SGI changing body shop accreditation as vehicles become more complex

Vehicles are evolving rapidly with increased computerization, aluminum builds becoming more commonplace and even self-driving cars.

As vehicles become more complex so do their repair needs. That is why Saskatchewan Government Insurance (SGI) will be introducing a two-tiered accreditation system on April 1, 2020.

In simple terms, tier one shops will have the necessary equipment to do repairs on all newer vehicles such as diagnostic programs and specialty tools to work with aluminum frames.

Tier two shops will maintain SGI accreditation, but if they don’t have the right equipment for a job, it will have to be forwarded to a tier one shop.

Regina-based Bergen’s Auto Body is in the process of fulfilling the lengthy equipment list to get tier one accreditation next year. For owner Johnathan Bergen, it’s an investment that doesn’t come cheap.

“We’ve probably spent $150,000 in the past two years on our facilities and I’m probably looking at another $200,000,” Bergen said.

“This isn’t even the stuff I want. I want to update my office, but I want to get my phase one and I want to make sure I have all the curriculum in place for that.”

While SGI is creating their new rules, the shift isn’t driven entirely by the insurance company. SGI vice-president of appraisals, salvage and claims technical services Ryan Smith said this comes from the manufacturers and similar changes are happening worldwide.

“The manufacturers are putting more complexity in their vehicles with the materials and electronics. So to ensure you’re repairing those vehicles safely, you need to have a certain level of tooling and training to do that,” Smith explained.

Assuming shops meet a minimum standard of tooling and training they will keep their SGI accreditation.

“What we’re doing is creating a minimum level of tooling and training, reflecting the fact that vehicles are made differently than they were in the past and what it takes to repair those safely,” Smith said.

“Beyond that, if shops choose to specialize and invest in more equipment to gain access to more repairs, like aluminum vehicles and things like that, shops will have the opportunity to do that and we’ll be able to compensate them based on the investment they are making.”

The amount of work needed to meet the new standards varies from shop to shop. Some owners Global News spoke with in the past few days have been upgrading equipment already. Others in more rural areas said they don’t have the customer base to support these kinds of major purchases.

SGI will be hosting a series of information sessions for auto body shops across the province over the course of the next month.

Compensation

Smith added the new compensation structure has not been established. First, SGI will be doing a roadshow over the next several weeks to host consultation sessions with auto body shops across Saskatchewan.

For Bergen, compensation is a sticking point. He described the sector as one of the lowest paid skilled trades – despite their versatility from welding, to mechanics, to glass work and more.

“We’re the lowest paid trade in the industry. When you look at welders, mechanical – you can go down the street anywhere down here. Their walk-in door rate is $100 to $150. Ours is $92.68,” Bergen said.

That is the current SGI compensation rate. Bergen said while other trades can set their rate on market value, body shops are tied to the SGI price otherwise they hurt their own business.

In addition to increased compensation to cover equipment investments, Bergen hopes SGI will take into account increased administrative duties, like estimates, being performed by body shops.

“It would be nice to see SGI come away where they’re going to get us some money for administration fees with what we’re saving them at SGI, because they’re not writing as many estimates,” Bergen said.

He plans on raising this issue at the Regina information session next month.