The standardized pricing agreement between asTech and GEICO is creating concerns in the claims process for the entire industry, according to a news release from the Society of Collision Repair Specialists (SCRS). 

GEICO first announced the agreement to its Auto Repair Xpress (ARX) via an email in July. As the news swept through a Collision Industry Conference (CIC) meeting that was happening at the same time, attendees crowded a mic raising concerns. 

“After collecting feedback and inquiries from industry members over the weeks that followed, the Society of Collision Repair Specialists (SCRS) provided a series of questions to both companies, seeking further response,” the release says. 

A letter with 16 questions was sent to GEICO on Aug. 14. On the same day, another letter with 25 questions was sent to asTech and Repairify officials. 

Both companies have declined to directly answer the questions submitted by SCRS, the release says. 

“We believe that the questions that have been posed are important for the industry to receive answers,” stated SCRS Executive Director Aaron Schulenburg, in the release. “While both companies have indicated they will speak directly with their ‘partners’ and customers, the decisions they’ve reached together around their customer to standardize pricing and process are introducing new challenges in the claims process. We continue to receive communications from collision repair businesses around the country that are not asTech users, and are not GEICO ARX network shops, but who are being told that claim reimbursement is restricted to the pricing secured by GEICO through asTech.” 

Some of the questions asked of GEICO by SCRS include: 

• • When GEICO says all claims will be evaluated on a case-by-case basis, what factors are being considered?
  • How is GEICO assured the Rules Engine results account for current OEM updates, or changes in rules and requirements? 
  • Does GEICO recognize recommendations made by automakers for repair procedures and/or scanning, diagnostic, and calibration needs? 
  • How will GEICO handle situations in which the Rules Engine results conflict with OEM documentation, recommendations, or published repair procedures? 
  • Has GEICO requested to add any rules to the Rules Engine?
  • Are there any specific settings an ARX facility must use in the Rules Engine to be compliant with GEICO’s program? 

To read the full letter and questions to GEICO, click here. 

According to the SCRS release, Tyson Miller, GEICO senior director of physical damage, responded on Aug. 21 to say, “GEICO is confident that asTech is an industry-recognized and trusted source for diagnostic, programming, and calibration services. Specific repair needs and scenarios are handled on a claim-by-claim basis to ensure we have addressed the individual needs of a repair. We welcome continued dialogue with repairers as we handle claims for our mutual customers.”

SCRS responded noting that GEICO “made it clear” claims would be handled individually. It added, GEICO also said it reached an “overarching agreement” with asTech to standardize pricing and reduce friction for diagnostic, programing and calibration operations. 

Miller responded to SCRS saying, “At this time, we have no further details to share beyond the initial messages that I sent to GEICO’s ARX partner shops.”

In a letter sent to asTech and Repairify officials, SCRS notes that promotional material for asTech’s Rules Engine gives a guarantee that it is 100% accurate. It adds that there is a disclaimer on scan reports that says the tool may not return the same information that would result from a scan performed with a directly-connected OE scan tool. 

SCRS asks how the tool can be 100% accurate and have such a disclaimer. 

The letter also asked if asTech’s documentation states, “asTech OEM Compatible scans are certified to be equivalent to scans performed by an OEM scan tool.” SCRS asked who certifies this? What does “certified” mean in this case? What does “OEM Compatible” mean? 

Some other questions SCRS presented to asTech included: 

• • Does asTech use any non-asTech tools (e.g., Launch, Autel, etc.) when you perform remote services for customers? If so, how are these services classified, and/or certified?
  • Do you have guidance for shops who are certified by an OEM and intend on following the manufacturer requirements within a certification program?  
  • Was the discount structure, or existing programs offered to the repair facility ever discussed with GEICO, as part of the conversation around Standardized Pricing? 
  • At any point do you think your negotiations with GEICO on standardized pricing violated any of the confidentiality clauses within your service agreements with your customers? 
  • Does your agreement with your customers allow you to agree to pricing on their behalf?
  • Does asTech intend to solicit or launch similar programs with other insurance carriers? 
  • If an asTech customer, who is not an ARX shop, is asked to honor that pricing, do you have resources to help them justify their existing fees?
  • How do you anticipate other insurance companies will react to pricing when handling subrogation? 

View the letter and entire list of questions sent to asTech here. 

The SCRS release says Jason Vilardi, asTech VP Sales, Insurance and Estimatics, responded to the questions by saying, “In lieu of answering the questions you sent we would like to bring you in to our office (Plano, Texas) and we can talk in depth on our testing, what the rules engine means and doesn’t mean, go over the results and answer any additional questions you may have.”

SCRS responded by saying visiting the facility would put the society in a position to either answer industry questions for asTech or leave the questions unanswered. 

“The association believes it would be helpful to bring clarity to these questions for many in the industry who would not be able to attend such a meeting,” the release said. 

Vilardi responded, “We’re currently sharing details about the Rules Engine and our testing process on our social media channels, which should address many of your questions. Additionally, we’re speaking directly with our customers to provide personalized answers. For now, we’ll be focusing on these channels.”

Days after SCRS sent the list of questions, Repairify posted on Facebook directing followers to The Rules Engine FAQ. 

The page seems to address a couple of the questions asked by SCRS. For example, it states that the Rules Engine can be customized to fit OEM certification requirements. However, it doesn’t provide an explanation of what a shop should do if they are certified and within GEICO’s network. Overall, the page avoids answering nearly all of the questions asked by SCRS. 

In an email sent to its Certified Collision Network (SCCN) in August, Subaru reaffirmed that it requires the use of Subaru Select Monitor (SSM) software for vehicle scans and does not approve “OEM compatible” scans.

The OEM says it will continue to approve asTech remote diagnostic scanning as one of the options for SCCN standards. However, it says the Rules Engine must be configured to comply with Subaru standards.

Schulenburg says in the press release that SCRS is sharing the questions with the broader industry in hopes it will open the door for more transparent and thorough responses. 

The next CIC meeting will be Nov. 5 in Las Vegas. Visit here for more information.

IMAGES

Jason Vilardi, asTech insurance and estimatics vice president, answers questions about an AsTech agreement with GEICO for a standardized price during a Collision Industry Conference (CIC) meeting on July 10, 2024. (Teresa Moss/Repairer Driven News)