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Anyone who has ever owned or operated a body shop has at one time or another worried about what the grinning adjusters who visit their shop are saying about their shop elsewhere. Who hasn't wondered about the arrogant adjuster who receives your labor hour concession today, and what lies he may be spinning to your potential customers to steer business away to his crony shops.
In the early issues of Watch Dawg we outlined that one of the goals of this newsletter was to track and document bad behavior by adjusters and have everyone who reads this publication aware and warned. This month we have a deusey of a true story to tell.
It begins with a simple and basic scenario. The claimant has auto damage caused by a Nationwide/ Allied policyholder. That carrier's field property damage (PD) guy estimates the damage and then asks the victim whether she has yet selected a body shop to accomplish her repairs.
The collision damage victim told the adjuster that she had already chosen a shop, and that shop has done work for her before to her satisfaction. She gives the name of the shop to the Nationwide/Allied adjuster. Things get gnarly from there. That claims representative then responded with a line or two that the potential customer should not go to that shop since it would not be safe and/or wise to do so. When the otherwise loyal customer asked why, unbelievably the slick adjuster responded with a tale that the body shop ran a "meth lab" at the shop. Incredible, and obviously false. We know this great shop well.
This Nationwide/Allied field estimator then counseled that given this illicit circumstance at the shop she'd chosen, the customer should instead take her business to one of the shops he'd recommended.
Unknown to this scheming Nationwide/ Allied adjuster, the potential customer went to high school with the slandered body shop's owner and the customer's husband is a seasoned attorney. The shocked customer called her shop friends and told them of the adjuster's "meth lab" comment. The shop wisely called this law firm moments later, and our investigation began immediately.
Armed with testimony from a credible customer witness, this law firm contacted the Denver regional leadership of Nationwide/Allied Insurance about their Salt Lake City field subordinate. They were alarmed that one of their own would enter into such behavior. They were also rattled to have first heard about it from a law firm experienced in body shop issues, already representing the offended shop. Nationwide/Allied leadership offered to fly over from Denver the next day. This law firm has come to expect superior claims handling from Nationwide and know that they do not condone such adjuster behavior, ever.
With appropriate and increasing pressure from this law firm, Nationwide/Allied eventually communicated that they had obtained a full confession from their field estimator/adjuster and that he indeed said what the customer reported. Their adjuster had actually confessed to trying to "steer" the customer away from her chosen shop by lying that they ran a meth lab out of it. But, Nationwide/Allied leadership was quick to point out that their adjuster had only made that comment one time. In other words, he said it, "but he never inhaled".
Nationwide/Allied leaders from Denver arrived at the scheduled meeting at the slandered shop, and of course we attended.
These unnerved insurance bosses showed up without their conniving field adjuster, and offered a heartfelt apology to the shop and this law firm. However, without the offending adjuster present, the whole meeting smacked of little Johnnie hitting his baseball through the picture window of widow Wilson, with Johnnie's Daddy coming to the widow's door alone to reclaim Johnnie's ball.
This law firm suggested that full resolution/ restitution might begin with their field estimator adjustor making a face to face confession to the offended shop, our client. Furthermore, this law firm pointed out that their employee made the meth lab comment about the injured shop with such ease that it was probably not the first time he had used that slick technique to steer business away to his DRPs.
Another meeting was set, and the Denver leaders returned to the shop this time with the downcast culprit in tow this time. He confessed to the shop owner about his singular "meth lab" comment and begged an apology. At that point this law firm's representative at the meeting spoke up. "Do you really expect us to believe that last week you were simply the unluckiest field adjuster on the planet wherein the first and only time you uttered this "meth lab" crap, it fell on the ears of a long time friend of the shop owner? ... We believe that you've been saying it elsewhere and at other times, only to have finally gotten caught last week ". It was suggested by the law firm representative, in what was becoming a very tense meeting, that if another customer or shop ever came forward to confirm the adjuster's confession as incomplete, Nationwide/Allied and their now cowering adjuster would be parties together in a nasty lawsuit. The additional eyes and ears of Watch Dawg readers were also mentioned.
As the Denver representative's eyes grew wide their now sweaty adjuster suddenly abandoned his "one time only" defense. He then confessed to other times when he had utilized his false "meth lab" story to steer business away from the subject shop or to damage their reputation with other shops he visited in his Salt Lake valley assigned area.
The seemingly repentant adjuster promised to never make such comments again. The Nationwide/Allied bosses said they would fire him if he did, and gave probation for this apparent first black mark in his personnel file. (We doubted this.)
Who was this field estimator/adjuster who conjured up such rotten lies to steer business? It was Mr. Cameron Nerdin. Mr. Nerdin's e-mail address is nerdinc@nationwide.com , and his Denver regional supervisor is a smart and decent sort, by the name of Rick Chilingarian who can be reached at (800)233-0394, ex. 4144. We understand in earlier feedback from our readers that there are other area shops who feel that Mr. Nerdin has needlessly busted their chops. Our law firm doesn't have a beef with any adjuster doing his job and following the dictates of the company he or she works for, but when adjusters cross the line as Mr. Nerdin obviously did, we want to know about it. And, we'll do something about it. From all this, among other things, our shop client now has a far better working relationship with Nationwide today.
From his confessed behavior Mr. Cameron Nerdin knows he deserves and will receive close monitoring from his employer hereafter. We also believe he needs to know that good shops are watching him for any future inappropriate actions or comments. Report it to Watch Dawg if you see or hear it.
How do you think Nationwide should have handled Mr. Nerdin's situation? E-mail us.
Thanks for your readership and support. We're trying to make a difference. Informed is forewarned. Keep your comments coming. The end
We would like to express a warm welcome to our new readers in Logan area. It came to our attention recently that several body shops in the Cache Valley area had not been receiving Watch Dawg, but a favorite vendor of ours was passing out copies of this newsletter on his route there. Using the yellow pages, we now have you on our mailing list.
If anyone else out there would like to be added to, or deleted from, our mailing list please give us a call, drop us a line, or send us an e-mail. We keep our mailing list confidential and share it with no one. The end
Bryan,
Let me first say I appreciate the effort you are putting forward to get the Watch Dawg up and running. The newsletter is a step in the right direction to bringing the shops in Salt Lake and Utah together. I think the auto body association should be one association statewide with different chapters for different regions. In these different regions the board members could be set up differently according to size. In the more rural areas, it would seem to be most beneficial to have one representative to meet with the body shops in his area and bring their issues to a meeting. Here in Salt Lake, there may be a few representatives who each would have some shops to consult with, hear some issues and problems they are concerned with and bring them to a meeting. Unfortunately, I believe this new association would have to be nonprofit to start, which will make it harder to find worthy reps, willing to do this for the goodness of the entire auto body community. Sure you will get the owners or managers xhose shops are having trouble and looking for any way to voice negative attitudes and hope to get a hand up, but it will be harder to get the shops that are doing well to want to put out more time to help others when their bowl is full. I'm not saying I have the answer, it is a difficult scenario.
The association reps need to be people with a neutral outlook who can admit when they are right or wrong and still have backbone. The one thing this doesn't need to become is an association that is constantly stuck in limbo and can't get any issues advanced for the shops of this state. This state needs this to work and that may mean it becoming a profit organization after some results are shown and shops feel that the new association is impacting their shops directly for the positive. In order to make positive impacts felt by a large number of shops, I think the mission of the association should be to get the shops united in the everyday practices, as well as the rates and charges that are being billed out need to be uniform. I know there is a standard set by a questionnaire sent to shops (such is service first shops on State Farm's DRP) but there remains little organization between shops.
Shops are getting whipped. Many shops have trouble staying alive having the profitability of the earlier years, for this lack of organization to continue. The association should be able to rally the reps and to see to it that the shops are compensated for their tech's abilities and the never ending increase in cost for the body shops. The everyday practices need to be completely overhauled!
I guess what I'm trying to get at is the shops that are eligible for membership need to be ones that have a good standing with insurance companies while promoting decent repairs, with properly trained techs. The techs are what make the shop. I'm not being cocky, it's just that a person could go to a shop and have his car repaired and have a great repair that lasts the life of the vehicle. He feels all warm and cuddly inside and knows he's going to bring his car back to that same shop next time. Two months later, he's back getting another repair at the same shop and a less qualified tech could be back in his hole and fix the car and the customer has nothing but problems, even with quality control, now this customer is pissed and is unsure of the shop. Shops need to have a level of quality repairs where the customer gets a good job at a fair price. The shops that have a good rapport with the general public need to be the ones that are representing the association, and in turn for those shops representing and putting forth time to make this association work they are compensated for trying to help all the shops stay on track for a successful venture. In order for everyone to have a successful venture, this association needs to be started. The first board might be tough to fill. I suppose a meeting of all willing to be on the board and willing to have the best interests of the body shops of Utah should be organized, could be a first step and of course a vote. It just needs to happen, even if the first crowd isn't ideal. Some of the big guns won't show their heads until this association has some effect and clout. In order for this new association of body shops to have some clout it will need to have people looking out for the shops, while there will be personal interest in mind, it needs to be unselfish and be for the body shops interest for all of Utah.
This venture needs to have the drive of the pissed off, mad as hell shops, but with tactful maneuvers, rather than blowing up in someone's face. Politics is politics and there is no need for some shops to be afraid of insurance companies, as long as this association is formed and we all stick together without any backstabbing, we can improve the situation. The new Sterling shop in the valley is a way to try and keep this state from organizing. We need to do this and do it now, we cannot let this industry be run by an insurance company. We need to unite and confront. If this happens it will be the best for the shops and the insurance companies, good quality repairs for the patrons while the shops providing these repairs will be compensated. What could they do, haul all the cars to another state for repair? We can do this!
Ben Moore
ASE master auto body tech
I-car certified body tech
Gus Paulos Chevrolet body shop
Attorney Bryan A. Larson has been asked by the Wyoming Trial Lawyers Association to lecture at a seminar in Evanston, Wyoming that will be broadcast throughout the state of Wyoming. Mr. Larson's topic will be auto property damage issues and adjuster scheming that can effect a client's case. We are excited for this opportunity to try to "preach the word" and inspire other trial lawyers elsewhere to represent the interests of their clients and your customers in resolving property damage issues to obtain a quality repair. This speaking opportunity arises out of an article that Bryan wrote for the Utah Trial Lawyers Newsletter. Mr. Larson's article has also been chosen to be reprinted in the national publication magazine Trial. The end
If any of your customers received injuries in the collision that brought them to your shop, and if the impact was not their fault, they need to retain an attorney. Justice and fairness are pretty rare commodities these days, with so many attacking the rights of the consumer to gain simple fairness. Most of you are fairly informed about the wiles of the insurance industry and the schemes of their adjusters. Your customers are not. They will be taken advantage of unless they have somebody on their side to protect them throughout a legitimate injury claim. Any adjuster or insurance company willing to scam your customer over their auto damage issues, would Jo the same to them regarding their injury claim.
We have both business cards and pamphlets which we would welcome an opportunity to place in your office or lobby. Our pamphlets are designed to help your customers understand some of the basics of a claim and help them to feel comfortable about hiring an attorney they can trust. Someone from our office will gladly bring by pamphlets or cards if you would like. If we can help you or your injured customers, give us a call.
My partner and I look forward to getting Watch Dawg each month. We also encourage our techs to read it, to better understand the insurance company issues we deal with daily. Last month we were being jacked around by an independent adjuster who wrote a shallow initial estimate before the car got to our shop, and then rejected our multiple invitations to reinspect it at our shop when the supplemental damage we discovered was significant. The total repair exceeded $9,000.00. Although this independent gave us authority by phone to proceed, after all the work was done and the paint was dry, this guy then tried to trim the itemized bill we faxed to him. With the car ready to deliver to the impatient customer this armchair independent adjuster alleged over the phone that we should have used non-OEM here, used parts there and less labor time most everywhere else. In the same breath he demanded that we release the car to the customer on the adjuster's promise that he would see to it our large supplement was paid at a later date. However, he refused to commit to a supplemental damage expense figure, and he never once set foot in our shop.
We decided to call the law firm that sponsors Utah Auto Body Watch Dawg and Bryan A. Larson's Legal team went into action for us. They immediately contacted the insurance company who had hired the lazy independent and sent copies of their letters to my customer, so the customer would know the real cause of the problems. Before this, I didn't know there was a Utah law firm that really understood body shop issues. In less than 3 business days we had payment in full per our figures by overnight mail from the out of town insurance company. Mr. Larson's law firm even got them to pay us $250 in storage fees for delays caused by their absentee adjuster. These guys are real good.
German European Auto Body and Paint, Murray.
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We read Watch Dawg each month and love it. When the field adjuster for a large auto carrier was jamming me on labor rate, materials costs and necessary frame time on a specific job, I wondered if Bryan Larson's law firm could help us. The same adjuster then tried to steer my customer away blaming the repair conflicts and delays on me. When the same adjuster then yanked my injured customer's rental car, I called Larson's firm. Within hours they were representing my injured customer and that day had him back in a rental at the insurance company's expense. Before another business day had gone by, the once arrogant field adjuster was back in my shop offering to raise his materials cap and pay 100% of my frame sublet. The inconvenience money Larson's firm got for my customer covered the hourly rate discrepancy.
The next time the same adjuster came into my shop on another repair, he was a more humble lad with a new attitude toward our shop.
Paint Matters, Ogden, Utah.
This is the second in our series of laws we are reprinting for your use and information.
41-6-145.5 Failure to repair a damaged or deployed airbag - Penalty.
(1) As used in this section, "person" includes the owner or lessee of a motor vehicle, a body shop, dealer, remanufacturer, salvage rebuilder, vehicle service maintenance, facility, or any entity or individual engaged in the re p air or replacement of motor vehicles or airbag passive restraint systems.
(2) Except as provided under Subsection (3), a person who has actual knowledge that a motor vehicle's airbag passive restraint system is damaged or has been deployed may not fail or cause another person to fail to fully restore, arm, and return to original operating condition, the motor vehicle s airbag passive restraint system.
(3) In the course of repairin g a motor vehicle, a person who has actual knowledge that the motor vehicle's airbag passive restraint s y stem is damaged or has been deployed shall notify the owner or lessee of the vehicle, in writing, that the failure to re p air and fully restore the motor vehicle's airbag passive restraint system is a class B misdemeanor.
(4) A person may not remove or modify a motor vehicle's passive restraint system with the intent of rendering the motor vehicle's passive restraint system inoperable.
(5) A person who violates this section is guilty of a class B misdemeanor.
Bondo Bob has learned that effective next month State Farm will no longer allow any overtime pay after 40 hours per week for their hourly wage auto damage estimators. As most of you know, these folks are often the most overworked members of any auto claim team, especially in the ice and snow months or seasonal hail periods. Looks like the good neighbor may be short of staff since after some storms these guys and gals may hit 40 hours before Thursday noon.
If you don't already know by now, Farmers has closed their auto PD drive-in claims service on 39th South in Salt Lake City. All their remaining PD estimators are now forced to work out of their homes and/or have set up shop in the back of their company cars. Farmers has actually moved some claims handlers' desks out onto the concrete floor of their claims office auto garage. Who gets the space with the grease spot?
Seems that Farmers has started to trim the ranks of their COD shops even more lately. The shops recently eliminated were told they were cut because they fell below other shops in reporting non-OEM parts usage. Some of these jilted shops had been Farmers COD shops for years. Some of Farmers' preferred shops higher up on the approval list may have been manipulating the non-OEM and used parts numbers they've reported to Farmers.
To avoid controversy with Farmers and disgruntled customers over fit and finish, some of Farmers CODs apparently write the estimate with a non-OEM fender or a used one, but then hang an OEM fender at cost. Although the COD shop loses the profit on the OEM fender, they maintain the illusion they're using non-OEM and not generating customer complaints for Farmers. COD reports to Farmers then reflect greater utilization of non-OEM or used parts and the scamming COD shop remains high on the list in comparison to the other COD shops. These CODs have learned that it is more advantageous for them to eat the profit on an OEM fender now and then, than lose their more valuable ranking on Farmers' list of compliant shops.
Ironically, when Farmers uses a shop's position on such manipulated performance reports to determine any shop's COD worthiness, the shops near the bottom of the list may actually be the most honest shops on the roster. They may be nearer the bottom for having reported more accurately on the categories Farmers monitors.
Either way, it's just another method insurance carriers are using to cost shift onto the body shops and pit good shops against each other in the marketplace.
In the drive-in claims center for Allstate in Murray they have a large Sterling Collision Center banner on their wall stating that if the Sterling shop fails to complete your collision repairs when promised, then your rental car is free. Duh. In most cases he related substitute transportation expense for an Allstate claimant or insured is already being bankrolled by Allstate anyway, either because of liability insurance contract with rental endorsement.
Bondo Bob has received several reports from area shops where the adjuster comes out to look at the repairable vehicle, but fails to leave an estimate, taking the shop's sheet with him. Over the next two or three days while you're waiting for his estimate, the adjuster is using the same time to contact the customer to steer them elsewhere. And you guessed it, alleging repair delays at your shop that will not continue if they go to his DRP shop. "In fact, Mr. Brown, I can hand deliver my completed estimate to our preferred shop this afternoon, if I can have your permission to move your car there now. That way you will also be eligible for the repair guarantees we talked about."
The next thing you know the slick adjuster is calling you with the hoodwinked owner on the line in a three way phone call, and you've lost the job. When the adjuster doesn't leave the estimate after his inspection, call the customer right then and head it off at the pass. Get a signed authorization from the customer up front, every time, no matter what.
See you next month. B.B.
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