Iowa Collision Repairer Gets Meeting with Governor to Discuss Labor Rates, Steering - BodyShop Business

Iowa Collision Repairer Gets Meeting with Governor to Discuss Labor Rates, Steering

To some in the Iowa Insurance Division and the Iowa state
legislature, Tom O’Mara’s name is a familiar one. He has educated them over the
years on several issues in the collision repair industry, including labor
rates, steering, and paint and materials capping.

O’Mara’s mission will continue when he meets with Iowa
Gov. Terry Branstad on Sept. 6 to discuss those issues and more, but more
importantly why, in his opinion, nothing has been done about them.

A recent run-in with an insurance company prompted O’Mara
to continue his quest for political action. According to O’Mara, an insurance
company told him they were only going to pay him $52 an hour, even though his
labor rate is $56.

"The minute they told me that, I hung up the phone,
called the vehicle owner and read the state law to him, and he contacted them
and told them, ‘You will pay that bill,’" O’Mara said. "I tell so
many shops around here, ‘Charge what you want to charge, and when they start
arguing with you, do the same thing I do.’ But they’re afraid to do it."

The law in Iowa basically states if the insurer writes an
estimate or has one written for them, and the vehicle owner takes the vehicle
to a repair facility and the repair costs more than the estimate, the insurer must pay the difference.

"I’ve been using that law to my advantage, but when
these insurers tell a shop in Iowa that this is all they’ll pay, they’re lying," said O’Mara. "And they keep arguing and arguing until you give into them, but I’m not letting
them get away with it."

In the case where the insurer refused to pay O’Mara’s
rate, they eventually relented. According to O’Mara, one of the insurer’s
appraisers came to the shop afterward and handed him a letter.

"It said I had to agree with them on the repairs for
the next job and all other jobs thereafter before I start work on them,"
he said. "But I’m going to fix those cars whether they agree with my
estimate or not. Fact is I don’t agree with any insurer estimate."

O’Mara recounted another recent incident involving a
third-party claimant. According to O’Mara, the insurance company of the person
who caused the accident said they would not pay O’Mara’s rate.

"I told her let’s get the car in here, we’ll go
ahead and fix it and turn the bill into them," he said. "If they
don’t reimburse you, contact the guy who ran into you and tell him he owes you
the difference. I guarantee you that you’ll get some action.

"I also informed her ahead of time to contact her
insurer to let them know she was involved in an accident and give them an
opportunity to inspect the vehicle. And if they don’t want to inspect it and
you still don’t get anywhere with [the person who caused the accident], turn it
over to your insurer. When they figure out they have to pay the rest of the
bill, they’ll go after him. It boils down to being educated."

O’Mara had to speak with the governor’s aide first before
getting a meeting with the governor. He showed him estimates, letters he claims
revealed insurer threats against him, the last three years’ worth of price
increases he has had to endure, and a copy of the 1963 Consent Decree.

"I highlighted everything in the Consent Decree that
the insurers agreed not to do anymore," O’Mara said. "I let them know
this is the third time I’ve given a copy of the Consent Decree to the State of
Iowa and asked, ‘What are you going to do about it? This is still
enforceable.’"

O’Mara says he also educated the aide on steering, DRP
shops and tax dollars being "stolen." And he sent him a link to an
article that ran in the August 2011 issue of BodyShop Business titled,
"Diary of a Bad Repair Part II."

"I plan on asking the governor how he would feel if
one of his grandchildren had to ride in one of those cars," said O’Mara.
"I’m also going to ask him what state agency will stick up for the
collision industry. A government is supposed to protect, and we have no
protection whatsoever."

After meeting with the governor, O’Mara says his next
initiative will be to circulate a petition in the state to make the position of
commissioner of the Iowa Insurance Division an elected position versus an
appointed one.

You May Also Like

Body Bangin’: The Disengagement Epidemic with Kevin Wolfe

Micki Woods interviews Leaders Way Owner Kevin Wolfe on why 73% of work professionals are disengaged today and what we can do about it.

Micki Woods, master marketer for collision repair shops and owner of Micki Woods Marketing, has released the latest episode of "Body Bangin'," the video podcast that is taking the industry by storm!

In this episode, Woods interviews Kevin Wolfe, owner of Leaders Way and former mechanical shop owner, on how he became the shop everyone wanted to work at. Wolfe also points out that 73% of work professionals today are disengaged — an all-time high — and discusses why that is and how we can fix that.

Body Bangin’: I Thought We Were Doing It Right with Josh Piccione

Micki Woods interviews Josh Piccione on repairing vehicles correctly — according to manufacturer guidelines.

Body Bangin’: Be a Star Not a Hamster with Robert Snook

Micki Woods interviews popular keynote speaker Robert Snook on how to differentiate and grow your business.

Body Bangin’: Know Me, Know My Car with Mike Anderson

Micki Woods interviews Mike Anderson on the importance of building an emotional connection with your customers.

Body Bangin’: Fighting for Consumer Safety with Burl Richards

Micki Woods interviews Burl Richards on his personal mission to fight for consumers’ rights and safety.

Other Posts

Body Bangin’: The Employer-Student Disconnect

Micki Woods interviews Raven Hartkopf, lead collision instructor at Collin College in Texas, on what students want from a shop employer.

Body Bangin’: Why Follow OEM Repair Procedures?

Micki Woods interviews Logan Payne of Payne & Sons Paint & Body Shop on the importance of following OEM repair procedures.

Body Bangin’: Getting Paid for Calibrations

Micki Woods interviews Andy Hipwell and James Rodis of OEM Calibration on how to get started doing ADAS calibrations.

Body Bangin’: What Are The Consolidators Up To With Laura Gay

Micki Woods interviews Laura Gay of Consolidation Coach on the current state of auto body shop consolidation.