ACAR

Accountability for Collision Auto Repair
5303 Connecticut Avenue, N.W.
Washington, D.C. 20015

202-363-1858 (phone) • 202-244-0178 (fax)

 

Focus on Code of Ethics

PRESS RELEASE

WASHINGTON, D.C., October 19, 2007—Nearly 40 members of the auto collision repair industry met today at the National Press Club in Washington, D.C., for the ACAR (Accountability for Collision Auto Repair) event.

The purpose of the event was to focus collision repairers on the one aspect of the claims handling process they can control: standards. ACAR participants began work on a Code of Ethics modeled after guidelines produced by attorney Erica Eversman, who moderated the event.

“The collision industry needs a Code of Ethics,” said Eversman. “It will assist people in understanding who the real customer is and what they owe that customer.

“To have an industry that deals with people’s safety with no Code of Ethics or pre-set technical repair standards is mind-boggling,” continued Eversman. “You have to have governing principles. If you don’t do this, then less-knowledgeable people will.”

Although participants represented many different repair associations and industry segments, attendees unanimously agreed that the collision repair industry needs a code of ethics.  ACAR meeting participants worked their way through Eversman’s draft Code of Ethics, beginning with defining terms as basic as “collision repairer” and “collision repair facility” and drawing a distinction between a “consumer” and a “customer” (neither of which is the insurance company).

The draft Code makes allowances for an industry peer review board, which would self-regulate the industry. Meeting participants discussed qualifications for potential review board members, stressing that they should not only have years of experience, but should be up-to-date on the latest training, as well.

Eversman said she drafted the Code of Ethics specifically with consumer protection in mind. “The Code will make everyone aware of the conflict between insurance regulations and the consumer protection laws that  you must follow,” she said. “Many repairers are currently breaching consumer protection laws.”

The draft Code says that collision repairers owe “a duty of professional care to the customer and shall act in the best interests of the customer in repair decisions and recommendations.”

“I still hear repairers saying, ‘The insurance company will take liability if I repair according to their estimate,’” said Eversman. “I cannot disabuse people enough of that idea.”

Regarding the section of the draft Code that deals with damage analysis, Eversman said, “It is absolutely inappropriate for a repairer to underwrite an estimate just to get the vehicle in the shop. It’s a safety issue. If the vehicle should be a total loss, and you underwrite to get it in your shop, that is wrong.”

Meeting participants agreed that today’s gathering was a start. Those in attendance will now look over the draft Code of Ethics individually or with their repair associations at home and submit comments.

A second meeting to discuss the draft Code has been tentatively scheduled for March 28, 2008, a Friday, to coincide with the Northeast Regional Autobody/Automotive Trade Show in Suffern, N.Y.

Meeting attendees also agreed that the draft Code may serve as a foundation for minimum industry standards from coast to coast, though individual states will be free to make additions to the Code as their situations dictate.

ACAR meeting participants hope that the draft Code of Ethics will, at last, permit the auto collision repair industry to speak with one voice.

 

Contact information:

Sheila Loftus

ACAR
5303 Connecticut Avenue, N.W.
Washington, D.C. 20015

202-363-1858 (phone)

202-244-0178 (fax)

s@loftus.us (e-mail)

 
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