AASP/NJ Navigates Members through New Rules, New Tools

by Alana Quartuccio

The days of taking the keys, attempting to negotiate with the insurer and getting the car back to the customer in a relatively smooth fashion are long over.  That old model was built for a different time. Today, claims resolution is more complex than ever – and so are the vehicles.

This reality was the foundation for AASP/NJ’s “New Rules, New Tools: A Shop Owner’s Playbook to Win in Today’s Market” general meeting held at the Holiday Inn in Clark last month. Led by AASP/NJ President Ken Miller, Board member Dennis Cataldo and Collision Chairman Jerry McNee, discussion navigated collision repair professionals on resources and tools that can be used to manage today’s more complicated claims environment.

Miller illustrated what body shops are dealing with right now – insurance adjusters are playing the “50 cent” game of slashing a shop’s total in half. “They are coming in at half your number and they really won’t move off of that. They are staying at that 50 percent and it’s a problem for everybody. The even bigger problem is the shops who try to make this work. One, your profitability is nowhere near where it should be and two, what types of compromises are you making to those customers’ cars to try to make it work?”

AASP/NJ leaders walked attendees through the various tools that exist including the Right to Appraisal (RTA), assignment of proceeds and small claims court.

Miller and McNee outlined how RTA can be used for valuations regarding repair costs and with total loss vehicles. Unfortunately, in the state of New Jersey, two insurance companies have removed the appraisal clause from their policies. AASP/NJ is currently supporting proposed legislation at the Assembly and Senate to make this right mandatory in all insurance policies.

When a customer invokes their Right to Appraisal, both the customer and the insurer hire their own independent outside appraiser to get together to work out the valuation of the loss. If they can’t come to an agreement, an umpire comes in to settle it.

“Every RTA that I’ve seen done at my facility has settled between 90 and 130 percent of what we wrote,” McNee unveiled. “That’s a far cry from the 40 or 50 percent that comes back on the insurance side.” He advised shop owners to get familiar with the process because it’s up to the shop to advocate for and explain to the consumer.

Miller shared an eye-opening fact he said may make many repairers feel uncomfortable: shops have been shielding customers from insurance claim battles for years. “The customer doesn’t know what goes on. We have been negotiating for them behind the scenes. Perhaps you even negotiated some of their rights away. You did it, kept it quiet, fixed the car and gave it back to them.”

Consumers have been conditioned by the insurance company to drop their car off. Over time, the customer was removed from the collision repair process and that has to change.

“The new way of settling claims has to involve the customer in their own claim,” Miller added. “Not shielding them from it – making it all visible. The more visibility the customer has in the process, the less the insurance company will play games in the background.”

The Board members shared a recap of their recent meeting with Acting Commissioner Susan Ochs of the New Jersey Department of Banking and Insurance (NJDOBI) stressing the importance of filing complaints. (See recap on page 28).

Miller and Cataldo stressed the role consumer complaints play toward educating NJDOBI and the need to increase this form of communication. (Editor’s note: AASP/NJ has a designated email inbox set up for repairers to share their submitted complaints to NJDOBI. Email complaints@aaspnj.org to help AASP/NJ compile this documentation for future meetings with NJDOBI!)

“I don’t make phone calls to insurance companies; I send emails,” Cataldo stated. “I include the owner in the email because it shows my due diligence in processing the claim. When the insurance company doesn’t respond for 10 days, they see that it’s not my fault.”

Repairers must consider the increasing total loss trend factor. “Insurers are totalling cars so much faster. There are less repairable cars,” Miller noted. “You need to be paid what you need to be paid so you can fix the car properly in order to be sustainable to stay in business.”

He challenged all to really think about the model they currently operate with. “Did you pick it? Or is it something the insurance companies fed to you over time that developed into that model? That is what has happened to this industry. You didn’t pick it. They created it and you live in it. If you want to be different, you have to be different.”

More shops are choosing to involve the customer as well as introducing customer pay. When there is a difference between the repair cost and reimbursement cost, it should be presented to the customer, Cataldo explained. Before the claim is settled, documentation should be made available to the customer to back up everything required.

“Once you have the customer on your side, they will already be aware and have an understanding when they hear from the insurance company.”

When customers understand, they tend to be willing to pay the difference.

“Build a repair plan and put it in front of the customer,” Miller explained. “Everything I write is required to fix that car properly. It’s all about customer education. You have to educate them and make it transparent.”

Want more? Check out the July 2026 issue of New Jersey Automotive!