Loud & Clear: Inside AASP/NJ’s Consumer Protection Initiative
by Alana Quartuccio
AASP/NJ’s voice in the fight for the protection of consumers and safe and proper repairs has certainly never been weak – in no way, shape or form. But now the association has amplified its battle cry against insurer misconduct.
When it comes to measurements of strength, there’s strong, and then there’s “Jersey strong,” and AASP/NJ is hell bent on making sure every single party that plays a hand in the automotive and collision repair industry knows they won’t sit back quietly and watch insurance companies refuse to cooperate in the makings of safe and proper repairs and fair reimbursement.
Every good auto body shop that strives for nothing less than the best and safest repair knows that it all comes down to protecting the vehicle’s occupants. At the end of the day, the most important party in the fight IS the consumer. So, listen up Garden State motorists – AASP/NJ has your back!
This summer, AASP/NJ officially launched the Collision Repair Consumer Protection Initiative (CRCPI) designed to address “a concerning trend in insurer business and reimbursement practices. AASP/NJ is finding a number of insurers reducing their reimbursements for the repairs required to restore vehicles to a safe condition and refusing to negotiate in good faith as set forth in New Jersey Administrative Code 11:3-10.3(e).”
As a result, repair shops are “placed in the untenable position of seeking recovery from their customers for unpaid or underpaid operations necessary to return the vehicle to a safely operable condition, often creating large out-of-pocket expenses for New Jersey consumers in addition to their premiums and deductibles,” the CRCPI reads. Meanwhile, “insurers have seen double-digit percentage premium increases and a sharp reduction in loss payouts. Many insurers are seeing record profits and huge insurance executive compensation packages to the tune of millions of dollars, all at the expense of New Jersey policyholders, at a time when many in our state struggle to provide for their families.”
“Action needs to be taken now in order to put an end to these unfair business practices,” says AASP/NJ President Ken Miller. “Through the CRCPI, we hope to communicate with all the parties involved to make the changes necessary to ensure that Garden State policyholders receive the complete, safe and proper repairs they deserve.”
“Since the pandemic, the insurance carriers have become more brazen in their efforts to control repairs,” shares AASP/NJ Secretary Thomas Greco. “The whole repair process has always been based on negotiation. However, in the last four years it seems like insurance carriers no longer know the definition of that word. They’ve kind of traded it for the word ‘deny.’ And it’s not just the collision repair industry. It seems like I’m getting a letter every week from my health insurance saying ‘we no longer pay for that.’”
Board member Brad Crawford views the initiative as “AASP/NJ’s response to a newer industry trend among some insurance carriers issuing severely suppressed repair estimates that are not designed to ensure proper vehicle repairs, but to maximize their profitability. These low-ball estimates force policyholders and claimants into a difficult position of either accepting substandard repairs or bearing the financial burden of covering the shortfall. It’s leading to a reduction in the quality of repairs being performed which puts everyone on the roads at risk. The CRCPI aims to safeguard the integrity of repairs, ensuring vehicles are restored to OEM standards and that consumer safety remains the top priority.”
“This initiative reminds me of that old movie Network, where the main character goes on TV and tells the world to stick their heads out the window and shout, ‘I’m as mad as hell, and I’m not going to take this anymore!’” Greco offers. “Well, I’m proud to say that with this initiative, AASP/NJ is shouting, ‘We’re as mad as hell, and we’re not going to take this anymore!’ Because, ultimately, this is all about consumer safety. The public needs to be aware of who is actually trying to protect them, and it sure as hell isn’t the insurance companies. It’s the people who want to repair vehicles with the right parts and the right procedures to ensure consumer safety.”
“Hopefully, this initiative will bring attention to those who can effect change, whether it be insurance executives concerned about the well-being of their policyholders, consumers demanding safer repair options or elected officials who can help regulate these practices,” adds Crawford. “Education is the only way forward, and this initiative is our start. Body shops and insurance companies getting along as well as cats and dogs is a tale as old as time, but this modern tactic of leveraging financial vulnerability to funnel consumers toward direct repair providers – in the name of cost-cutting – has introduced a new layer of concern. It’s jeopardizing the safety of all of our families who share our roads. The CRCPI strives to make safety, not cost-saving, the central focus in the repair process.”
Dean Massimini (Autotech Collision Service; Sewell) commends the initiative and hopes it will bring awareness to consumers, collision repairers, elected officials and thensome.
“Vehicles are highly technically-advanced computerized machines that are expected to keep our loved ones safe during their travels,” observes Massimini. “Sadly, it seems like some insurers are more concerned with cutting costs and pushing their customers to less qualified, in-network, non-certified repair shops that are focused on fast, cost-effective repairs. That should be very concerning to consumers!
“We have been in business for 34 years, and for most of my career, there was (in most cases) a willingness for our shop and insurers to work together in the customer’s best interest,” he continued. “That is quickly becoming a thing of the past! Now, we see insurers grossly undervaluing claims and ignoring what manufacturers say should be done to properly repair a vehicle…all in the name of cutting costs! It is becoming the wild west, and consumers are the ones who are suffering from that.”
Massimini stresses the woe of the consumer. “It’s pretty sad that in many cases, you pay your premiums to your insurance company, thinking that you are ‘covered,’ only to find out when you are in your time of need that you might have to fight to get what you are entitled to.”
Want more? Check out the October 2024 issue of New Jersey Automotive!