New England Automotive Report April 2014

www.grecopublishing.com

AUTAUT MM TIVETIVEN E WN E W E N G L A N DE N G L A N D

MASSACHUSETTS

BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Serving The New England Collision AND Mechanical Repair Industry

April 2014U.S.A. $5.95

In Memoriam:Jim Simeone

page 54

PartsTrader Enters Massachusetts - page 40

NEAR_April14_1-64.qxp_NEAR December 2013 10/1/15 7:47 PM Page 1

2 April 2014 New England Automotive Report


FEATURES 40 | PartsTrader Enters MassachusettsThe industry's most controversial company hits the Commonwealth.

44 | Controversy Greets National Right toRepair RolloutRight to Repair is set to go national - but is it what the industrywants?

48 | The New Age of Education: AASP/MA SharesReal-World Knowledge with MembersAASP/MA delivers at one of its most comprehensive StatewideMeetings ever. by Joel Gausten

DEPARTMENTSVICE PRESIDENTS MESSAGE8 | Building the Success of the Auto RepairIndustry...One Future Repairer at a Time!by Molly Brodeur

SPECIAL ANNOUNCEMENT16 | AASP/MA to Host 7th Annual Casino Nightat Gillette Stadium!

VENDOR SPOTLIGHT26 | Built to Last: Goyettes Auto PartsCelebrates Nearly 80 Years in Business

LEGAL PERSPECTIVE28 | What Do You Mean You Wont Pay the Claim?by James A. Castleman, Esq.

MARK MY WORDS35 | A Recall of the Recallby Mark Giammalvo

IN MEMORIAM54 | Jim Simeone

New England Automotive Report April 2014 5

CONTENTS

10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR17 | SAVE THE DATE! AASP/MA ANNUAL CASINO NIGHT19 | AASP/MA SUSTAINING SPONSORS21 | 2014 AASP/MA GOLF OUTING INFORMATION24 | ADALB REPORT59 | AASP/MA MEMBERSHIP APPLICATION62 | INDEX OF ADVERTISERS

40

April 2014 Volume 12, No. 4

ALSO THIS ISSUE

48


APRIL 2014April 8, 2014

AASP/MA MidState Chapter MeetingDoubletree Hotel

5400 Computer Dr., Westborough, MA

April 22, 2014AASP/MA Board of Directors Meeting

Doubletree Hotel5400 Computer Dr., Westborough, MA

MAY 2014May 13, 2014

AASP/MA Statewide Chapter MeetingDoubletree Hotel


JUNE 2014June 10, 2014

AASP/MA MidState Chapter MeetingDoubletree Hotel


June 12, 2014AASP/MA Annual Golf Outing

Charter Oaks Country Club394 Chestnut St., Hudson, MA

FOR A FULL LISTING OF UPCOMINGAASP/MA EVENTS AND TRAINING OPPORTUNITIES, PLEASE VISIT

WWW.AASPMA.ORG



STAFF

PUBLISHED BY: Thomas Greco Publishing, Inc.244 Chestnut Street, Suite 202, Nutley, NJ 07110

Corporate: (973) 667-6922 / FAX: (973) 235-1963Advertising: (800) 991-1995 / FAX: (732) 280-6601

www.grecopublishing.com

AASP/MA EXECUTIVE COMMITTEEPRESIDENTPaul HendricksVICE PRESIDENTMolly BrodeurSECRETARYGary CloutierACTING TREASURERMolly BrodeurIMMEDIATE PAST PRESIDENTRick Starbard

AASP/MA STATEWIDE DIRECTORSCOLLISION DIVISION DIRECTORAdam IoakimASSOCIATE DIVISION DIRECTORDon Cushing

AASP/MA CHAPTER DIRECTORSN/E CHAPTER COLLISION DIRECTORAlex FalzoneS/E CHAPTER COLLISION DIRECTORKevin GalleraniS/E CHAPTER MECHANICAL DIRECTORMichael PenachoMIDSTATE CHAPTER COLLISION DIRECTORTom RicciMIDSTATE CHAPTER MECHANICAL DIRECTORJustin ForkuoWESTERN CHAPTER COLLISION DIRECTORPeter LangoneWESTERN CHAPTER MECHANICAL DIRECTOREd Nalewanski

New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to allothers. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited withoutwritten permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright 2014by Thomas Greco Publishing, Inc. Images: Cover and Page 50 www.thinkstockphoto.com/Peshkova; Page 17 www.thinkstockphoto.com/PJPhoto69; Page 29 www.thinkstockphoto.com/monkeybusinessimages; Page 35 www.thinkstockphoto.com/xril; Page 40 www.thinkstockphoto.com/Comstock; Page 45 www.thinkstockphoto.com/Kalawin

PUBLISHERThomas Greco ([email protected])

MANAGING EDITORAlicia Figurelli ([email protected])

EDITORJoel Gausten ([email protected])

ADVERTISING DIRECTORNorman Morano

(800) 991-1995 ([email protected])ART DIRECTOR

Lea Velocci ([email protected])PRODUCTION

Sofia Cabrera ([email protected])

WWW.AASPMA.ORG

AASP/MA EXECUTIVE DIRECTORJillian M. Zywien

Lynch Associates, Inc.Phone: (617) 574-0741Fax: (617) 695-0173

Email: [email protected]

MASSACHUSETTS


Please note new

phone/fax numbers!


As we announced recently, AASP/MAs newly refocused mission is to buildthe success of the auto repair industry.While we are committed to supporting allof our members and the collision repaircommunity of Massachusetts as a whole,it is my opinion that theres no better

place to start than with those who are noteven in our field yet. Im talking about col-lision repair students and the vocationalschool sector of our industry. We havetalked frequently over the years abouthow the future of the industry rests on theshoulders of these young techs, but have

we done all we can to support and pro-mote these future repair professionals?Not really. Well, Im happy to say that allthat is about to change.

AASP/MA is working hard to reinforceto our members and the industry at-largethe importance of our educational coun-terparts, starting within our own associa-tion. Membership in AASP/MA (a $395value!) is FREE to any vocational educa-tional facility in the Commonwealth, andwe encourage all instructor members tobring their students to any associationevents and meetings to give them aglimpse of their future career path. Andspeaking of meetings, by the time youread this message, AASP/MA will havemade a special announcement at ourApril 8 meeting (an event that includednumerous area vocational school repre-sentatives and students as our guests)regarding our commitment to area voca-tional educators. Stay tuned to nextmonths issue for full details!

As we move toward the future,AASP/MA would love to further incorpo-rate vocational schools into our associa-tion. One of our long-term goals is to oneday establish an annual educators round-table, where instructors from acrossMassachusetts would gather to discusscommon issues and solutions. In themeantime, here at AASP/MA, we areworking in a number of ways to give edu-cators - and the students they teach whowill ultimately shape our industry - therecognition, support and assistance theyabsolutely deserve.

VICE PRESIDENTS MESSAGE


AASP/MA Vice PresidentMolly Brodeur is the Chief

Operating Officer of AlBrodeurs Auto Body in Marl-

borough, MA. She can bereached at (508) 485-1082

or [email protected].

Building the Success of the Auto Repair IndustryOne Future Repairer at a Time!

MASSACHUSETTS



Dear Members,

AASP/MA has certainly started this year with some greatmeetings. Last month, we hosted our second quarter StatewideMeeting, which was sponsored by Balise Collision Repair andwelcomed over 60 attendees. In January, we announced thelaunch of our statewide media campaign and rolled out severalnew member benefits. This month, I am thrilled to share somenews about our upcoming statewide events.

Our third quarter Statewide Meeting on May 13 will featurea keynote presentation by Attorney Erica Eversman. As some ofyou may be aware, Eversman is at the forefront of issues plagu-ing the auto body industry today. She is recognized nationallyas an authority on diminished value and a legal expert in colli-sion repair issues. Eversman is chief counsel of Vehicle Infor-mation Systems and the author of the www.Forbes.com Best ofthe Web award-winning blog, AutoMuse. Her highly anticipated

presentation is a unique opportunity for Massachusetts shops toget an industry-wide perspective on current problems. I encour-age all shops to mark their calendars and attend this vital pres-entation.

Following the Statewide Meeting is our Annual Golf Outingon June 12. This year, the Board has chosen a superb location:Charter Oak Country Club in Hudson, MA. Our Golf Outing is anall-day event full of fun, friends, prizes and a little golf. We en-courage you to bring your employees, let loose and network! Lastyear, we didnt let a little rain stop us; this year, we are hoping forsunshine! Sponsorship opportunities are listed on our websiteand we are accepting prize donations for our raffle. Player in-formation can also be found on our website. Pricing includesgolf, greens fees, golf cart, locker room use and a buffet lunchincluding carving station! For pricing information, please turn topage 21.


A MESSAGE FROM THE EXECUTIVE DIRECTOR

Exciting New Developmentsat AASP/MA!


AASP/MAs final statewide event isprobably our members favorite - CasinoNight. This years event will be held onSaturday, November 15, and we havemoved locations in order to accommo-date our ever-growing size. This yearsCasino Night will be held in the PutnamClub at Gillette Stadium! We are thrilledto be hosting Casino Night at GillettesPutnam Club and have added a numberof event enhancements, including privatestadium tours (for an additional fee) andspecial casino night gift(s), with more tocome! As we do every year, this event willsell out quickly. Please register today on-line at www.aaspma.org or call (617)574-0741 to reserve your tickets!

The recent momentum of the associ-ation has been exciting, to say the least.Support from both sponsors and mem-bers has been extremely positive, and Ilook forward to our continued success.Please continue to participate and reachout to fellow shop owners and encouragetheir participation. AASP/MA is growingevery day, and we need YOU to participatein building the success of the auto repairindustry!

Sincerely,


AASP/MA ExecutiveDirector Jillian Zywien

has been a senioraccount executive at Lynch

Associates for over six years.She can be reached at (617)

574-0741 or via email at [email protected].

MASSACHUSETTS



The Annual AASP/MA Casino Nightis getting a major upgrade this year.

As announced at the March 11 AASP/MA Statewide Meeting in Westborough, the

association will host its 7th annual eventon Saturday, November 15 in the Put-nam Club at the world-renowned GilletteStadium in Foxborough!

One of the countrys most celebratedvenues, Gillette Stadium is the homefield of the New England Patriots, NewEngland Revolution and University ofMassachusetts Amherst Football. Thestadium regularly hosts other marqueesports events that include internationalsoccer matches, NCAA lacrosse champi-onships and high school football SuperBowls. Additionally, Gillette Stadium regu-larly hosts the largest concert tours in theUnited States. Billboard ranked GilletteStadium among the top 10 venues in theworld over the last decade. Artists whohave recently taken the stage at GilletteStadium include Bruce Springsteen, U2,Taylor Swift and Kenny Chesney.

In addition to enjoying the CasinoNight event in such a unique setting,AASP/MA members can attend the festiv-ities for a one-time price of only $100 perperson. The package includes admission,event parking, $50,000 in gaming chipsand two special Casino Night gifts.Special stadium tours are available toAASP/MA members for an additional $25per person. Non-members can attend for$200 per person for the regular packageand $225 per person for the packageplus the stadium tour.

AASP/MA Executive Team MemberPeter DAgostino believes that the pricingstructure will encourage non-members tojoin AASP/MA and take advantage of allthat the association has to offer.

We think that if youre going to getthe opportunity to come to this venue andbe part of Gillette Stadium, then youshould support us throughout the year orreally contribute for that one night, hesays.

The vast array of Casino Night spon-sorship opportunities include having yourcompanys name featured on the Jum-botron on the end zone!

For more information on the 7thAnnual AASP/MA Casino Night, see theannouncement at right, visitwww.aaspma.org/casino-night-2014-gillette-stadium/ or call AASP/MA at(617) 574-0741.


SPECIAL ANNOUNCEMENT

AASP/MA to Host 7th AnnualCasino Night at Gillette Stadium!

MASSACHUSETTS




1-800 RADIATOR &ACProvides a 2% rebate applied

to members annual dues.

(800) 9143802Contributes 1% of gross

sales to your annual dues

PLEASE SUPPORT AASP/MA SPONSORS!AASP-MA Silver Sponsor

To get more information on becoming an AASP/MA SustainingSponsor, please contact AASP/MA Executive Director Jillian Zywien at

(617) 574-0741 / [email protected]

(800) GK-CARESNew AASP/MA member

benefit provider!

LAST CHANCE TO JOIN AASP/MAS STATEWIDECONSUMER EDUCATION MEDIA CAMPAIGN! Consumer Education MediaCampaign Ad Purchase Form

Company: __________________________Contact: ____________________________Phone: (_____)_______________________Fax: (_____) _________________________Email: ______________________________

Credit Cards Accepted: (check one)M/C___ Visa___ Amex___ Disc___

Card #: _____________________________Exp. Date: __ / __

CID # ____ (3 #s on back for Visa/MC/Disc; 4 #s on front for Amex)

Name on Card: _______________________Signature: ___________________________

Billing Address:_______________________State:_______ Zip Code:____________

Please fax this form back to(617) 695-0173.

Consumers are not always aware of their rights, which may cause an insurance company to in-fluence them away from their own trusted body shop. AASP/MA leadership has approved an ag-gressive anti-steering radio campaign. Our consumer education ads will run on premier radio stationsduring PRIME TIME hours, such as morning and evening commutes. Over the course of this cam-paign, our message will total 10 million radio impressions. Every person who tunes into radio in Mas-sachusetts will hear our ad an average of four times. In addition, listeners will be directed to a websiteoutlining all of their rights to a quality, safe, repair covered by their insurer.

WE NEED YOUR HELP! We are funding this enormous effort by offering the auto body industry thechance to be personally identified in these ads. Following each ad, YOU can purchase the opportunityto market YOUR shop. There are opportunities in all geo-graphic locations, so that you can buy in the market whereyou are located. AASP/MA members will receive special dis-counting on their ads, but ALL shops are eligible to participate.Are you an industry leader who wants to stand up and becounted? Help us to provide consumers with a better under-standing of their rights and buy an ad TODAY!

Don't let the insurance company take anotherone of YOUR customers away. Act NOW, asthese advertising opportunities will sell out.

Purchase your ad by calling (617) 574-0741 or fill out the credit cardinfo at right and fax to (617) 695-0173.

RATES


GOLF PRICES:Single: $200

Foursome: $800

SPONSORSHIP PRICES:Hole Sponsor: $200

Competition Sponsor: $250Raffle Prize Sponsor: $500

2014 AASP/MA ANNUAL GOLF OUTING

Thursday, June 12, 2014Charter Oaks Country Club

394 Chestnut St.Hudson, MA 01749

8am Registration 9am Shotgun Start*Golfers are asked to arrive by 7:30am to facilitate registration

To register or for information regarding sponsorships, call (617) 574-0741or email [email protected]



The ADALB hosted its first sessionof 2014 on February 25 in Boston. Theagenda for the public portion of the meet-ing included reporting on the results ofthe most recent appraiser test, amendingthe current appraiser license applicationand receiving input from the Board onareas of interest for possible amendmentwithin the ADALBs regulations.

ADALB member Carl Garcia startedthe meeting by reporting on the resultsof the January 7 Part II examinations.Twenty-seven individuals took the exami-nation; 17 individuals passed. The nexttest will be held on April 1 at the HolidayInn in Taunton. There will again be a re-view in Garcias shop at 3pm the day priorto the exam.

For the next item under considera-tion, the Board voted 3-0 to amendQuestion 16 on the appraisal license

application to clarify the reporting of anapplicants criminal history. The amend-ment would limit the reporting to certaintypes of crimes, thereby excluding certainminor motor vehicle infractions that donot affect an individuals ability to providean appraisal.

Finally, the Board entered into a dis-cussion about the amending of regula-tions contained in 212 CMR 2.04 et. seq.After a report about the regulatoryprocess, Board Counsel further reportedthat the regulations are currently alsounder review by the Division of Insur-ances (the Division) General Counsel todetermine areas that need updating tocomply with any recent legal changes. Inaddition, Board Counsel stated that theDivision is awaiting suggestions from theBoard on their desired areas of review.

With that stated, the Board enter-tained a thoughtful and lengthy discus-sion, outlining several areas of concernfor further discussion at the next meeting.The first area identified was a potentialchange to the regulations conflict of in-terest clause. The Board stressed the im-portance of how appraisals are beingwritten and the need for language toensure auto body shops are writingappraisals on behalf of insureds, not theinsurers. Along those same lines, ap-praisal fees, intensified appraisals andtime frames were also identified as areasfor further consideration. To that end, theBoard also noted that recent insuranceplan changes, process updates and tech-nological advances (i.e., digital media)have made some of the regulations relat-ing to how an appraisal is conducted andthe time needed to complete an appraisaloutdated. The Board also slated theseitems for further discussion at the nextADALB meeting.

Of final note, the Board noted that thecurrent regulations were written before di-rect payment plans were in place. Ac-cordingly, the current language could bein conflict and warrants further consider-ation for potential amendment. Before ad-journing to executive session, the Boardset their next meeting for April 29. Per theshared concern of Board members, thefurther discussion about the regulationswill be the final item on the agenda inorder to allow for a lengthy discussion.

As reported previously, AASP/MA hasbeen working diligently with our legislat-ive committee to review the regulationsto develop our own recommendations.AASP/MA will be formalizing our recom-mendations and sharing them with theADALB and the Division. Please pay closeattention to all future member publica-tions as this initiative develops. If you arenot a member of the association, pleaseconsider joining today so you will be partof these important deliberations.

ADALB REPORT

MASSACHUSETTS



ADALB Discusses Regulation Amendments


As any dedicated parts professionalwill tell you, shops that call with an or-der need those products delivered aspromptly as humanly possible. In the fast-paced world of vehicle repair, auto bodyfacilities cant wait for a back-ordered partto show up or (even worse) another partto arrive if the first one shows up defec-tive. And when New England shops needa dependable used part yesterday, theyknow they can call Goyettes Auto Partsfor the fastest service around.

Goyettes Auto Parts was founded byHenry Goyette in New Bedford in 1935.Henrys son, Joe Sr., was the guiding forcefor future generations in the business.During the 80s, he knew that the usedparts market needed to modernize andbreak out of the junkyard mentality. Hewas well known and respected by manyrecycling yards and body/repair shops inthe area. Today, the family business day-

to-day operations are overseen by JoeSr.s sons Phil (marketing and Internetsales) and Joe Jr. (general manager) anddaughter Paula Reusch (accounting andadministration). Currently, Joe Jr.s 22-year-old son Jake is also an active part ofthe business, bringing the family tradeinto its fifth generation of excellence.Along with 16 employees and a fleet ofeight trucks, the family offers same- ornext-day deliveries throughout SouthernNew England. Additionally, the companyutilizes long-haul trucking outfits to han-dle orders in Northern New England.Throughout the years, they have stead-fastly stood behind their well-known slo-gan: Our goal is to provide qualityproducts at competitive prices with hon-esty and integrity. Goyettes employeesare dedicated and willing to go the ex-tra mile in busy times to see to it thattheir customers are serviced in a timely

manner. That is an important factor inrunning an efficient operation at thislevel. Most of Goyettes salespeople havean automotive background and can talkshop with the shops as well as provideexpert sales knowledge on part inter-change and evaluation.

Goyettes Auto Parts in-house ware-house includes a vast array of products in-cluding engines, transmissions, starters,alternators and body parts such as doorsand decklids. Three years ago, the com-pany added an extensive new dismantlingarea that elevated its customer service of-ferings to new heights. In addition tomaintaining a strong presence throughoutNew England, Goyettes Auto Parts hassuccessfully branched out into nationaland even global markets by using eBayand other Web-based technologies.

I think the Internet is changingeverything - from the way we buy cars tothe way we sell the parts, Reusch says.Now, we see all this social media thatscoming out. From the salesand market-ing end, were seeing a greater push foreven recyclers to get into marketingthrough these social websites, which isfascinating.

Of course, the Internet can go onlyso far in securing Goyettes place in theindustry. Although these technologiesbring new clients to the door, it is thecompanys job to make sure these cus-tomers stay. In Reuschs mind, thismeans always paying attention to chang-ing attitudes, practices and demands thataffect the used parts industry.


BUILT TO LAST:GOYETTES AUTO PARTS

CELEBRATES NEARLY 80 YEARSIN BUSINESS

Goyette's Auto Parts sales professionals (left to right): Mark Barnett, Brian Rogers,Adam Fedele and JD Dubois

VENDOR SPOTLIGHT



You have to stay in touch with yourcustomers, see what their needs are andmeet them on a continual basis, shesays. You also have to stay up with thecurrent trends. If we kept doing our busi-ness the way we did it 20 years ago, wewould be in trouble.

Goyettes is a member of AutomotiveRecyclers of Massachusetts (ARM) andthe Automotive Recyclers Association(ARA). They are part of the Gold Seal Pro-gram overseen by ARA. This is a programexclusively for ascertaining customer sat-isfaction within the auto recycling indus-try. As part of the program, on a quarterlybasis, the companys customers arecalled at random and polled on their ex-periences with auto recycling facilities ingeneral. Goyettes uses this feedback toimprove their operation.

Above all, the ongoing success ofGoyettes Auto Parts stands as a symbolof what can be accomplished by legiti-mate auto parts suppliers. As their cus-tomers know, Goyettes has done much toelevate the image of the salvage partsworld.

I know some shops wont use usedparts, and thats a mindset that maybecame from them using some of the oldjunkyard-type of operations in the pastand having bad experiences, Reusch of-fers. Those are the type of customerswed like to bring in and say, We can workwith you and make things work for you.

When youre buying used parts,youre getting original equipment, but at adiscount, she adds. Theyre perfectlyusable; theyre not aftermarket items thatare not up to par in some cases. Youregetting the actual original equipment butnot paying original, brand-new prices.

Goyettes Auto Parts is open 8am-5pm Monday through Friday. For more in-formation, please call (508) 994-1801 orvisit www.goyetteautoparts.com.

MASSACHUSETTS




I got an email from a longtime collision repair shop ownerthe other day, telling me about a problem that the shops cus-tomer had in getting paid on a third-party claim. Another driverhad run a stop sign and hit his vehicle. Despite how the accidenthappened, the insurer of the at-fault driver advised that theywere only going to pay 50 percent of the repair costs, allegingthat the shops customer was contributorily negligent. The in-surer made the bizarre argument that the customer was 50 per-cent at fault, because he should have anticipated that someonemight run the stop sign. After lengthy negotiations, the insurereventually agreed to pay 90 percent of the cost of repair. Thisstill seemed ridiculous - to both me and the shop owner - but thecustomer finally threw up his hands and gave in, thankful that hehad to pay only 10 percent of the repair costs.

The Problem for Repair ShopsInsurers pay for a very significant percentage of auto dam-

age repairs. Since many car owners would have difficulty payingfor repairs if they had to come up with the full cost out of theirown pocket, collision repair shops depend on insurers in orderto stay in business. When an insurer denies coverage or other-wise refuses to pay a claim, a repair shop can find itself in a dif-ficult position, particularly if the shop has fixed the car beforethey have learned the insurer isnt paying.

Unfortunately for repair shops, there are a number of validreasons an insurer may have to deny payment of a claim. And aninsurer (or at least its appraiser) may also legitimately not knowthat it is denying coverage until after repairs are finished.

On the other hand, insurers excuses for nonpayment arenot always legal or proper, and shop owners should know whento challenge an insurers denial of payment. Further, improperdenial of coverage can often be the basis of an unfair insuranceclaims settlement claim, making the insurer potentially liable formultiple damages and payment of the claimants attorney feesif legal action becomes necessary to enforce the customersrights.

Cancellation of the Insurance PolicySome excuses for nonpayment are based on exclusions

specifically listed in the standard Massachusetts auto insurancepolicy. Others are based on governing statutes and case law.

A definite legitimate excuse for not paying a claim is that theinsurance policy has been validly canceled.

The single most common reason for cancellation of an autoinsurance policy is that the insured has not paid their premiumwhen due. Both governing statutes and the auto policy itselfallow an insurer to cancel coverage if it is not getting paid.

But there are also a number of other reasons that a policymay be canceled. Something as simple as failing to fill out andreturn a renewal application could be grounds for cancellation.Giving fraudulent responses or making misrepresentations inan insurance application can also allow an insurer to cancel, ascan the suspension or revocation of the insureds drivers li-cense registration - or the revocation or suspension of the li-cense of any other operator listed on the policy living in theinsureds household. Cancellation for any of these reasons al-lows the insurer to deny coverage for any first- or third-partyclaim.

Of particular concern to collision repair shop owners are pro-visions in the auto policy that allow insurers to cancel just colli-sion and/or comprehensive coverage. An auto policy may stillbe in place in these situations, covering personal injury andmaybe even third-party damage claims, but there may be nofirst-party coverage for auto damage claims.

Legitimate reasons for an insurer canceling collision and/orcomprehensive coverage include the insured vehicle beingowned or customarily used by an operator who has been con-victed within the last five years of vehicular homicide, motor ve-hicle related fraud or auto theft. Conviction within the past threeyears of operating under the influence or alcohol or drugs alsoallows cancellation of these coverages. The same is true if theowner or any operator has made any intentional material mis-representations within the past five years when making an autoinsurance claim. These coverages may also be canceled if asalvage title has been issued for the vehicle, if the owner hasnot had the car re-inspected and otherwise followed the proce-dures required for a reconstructed vehicle title. If the car hasbeen designated a high-theft vehicle and does not have an ap-proved anti-theft or auto recovery device, these coverages maybe canceled. Similarly, an insurer is required to cancel collisionand/or comprehensive coverage if a used vehicle is beinginsured and has not had an insurance pre-inspection as

LEGAL PERSPECTIVE

What Do You Mean YouWont Pay the Claim?*

by James A. Castleman, Esq.

*This article is a follow-up to a recent Legal Perspective regarding the basics of auto insurance in Massachusetts, concentrating on the issue of insurers deny-ing claim payment. To view the Basics series, please visit www.grecopublishing.com.



required by law within seven days of the effective date of thepolicy, unless the vehicle falls into one of the statutory excep-tions.

Separately, collision coverage may be canceled if a vehicleoperator has been involved in four or more at fault accidentswithin the past three years. And comprehensive coverage maybe canceled if the vehicle owner or an operator has had two ormore auto theft or fire insurance claims within the same timeframe. If an operator has had their license suspended or re-voked during the insurance policys coverage period, coveragefor that person may be suspended in regard to collision and com-prehensive coverage, and liability (third-party) coverage maybe limited to the statutory required minimum of $5,000.

Despite all this, there are limits on an insurers ability to can-cel coverage, and if the insurer has not followed the statutoryrequirements for cancellation explicitly, then the insurer will re-main on the hook. And the procedures for cancellation are rela-tively complex. The insurer must give 20 days advance writtennotice of its intentions to cancel, stating the specific reasons forcancellation. The notice must be hand delivered or mailed to theinsured; if mailed, the insurer must do so by certified mail.

Case law is split on what may make a notice defective. Somecases have held that minor defects in the wording of the can-cellation may make it ineffective, while other cases are more for-giving to the insurer. What is important is to recognize that theremay be a defect in the notice that may prevent the insurer fromdenying coverage.

Reasons for Denial of CoverageAmong the reasons for denial of coverage under an insur-

ance policy that has not been canceled are:Unlisted household operator. An insurer is entitled to - and

will deny - collision coverage if the vehicle was being operated bya household member who was not listed on the applicable in-surance policy at the time of the collision.

Note, however, that this exclusion applies only if the listingof the person would require a higher premium, either becausethe operator is considered to be an inexperienced operator orbecause they have a higher insurance step rating. Note also thatthis exclusion does not apply to a non-household member whodoes not regularly use the vehicle, no matter what their experi-ence or step rating. So, if everyone in your customers house-hold is an experienced driver, but they let their neighbors17-year-old son drive their car on a one-time basis at the time ofthe accident, then there is still collision coverage. There also ap-pears to be a 60-day grace period to notify the insurer if some-one becomes a household member, if they were not at theinception of the policy period.

Use without consent. An insurer will not pay a third-partyproperty damage claim if the person who caused the accidentwas using a car without the owners consent. If that neighborsson in the prior scenario had the permission of the vehicle ownerto drive it, the owners insurer will pay for damage the neighborsson causes when he swerves into someone elses car. But if theneighbors son hotwired the owners car in the middle of thenight without the owners permission and caused the samedamage, the owners insurer would not pay the third-party claim.

Be careful of this excuse for nonpayment. In the past, I haveseen insurers subtly goad vehicle owners into claiming thatsomeone they knew did not have their permission to use


their car, making the vehicle owner think that they were doingsomething wrong if they did. In reality, the insurer is just lookingfor an excuse not to pay the third-party claim.

Intentional damage. Insurers do not have to pay collision orcomprehensive claims for damages intentionally caused by theowner or operator. When someone takes a baseball bat andsmashes his or her fender because he or she got angry that thecar wouldnt start, the insurer does not have to pay. Similarly,when a vehicle owner hires someone to torch his or her own carbecause its a lemon, the insurer will not pay.

Failure to give timely notice of a claim. An insurer does nothave to pay a collision or comprehensive claim unless the vehi-cle owner files a notice of claim within 91 days of the loss. An in-surer does not have to pay a third-party liability claim if theresponsible party does not promptly give his or her insurer adetailed notice of the incident giving rise to the claim. Promptlyis not defined in the policy or law, but legislation enacted manyyears ago prevents an insurer from denying a third-party claimon this basis, unless the insurer can show that it was prejudicedby the late notice.

Failure to cooperate. An insurer can deny collision, com-prehensive or third-party liability coverage if the insured or any-one else covered under the insurance policy does not cooperatewith the insurer in the investigation of the claim. What consti-tutes cooperating is not clearly spelled out, but generally, theperson must answer questions, provide requested documenta-tion and otherwise respond to reasonable requests for coop-eration by the insurer. Additionally, as part of being cooperative,an insured is required by the insurance policy to submit to anexamination under oath if requested by the insurer.

There are a couple of important things to recognize aboutthis excuse for nonpayment by an insurer. First, by statute, an in-surer cannot refuse to pay their statutory minimum $5,000 prop-erty damage coverage to a third-party claimant just because theresponsible party refuses to cooperate with their insurer.

Second, insurers sometimes use the policys cooperationclause - particularly the examination under oath - to paint theirinsured into a corner. The insurer may investigate a claim thatthey consider to be suspicious, and then when they think thetime is right, ask their insured to undergo a lengthy examinationunder oath. The examination is usually at the insurers office,and almost always conducted by a lawyer who is part of theirSIU staff. If the insured refuses to attend and testify, then the in-surer can legally deny the claim. If the insured does attend andtestify, the insurers lawyer will try to develop as much factualinformation as possible to use as an excuse to deny the claim.In my experience, it is rare that an insurer voluntarily pays aclaim immediately on the heels of an examination under oath.

Fraud or misrepresentation. It may seem obvious that aninsurer should be allowed to deny a claim if their insured haslied about the incident that caused the damage. If an insuredbacks his or her car into a stone wall, but then claims that he orshe was hit from behind while parked, the insurer can deny theclaim.

In some situations, however, an insurer may not be able to

deny third-party liability coverage just because their insuredmade misrepresentations to them. If the third party did nothingwrong, and the insured had a valid policy in effect, the third partymay still be able to collect.

It should also be noted that an insurer can use any misrep-resentation that would affect a policys premium as an excuse todeny collision or comprehensive coverage. Perhaps the mostcommon instance of this is the person who garages his car inBoston, but claims that they garage it in the suburbs. The in-sured saves a ton of money on premiums for collision and com-prehensive coverage, but buys themselves a denial of coveragewhen they have a claim and the insurer finds out where the caris really kept. On the other hand, if a misrepresentation is im-material and does not affect the premium, then it cannot beused as an excuse to deny coverage.

Contributory negligence. On a third-party liability claim inMassachusetts, an insurer does not have to pay the third partysdamages if the third party was more negligent than their in-sured. And even when their insured is 50 percent or more atfault, the amount of the payment on behalf of the responsibleparty is reduced by the percentage of the fault of the claimant.

A couple of things should be noted about contributory neg-ligence. First, in Massachusetts, an insurer must pay a third-party claim if the parties are equally negligent. The insurersresponsibility is to pay only 50 percent of the claimants dam-ages, but they still have to pay. They can disclaim liability only iftheir insured was less than 50 percent at fault.

Second, negligence is in the eye of the beholder. Thus,when the insurer mentioned in the opening paragraph of this ar-ticle had the chutzpah to claim that they only had 50 percent li-ability for their insured who ran a stop sign, they were trying toraise the issue that someone could truly find the claimant 50percent liable as well. Even though the argument made no sensein that situation, the insurer was able to negotiate down, andstill save itself 10 percent of the cost of repair. Might a judge orjury have found the claimant 10 percent negligent? Probably not,but no one knows for certain.

ConclusionIt can put you in a difficult situation to have your customers

insurer deny coverage for a claim. If you have not started repairs,can you refuse to fix the car? What do you do if youve alreadyrepaired the car? What do you tell your customer to do?

In order to answer these questions, it is important to knowwhen an insurer can properly deny coverage. And it is importantto know when an insurers denial of coverage can be challenged.


LEGAL PERSPECTIVE

MASSACHUSETTS


Attorney James Castleman is a managing member of Paster, Rice & Castleman, LLC in Quincy, MA. He can be reached at (617) 472-3424 or at

[email protected].



MARK MY WORDS

It seems like every other week we hear of a vehicle, refrig-

erator or lawn mower making headlines over some type of re-

call. Recently, a Buick customer asked me to look up their

vehicles history in our service database. I came across an in-

voice showing that we had brought their car to the dealership

for a recall. A courtesy trip by us to the dealership was not all

that unusual, but the actual recall itself caught my attention be-

cause it included a rebate check issued to the customer.

The vehicle in question was a 2007 Buick Lucerne and the

recall was #10153. A search of our ALLDATA system gave me the

history of the recall, as well as a separate recall for the same

problem two years earlier. Evidently, back in 2008, GM was re-

ceiving complaints about fires (or what GM refers to as thermal

incidents) regarding a GM option known as the Heated Washer

Fluid System (HWFS). The recall affected numerous models with

this option within the Buick, Chevrolet, Cadillac, Hummer, GMC

and Saturn car lines. At that time, it was discovered that the

HWFS was developing a short inside its printed circuit. Accord-

ing to that initial recall (#08048), GM advised their dealers to

install a jumper harness that added the feature of an inline fuse

to the HWFS. Some time after that recall, a number of these ve-

hicles with the now-modified HWFS circuit were still experiencing

thermal incidents by a new failure mode attributed to the de-vices thermal protection feature.1

Over the years in this industry, Im sure we have all seen

some unusual recalls, including some where the vehicles were

even bought back by the manufacturer. But I could not remem-

ber a time when a new car manufacturer had decided to bring

vehicles in for a recall and disconnect an item because it could

not be repaired. In GMs defense, I will admit that they did seem

to honestly word their rationale for not wanting to attempt a sec-

ond repair. (This is a special case where we are not confidenta repair would work. This is why we are removing this featurefrom the vehicle2.)

In the final recall, GM dealers were advised to disconnect

and remove the HWFS system and issue the customer a $100

refund check to compensate them for the loss of this option on

their vehicle. Now, you may wonder, how did the factory deter-

mine that the value of this feature was $100? Was that the cost

of the option when new? Was it even an option? Well, GM an-

swered these questions in a Q&A portion of the recall that was

sent to its dealers:

Compensating the current customer of record for this loss isan appropriate gesture.

Q2. What is the original cost of the Heated Washer FluidSystem?

A2. The system was priced in several ways; as standard equip-ment, as a stand-alone option and as part of an option pack-age. We analyzed these scenarios and determined that $100 isan appropriate estimate of the value of the feature.3

In reading the technicians repair instructions for this final

recall, I noticed that part of the procedure includes removing the

dedicated 60-AMP (yes, 60-AMP) circuit fuse. No question thatthis was a high-powered heating device. But why would you want

to heat up windshield washer fluid in the first place?

It appears that the design here is not to heat up the entire

washer fluid bottle contents, but to heat up the fluid as it is

headed to the washer nozzles. Here in New England, we often

get those early winter days were the windshield gets that very

A Recall of theRecall

1 Excerpt of Bulletin No.: 10153B Date: July 20, 2010 Subject: 10153A - Heated Windshield Washer Module Short Circuit - Permanently Disable and Remove Module

2 Bulletin No.: 10153B Date: July 20, 2010 Subject: 10153A - Heated Windshield Washer Module Short Circuit - Permanently Disable and Remove Module

3 Excerpt from Q&A section of Bulletin No.: 10153B Date: July 20, 2010 Subject: 10153A - Heated Windshield WasherModule Short Circuit - Permanently Disable and Remove Module

continued on pg. 62


By the time this issue of New England Automotive Re-port is in your hands, the PartsTrader online parts procure-ment system will be available in all 48 continental states.Over the last two years, it has been virtually impossible toopen an industry trade publication without reading about thecontroversy surrounding the companys deal with State Farmto become the sole parts procurement provider allowed tobe used by the insurers Select Service DRP shops acrossthe country. The national rollout of PartsTrader has led toeverything from heated debates on the floor of the CollisionIndustry Conference (CIC) and other industry gatherings tolegislative efforts in Maryland and New York (as well as a law-suit against State Farm in Mississippi) to prevent insurersfrom mandating the use of a particular parts procurementprovider in the repair of automobiles. However, PartsTradersarrival in Massachusetts and Rhode Island comes under dra-matically different circumstances: For the first time in Part-sTraders history in the US, it will be operating in both statesas a strictly voluntary, free-market entity without the benefitof an insurance partner.

With State Farm not writing auto insurance in Massa-chusetts and Rhode Island, PartsTrader will now have toprove its ability to prosper in the marketplace without the na-tions largest auto insurer mandating its use. Despite thisopportunity to silence critics who have attacked the companyfor depending on an insurer to drive work, PartsTrader ap-pears to be taking a decidedly hands-off approach to mar-keting its services to Commonwealth auto body shops.

We are not actively soliciting repairers in Massachu-setts; we have no feet on the street, offers Dale Sailer,PartsTraders vice president of business development. Butif there is a shop that wanted to use it, they can certainlyregister to do so.

Similar to PartsTraders setup in other states, Massa-chusetts shops that use the system nominate parts suppli-ers to be involved in it. As such, Sailer insists thatPartsTraders ultimate success or failure in Massachusettswill depend on the support of repairers.

A supplier cannot unilaterally sign up to use Parts-Trader; only a repairer can nominate a supplier, he says. Itall has to start with the repairer. If no repairers sign up, thenno suppliers can sign up.

Effective February 1, the base rate for parts suppliers touse PartsTrader is $19 per month.Based on a specific levelof sustained ordering activity, a suppliers order volumethrough PartsTrader could move a company into one of threehigher monthly pricing tiers, with a maximum subscriptionfee of $199 per month.

In terms of educating users on the product, Sailer claimsthat shops need about 15 or 20 minutes to learn the Parts-Trader system, thus making the need to provide hands-ontraining to Massachusetts shops minimal.

This is a website; nobody from Expedia comes to yourhouse and trains you on how to use their travel site, hesays. But they certainly have tutorials on their site that say,This is how you use it, and we have the same thing. Wehave training videos, we have online webinars and what we


FEATURE



call the training sandbox, where [shops] use a practice ver-sion of the site to get good at it. Now, if in fact there were agroup of 20 shops in Western, Eastern or wherever Massa-chusetts that said [they were] interested in using it or wantedto learn more about it and were serious, I could see us hold-ing an informational meeting out there.

With PartsTrader now in operation across the UnitedStates, Sailer is quick to express his desire to address somethings that have been written about us that, based on [ac-tual] usage [of the product], people should now go, Well,that was a stupid thing for anybody to ever say. This in-cludes the myths that PartsTrader forces repairers to pur-chase the cheapest part (Thats dumb, he insists) or thatdealer-owned shops are forced to purchase parts from theircompetitors.

Additionally, Sailer claims that PartsTrader currently hasno interest in partnering up with other insurers to grow mar-ket share through DRP shops.

We dont have any ambitions or big plans to go get an-other insurance company and do what State Farm hasdone, he says. Our focus is on providing value to repairerssuch that they use it on their own.

Considering the importance of Massachusetts as a statewhere PartsTrader can stand or fall on its own merits, whyhas the company decided to take such a passive approachto promoting itself in the region?

Our focus for the last 10 months has been rollingout with Select Service shops, Sailer replies. We have aresponsibility to make sure that those shops have a good

experience with PartsTrader. Our resources have been 100percent devoted to getting them online and making theirexperience a good one. There is no logical reason to divertattention to folks who dont have to use it. Once were suffi-ciently rolled out and we have all the resources deployedand were kind of steady state, then we can worry aboutgrowing beyond the non-State Farm shops. At which point,Massachusetts obviously comes into play.

Launched in New Zealand in 2004, PartsTrader talks it-self up on its US website (www.partstrader.us.com) as aneasy-to-use online marketplace that provides collision re-pairers with a single source for procurement of parts fromleading OEM dealers, parts recyclers and alternative partssuppliers. According to company figures available in mid-2012, PartsTrader manages over 10,000 parts request ten-ders and more than 30,000 quotes from suppliers eachmonth in New Zealand.

Since the implementation of the PartsTrader rollout lastyear, New England Automotive Report has received numer-ous complaints and concerns from users throughout thecountry, ranging from the amount of time it takes for repair-ers to receive estimates through the system to dealers hav-ing to hire additional personnel just to handle it in their partsdepartments. An in-depth analysis and discussion of thePartsTrader controversy was featured in our October 2012issue (available online at www.lont.com/NEAR_Oct12/).

MASSACHUSETTS


With State Farm not writing auto insurance in Massachusetts and

Rhode Island, PartsTrader will nowhave to prove its ability to prosper inthe marketplace without the nations

largest auto insurer mandating its use.


In November, Right to Repair became a reality in Massa-chusetts. Now, its the rest of the countrys turn.

Earlier this year, a number of major players in the ongoingnational Right to Repair debate announced that they hadreached an agreement to extend the essential provisions for alllight vehicles negotiated in the Massachusetts law nationwide;impacting all companies and organizations that are currentlymembers of the signatory associations. In a joint statement is-sued on January 22, the Alliance of Automobile Manufacturers(Alliance), the Association of Global Automakers (Global), the Au-tomotive Aftermarket Industry Association (AAIA) and the Coali-tion for Automotive Repair Equality (CARE) announced theircollective acceptance of this national agreement, based on a re-cent law finalized in the Commonwealth of Massachusetts, toensure consumer choice in post-warranty auto repair in theform of a signed Memorandum of Understanding (MOU). Ac-cording to a special Frequently Asked Questions section aboutthe MOU on the AAIA website (www.aftermarket.org/Resources/FAQ- R2R.pdf), the agreement requires automakers to:

Immediately make available to consumers and the in-dependent vehicle repair industry, on fair and reasonableterms, the same tools, software and repair informationthat they make available to their franchised dealers;

Establish websites or "clouds," beginning with the 2018model year, that will contain the same information andsoftware that dealers have access to as part of their pro-prietary tools; and

Provide access to the vehicles diagnostic computersusing a standardized vehicle interface that meets eitherthe Society for Automotive Engineers (SAE) J 2534 or In-ternational Standards Organization (ISO) 22900 standards.

In addition to announcing the groups acceptance and par-ticipation, the MOU press statement revealed that the Alliance,Global, AAIA and CARE will stand down in their fight on Right toRepair and work collectively to actively oppose individual statelegislation while [their] respective groups work to implement this

MOU.In the meantime, the parties agree that further state leg-islation is not needed and could serve to weaken the effective-ness and clarity of the MOU.

Kathleen Schmatz, president and CEO of the Automotive Af-termarket Industry Association, was quick to praise the entitiesthat contributed to the MOU.

We are excited that consumers and independent repair fa-cilities around the nation will have the same access to the in-formation, tools and software needed to service late-modelcomputer-controlled vehicles as is required under the Massa-chusetts Right to Repair statute,she offered in a preparedstatement. We believe that the resulting competitive repair mar-ket is a win-win for car companies, the independent repair in-dustry and, most importantly, consumers.

Massachusetts Governor Deval Patrick signed the Massa-chusetts Right to Repair legislation into law on November 26.The signed legislation was created to address and reconcile twolaws that were on the books in Massachusetts that mandatedthat car companies provide affordable access to all tools, soft-ware and information used to repair late-model computer-con-trolled vehicles. The first law was the result of an agreementreached between the Massachusetts Right to Repair Coalitionand the vehicle manufacturers that was passed unanimously bythe state legislature in late July. The Bill was approved by thelegislature too late to remove a ballot measure that had beensponsored by the Coalition. That ballot measure was approvedin November 2012 by an overwhelming 85-15 percent margin,thus ensuring that there were two Right to Repair laws on thebooks in Massachusetts. The new law includes provisions thatrequire that information and tools be available for heavy-duty ve-hicles (those over 14,000 pounds.)

Although the MOU press announcement publicly stated theautomakers willingness to abide by the light-vehicle provisionsof the Massachusetts law, the AAIA notes on its website that theMOU is a voluntary agreement that does not have the weight oflaw behind it. Therefore, under the MOU, an independent shopnot located in Massachusetts would not be able to take legal ac-tion against a car company for failing to abide by the terms of theMOU. However, it is hoped that since the MOU is based on a lawin place in Massachusetts, car companies will abide by the


Controversy GreetsNational Right to Repair Rollout

FEATURE



voluntary agreement for the other 49 states.Additionally, the MOU excludes motorcycles (also absent in

the Massachusetts law) and heavy-duty vehicles over 14,000pounds. According to the AAIA, it is hoped that groups repre-senting the independent heavy-duty repair industry will be ableto negotiate a similar agreement with trade associations repre-senting heavy-duty truck manufacturers.

Unsurprisingly, what is hoped for isnt enough to satisfy agrowing number of automotive organizations that have ex-pressed concerns over the MOU. On January 23, AAA Presidentand CEO Bob Darbelnet criticized the Memorandum in a heavilydistributed press release entitled Right to Repair AgreementDoes Not Go Far Enough in Ensuring Access to Car Data.

AAA has promoted this issue for years because most con-sumers want the ability to choose their preferred mechanic, hesaid. While this agreement has benefits for consumers, it is nota comprehensive solution. Vehicles are changing rapidly andmore must be done to guarantee consumer choice and controlof vehicle data in the future.

Schmantz countered AAAs position in a February 5 postingon her blog, http://kathleenschmatz.wordpress.com/tag/aaa :

Of course there is always some group like AAA who iseager to play Monday morning quarterback that pointsout that the MOU did not go far enough. This is a veryinteresting statement from an organization that sat on the

sidelines for more than a decade, until the eleventh hourwhen the Massachusetts referendum and legislation werenearly enacted and MOU negotiations were in the finalstage.

Reluctance to embrace the MOU is also being seen in otherpro-Right to Repair states. Sal Risalvato, executive director ofthe New Jersey Gasoline-Convenience-Automotive Associationand a longtime proponent for Right to Repair legislation, tellsNew England Automotive Report that the appearance of theMemorandum of Understanding will not prevent his organiza-tions ongoing efforts to get a Right to Repair law passed in NewJersey. In addition to concerns that the MOU doesnt adequatelyaddress information-access issues pertaining to heavy-duty ve-hicles, Risalvato believes that the agreement does little to actu-ally ensure that its provisions will be enforced throughout theindustry.

When they say theyre going to do a Memorandum, there isno reason why we cant memorialize it in law, because then theycant back out of it, he says. Its too hard to go after them at alater date to say theyre not holding up their end of the bar-gainTheres nothing in law that compels them to do whattheyve said theyre going to do.

New England Automotive Report will provide updates on thisstory as it develops.

MASSACHUSETTS


Although the MOU press announcement publiclystated the automakers willingness to abide bythe light-vehicle provisionsof the Massachusettslaw, the AAIA notes on its website that the MOU isa voluntary agreement that does not have the

weight of law behind it."



In addition to re-structuring the associations missionstatement and public image, the AASP/MA Board of Direc-tors and Executive Team have worked to add greater value tothe meetings and events it holds for members throughoutthe year. Focusing on everything from health care to websitemarketing to a new way to retrieve OEM repair information,the March 11 Statewide Meeting held at the DoubletreeHotel in Westborough (and sponsored by Balise) offered afull slate of educational presentations designed to helpmembers navigate through some of the most common is-sues affecting their industry.

Next-Generation Estimating Made SimpleRick Leos, collision program developer for Toyota Motor

Sales, got the presentations off to a rousing start with a dis-cussion on the automakers new OEM-Recommended Re-pair Procedures program. Scheduled to go live in June,OEM-Recommended Repair Procedures is a next-genera-tion estimating system designed to help shops lower cycletime and improve accuracy.

With this system, collision repair estimates for Toyota ve-hicles 2012 or newer begin with a complete list of all theparts and documentation required for repairing the vehicle

to pre-accident condition. Instead of starting with a blankdocument and adding parts in, Toyota will display all the in-formation related to the repair upfront, providing shops thechoice to keep what they want and omit what they feel isunnecessary.

Through this program, Toyota is offering shops all nec-essary parts information, Toyota recommended procedures,bulletins and any additional information thats part of the es-timating process. OEM-Recommended Repair Procedureswill be available through Mitchell beginning this June at noadditional cost to repair shops. The program will contain aspecial synch feature that will enable users to connect toother existing estimating systems. Leos explained that al-though he solicited all three Information Providers to comeon board with OEM-Recommended Repair Procedures,Mitchell was the company most willing to participate at thistime.

Mitchell stepped to the plate because they have a newestimating database coming out and its the right timing forthem, he said. It wasnt high on the priority list for the otherguys.

Additionally, Leos noted that by partnering with an IP tobring this information to the collision repair community, he isensuring greater usage by repairers than if he developedOEM-Recommended Repair Procedures as an independ-ent, stand-alone program.

If we roll it out on our own, nobody is going to adapt toit, he shared. There is no way an insurance company isgoing to allow [repairers] to upload an estimate from ToyotaMotor Sales. Theres no use for me building a one-off [sys-tem] for you guys.

The New Ageof Education:AASP/MA SHARES REAL-WORLDKNOWLEDGE WITH MEMBERS

COVER STORY

IF YOU HAVENT ATTENDED ANAASP/MA STATEWIDE MEETINGIN 2014, YOURE MISSING OUTON THE TOOLS YOU NEED TOSURVIVE IN THIS INDUSTRY.


Leos advised attendees to proceed with caution if theyfeel the need to override a recommended repair procedurein the system.

The estimating system will be time-stamped that you[overrode it] against the manufacturers recommendations,he said. If an insurance adjuster does the same thing, itllbe time-stamped that [he or she] overrode the procedures ordeleted out things that [he or she] thought didnt need re-placing. Its on both sides; its truly built around consumersafety.

Its really hard for [insurers] to go against this rightnow Were actually putting in writing how all of our cars aresupposed to be fixed, he added.

Leos urged attendees to give the OEM-RecommendedRepair Procedures program a try when it becomes availablein two months.

Its the right thing to do for the car; its the right thingto do for the customer, he opined. All I can say is that Ihope you guys do the right thing when you get it in yourhands.

Capturing Online OpportunitiesScott Gonnello, founder of new AASP/MA benefit

providers Gonnello SEO and webmaster for the associationswebsite (www.aaspma.org), presented a special workshopat the March 11 gathering to assist AASP/MA members inmaking the absolute most of their professional websitesthrough improved search engine optimization (SEO). In sim-ple terms, search engine optimization is building a web-site in such a way that it effectively communicates withsearch engines to achieve first-page placement on Googleand other popular sites.

A problem that a lot of companies have is theyre tryingto market to people, he said. Thats great if you can getthem to your website, but if your website doesnt communi-cate with the search engines, youre not going to be found.

Search engines are the only places where people go tofind commercials, he added. If youre not on the top pageand not showing up when theyre looking for something, yourcompetition may get the business or the callIt doesnt mat-ter if youre a multi-billion dollar corporation or if you cant af-ford a cup of coffee; Google is a level playing field.

So how do shops get on Googles all-important firstpage? For starters, business owners need to care enough toput in the effort to make it happen. Gonnello advised atten-dees to never keep a poorly working site around simply be-cause theyre paying or it.

When you keep a site thats not working and youre pay-ing for it, youre helping your competition by not showing up

on the search engine, he explained. Google wants nothingbut the best to show up on their top page. If you have a sitethats not great and youre not maintaining it or adding newinformation [to it], youre not that much of an expert versusa company that is constantly adding to and updating theirsite and keeping those search engines coming back on aregular basis.

Naturally, what you say on your site goes a long way indetermining where youll end up on the cyber food chain.

The average person types between four and five words[in a search engine] because theyve learned that the moreyou type, the better your results are, Gonello said. If youknow theyre searching [with] four or five words, you shouldwrite phrases in your content that are four and five words[long].

Above all, Gonnello advised attendees to get to knowtheir competition before they attempt to beat them.


The March 11 AASP/MAStatewide Meeting includedpresentations by (clockwise

from top left): MauraMcGovern Snow (Aflac),

Evan D. Cross (Aflac), TiffanyFinnegan (Cloud BusinessAdvisors), Scott Gonnello(Gonnello SEO) and Rick

Leos (Toyota Motor Sales).



If you want to get on the top pages, do some searchesand see whos there, he said. If you look at their websiteand the page theyre showing up under and see a lot of con-tent, then you better have a lot of content.

Gonnello currently offers free website SEO reviews forAASP/MA members who contact him through the MembersOnly section of www.aaspma.org. The site also includes in-formation on how members can get a copy of Gonnellosmust-read book, Common SEO Mistakes: Basic Edition.Other services available only to AASP/MA members include25-percent discounts on website upgrades and specialmonthly SEO pricing. More information on Gonnello SEO isavailable at www.gonnelloSEO.com.

Health Care Woes & SolutionsOf course, all that revenue generated at your shop

through Gonnellos web marketing strategies could help payfor the ever-rising cost of health care in Massachusetts.Tiffany Finnegan, vice president of employee benefits forCloud Business Advisors, appeared at the Statewide Meetingto update attendees on some of the recent news surround-ing the implementation of Obamacare. On the top ofFinnegans list of trends resulting from the new insurancemarketplace is an increase in renewal rates for those whoalready had health insurance in 2013.

Im seeing anywhere from 15-20 percent of people call-ing me with 40-percent renewal increases for the same plan or the carriers are forcing them into a different plan, which

is usually slightly worse, " she said. "Unfortunately, thats allpart of Obamacare.

There used to be renewal caps of 15 percent on cer-tain components, but that is now discontinued, she added.Somebody could feasibly get a 70-percent renewal in-crease.

Additionally, Obamacare has resulted in a decrease inthe plan options offered by insurers and an increase in theout-of-pocket maximums that policyholders need to paywhen they are faced with a medical need.

All of a sudden, your out-of-pocket maximums went up,but its actually a good thing because its going to cap thosecosts for you, Finnegan explained. However, when you ac-tually look at health care spending, about 50 percent of thecosts are by 5 percent of the populationMost folks whohave a lot of health care expenses are actually going to bespending less now, so unfortunately those of us who [dont]use health care so much are paying.

According to Finnegan, health insurance costs rose 118percent from 2001 to 2009 and are expected to go upanother 166 percent over the next 10 years.

The hope [with Obamacare] was you get more peoplecoveredand hopefully that helps drive down costs eventu-ally, she said. But that is not happening.

As a way to help ensure that AASP/MA membersemployees are protected as much as possible during thesechallenging times, the association welcomed a guest pres-entation by Aflac, the countrys leading provider of supple-mental insurance. Currently, Aflac offers a suite of indemnityplans designed to pay the policyholder above and beyondany other coverage they currently have.

Unfortunately, about 50 percent of Americans have lessthan $1,000 in the bank, yet our deductibles have gone to$2,000 or $4,000, offered Maura McGovern Snow, a brokerdevelopment coordinator for the company. It doesnt com-pute, and [the costs] are only going to keep going up.

Aflac District Sales Coordinator Evan D. Cross addedthat Aflac provides an opportunity for employers to enhancethe benefits theyre currently offering to employees at nocost to their businesses.

In addition to re-structuring the associations mission statement andpublic image, the AASP/MA Board ofDirectors and Executive Team haveworked to add greater value tothe meetings and events it holds formembers throughout the year.



Employees are looking for more benefits, and a lot ofpeople are actually cutting benefits right now, he explained.Aflac is a great way for you to add on to what youre offeringfor your employees to make you a little more marketable andhopefully help out with retention. We work with the businessowners to devise a plan of benefit options that employeescan participate in.

More information on Aflac is available at www.aflac.com.

The Media MattersAt the start of the meeting, AASP/MA Executive Team

Member Peter DAgostino urged members to contribute tothe associations ongoing consumer education radio cam-paign. As reported in our February 2014 issue, the goal ofthe campaign is to drive hits to www.itsyourrideyoude-cide.com, which will direct users to a special page on theAASP/MA website (www.aaspma.org) featuring the Con-sumer Bill of Rights. In an effort to maximize consumer en-gagement, AASP/MA worked with Art Kinsman, mediacoordinator for the hugely successful Massachusetts Right toRepair campaign, to develop a strategic list of the top radio

stations in the Commonwealth based on pricing and expo-sure. If the associations funding goals are met, the cam-paign will have the potential to reach 9.3 million consumerswith a powerful anti-steering message.

The bottom line is, you want your customer to knowbeyond the shadow of a doubt that they can come to youregardless of any information theyre given to the contrary,DAgostino said. We really want to push this out to the en-tire state so it benefits [listeners] from New York to CapeCod.

DAgostino stressed that the campaign would only suc-ceed if shops support the endeavor in great numbers.

A few hundred dollars from a lot of people would behuge and allow us to keep our goals instead of a select fewputting in a few thousand dollars and still not meeting ourobjectives, he said.

For more information on the radio ad campaign (includ-ing how to purchase spots), please call AASP/MA at (617)574-0741 or see page 19 of this issue.

MASSACHUSETTS




On March 8, AASP/MA said goodbye to one of its most loyaland beloved supporters with the passing of James J. Jim Sime-one at the age of 64 after a long illness. Born in New Haven, CT,Jim enjoyed a lengthy career in the wholesale automotive partsindustry that included (among other positions) nearly 20 yearsat Long Cadillac and nearly four years at Puritan Pontiac GMC.Since 2008, he had served as wholesale parts manager at BestChevrolet in Hingham.

A graduate of New Haven High School and an attendee ofthe University of Connecticut, Jim served his country during theVietnam War. An avid golfer, he was a member of the DennisPines Golf Course in Dennis, MA and played every weekend.

Jim was an active and enthusiastic presence at numerousAASP/MA events. Whether at a local chapter meeting or majorGolf Outing, he was always happy to do all he could to assist thecollision repair industry. His selfless dedication to AASP/MA washonored at the March 11 Statewide Meeting in Westborough,where AASP/MA Board member and longtime friend Tom Ricciled the room in a moment of silence.

AASP/MA President Paul Hendricks tells New England Au-tomotive Report that Jims efforts left an indelible mark on the

Massachusetts automotive community.Jim was a very positive person who would do almost any-

thing to advance the automotive industry, he says. He was avery dedicated parts salesperson who would be willing to go theextra mile for his customers. He supported the association bysoliciting new members and would always attend chapter andstatewide meetings. He was a faithful Texas Hold em playereach year at Casino Night, and always ended up in the last groupstanding. He was anexcellent golfer and would always attendthe yearly Golf Outing held by AASP/MA.

Jims wife Patricia, being the strong lady she is, commentedto me that he was the best husband that a wife could ask for,Hendricks continues. Jim had told her how sorry he was for put-ting her through these tough times.Jim was always more con-cerned about everyone else.He will be dearly missed, but neverforgotten.

AASP/MA Vice President Molly Broduer remembers Jimsdedication to the annual AASP/MA BBQ.

He was a great supporter, always willing to help with solic-iting donations and working the night of the event, she says.He was a regular attendee of CMARA meetings and made many

Remembering Jim Simeone

IN MEMORIAM

Jim Simeone (pictured here second from left)was a longtime industry supporter.



AASP/MA MidState Chapter meetings even when his health wasfailing. As a newcomer to the industry and association, I alwaysappreciated his participation and support. It was clear to methat he valued his relationships and genuinely cared about re-pairers.

We have lost a veteran, adds Ricci. "We build relation-ships through our industry that sometimes become much morethan just about work. Beyond business, Jimmy genuinely wantedto help the association out any way he could. He always did whathe thought was the right thing to do. We have lost a colleagueto this industry, and a friend. He will be forever missed.

In addition to his wife Patricia and mother Elizabeth, Jim issurvived by two stepsons (Mark Pironti of Long Beach, CA andGeoffrey Pironti of Milford,) one brother (Michael Simeone ofClinton, CT) and one grandson (Geoff Pironti of Milford).

AASP/MA and New England Automotive Report offer theSimeone family our deepest condolences.

MASSACHUSETTS




As a member of the Alliance of Automotive Service Providers of Massachusetts (AASP/MA), I will abide by the associations bylaws and code of ethics. I understand that membership in AASP of Massachusetts is non-transferable, and I must remain current with my dues in order to be a member in good standing. I understand that if I discontinue my membership that I must immediately cease using any association promotions, logos or materials. Additionally,I understand that as part of my AASP of Massachusetts membership, I will receive New England Automotive Report, the official publication of AASP of Massachusetts, faxes, emails and other mailings.

2014 MEMBERSHIP APPLICATION

BUSINESS INFORMATION:

Mr. Mrs. Ms.

Business Representative Name: ______________________________

Business Name ____________________________________________

MEMBERSHIP TYPE

REPAIRER MEMBER (check one)Collision Repair ShopMechanical Repair ShopBoth, Collision & Mechanical Repair ShopsOther Repair Shop

SUPPLIER/ASSOCIATE MEMBER (check one)Auto Paint/Crash Parts/Auto Parts/WholesalerEquipment/Tool SupplierManufacturer/Sales AgentServices (Computers, Software, Vehicle Rental, Other)

LIST OTHER SPECIALTIES __________________________________

________________________________________________________

What benefits motivated you to join AASP of Massachusetts?

________________________________________________________

PERSONAL INFORMATION:

Name ____________________________________________________

Nickname ________________________________________________

2014 ANNUAL MEMBERSHIP DUES (The AASP membership year is from January to January 2015)

Total Due .................................................................................$395.00

NEW! Political Action Committee (PAC) Donation ...............$______

Check or Cash

Credit Card: Visa MasterCard

Card Number: __________________________________________

Expiration Date: __________________________________________

Signature: ______________________________________________

Date: __________________________________________________

*** PLEASE TYPE OR PRINT LEGIBLY ***

10 Liberty Square, 5th Floor Boston, MA 02109(617) 574-0741 | (617) 695-0173 (fax) | [email protected]

FOR OFFICE USE ONLYCheck Number ________________________________Check Date__________________________Check Amount________________________________Date Joined ______________________________Member Number ________________________Next Bill Date ________________________________

Street Address ________________________________________________________________________________________________________

Mailing Address ________________________________________________________________________________________________________

Phone Number ( ) ____________________________________ Fax Number ( ) ____________________________________________

E-mail Address __________________________________________ Web Site Address______________________________________________

Enrolled By (Name and Address) __________________________________________________________________________________________

Street City State Zip

Street City State Zip

Just like good tools and equipment, membership in AASP of Massachusetts isa valuable investment. AASP of Massachusetts works for you through such outstanding programs as: (1) management and technical training;

(2) discount uniform rental; and (3) a wide variety of other business services. Put AASP of Massachusetts to work for you today. COMPLETE THE MEMBERSHIP APPLICATION AND

RETURN IT WITH PAYMENT TO AASP OF MASSACHUSETTS.

As required by the U.S. Tax Code, AASP of Massachusetts, Inc. informs its members that 75% of the dues paid to the association are taxdeductible. The remaining 25% is allocated to legislative activities and is not tax deductible.

MASSACHUSETTS




Artioli Dodge ......................................................11Audi Group..........................................................56Axalta Coating Systems........................................4Bald Hill Chrysler Jeep Dodge Ram ..................57Balise Wholesale Parts Express........................13Baystate Chrysler/Jeep/Dodge ........................46Bernardi Group ............................................32-33Best Chevrolet ..................................................IFCBMW Group ..................................................38-39BMW/Mini of Warwick ......................................12CCC One ................................................................9Clay Nissan of Norwood ....................................46Clay Subaru ........................................................55Colonial Auto Group ..........................................31Empire Auto Parts ..............................................27Enterprise ..........................................................10Ford Group..........................................................60Future Cure ........................................................16Goyettes Inc. Auto Parts....................................27Honda Group ......................................................53Hyundai Group ..................................................34Imperial Chrysler-Dodge-Jeep ..........................52Imperial Ford ......................................................60Infiniti of Norwood..............................................25IRA Group ......................................................14-15Jaffarian Toyota/Volvo ......................................22Kelly Automotive Group ....................................IBCLinders, Inc. ......................................................62Long Automotive Group ..................................OBCLundgren Honda ................................................11Mazda Group ......................................................47McLaughlin Chevrolet ........................................37Mopar Group ......................................................52Nissan Group......................................................23Nissan World of Dartmouth ..............................57PPG........................................................................3R.F. DAgostino ..................................................24Robertsons GMC Truck ......................................51Sarat Ford-Lincoln ..............................................61Sentry Group ........................................................6Subaru Group ..............................................42-43Tasca Group........................................................20Toyota Group ......................................................58Toyota of Nashua..................................................8Village Auto Group..............................................18VW Group............................................................36Wellesley Toyota/Scion ......................................61Woburn Jaguar ..................................................37

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Documents

New England Automotive Report April 2014