Wisconsin Automotive News Summer 2017

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The Official Publication of the Wisconsin Auto Collision Technicians Association Ltd. Summer 2017

www.grecopublishing.com

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2016-2018 WACTAL BOARD of DIRECTORS President Larry Terrien MJ Collision Center larry@mjcollisioncenter.com Vice President Mark Williams Williams Auto Body mark@williamsautobody.com Secretary Ronnie Goss Goss Auto Body, Inc. ronnie@gossautobody.com Treasurer Sue Black Dean’s Auto Body suzieq@deansautobody.com Directors Eileen Haberman Glen's Auto Body, Inc. Mike Miyagawa M & M Auto Body Inc. Michael Taylor Zimbrick Chevrolet-Sun Prairie Tracy Black Dean’s Auto Body, Inc. Association Administration Sue Peterson wactal@execpc.com / info@wactal.com (800) 366-9482 Lobbyist Jolene Plautz jplautz@aol.com

Summer 2017

Vol. 4, Number 4

CONTENTS PRESIDENT’S MESSAGE................................................................5 The Skinny on Scanning

by Larry Terrien WACTAL RECRUIT-A-MEMBER PROGRAM ............................................5 LOCAL NEWS ............................................................................7 WACTAL MEMBER SPOTLIGHT ........................................................9 Diamond Collision Center

by Nicolas Fernandes TALKING TECHNICAL ........................................................................10 Thoughts on Rekeying Estimates: Part 2 of 2

by Larry Montanez III, CDA 2017 WACTAL SPRING CONFERENCE RECAP ..........................................12 WACTAL Conference Provides Education and Networking for Wisconsin Shops

by Nicolas Fernandes WACTAL BENEFIT PROGRAM ..........................................................15 WACTAL MEMBERSHIP APPLICATION ................................................18

PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 PHONE: 973-667-6922 • FAX: 973-235-1963 ADVERTISING: 973-667-6922 • alicia@grecopublishing.com PUBLISHER: Thomas Greco (thomas@grecopublishing.com) SALES DIRECTOR: Alicia Figurelli (alicia@grecopublishing.com) CREATIVE DIRECTOR: Lea Velocci (lea@grecopublishing.com) EDITORIAL DIRECTOR: Joel Gausten (joel@grecopublishing.com) ASSISTANT EDITOR: Nicolas Fernandes (nick@grecopublishing.com) OFFICE MANAGER: Donna Greco (donna@grecopublishing.com) www.grecopublishing.co7 Wisconsin Automotive News is published quarterly by Thomas Greco Publishing, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of Wisconsin Automotive News are available at $5 per copy.

Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of Thomas Greco Publishing, Inc. or of WACTAL. Copyright © 2017 by Thomas Greco Publishing, Inc. Cover image © www.istock.com

Summer 2017

ADVERTISER’S INDEX Axalta Coatings........................................IFC Morrison’s Auto Parts ..............................4 Body Shop Supply Co. ............................6 P&L Consultants......................................10 Buerkle Hyundai ......................................14 Straight and Square ................................14 Dent Clinic ..............................................IBC West Bend Mutual Insurance ..................OBC Dentsmart ................................................16 Zorn Compressor & Equipment ..............8 International Autos Waukesha..................8 3

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The Skinny on Scanning

President’s MESSAGE

Scanning is one of the hottest topics in the collision industry shop! Please see page 12 for a recap on the convention. And if today. More and more manufacturers are you were not a part of WACTAL’s 2017 recommending or requiring that their convention, make a commitment to SAVE THE DATE! vehicles undergo pre- and post-scans to yourself to attend next year’s event. ensure that all safety systems are in workAs in past years, our educational and The 2018 WACTAL ing order. So, how many shops do scanevent schedule will provide attendees ning on a regular basis? Are they always with a ton of outstanding information Conference & Trade Show getting paid for them? Do they scan every that can be applied to any aspect of will be held vehicle, or just some of them? What is the the collision repair business, not to February 16-17, 2018 potential liability if we do not scan every mention important WACTAL hapat the Wilderness Resort, vehicle? penings and updates with our annual Wisconsin Dells.

If you attended the WACTAL conMembership Meeting…and some fun vention in Oshkosh, you probably know networking with industry peers!

Visit www.wactal.com for the answer to these and many other quesThe location and the date are details and updates. tions. You also heard the speakers discuss already set. All we’re missing is you! how to thrive in today’s market, the value Be on the lookout in the coming of OEM certifications and restraint systems diagnosis. If you months for announcements regarding our 2018 convention. I weren’t there, you missed a great convention jam-packed with a look forward to seeing you there!

WAN wealth of information that can be put to use immediately in your

Recruit-a-Member Program For each member an existing WACTAL member recruits, the sponsoring (existing) member will receive a one-time $50 credit toward their membership dues. There is no limit on the number of members an existing member can recruit. If the dollar amount of the credits exceeds the sponsoring member’s annual dues, the excess amount will carry forward to subsequent years.

No monies will be paid out and credits cannot be cashed out. Credits cannot be split amongst multiple members. The sponsoring member’s individual and business name must be listed on the new member’s Application for Membership as the sponsoring member.

If the new member had been a WACTAL member during the prior calendar year, no commission will be allowed.

This program can be rescinded or amended without prior notice. In the event the program is rescinded or amended, credits for applications received after the change will be processed under the new program.

No credits will be issued if the program is rescinded.

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Local

NEWS

WACTAL Awards Annual Scholarship

by Nicolas Fernandes

Travis J. Steindl of Oostburg High School has been awarded with the 2017 WACTAL Auto Collision Technician Scholarship.

In partnership with the Wisconsin Automobile and Truck Dealers Association (WATDA), WACTAL chose Steindl as the recipient of the $2,000 tuition scholarship and a $3,810 tool set donated by Snap-on. “It’s flattering. It’s fantastic,” Steindl said. “I did not think I was going to win, but I just went in to the interview and did my best.” The student was chosen out of a pool of 129 applicants who were required to submit an application form, high

Travis J. Steindl

school transcript, ACT scores, letter of recommendation and evaluation form from an automotive instructor, in addition to taking two aptitude tests and participating in an interview conducted by three automotive professionals. Only students who attend WACTAL member schools were considered for the scholarship.

As he prepares for his first semester in the Auto Collision Repair & Refinishing program at Lakeshore Technical College (Cleveland, WI), Steindl is grateful to receive such a high quality tool set. “You can’t beat Snap-on. It’s going to be a huge help to me next year.” After finishing the two-year program, the tools will be his to keep. WATDA Program Director Julie Olson explained that the benefits of this program inspire the students to complete their education. “Because of the funding and equipment provided, we have been able to run a very successful program.”

WACTAL has awarded an annual scholarship for collision Summer 2017

repair students in Wisconsin for nearly 20 years. “The program grew out of a desire to offer financial assistance to young people preparing for a career in collision repair,” said WACTAL Administrator Sue Peterson. “It's an investment in the future of our industry.”

Steindl showed an interest in cars at a young age and always knew he would pursue a career in the automotive field. “I thought of being a mechanic, but decided to go the auto body route because it allows you to be artistic.” In addition to taking automotive courses at school, he has enrolled in an apprenticeship at Sheboygan Chevrolet. “I’ve learned a lot from working there. It has taught me basic body working skills, how to be safe in a dangerous work environment and how to work productively with others.” Steindl is looking forward to the challenge of studying auto collision at the collegiate level. “I’m excited to go up there, take classes, learn new things and meet other students who are preparing to work in the same industry.”

For more information on WACTAL scholarships and their membership benefits, visit www.wactal.com.

New Business Insurance Program for WACTAL Members through Auto-Owners Insurance Group The WACTAL board of directors is pleased to announce a NEW business insurance program through Auto-Owners Insurance Group. WACTAL members may be eligible to SAVE up to 10 percent on business insurance through the Auto-Owners Insurance Group Discount Program. As a member, you may be eligible for discounts on: * Business owner’s policy * Commercial Automobile * Commercial Umbrella * Garage Liability / Dealer Blanket * Tailored Protection Plan * Workers Compensation

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Diamond Collision Center Webster, WI Wisconsin Automotive News recently spoke to new WACTAL members Mike and Judy Sperry, owners of Diamond Collision Center in Webster, WI. After spending 25 years working on cars, Mike teamed up with his wife to open their own shop in 1999.

Wisconsin Automotive News: How did you become involved in the collision repair industry?

Mike Sperry: When I was a senior in high school, I knew I wanted to have a career working on cars, but I did not like the idea of getting my hands greasy (laughs). After high school, I attended WyoTech and got my first job as a body man. Then Judy and I got married, started a family and at that point I was on the road as a sales representative for Sherwin-Williams. I was actually selling to the shop we wound up buying. I was traveling all the time and my son, who was a year and a half at the time, thought daddy lived in North Dakota (laughs). That’s when we decided to buy the shop.

WAN: What do you enjoy about running a body shop?

MS: I’ve always enjoyed the variety. I like that every job is different. The flexibility, endless challenges and happy customers are the reasons I’m excited to come to work every single day. I have to say it’s probably the happy customers above all. There’s a lot of satisfaction in knowing you’ve done a good job and are getting positive feedback.

WACTAL

Member

SPOTLIGHT

by Nicolas Fernandes

rate. But as far as insurance companies, right now we’re in a good position because when you talk to an adjuster, they really can’t negotiate an estimate for a repair because they don’t have the background or knowledge that we have.

WAN: Does working together as husband and wife benefit the company?

JS: It’s a benefit, but it’s also a drawback in a sense because there’s not a single dinner that goes by that we don’t discuss the needs or the flow of the shop. We don’t end at 5:00 like everyone else. It’s almost 24/7.

We don’t really get in each other’s way too much, though. We work in different departments. Mike is a tech. He’s in the shop painting and managing repairs. My job is running the office, which involves crunching numbers, fighting with insurance companies and billing. I think the only hurdle we might face is that we have different resolutions to some things and it has to be one or the other.

However, everyone in our facility is very knowledgeable, so decisionmaking is usually more like brainstorming. We’re all platinum certified in several areas and most of our techs are senior techs, so it’s not as democratic as your typical shop.

WAN: How has the shop changed since you started running it in 1999?

MS: When we bought the shop, there The Diamond Collision Center team wasn’t a single computer in the building. Now there are five. We went WAN: What are some struggles you face as a shop owner? from handwritten estimates to having to upload estimates. We do a preMS: The most difficult one is hiring competent technicians. There’s such and post-scan of any model made in 2015 or later. We scan the car a high demand for them and it’s rare to find someone who possesses all before the repair so we know the hidden code history. We scan it after the necessary skills for the job. the repair to make sure anything we did has been cleared and that the vehicle is good to go. That way, we can hand the keys back to the Judy Sperry: Insurers can give us a hard time, but that’s something customer with a totally clear conscience, knowing we have done that’s up and down. Right now, we only have problems with two everything in our power to bring that car to pre-accident condition. insurance companies. It’s fighting for rates and being ruled. It’s tough because they try to set rates based on garage shops that don’t have JS: Over the years, we’ve doubled in size and quadrupled in sales. advanced equipment or training and they don’t have the investment that These days, we have new tools and new technology in all the vehicles a professional shop does. It’s pretty tough when we have a rate that we and the asTech scanning tool is actually what’s hooking these vehicles feel is fair and current with industry standards. It’s just unfair because up to an OEM computer. The digital camera is also a great asset to the not all the shops are the same. You should be getting the lower rates if shop. Eighteen years ago, you would handwrite a sheet, take Polaroid you’ve made no new investments in your shop, but when you’re paying pictures, stick the whole thing in an envelope, send it out to an for new equipment, training and certifications, you should have a higher continued on page 16 Summer 2017

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Talking

TECHNICAL

By Larry Montanez III, CDA

THOUGHTS ON REKEYING ESTIMATES: PART 2 OF 2 In last issue’s article (which you should have next to you as a reference as you read this one), I promised to provide a further discussion on the rekeying topic and offer a fix for your facility to stop working harder and start working smarter and more efficiently. Additionally, I said I would revisit the topic of photo estimating and explain why I thought this was a critical issue for our industry.

Regarding the “fix,” this will work for both Scenario 1 for Supplement 1 (after rekeying) and/or for your initial damage report. After negotiating with the appraiser, using

your damage report (S1 or initial), you discover that the appraiser did not address all the operations and items you are charging the customer for. So, you will now need to call, email or fax in a request for a supplement. (Scenario 1 would be S2, and Scenario 3 would be S1). Now, here is how to not rekey.

In Scenario 1 or 3, you wrote an accurate damage report for the cost of repairs. For reasons we will not discuss, the appraiser did not reimburse the vehicle owner the full amount. So here are the steps to follow to not rekey: 1. Do not delete or write anything on your report.

2. Call for a supplement and do not delete or write anything on your report.

3. Call the vehicle owner to inform them of the supplement.

(In some states, you are required to obtain permission from the vehicle owner to charge more than the original estimate and for each additional increase in price or additional supplement.) Do not delete or write anything on your report.

4. Continue with the repairs. There is no reason to stop; do not delete or write anything on your report.

5. When the appraiser arrives, hand them the original damage report you handed them the last time they were there. Now, the scenario will go a little something like this: Larry = Damage Assessor John = Insurance Appraiser John: “Hi, Larry. I am here on a supplement for Mr. Smith’s vehicle.”

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Larry: “Hi, John. Sure, I have the paperwork right here.”

Now, Larry hands John the original damage report. John quickly flips through the pages and looks perplexed.

John: “Larry, this is the original paperwork you gave me last time. There are no S1s.”

Larry: “Yes, John. It is the same paperwork from the last time. Nothing has changed on repair methodologies or the costs and, well, you forgot some things the last time. You will need to add them now.”

John: “Like what? I don’t see any S1s.”

Larry: “John, I wrote an accurate cost of repairs for $8,134.56, and you wrote $5,478.21. That is a difference of $2,656.35.”

John: “Larry, I can do math, but what is the supplement for?”

Larry: “Glad you asked, John. I wrote an accurate final invoice for the cost to properly repair the vehicle. John, you left off $2,656.35. Now, if this were a difference of only $100 to $200, I would be discussing those few items to make up that amount, but $2,600 is a significant amount.”

John: “Whatever. But what is the supplement for? I do not know what it is for. How am I supposed to figure this out?”

Larry: “John, please understand that the $2,600 is YOUR problem, not mine. As it is YOUR error, not mine, now YOU will need to go line by line. It is YOUR job, so do YOUR job and figure out what YOU left off the last time YOU were here. It is YOUR job to ensure the vehicle owner is fully reimbursed for the cost of repairs to restore their vehicle back to its pre-loss condition. So, please have a seat.

If you would like coffee, it is over on that desk. You will be here for a while; if you have any questions, please ask.”

John (staring and looking completely baffled): “I have never had anyone ask me or expect me to do this before.”

Larry: “Well, if YOU like, we will do YOUR job for YOU and rekey the estimate for YOU to make YOUR job easier.

We charge $25 to fill in the customer, vehicle and insurer information on the estimate. It is $1.50 per line to enter for rekeying, $25 to check that the labor times and amounts are

Summer 2017

equal, $35 to enter all supplement charges, $5 per line for descriptive reasons for the operation in the notes and a $10 printing charge. Let me know which way you would like to do this.”

How many estimates will you rekey now? How much will you have to spend on a third-party company to rekey the estimates for you? There is no law that requires you to rekey.

PhOtO EstimatEs In August 2014, Jeff Lange and I wrote an article on this, and I feel I need to revisit this topic again. Over the past few years, many of you have seen customers come into your facility with a third-party photo estimating company estimate, and two things are very apparent: There is a definitive issue with the vehicles being significantly underwritten. The person taking the photos, their skill level and even the type of camera they’re using can affect the quality of those photos and what is being depicted in them. Photos often do not accurately reflect the extent of the damage; they can underrepresent the severity of deformities, gouges, scrapes and/or scratches, while some damages would not even be seen due to the angle, sunlight, etc. A scratch that appears like it could be buffed out may be too deep and require refinishing or may not even be seen in the photos. Additionally, without disassembly (which no consumer is going to attempt), no photograph will show hidden damage unless someone has an Xray app. Another issue is the epidemic of uneducated and unqualified people writing damaged vehicles.

Some in the industry (both insurance and repair facility personnel) cannot accurately and properly write a correct damage report with the vehicle in front of them, and you think someone can do this from photos alone? I have talked to many shops, and the estimates can be three to 10 times what the original cost was.

There is an inherent major risk to the wellbeing of the vehicle operator and occupants. The problematic and dangerous issues that could arise to the vehicle operator and/or occupants is that most collisiondamaged vehicles are not safe to drive, although they may in fact be drivable. In most collision events (although most are low-speed), there is often structural misalignment, suspension damage and deformed structural components that cannot be seen without continued on page 17 11

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WACTAL Spring Conference Provides Education and Networking for Wisconsin Shops

by Nicolas Fernandes

Crowds of automotive professionals gathered in Oshkosh, WI for two full days of training, education and networking at the association’s Spring 2017 Conference.

The conference’s Friday and Saturday events - held at the Hilton Garden Inn and EAA AirVenture Museum - included educational seminars, I-CAR courses and a membership breakfast.

Attendees started receiving their education Friday afternoon with two back-to-back seminars from Mike Anderson of Collision Advice. The legendary industry speaker opened with “Positioning Yourself in the Collision Industry,” a popular presentation in which he begins by asking the audience if they would rather “thrive or just survive.”

Teaching shop owners how to thrive in today’s competitive collision industry, Anderson provided tips on how to increase sales and discussed the important role of the OEMs. “He was awesome. He made us really want to ‘thrive and not just survive’ and I had the opportunity to learn about topics like safety restraint and pre and postscanning,” said Bob Friet, owner of J&H Auto Body (La Assured Performance’s Bob Keith 12

Crosse, WI).

WACTAL President Larry Terrien was happy to have such a knowledgeable speaker open the event. “He’s a dynamic presenter.

He had a lot of helpful information to share with our members.”

For his next session, Anderson presented “Negotiation Best Practices,” speaking about the results of his “Who Pays for What?” survey and providing tips on how to negotiate with insurers to receive the maximum payment for a repair.

Jeff Swafford, owner of Collision Masters of Wisconsin (Waunakee, WI), found this class to be one of the most useful ones of the weekend. “There’s always some tidbit I can take away from a speaker at the conference, and this year it was The EAA AirVenture Museum Anderson’s negotiation tips. He told us exactly what we need to do to get paid and how to justify our requests for payment.”

After learning about the results of the surveys and seeing what certain shops are able to receive payment for, M&M Auto Body Summer 2017

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(Madison, WI) owner Mike Miyagama felt inspired to return to his shop on Monday and bill for services he hasn’t tried charging for in the past. “It’s interesting how one shop can get paid for something that another shop wouldn’t even think to ask to be paid for.”

Following Anderson’s courses, a dinner reception was held at the EAA AirVenture Museum, where attendees got an up-close look at more than 100 aircraft and 30 World War II nose art pieces on display. “It was the perfect venue for that occasion,” Terrien said.

“There was so much to see. Everyone seemed to love it.”

On Saturday morning, WACTAL members gathered for the Membership Meeting, which included a breakfast buffet and gave attendees the opportunity to network with their colleagues and Board members. First year attendee Steve Berg, general manager of Bodies By Brenengen (West Salem, WI), was grateful for the networking that was available, as he is usually frustrated that the industry is not consolidated enough. “It’s almost as scattered as the banking industry, so it’s great when we have the chance to network and hear about the unified challenges our shops face. It’s nice to be around other independent shop managers and have these conversations with them.” Friet, who attends the show every other year, also took advantage of the meeting and spoke to other shop owners about mutual WACTAL President Larry Terrien (left) and daily obstacles. “It Mike Anderson of Collision Advice lights a fire under us and gets us enthused about our situation, at least until we return to the shop on Monday and have to start dealing with insurance companies again.”

After the breakfast, attendees moved into a seminar room for Bob Keith’s (Assured Performance) “The Value of Being an OEM Collision Care Provider.” The former independent shop owner and current CARSTAR franchisee spoke to collision repairers about the importance of being OEM certified, outlined some of the different OEM programs and told shops what they need to do to make sure these certifications are a good investment. Berg recalled the most valuable lesson of the seminar, when Keith told the story of a car that was not properly scanned and subsequently became involved in a collision in which the airbags did not deploy. The vehicle owner became involved in a $4 million lawsuit. “The class made me realize that scanning is not a procedure of the future. With the technology we have these days, there is no reason why we shouldn’t be scanning every single vehicle we repair.” Terrien stated that this seminar was crucial for WACTAL members, since OEM certification is one of the most popular topics in the industry at the moment. “It’s such a hot topic in the industry right now and the information he shared was helpful for everyone.”

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In the weekend’s final seminar, Jerry Tempel of General Motors spoke about the importance of Supplemental Restraint Systems (SRS), their components on newer vehicles and how to service and perform repairs on them. “SRS Safety Systems: Keep General Motors’ Jerry Tempel Their Ride Safe Inside” was one of the most useful classes for Miyagama, who has been attending the conference for the past 15 years. “Learning about the new systems and how to properly use them gives us all an advantage.” Terrien also placed high importance of Tempel’s session. “He had so much information to share on the updated procedures and the components of these new systems.”

The WACTAL Spring 2017 Conference proved to be a major benefit to automotive professionals throughout the state, especially considering Berg’s experience during his first visit. “The only part of the weekend that disappointed me was that I was busy in the shop Friday and couldn’t make it to the conference until Saturday morning.

I will definitely be back in the future to attend for both days.”

WACTAL would like to thank the following sponsors whose support helped make the 2017 Spring Conference a success: GOLD SPONSORS BASF Corporation Broadway Automotive FinishMaster, Inc. PPG

SILVER SPONSORS Auto Data Labels NCS - National Coatings & Supply BREAK SPONSORS Auto Data Labels FinishMaster, Inc. PPG

FLIGHT SIMULATOR SPONSORS Auto Paint & Supply Body Shop Supply Co.

GENERAL MOTORS PRESENTATION SPONSORED BY Broadway Automotive

For more information on WACTAL, please visit www.wactal.com.

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Serving Northwest Wisconsin

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WACTAL Member SPOTLIGHT continued from page 9

insurance company and wait. Then they’d send an adjuster to come and argue with us. Digital photography has sped up the process so much.

You can take a picture of what you have, get it out to the insurance company and receive an answer in a day. Cars no longer have to sit around while we wait for the estimating process to be completed.

There’s also much more advertising available with our webpage and through social media platforms like Facebook and Twitter.

WAN: Why did you decide to join WACTAL? How do you expect the association to help your business?

JS: The legislative aspect really caught my attention. WACTAL’s lobbying power and strength as an association gives our industry a voice, and the ability to connect with legislators to try and keep them current on what our customers’ needs are and what their rights should be. As an association, we can provide information that can help either make new laws or amend current ones that will protect our customers and their investments. Customers just go by what they can learn from some light research and whatever an insurance company says when it comes time to repair their vehicle. But who’s protecting them? Who’s

saying, ‘These parts aren’t right for your vehicle?’ The only informed people in the game now are the ones working in the shop. We’re also members of AASP of Minnesota and the Indianhead Auto Body Association. Being in these associations is very beneficial because it just gives the shops a little more strength in numbers. They also hold trade shows, which we always send our staff to for further education.

WAN: Diamond Collision Center has established an annual vocational scholarship in your community. What inspired you to develop this scholarship program?

JS: We support scholarships because we know we’re so weak on having trained individuals in the industry. As Mike said, our biggest challenge is finding competent repair technicians, so everybody in this industry needs to do whatever they can to get this problem under control. That’s why we began our own scholarship program for high school students. We’re on a vocational board in California as well. Once a year, we talk to the students to offer advice and do whatever we can to help. The main problem, though, is the suppressed rates. If you have a high school student who’s interested in working on cars, often they will decide to work in a mechanical shop over a body shop because the Labor Rate is 25- to 50-percent higher and initially, they will make more money. We need to mentor and groom those who have a strong passion for working on the exterior of a vehicle and appreciate the art form it truly is. WAN

Increase Your Sales and Support the State’s Most Influential Automotive Repair Association!

Get In on the Start of Something BIG! Contact Alicia Figurelli 973-667-6922 alicia@grecopublishing.com www.grecopublishing.com

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Talking TECHNICAL

continued from pg. 11

disassembly and/or measuring. Operating the vehicle in this condition could put the vehicle operator, passenger and other vehicles on the roadway in a dangerous situation. For example, many times, a bumper fascia (cover), bumper reinforcement and front unirail can become damaged, but the fascia shows little to no damage. This is because the fascia is ductile and may have returned to its original shape with only slight stress markings, scrapes and scratches visible.

Another issue would be operating the vehicle with a Supplement Restraint System (SRS) Malfunction Indicator Lamp (MIL) illuminated. Some vehicles will set an MIL in a low-speed collision event because the passenger Occupant Weight System/Occupant Presence System requires reweighing and sensitivity testing. This basically means that the passenger airbag may not deploy when intended or may deploy when not intended. If a small child or a baby in the rearfacing child seat were sitting in the front passenger seat, the airbag could deploy in a subsequent event because the OWS is not accurately measuring the weight in the seat. What type of injury could that child sustain? Most vehicle systems will not illuminate an MIL, and the system may not operate as intended. The driveability and performance of the vehicle may cause a system shutdown, stranding the occupants (which may be a dangerous situation).

So, who is gaining an advantage in this process by saving time and money? The consumer, you...or the insurance company?

Well, consumers sometimes believe whatever they hear. Do regulations support complete truth in advertising? Unfortunately, no. Until a claim is issued, they can say whatever sounds good on television and in print advertisements. Once in the hands of claims personnel, however, things can change. By using a photo estimating app, the insurance companies are betting the odds that many people will just keep the money and never have their

Local NEWS

continued from pg. 7

In addition to competitive rates, Auto-Owners offers a complete line of products and prompt, friendly claim service. You may be eligible for several additional discounts depending upon your individual circumstances.

Auto-Owners is among the largest insurance providers in the United States and has an A++ rating by A.M. Best.

For more information or to obtain a quote, contact Alliance

Summer 2017

vehicle repaired. They are also betting the odds that some shops will do the repairs for whatever price they are paid and/or are counting on a low-cost supplement. Remember that the insurance company saves time and money using a photo estimate app because they don’t have to pay an adjuster to come out and look at the vehicle at your shop.

Where is the advantage to the shop or the consumer? The consumer’s best interests are served by getting their vehicle properly inspected by a professional at a reputable repair facility.

I’m not saying that these collision repair estimate apps have no value at all. These third-party guesstimating apps and services should be used at the scene with the vehicle(s) involved. This would assist with the prevention of fraud involving the actual sustained damage and even with fraudulent injury claims. Maybe the photo app should have a video app option, too. Always remember the repair facilities’ number one concern is their liability and then the protection of their customer – the vehicle owner. Your contractual agreement is with the vehicle owner, and the insurance company has a contractual agreement with the vehicle owner or an obligation to a third-party claimant (if they accepted liability).

I hope this article has shed some light on recent events in the industry.

Larry Montanez, CDA is co-owner of P&L Consultants with Peter Pratti Jr. P&L Consultants works with collision repair shops on estimating, production and proper repair procedures.

P&L conducts repair workshops on MIG & Resistance Welding, Measuring for Estimating and Advanced Estimating Skills. P&L also conducts investigations for insurers and repair shops for improper repairs, collision reparability and estimating issues.

Larry is ISO 9606-2 Certified for Audi and Mercedes-Benz and is a certified technician for multiple OEM Collision Repair Programs. P&L can be reached by contacting Larry at (718) 8914018 (office), (917) 860-3588 (cell) or info@PnLEstimology.com.

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Insurance Centers in Green Bay at (920) 330-9000 or your local independent agent. To find an Auto-Owners agent near you, visit them online at www.auto-owners.com.

The business insurance program through West Bend Mutual Insurance (WBMI) is being terminated by WBMI effective June 30, 2017. Members insured with WBMI whose policy renews before June 30, 2017 should still receive the WBMI program discount.

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Summer 2017

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Summer 2017

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