Texans found the insurance giant had knowingly or intentionally engaged in unfair and deceptive acts or practices and awarded the plaintiff $248,517.59. (Find the full story at grecopublishing.com/ txa0823localfeature.)

Although the jury awarded a significant sum, Collins’ attorney, Rusty Phenix (Phenix & Crump, PLLC) and Burl Richards, owner

of Burl’s Collision Center in Henderson (where Collins took his vehicle to be repaired) insisted that the three-year journey they had embarked upon together had nothing to do with the money.

“It’s not about the money; it’s about making change and hoping insurers will start treating people right,” Richards stressed.

Phenix agreed, “Joe didn’t do this for the money. He did not want to see this happen to other people, so he did his part to put a stop to it.”

Turns out that was an understatement…Collins has gone above and beyond his duty to do good – he decided to selflessly donate every penny he received from the verdict in support of the fight for mandatory appraisal rights in all Texas insurance policies!

“We all want to leave a positive impact on the world, and that means having the fortitude to do what needs to be done to make a difference when you see something negative happening,” Collins

16 JANUARY 2024 Texas Automotive

by Chasidy Rae Sisk

shared, acknowledging that doing the right thing isn’t always easy.

The decision to invoke the Appraisal Clause in his policy and pursue the under-indemnification in court was not a simple one.

For starters, like most consumers, Collins did not even realize he had the Right to Appraisal. “When my insurer initially told me what my vehicle was worth, I thought, ‘Okay, that’s what it’s worth,’” he recalled, admitting, “Insurance policy language is boring, so I had no idea about my rights.”

Thankfully, in addition to educating his customer about how State Farm was not living up to its policy obligations, Richards introduced Collins to consumer advocate and Right to Appraisal champion Robert McDorman (Auto Claim Specialists), whose independent appraisal revealed that the vehicle had been undervalued by several thousand dollars.

“Seeing the difference made me wonder how often they’re doing this to other policyholders,” Collins noted. “While I am not a wealthy man, a couple thousand dollars isn’t going to break me; however, for many people in our community, it would be devastating. I thought about my mother-in-law living on a fixed income, whose vehicle was damaged by hail. What if she had been shortchanged like this? What would happen to a single mom working two jobs and living paycheck to paycheck if her insurer cheated her out of thousands and she couldn’t afford to invoke her Right to Appraisal? I had options to handle the situation, but those options might not be available to everyone else.”

Still, the idea of taking up arms and entering the courtroom filled him with trepidation.

“When you’re thinking about a lawsuit, you’re talking about possibly taking money out of your pocket. Although I was losing money due to the under-indemnification, chasing that could have proven much more detrimental in the long run. I’m close to retirement with kids in college, so I was scared to death.”

McDorman recommended Collins talk to Phenix, and that conversation opened up an unforeseen circumstance. “Rusty and I were already good friends since he had been my Sunday school teacher for a while,” Collins explained. “At that point, it became about my relationship with God…I felt convicted to take a chance, and I had to listen to the Lord. He’s never failed me before, and he didn’t fail me this time. I knew I would win, but I also felt convicted that the jury’s award was not meant for me.

“It wasn’t about some big payout. It was about doing the right thing.”

Once the verdict was rendered, Collins wanted to make sure those funds went toward doing the right thing for that hypothetical single mom, so what better way to protect her and other Texas consumers from under-indemnification than contributing to the fight for mandatory appraisal rights? “If that money goes toward making sure all Texas policies include the Right to Appraisal, then I’m helping everybody.”

And he immediately knew who to turn to: McDorman.

“Robert is a wonderful man who wants to do the right thing,” Collins praised. “He’s passionate about what he does and why he does it, and it’s definitely not the money because he told me I wouldn’t owe him anything unless we won. All you have to do is talk to Robert for five minutes, and you can tell what his motive is;

he’s on a mission to make sure people aren’t being taken advantage of, and I cannot even guess how many people he has helped.”

It seems like the consumer and the consumer advocate just may be two birds of a feather, so it makes perfect sense that Collins entrusted Auto Claim Specialists as the steward of his settlement funds, allowing McDorman to determine how to best use them to secure mandatory appraisal rights in Texas.

Other heavy-hitters in this ongoing fight agree.

“Joe Collins is a hero in this community,” Phenix expressed.

“Where a lot of people will just take it, he didn’t. He stood up for what was right, not for selfish reasons, but to prevent it from happening to anyone else. He never once thought about keeping the money, even when I encouraged him to. Throughout the entire process, his goals have been others-oriented; he recognizes that some people are unable to withstand the financial hardship that would be inflicted by this kind of conduct and wants to do all he can to prevent others from falling victim to it.”

“Mr. Collins felt like this was something he needed to pursue from a moral standpoint. It means a lot to have customers who are so passionate about doing the right thing and standing up against bullies,” Richards said. As president of ABAT, Richards has joined McDorman on numerous occasions to talk to lawmakers about the need for mandatory appraisal rights to protect Texas consumers, continued on pg. 20

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Ask The Expert

by Robert L. McDorman

What Are the Next Steps Toward Mandatory Appraisal Rights?

Dear Mr. McDorman, I own and operate a collision facility in West Texas. I read last month’s editorial about Mr. Collins, a Texas Hero.

Like you, I also hope Mr. Collins will come to the Capitol this next legislative session to tell his story. I am certain it will have the same impact on lawmakers as it did on the jury in East Texas. It says something special about a man who will stand up and fight for others to prevent them from being harmed like he was. About the State Farm verdict, I have seen a small but noticeable change since this trial in the way some carriers are handling claims once I point them to the verdict. What do you think the next step should be in the battle to secure mandatory appraisal rights in Texas motor vehicle policies?

Thank you for your questions. Yes, Mr. Collins is a special man, a man who humbly puts others ahead of himself. I had the opportunity to meet with Mr. Collins and his attorney last week. At the beginning of our meeting, he again told me, “You know Robert, I am not a wealthy man, but this small amount of money that State Farm cheated me out of will not break me; however, for many people in our community, it would be devastating.” He went on to ask me if I would accept the proceeds the jury awarded him and use it to help secure mandatory appraisal rights for all insured Texans.

Once again, he said, “I want to make a difference and possibly make a change in the current claim handling process, so maybe one day, this will not happen to the single mom working two jobs and living paycheck to paycheck.” Of course, he didn’t have to ask me twice. I immediately told him I would.

Mr. Collins asked me how I planned to use the State Farm settlement proceeds to further advance our position for mandatory appraisal rights in Texas. I explained to him that, with his permission, in my professional opinion, we should use it to educate the Texas Department of Insurance (TDI) and lawmakers to further advance the mandatory Right to Appraisal message and show it as a safety issue for us all. Now that the State Farm verdict is final and set in concrete as a precedent to point to, I believe it will be a little easier to get folks to understand and become interested in helping.

I further explained to him that we should call on the TDI to closely look at any motor vehicle policy changes regarding the Appraisal Clause until the end of the next legislative session. It is my position that any limiting or removal of the Right to Appraisal concerning a repair procedure dispute will be the nail in the coffin for safe roadways for us all.

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.

As I have said many times, appraisal is the guardrail for indemnification of the loss when a dispute over the loss arises between the insurer and the insured. Without legislation requiring mandatory time-sensitive appraisal rights, we can expect to see continued efforts by all insurers to limit or remove economic relief for the insured. When it comes to dogged institutionalized practices for under-indemnification of a covered loss, the insurance carrier can best be seen as a mama bear protecting her cubs and will fight anyone trying to take them away. Mandatory Right to Appraisal would stop this atrocity.

Over the years, as stark consumer advocates, Auto Claim Specialists have gone to agencies to seek help and relief with well-documented facts for our clients who have been harmed by their insurance carrier and to bring awareness to these systematic atrocities. At each turn, we were told the only help was to seek legislation or a finder of fact. I believe now that the State Farm verdict is a matter of law, lawmakers will take note and see this as time for change.

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. I firmly believe that the more times these systematic under-indemnification schemes are exposed – and monetary punishment is levied – the quicker change will come about to help us all. Thank you, Mr. Collins, for believing in me to be a good steward of your State Farm settlement proceeds to help ensure that the mandatory Right to Appraisal in Texas motor vehicle insurance policies becomes law.

The under-indemnification in total loss and repair procedure claims in Texas is rampant. Besides the higher settlements for total loss clients averaging 28 percent above the carrier’s undisputed loss

18 JANUARY 2024 Texas Automotive

continued on pg. 20

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Ask The Expert continued from pg. 18 statement, we have also reduced clients’ out-of-pocket expenses on repair procedure disputes such as the above example. These underindemnification percentages are staggering and harmful to Texas citizens.

The spirit of the Appraisal Clause is to resolve loss disputes fairly and to do so in a timely and cost-effective manner. The invocation of 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, 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 keep in mind a 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

Cover Story continued from pg. 17 and both have been strong proponents of ABAT’s proposed legislation to make the Appraisal Clause mandatory in all insurance policies to ensure consumers have a reasonable way to seek proper indemnification from their carriers.

In the last two legislative sessions, Representative Travis Clardy (R-Nacogdoches) sponsored ABAT’s bills that sought to mandate Right to Appraisal legislatively, and he weighed in on Collins’ selfless donation: “I am thankful for the persistence, tenacity and generosity of Mr. Collins, as well as his willingness to shine a light on this important issue for all Texans. It’s about safety, and it’s about fairness…and it’s about time insurance companies live up to the promises they’ve made to Texans.”

ABAT Lobbyist Jacob Smith (Longleaf Consulting) thinks it’s “amazing that Joe made that donation, but it’s a shame that he had to. The Texas Department of Insurance (TDI) is responsible for looking out for consumers and should have mandated Right to Appraisal long ago, but when our government fails, individual citizens have to step up. We’re fortunate in Texas to have so many good people willing to do that.”

McDorman is just that type of person.

“Robert is a wealth of knowledge,” Smith stated. “He knows this issue better than almost anybody I’ve ever met. He has a library of insurance policies and can point to various incidents and data that no one else has bothered to compile. Robert is fully invested in

this battle; he has educated lawmakers at the Capitol and worked with TDI to help them understand why mandatory appraisal is so necessary. He has lived and breathed this fight for well over a decade on behalf of consumers in Texas and the other states where he is licensed, and there’s no better expert on the subject.”

“The man is certainly passionate about protecting consumers through Right to Appraisal,” Phenix chimed in. “He is invested in the people who trust him to champion their causes, and he’s willing to take the fight to levels I would have never predicted. Robert is one of a kind; he’s a different breed, just like Joe. He is a true consumer champion.”

But as Smith indicated, the onus to defend Texas policyholders should not fall on the shoulders of one or two good men.

McDorman believes, “If you want to see change, you have to be involved in change. Most policyholders don’t realize they have the Right to Appraisal, but we need mandatory Appraisal Clauses in all Texas insurance policies. I’m so impressed with everything Mr. Collins has done, and I’m honored that he believes in me so much that he has entrusted me with the duty of protecting more people from being under-indemnified.”

So, how does McDorman intend to use the funds to fight for mandatory appraisal? Stay tuned to next month’s Texas Automotive to find out! TXA

20 JANUARY 2024 Texas Automotive

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President’s Message continued from pg. 4 Of course, there will also be updates on the trade show (and everything else ABAT does!) in Texas Automotive each month. And when it comes to noting the association’s successes, I’ve got to tip my hat to the team at Thomas Greco Publishing. Tom, Alicia, Alana, Chasidy, Joe and Donna are all a big part of the successes ABAT has enjoyed; our magazine gives us a voice that allows us to reach shops all across this great state as well as legislators, insurers and everyone else willing to pick up a copy. Being able to project what we’re doing and what we see on such a broad scale has really helped elevate ABAT’s status locally and nationally.

And those efforts were recognized nationally in 2023 when ABAT was recognized by the Society of Collision Repair Specialists (SCRS) with the Affiliate Association Award. (Check out last month’s cover story for the scoop on that humongous honor: grecopublishing.com/ texas-automotive-december-2023.)

I’m confident that ABAT’s legislative initiatives played a big role in receiving that recognition. We were literally just one step away from getting our bill passed in 2023, and you know we’re not going to stop until

we accomplish our goals to protect Texas drivers. Our push for mandatory Right to Appraisal is just getting started, and Joe Collins’ huge lawsuit against State Farm showed just how important it is for Texans to have the Appraisal Clause in their policy when there’s a dispute over the repair. Joe is doing something pretty amazing with all the funds he received from that case (check out the story on page 16, and stay tuned for next month’s feature on how that money is going to help other Texas drivers).

In fact, if anything is changing about ABAT, it’s that we’re hoping to amplify our spirit and efforts by growing the association and involving even more people, including actual consumers like Joe who understands exactly why we do what we do, who care about consumers’ rights and safety. And if you’re not already one of them, I hope you’ll consider joining ABAT to help us take more of the same and make it even better in 2024. Happy New Year!

burl@burlscollision.com

TXA

Executive Director’s Message continued from pg. 6 with those who can expertly answer their questions. The ABAT body is filled with those folks, and my job is to know who to call and make the right connections. All I usually have to do is start with our Board of Directors.

I am proud of where we have come from and where we are going. I am even prouder that we can be here for a shop employee who hasn’t heard of I-CAR, one who is seeking legislative clarification and everything in between. We are meeting shops where they are at, and they know to call upon us.

So, while I can’t wait to share some excitement with you about the big doubledigit birthday we’re celebrating, I’m really glad to kick it off with a humble tale of satisfaction with what we are really up to: seeking and finding answers for jill@abat.com you.

TXA

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