A promotion email from asTech notes the company provides $31 million indemnification on all “OEM-compatible” and OEM operations; However, repair businesses could still be held liable if they stray from OEM procedures, sources say. 

When asked by Repairer Driven News (RDN) if asTech’s indemnification alleviates a collision repair businesses liability if there is an issue involving death or serious injury as a result of an improperly calibrated vehicle asTech responded: 

“This is a complex and case-specific situation,” asTech said in its emailed response. “If a collision shop fails to follow OEM specifications and does not notify asTech, it does not absolve them of liability. However, if they follow all recommendations from asTech and the OEM, our indemnification would apply. Each case would need to be evaluated individually.”

Most OEM procedures specify OEM software and tools to be used to complete scans and calibrations safely. asTech promotes what it calls an “OEM-compatible” option utilizing aftermarket alternatives that it suggests is the same as OEM software. The company has said it self-verified the OEM-compatible option. 

Shops can request their asTech settings be changed to only OEM operations, according to asTech officials; an option that Subaru requires its Certified Collision Network (SCCN) to do as it does not recognize the “OEM-Compatible” option. 

“If [OEM] repair procedures say you need to use certain tools and you don’t use those tools there is a risk to doing that that you are taking on as a shop,” said David Willett, Sparks Underwriters chief underwriting officer, on Friday. “You are now saying you know something that they don’t know.” 

Willett said indemnification from equipment providers does not change the shop owner’s responsibilities and duties that they owe to the customer. 

“No one else is going to take on the shop owner’s liability,” Willet said. 

Other entities, such as equipment providers, have their own lawyers, he said. He added shop owners should be prepared that indemnification is not going to cover a shop’s full liability. 

Willett said OEMs also aren’t perfect. However, historically, OEMs pay for any mistakes found in their procedures, he said. 

“If they tell you to do a procedure and you do it that way, you can hand any issues over to them,” Willett said. “No one can get in the way of you and that.”

asTech warranty information provided by readers says it is effective for 250 miles or three business days after the delivery of the vehicle to the customer, whichever occurs first. It is limited to diagnostic trouble codes (DTC) that are missed in the original scan. It does not guarantee the parts or labor of the shop. 

The warranty is only for the customer and vehicle serviced and is not transferable. asTech is not responsible for any consequential, incidental, or indirect damage under the warranty. 

GEICO announced a standardized pricing agreement with asTech for 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. 

The insurance company added in its email that its position on the necessity of scanning a vehicle remains unchanged and that all claims will be evaluated on a case-by-case basis. 

“We will base consideration for pre-/post-scans on the recommendations from the patented and proprietary asTech Rules Engine,” GEICO’s email says. “The Rules Engine uses data from tens of thousands of scans to determine when a remote OEM scan is needed or when a local OEM-compatible scan can be used, which has been verified to yield equivalent results to that of an OEM tool. GEICO shops using the asTech Rules Engine will be eligible for an OEM or OEM-compatible scan if they correctly follow the Rules Engine process in selecting the appropriate scan for the vehicle.” 

GEICO adds that shops utilizing AsTech’s All-In-One will receive prioritized access and special pricing. It notes the pricing structure will not address every scanning and calibration operation and “some negotiations may still need to be supported by good documentation.” 

“Shops not using the asTech® All-In-One device may need to supply additional documentation to justify procedures or pricing that deviates from those provided,” the email states. 

Mike Anderson, owner of Collision Advice, raised concerns during the CIC open mic about GEICO making a decision based on the tool’s recommendation on whether an OEM or aftermarket tool could be used for the scan. 

“So they’re determining that,” Anderson said. “Not the shop, not the consumer, not the OEM certification program, but their software device. So if that’s accurate, I have concerns over that because it’s pulling the collision repair specialist or expert out of that equation.”

Willett said Friday that getting paid and liability are two separate conversations. 

“What you get paid doesn’t change your duty to your customer and the responsibility for that,” Willett said. “There are various levels of liabilities associated with that. 

He said shops have to separately think about their profit options. 

A Repairify official interviewed on C&C Auto Show earlier this month said that, in some cases, customers have to pick up the gap between cost and insurance coverage when he was asked about how an agreement the company made with GEICO is changing the perception of what the actual cost of calibration is for repair shops. 

GEICO did not respond to questions about whether the two company’s warranties would conflict. 

It is also unknown if it would conflict with warranties provided by aftermarket parts companies, such as LKQ which is subject to calibration services being performed to OEM specifications using OEM tools. 

“This question is more relevant to LKQ.” asTech said in its email to RDN. “asTech’s warranty for the OEM-C scan is in effect as outlined, but it does not affect the terms of LKQ’s warranty for the parts they provide.” 

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