Class Action Re-Action: Snider vs. State Farm Verdict
The Snider vs. State Farm verdict got the attention of repairers, insurers, consumers … and many, many lawyers — who didn’t waste any time filing copycat lawsuits. But with the spotlight now on insurance companies, should shops also be concerned?
Diminished Coverage for Diminished Value
Recently, the Insurance Services Office concluded that diminished value (DV) isn’t covered in the language of Personal Auto Policies. This may soon lead to head-to-head battles between insurers and consumers, since both sides interpret DV differently. But what effect will the exclusion –– and the head butting –– have on the collision industry?
Guilty! State Farm to Pay $1.19 Billion
When the jury for the aftermarket parts trial against State Farm awarded the plaintiffs $456 million and the judge ruled the insurance giant committed fraud and awarded the plaintiffs an additional $730 million, some people cheered, some people jeered and others shed tears. But how will all this ultimately affect consumers — and repairers?
Court is Now in Session: State Farm Aftermarket trial in Illinois
r what verdict the jury turns in, their decision is bound to somehow — whether negatively or positively — affect the collision repair industry.
Market Profile: Is the Industry that Bad?
It’s not uncommon to hear shop owners complaining about how awful the collision repair industry is. In fact, when a group of such shop owners get together, it’s worse than a group of old ladies sitting around discussing all their health problems. I know because I speak with a lot of collision repairers and I’m related to a lot of old Italian women (my mother, for one). And, although I have no desire to hear my family discussing bladder control, a group of collision repairers complaining is still worse — especially since most of their problems are fixable.
Operations Profile
For years, shop owners have clashed with insurers regarding such things as forced usage of aftermarket crash parts and insurers’ unethical — sometimes illegal — persuasion methods of steering insureds to "recommended" shops. While some progress has been made in these areas, shop owners, for the most part, have been arguing in vain. They’ve been battling insurers to protect the rights of consumers (and their own livelihood), while consumers have remained oblivious to it all. In essence, shop owners have been fighting for people who aren’t even aware there’s a battle going on.
Streamlining the Industry
Collision repair has been a fragmented and inefficient industry for years — but consolidators are hoping to change all that.
Among the Elite
Name: Elite Auto Painting and Body Repair Location: Modesto, Calif. Owner: Moises Martinez Established: 1994 Square Footage: 18,000 Number of Employees: 16 Repair Volume: 120 to 140 vehicles per month Average Repair Ticket: $2,100 Making good decisions has become a habit for Moises Martinez. Start with the 34-year-old’s decision to open his own shop after
Overcoming Roadblocks
Three men – Bob Anderson, Jerry Kottschade and Joe Sanders – have devoted a great deal of time over the years to assume positions of leadership within their chosen field.
Insider Trading
The collision-repair industry is big business.
In 1995, shops averaged an annual gross-sales volume of $415,168.
With shop profits soaring that high – even higher at Dun &
Bradstreet’s "Top 100" facilities – owners are as much
businessmen as they are technicians, estimators and managers.
And just like any other business leaders, shop owners are interested
in efficiency, profits and success.