California governor signs auto insurance anti-fraud bill

California Governor Gray Davis signed on September 30 an autoinsurance anti-fraud bill with provisions that impact collision repairers. The Senate bill started life with a very strong anti-DRPflavor but lost most of the DRP provisions in its journey through the legislature. Key provisions of the automotive repair act section ofthe bill, which takes effect January 1, are as follows: 

1. Requires the Bureau of Automotive Repair (BAR) to undertakea pilot program to reinspect cars that have had more than $2,500 of body repair to identify work that has not been done as specified on the invoice. Inspections would be done onlywhen requested by a consumer.

2. Makes it unlawful for an insurer to require that a DRP sho pay for the cost of an insured?s vehicle rental or towing charges as a condition of being a DRP shop. There is an
exception if the shop fails to complete the work in the agreed time.

3. Instructs the Dept of Insurance to keep a list of shops which are denied participation in DRP programs; this is for the purpose of gathering market conduct information oninsurers.

4. Makes public record the surveys conducted by insurers to set a ?prevailing auto body rate? in a specific geographic area.

5. Requires insurers to reinspect a statistically accuratesampling of the repair work done on their insureds? vehiclesto demonstrate that they are making an effort to reducefraudulent auto body work.

CCRE open meeting in Orlando before NACE

The Coalition for Collision Repair Excellence (CCRE), an activist group of shop owners focused on the elimination of steering and other improper practices by insurance companies, will hold an open meeting in Orlando, Florida on Thursday afternoon, December 7,immediately prior to NACE. This will follow the members-only annual meeting in the morning. All independent shop owners are invited tothe afternoon session.

The open session will focus on how independent body shops can obtain effective local legal counsel from attorneys who are familiarwith the legal and business issues involved in operating a shop. ?We are putting together a group of attorneys from many different stateswho are willing to take the time to learn our problems so that they can counsel owners on how to protect their legal rights,? said thecoalition?s executive director, Dennis Howard. The featured speaker will be Patrick McGuire, an Illinois attorney whose practice serves
collision repair shops.

As an example of why owners need ?body shop? attorneys, Howard said that the ?vehicle totals lien language? is often inadequate on a shop?s standard release form. ?The language has to be right to insure that you have a correct lien effectuated, and that you will get paid reasonably for such costs as tear down and storage if the vehicle is eventually totaled by the insurer.?

Washington looks into non-OEM parts

With all of the outcry over auto safety in the wake of the Firestone tire debacle, it comes as no surprise that SCRS Director John Loftus reports that the General Accounting Office (GAO), the investigativearm of the U.S. Congress, contacted him as part of theirinvestigation into the safety of non-OEM parts and recycled airbags.Congressman Ron Klink (D-Pa.) has asked that the GAO look into thesematters, as well as how much authority the National HighwayTransportation Safety Administration has over auto parts safety.
Look for a report in early 2001.

Saturn opens huge body shop

A Saturn dealer in Glendale, Arizona has opened a 25,000 square foot body shop with a radical ?European? approach to collision repair. Every vehicle entering the shop is assigned to a team of technicians. Except for painting, the same tech team stays with the car until it is returned to the customer. The team does all metal work and mechanical repairs, preps the vehicle for painting, and completes final buffing and detailing. The shop, Autobody Solutions, is designed to handle 350 cars a month with 50 employees. Saturn is said to be looking at it as a prototype for future Saturn dealer bodyshops.

Carstation.com announces 2% rebate on parts orders Carstation.com is offering a 2% rebate on parts ordered through its web site. According to Carstation, collision centers that enroll inCarstation?s CommerceSystem (CCS) program before December 31 and place a minimum of 15 orders per month will receive a monthly rebate check from Carstation for 2% of their net CCS parts orders. Carstation says that the offer is available only in selected metro areas and is a ?limited time? offer but didn?t say for how long rebates would be offered. www.carstation.com (Phone 877-PART-911).

Another collision web site – autobodyaccess.com

If you feel the need to visit yet another collision industry web site, the latest is www.autobodyaccess.com. This site says it will meet the technical and business needs of the auto claims and collision industry, and promises virtual online training for techs, news on innovative processes, discussion forums, insurance company info, etc.