ASA News Release
Contact:

Angie Wilson
(800) 272-7467, ext. 216
angie@asashop.org
For Release:


Immediate
News Bulletin ASA-30
Oct. 20, 2006

ASA's Collision Division Expresses Concern About American Family Repair Program

BEDFORD, TEXAS, Oct. 20, 2006 - The Automotive Service Association's (ASA) Collision Division is seeking ways to develop stronger lines of communication with American Family Insurance. The insurer recently announced changes to its customer repair program (CRP), which have been met with great concern by ASA's Collision Operations Committee and several other collision repair organizations.

The association has voiced its concern through a cooperative effort between the Society of Collision Repair Specialists, the Alliance of Automotive Service Professionals and ASA, and has also sent a letter to American Family stating disappointment over the program's content. Concerns regarding the recently launched program include contract length, higher costs to collision repairers, and software and hardware issues.

"As a repairer, I know that American Family strives to minimize its costs of operation including repair severity. Yet it has neglected the costs and interests of the very repairers they agree to work most closely with through their direct repair program," said Darrell Amberson, AAM, ASA Collision Division director and president of Lehman's Garage, Bloomington, Minn. "American Family, when establishing the criteria of its direct repair program - including ties with the information providers - appears to have done little to protect repairers from high set-up fees, increased subscription fees, existing contract costs for unused subscriptions, and the uncalculated costs of transitioning from one system to another. They urge us to perform in a cost-effective manner while putting stumbling blocks in our path that increase our costs."

ASA's Collision Operations Committee, which enjoys nationwide representation, extends an invitation to American Family to discuss such matters moving forward.

"ASA estimates up to 90 percent of our collision membership participates in one or more direct repair programs, with an average 4.8 programs per business. Our most recent membership survey also tells us these programs account for approximately 48 percent of a collision repair shop's volume," said Denise Caspersen, ASA Collision Division manager. "As the representative organization for independent shops, our primary concern is helping our members. I see the implementation of American Family's repair agreement as an unnecessary burden to repairers and request that the needs of our members be taken into consideration."

The Automotive Service Association is the largest not-for-profit trade association of its kind serving an international membership base that includes numerous affiliate, state and chapter groups from all segments of the automotive service industry. ASA's headquarters is in Bedford, Texas.

ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. For additional information about ASA, including past news releases, go to www.asashop.org, or visit ASA's legislative Web site at www.TakingTheHill.com.

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