Shop Talk
Welcome to the Gold Coast Auto Body “Answer Blog,” where we periodically post news updates, technical articles, and other items of interest to our customers and friends in the luxury car community.
What to Consider When Insuring Your Dream Car
When you’re a high-end car owner, one of your key priorities is to keep your precious gem properly insured. If anything goes wrong, you want it taken care of to like-new conditions.
With a seemingly endless number of insurance agents to choose from, finding the one that truly has your best interest at heart can be hit or miss. And with a luxury car like yours, you don’t want to miss. For luxury vehicles, off-the-shelf insurance plans are less likely to lead to satisfaction than a personalized policy from a premium agency.
So, where do you find the right one?
In the automotive world the saying ‘birds of a feather, flock together’ is often applicable. Gold Coast Auto Body (GCAB) is a shop you have faith in to do your repairs with premium parts and highly skilled labor. It stands to reason, then, that if asked, GCAB will refer you to an insurer that is every bit a trustworthy.
Thomas Ward Insurance Group is just such a broker, one we at GCAB truly enjoy doing business with.
Thomas Ward isn’t affiliated with a single insurance company, but rather works with several companies to get you the right coverage for your vehicle at the best price possible.
“The reason I am an independent agent is because I am customer-focused. Rather than chasing the mass market, I concentrate on luxury car owners and serving their needs,” states Thomas Ward agent Michael Rice. “I still want to save you money, but I want to do it by providing the kind of coverage that’s right for you and your vehicle.”
There’s that term again: “right coverage.” What is the “right coverage” for a luxury vehicle owner who does a lot of city driving? GCAB owner Dominic Martino weighs in.
“We see way too many people coming in who are frankly underinsured for the kind of cars they’re driving,” he points out. “They get caught up in the ‘lowest price’ game and don’t see the shortcomings of their coverage until it’s too late.”
Michael Rice agrees. “If you crash and total that new $120k Porsche, don’t you want your $120k check?”
This leads directly to all of the factors Thomas Ward Insurance Group recommends high-end vehicle owners take into consideration when selecting an insurance plan.
The first priority for insurance shoppers is the freedom of choice – allowing you, the owner, to go to any body shop you want.
Equally important is the quality of repair. This ties into the freedom of choice of shop. You always want to use a repair facility like GCAB that uses OEM parts – the parts required to repair your vehicle to pre-crash condition.
Finally, you want peace of mind. You want to make sure the premium you are paying each month is for your vehicle’s “Agreed Value” – not Blue Book Value. Agreed Value is a term in the insurance industry wherein the policy specifies the worth of the vehicle up front. That’s something a quality broker like Thomas Ward Insurance Group will ensure you have in your policy.
Also of note, when your car is at GCAB for repair, you’re probably going to want a rental vehicle comparable to the luxury vehicle you are accustomed to. Premium insurance carriers will put you in that same quality of vehicle.
All of which is why GCAB recommends Thomas Ward. Because their agents, and the premium insurance providers they represent, are simply the best fit for our customers.
For additional information on what Chicago drivers need to specifically consider in selecting an insurance plan, see this article on the Thomas Ward website.
If you’re in the position of buying a new luxury vehicle, or replacing a damaged one, see this Thomas Ward blog post on “How to Buy the Right Car For Your Needs.”
Total Loss and Diminished Value Claims: What they mean to you
Overall, auto insurance is a good value proposition for every car owner. The premise is that for an affordable monthly sum, you get peace of mind that if anything happens to your vehicle it will be repaired or replaced.
But for all the benefits they provide, insurance companies can be frustrating when it comes to getting a fair appraisal for total loss claims and diminished value claims.
Understanding these two terms is the first step to getting the most value from your insurance claim after an accident. So let’s take them one at a time.
Total Loss Claims
Insurance companies label a vehicle as a “total loss” when the estimated cost to repair the car or truck exceeds what they deem the vehicle is worth.
According to Auto Claim Specialists, a national public insurance adjustor agency with whom GCAB works on a regular basis, at least 50% of the cases determined to be total losses by insurance companies are incorrectly ruled. This is because of the way that the perceived value of the vehicle is calculated by insurance companies. Remember, they are in business to make money, so sometimes you need to take extra steps to ensure they are doing right by you in all ways possible.
In the case of an accident that insurance companies advocate as a total loss, we highly recommend getting a comprehensive auto appraisal report by an independent appraiser. Such reports provide in-depth analysis of what your specific car was worth at the time of the accident, rather than what cars like yours are generally worth.
The difference can be substantial. In fact, 25-30% of the time your vehicle may actually be deemed repairable and not a total loss. And even if it’s not repairable, you’ll know the real replacement value to ask for.
Diminished Value Claims
“Diminished value” refers to the loss in market value from a vehicle’s pre-wreck fair market value due to damage that requires cosmetic and/or mechanical repairs.
In layman’s terms, this boils down to the fact that a vehicle that has been wrecked and repaired will not sell for same price as a like-kind vehicle that has not been in an accident.
According to Robert McDorman, founder and proprietor of Auto Claims Specialists, 43% of people surveyed would not buy a car that has been in a wreck and repaired. More to the point, 45% would only buy a post-wreck car if the price were deeply discounted.
Which is why in case of an accident where your car has been damaged and the other driver has been deemed at fault, you may be entitled to the monetary difference between the value of your vehicle prior to the accident and what the diminished value of the car is after repairs.
Of course, any accident can be traumatic, whether it is your fault or not. The last thing you need is for your insurance company to add to the trauma. Remember, part of what you’ve been paying them for is peace of mind. Make sure they deliver by correctly calculating the total value of your loss, and paying the full amount you are entitled to.
This article can help you understand your options in the case of a total loss. Similarly, this article will help you understand how to get an insurance company to pay the full amount due in the case of a diminished value claim. If you still have questions, contact GCAB. We’ll be happy to help you navigate the process.
Direct Repair Programs: We Don’t Do Them. Here’s Why.
In our ongoing discussion of auto insurance issues, today’s topic is DRPs, short for “direct repair programs.” In case you’re not familiar with the term, a DRP is a relationship formed between an insurance company and autobody shop in which the insurer guides business to the shop in exchange for adherence to certain service guidelines involving, among other things, labor rates and limits and replacement parts.
The benefits to both parties are self-evident: the insurer is able to control costs, while the shop receives a steady stream of customers. The benefit to those customers, however, is less clear.
The biggest problem is quality. Many shops find the rate structures and labor limits of many DRPs to be incompatible with doing the job right. The same holds true for OEM replacement parts, which few DRPs require.
Another problem is the estimating process. We’ve already covered the inadequacies of photo-based estimating, which nearly all major DRPs rely on. But beyond that is the practice of systematically underestimating work in order to land a given job – often at the direction of the DRP insurer. According to a recent article in Body Shop Business, many shops will write artificially low estimates to “get the keys.” In other words, they are focused on getting your car in your shop and then upping the cost.
That’s not to say that all DRPs are inherently unethical or incompatible with quality work. But we’ve found most to be incompatible with our way of doing business, the caliber of cars we work on, and customers we serve.
Which is why GCAB does not participate in any direct repair programs that in any way compromise our ability to deliver the best possible work at a fair price. We simply want to do every job right – not as defined by a third-party insurance company, but according to the standards of auto manufacturers, our technicians, and of course, our customers. It’s not the easiest way to do business these days. But it’s the best.
The Reality of Photo-Based Estimating
When it comes to repairing your car, you want the best work you can possibly get. But let’s face it: your definition of “best” probably isn’t the same as your insurance company’s. If they’re like most, they’re less interested in quality than they are in speed – or efficiency, as they like to call it. Which can lead them to do things that are downright detrimental to the integrity of the repair process.
Case in point: photo-based estimating.
In photo-based estimating, pictures are taken of the damaged vehicle and submitted for a virtual repair quote. Seldom is the photographer a trained claims adjuster. More often it is you, the car owner, taking the pictures yourself.
While there is the benefit of not having to take your automobile in for an estimate, the positives of photo-based estimating pretty much end there. The process only captures the most obvious damage, and doesn’t measure such important details as angle of impact and energy path at all. And the more expensive the car, the more costly the unseen damage is likely to be.
Of course, that hasn’t stopped more and more insurance companies from jumping on the photo-based estimating bandwagon and using it to help them cut costs – and people. Last year, Allstate alone eliminated more than 500 claim adjusters from their payroll.
During the Collision Industry Conference in Palm Springs earlier this year, naysayers took to the mic to decry the shortcomings of photo-based estimating and claims that it increases efficiency. Several articles in the industry press back them up. According to this report in Body Shop Business, Clint Marlow, director of claims innovation for Allstate, acknowledged that the best way to gain a full scope understanding of what damage has been done is to disassemble the vehicle – not just take a picture. And this piece in Autobody News points out that while a photo estimate may be effective to get the ball rolling, it should by no means be seen as an end-all, be-all solution.
The bottom line is this. A picture may be worth a thousand words, but it can’t compare with a hands-on expert inspection of a damaged vehicle. If you’re like most GCAB customers, you’ve made a very significant investment in your car. If it has to be repaired, you want it done right.
Real News About Fake Repair Scheme
It’s that time of year again. No, not the holidays. We’re talking about the fake auto body repair scam that is once again targeting drivers on Chicago’s Near North Side, with phony repairman taking their money and performing “repairs” that do far more extensive damage to their vehicles.
A Channel 2 news team caught the scammers in action and filed a full report that ran on the evening newscast last Thursday (Dec. 20) – their second such report in just a little over a year. Of course, the scam is nothing new to GCAB, as co-owner Dominic Martino points out in the Channel 2 clip. We’ve been alerting city authorities, as well as our neighbors and customers, about the problem for years.
You can watch the Channel 2 clip and read their complete news report here. In the meantime, be extra careful driving around the city this holiday season.
Car Insurance 101
Here at GACB, we always have a lot to say about auto insurance, sometimes good things, sometimes not so good. Suffice to say, it’s a complicated subject.
But you’d never know that from the ads and TV commercials most insurance companies run. The focus is always on the price, never on what you get for it – the quality of service, company reputation, coverage details and so on. All policies are pretty much the same, the thinking goes, so the best one must be the cheapest.
The result, at least from our experience, is that few drivers seem to actually know what’s in their policy. And that can be a huge problem when you have to make a claim.
Consider what Consumer Reports has to say about that in their most recent Car Insurance Buyer’s Guide:
“Claims payment is where the rubber hits the road in car insurance. Your insurer might push you to use shops in a direct-repair program (DRP) or use cheaper replacement parts, rather than the original equipment manufacturer (OEM) parts. Tests by Consumer Reports and others have found that some non-OEM parts fit poorly, are more prone to rust and corrosion, don’t always meet federal safety standards, and may not provide good protection in a crash.”
Of course, we’ve already had plenty to say about the OEM problem as it relates to the integrity of the work we do. And in the coming weeks and months, we’ll be using this space to explore some of the other issues we think every driver should be aware of regarding their insurance coverage.
But for starters, we strongly advise everybody who owns a car to get educated about their auto insurance. Start by reading the Buyers’ Guide, then read your own policy, talk to your agent, and if you feel like it, come in and talk to us. It may take more than 15 minutes. But it’ll save you a lot more than that 15% on your next premium, too.
Saving Money vs. Saving Lives
The case for OEM parts and procedures in auto body repair just keeps growing and growing. The latest comes from this report on a series of crash tests conducted as a follow-up to last-year’s historic $42 million jury award against a Texas body shop for their liability in a horrific crash involving a 2010 Honda Fit.
GCAB was among the financial supporters of the tests, which compared new, OEM-repaired, aftermarket-repaired and improperly repaired Honda Fits. The results bore-out what we’ve long believed: that inferior quality parts and repairs can be downright dangerous.
“When there is a 400-800 percent difference in the results, it’s staggering. This could be the difference between broken bones, permanent injuries, life or death,” said Jerry McNee, a New Jersey-based shop owner who also helped finance the tests. Of course, most repair professionals already knew that, he said; he just wishes insurance companies would catch on.
“They make comments like, ‘It’s just a fender,’ ‘It’s in their policy’ and ‘LKQ parts are the same,’” he said. “They’re dictating what they’re paying for to unjustly enrich themselves, but numbers and test results don’t lie.”
“The biggest takeaway of this presentation is that we’re beginning to define what ‘like kind and quality’ means,” said Burl Richards, President of the Auto Body Association of Texas (ABAT) and another test supporter. “We now have scientific proof that shows vehicles are safer when they’re repaired using OEM parts and OEM procedures.”
OEM Certification & Blueprinting
If you wonder why we’re constantly harping about the importance of strict adherence to OEM guidelines, consider the alternative:
In a recent Texas court case, a jury found a local body shop liable for some $42 million in damages, due to faulty repairs that resulted largely from their failure to follow OEM procedures.
That’s something that will never happen with GCAB, thanks to what we call a
“blueprinting process” designed to alleviate friction, prevent failures, and virtually guarantee the proper repair is done to each and every vehicle, each and every time.
That process includes two “non-negotiable” steps that are part of every repair we do, without exception.
1) First, we scan the vehicle before starting a disassembly of the damaged area.
2) Next, we research and gather OEM repair procedures, specifications and bulletins for the vehicle being blueprinted.
As a shop that is OEM-certified in many brands, GCAB enjoys direct access to the best technical information through OEM websites. And we are 100% committed to using only OEM parts and following OEM procedures and recommendations on every job we do. Because in the end, there is simply no substitute for OEM collision repair certification and repair methodology.
COLLISION REPAIR FRAUD ALERT!
A fraudulent auto repair scam has been reported to us by several people along the Elston Avenue / Logan Blvd corridor.
The perpetrators ARE NOT current nor former employees of Gold Coast Auto Body – they claim to deliver repair services at a fraction of the cost of conventional collision repairs.
This is not a legitimate service – please don’t be a victim!
These people ARE NOT employees of Gold Coast Auto Body!
Gold Coast Auto Body will offer a reward to anyone that can provide information, photographs of vehicle, license or perpetrators.
If you are approached by this group, we urge you to report it to the Chicago Police Department as soon as possible.
Scanning Myths Debunked
Are scanning and recalibration the same thing? Does no dash light guarantee no electronic or mechanical problems?
The fact is, there are a lot of myths and misconceptions about onboard diagnostics in today’s cars, particularly the high-end vehicles GCAB services. The short video included here tackles a few of the most prevalent scanning myths and offers tips on what to do – and what not to – to avoid potentially costly problems. For more in-depth information, read Mitch Becker’s recent cover article on scanning for Body Shop Business.
Onboard Diagnostics 101: Scanning vs. Recalibration
Since the integration of computer technology into cars began in the 1970s, onboard diagnostic equipment and procedures have played an ever-increasing role in every kind of automotive service, including body repair. Depending on the vehicle’s make and model as well as the type and extent of damage, a given repair job may require a pre-repair scan, post-repair scan and/or recalibration of affected systems.
The key word is may. Not every job requires all three procedures; in fact, some may not need any of them. To understand why, you must first understand the difference between scanning and recalibration on one hand, and pre- and post-repair scans on the other. The short video included here will give you the basics. For more in-depth information, read the following article from Body Shop Business.
GCAB joins in donating to hurricane relief efforts
In a couple of months, when the snow starts to fly and the prospect of another Chicago winter looms, remember Harvey, Irma, and how much more brutal the weather can be.
As our nation contemplates the carnage left in the wake of these two historic hurricanes, the need for emergency relief continues unabated for millions in need throughout Florida, Texas, the Gulf states and beyond.
For our part, GCAB last week made a donation of $5,000 to the American Red Cross in support of the critical lifesaving services they provide to those in need. We strongly encourage you to follow suit by donating to the Red Cross or one of the many other worthy organizations involved in the relief effort.
Please give what you can. Remember, every little bit helps. And every bit of help deserves all of our thanks.
To donate to the Red Cross, click here
GCAB finds big-time value in state-of-the-art frames required for Mercedes OEM certification
“These days, OEM certification is a common direction for shops [facing the] many challenges presented by advances in vehicle technology. For Gold Coast Auto Body in Chicago, IL, OEM certification is a way of life.”
So begins a recent AutoBody News feature showcasing GCAB and Celette, the shop’s supplier of choice for state-of-the-art frame machines required for Mercedes Benz and Tesla OEM certification. The article includes in-depth commentary from GCAB owner Dominic Martino about the value of Celette equipment not just for Mercedes and Tesla repairs but other luxury auto brands, as well.
Read the entire article here
25 Years and Counting
In August of1992, a new auto collision repair business opened in a pair of buildings on North Avenue just East of Sheffield on Chicago’s Near North Side. The name, Gold Coast Auto Body, reflected the shop’s close proximity to the fabled lakefront neighborhood of the same name as well as the caliber of automobiles that would be serviced there. Mercedes-Benz. Porsche. Audi. The “gold standard” of automobiles.
Owner and proprietor Lorenzo Martino knew the territory. Since 1963, he had run the body shop for Loeber Motors, one of Chicagoland’s oldest and most successful Mercedes dealerships. His loyalty was rewarded in 1991 when the Loeber family, needing the body shop space for expansion, supported GCAB’s startup and gave Lorenzo the opportunity to turn his dream of owning his own shop into reality.
He certainly made the most of it. Together with sons Dominic and Mario, who joined the business shortly after opening, Lorenzo soon built GCAB into one of the most successful collision repair facilities specializing in luxury cars. By 2000, they had outgrown the original space on North Avenue, and in August of that year, GCAB moved to a new 50,000-square-foot facility at 900 West Division Street.
And that is where Gold Coast Auto Body remains today. While their father retired in 2002, Dominic and Mario Martino continue to carry on the family tradition of providing Chicagoland’s best collision repair service for the finest automobiles on the planet. They’ve been at it for 25 years – and are looking forward to 25 more!
What’s the significance of “I-CAR Gold Class” certification?
I-CAR is one of the most important organizations in the technical certification field, and inarguably one of the most demanding. I-CAR Gold Class is the highest designation an auto collision repair business can attain, one that assures you that the shop is equipped, trained, and prepared to handle repairs on vehicles incorporating the latest materials and technologies. Only 10% of body shops nationwide currently qualify for Gold Class designation, and Gold Coast Auto Body is one of only a handful in the entire Chicagoland area.
What does it take to become Gold Class? To give you an idea, check out I-CAR’s training regimens for each of the following positions: Refinish Technician, Steel Structural Technician, Non-Structural Technician, and Estimator. As a Gold Class shop, we are required to have technicians on staff who have achieved “Platinum” status – I-CAR’s highest individual training level – in each of those areas. That represents an enormous investment of time and money on our part, but one that’s well worth it for any body shop that aspires to be the best in the business.
What’s the significance of “I-CAR Gold Class” certification?
I-CAR is one of the most important organizations in the technical certification field, and inarguably one of the most demanding. I-CAR Gold Class is the highest designation an auto collision repair business can attain, one that assures you that the shop is equipped, trained, and prepared to handle repairs on vehicles incorporating the latest materials and technologies. Only 10% of body shops nationwide currently qualify for Gold Class designation, and Gold Coast Auto Body is one of only a handful in the entire Chicagoland area.
What does it take to become Gold Class? To give you an idea, check out I-CAR’s training regimens for each of the following positions: Refinish Technician, Steel Structural Technician, Non-Structural Technician, and Estimator. As a Gold Class shop, we are required to have technicians on staff who have achieved “Platinum” status – I-CAR’s highest individual training level – in each of those areas. That represents an enormous investment of time and money on our part, but one that’s well worth it for any body shop that aspires to be the best in the business.
What Makes Working on Tesla Vehiclas So Much Different From Other Cars?
If you own a Tesla, you already that it’s a very unique automobile in many ways, from its unrivaled range and performance among electric vehicles, to its unprecedented perfect 5-star NHTSA safety rating – the highest in the history of automotive safety testing. Both are made possible in large part by Tesla’s aluminum structure and aluminum panels.
Few auto body shops are equipped to work with aluminum, and very few of those are certified to work on Teslas. When the company launched its certification program in 2013, they literally hand-picked the body shops they wanted to work with in each market. Gold Coast Auto Body was an obvious choice for Chicago, thanks to our experience with Mercedes, Audi, and other high-end luxury vehicles that incorporate aluminum structural components.
Even so, earning Tesla certification was a challenge. We had to invest in new equipment and update our aluminum area, and (two) of our auto body technicians spent several weeks in California undergoing intensive training in Tesla’s facilities. Now, as one of the only Tesla Approved Collision Repair Centers in the entire Chicagoland area, we are the clear choice to fix your Tesla.
Is Your Work Covered By A Warranty?
Yes. In fact, GCAB’s lifetime warranty is as exceptional as the work it covers. It guarantees the integrity of all workmanship associated with your job for as long as you own the vehicle, and also honors the manufacturer’s warranties on all parts and materials utilized.
Our warranty terms are unsurpassed in the Chicago area, which is just one more reason to call Gold Coast first for all your auto body needs. Schedule an appointment for a free estimate today, or just stop by to find out more.
Can you help me with a rental car?
We deal directly with Enterprise Rent-A-Car, whose local office is at 930 W. Division, and encourage our customers to contact them a few days in advance of your scheduled work. Their phone number is 312-475-2000.
We also advise you to check your auto insurance policy for rental car reimbursement coverage when your vehicle is in the shop due to an accident. Even if you have such coverage, keep in mind that it may not cover the cost of a vehicle that is a direct equivalent of your own, nor will it necessarily cover the entire period your car is in the shop. In most policies, the dollar amounts stated are “policy limits,” which may or may not apply to your specific situation.
Our best advice is to talk to your insurance agent before you book a rental car. And again, call our friends at Enterprise for service you can trust.
What does your insurance really cover?
If you can’t really answer that question, don’t feel bad. You’re far from alone. It’s been our experience that most drivers know very little about the terms of their auto insurance policy – even what coverages they have – because they haven’t read it.
The good news is, we have – in fact, we’ve seen just about every kind of coverage from every major company over the years, and we can help make sure you get everything you’re entitled to.
That said, you really should read through your policy before you call us to arrange a service appointment. Pay particular attention to the terms of rental car reimbursement. If you have any questions, bring a copy of the policy along when you come in.
Do you use only OEM replacement parts?
The answer to this question really starts with your insurance policy, which is another good reason to read it thoroughly. The fact is, many carriers and policies sanction the use of non-OEM and/or aftermarket (i.e. reconditioned or rebuilt) parts in order to minimize costs. Which is perfectly fine, provided the use of substitute parts doesnʼt pose a safety risk or otherwise compromise the integrity of the work.
In the rare case where thereʼs a conflict between what the insurer will pay for and what we believe is necessary, our technicians will call it your attention and do our best to resolve it with your insurance agent before we start the job. Thatʼs the Gold Coast way.
What Does Certified Really Mean?
If you can’t really answer that question, don’t feel bad. You’re far from alone. It’s been our experience that most drivers know very little about the terms of their auto insurance policy – even what coverages they have – because they haven’t read it.
The good news is, we have – in fact, we’ve seen just about every kind of coverage from every major company over the years, and we can help make sure you get everything you’re entitled to.
That said, you really should read through your policy before you call us to arrange a service appointment. Pay particular attention to the terms of rental car reimbursement. If you have any questions, bring a copy of the policy along when you come in.
Our Customers Weigh In
We take great pride in the work we do here at Gold Coast Auto Body, and we’re not the only ones. Read a few of the recent endorsements we’ve received from thousands of satisfied customers who know first-hand the quality and commitment we bring to every job we do.
