Collision repair shops in Colorado are saying they’ve seen an uptick in calibration short-payments from State Farm since the start of the insurance company’s calibration pilot program in October. 

The program, based on an agreement with Opus IVS, works with Select Service repair facilities to accurately identify necessary calibration operations to repair vehicles, according to emails State Farm sent to Select Service facilities. 

It began in Colorado and Michigan in October but will expand to Illinois, Indiana, Missouri, and Wisconsin on March 10. 

Megan Mueller, co-owner and CEO of Ozzie’s Body Shop in Loveland, Colorado, said Friday that her company was excited about the announcement of the pilot program because costs quoted in State Farm announcements are higher than what her shop has previously been paid. 

However, she later learned the prices given to Select Service shops would not be honored for shops that are not in the network, such as Ozzie’s Body Shop. 

Mueller said State Farm also recently changed how it covers calibrations. The company is now telling her they will only approve amounts quoted by two aftermarket calibration companies. The companies will come on-site and use the space provided within her shop or on their lot. 

“My lot is not flat,” Mueller said. “You can’t provide a proper calibration outside on our lot.” 

Mueller said she also can’t provide proper lighting or enough space on a level floor within the shop. 

“We are supposed to somehow make room for them to perform these calibrations, which are unlikely to be performed to the manufacturer’s standard,” Mueller said. “It has been an ongoing battle. I can’t imagine that a lot of these vehicles are receiving what they need following a collision.” 

Instead, Mueller said her shop is using a company that she knows researches OEM procedures and does proper repairs. 

“We know the [calibration companies] that are doing it properly and the ones that are not. We are choosing where the vehicle goes, based on our experiences,” Mueller said. 

She said customers have to pay out of pocket for the service. 

“The customers are very frustrated,” Mueller said. “We are letting them make the decision on what they like.” 

If the customer doesn’t want to pay out of pocket and is alright with using the State Farm companies, they have to sign a liability release acknowledging they’ve been informed the calibration may not be performed properly, Mueller said.

“The main thing that we tell our customers is that we want them to make an educated and informed decision,” Mueller said.

Michael Arellano, general manager of Rickenbaugh Collision Center East in Aurora, Colorado, said State Farm isn’t requiring his shop to use specific calibration companies but has seen a change in how the insurance company is covering calibrations since the pilot started. 

A State Farm adjuster recently told the company they would only pay prices found in a Mitchell1 time study for labor.

Arellano said he’s never heard of a Mitchell1 labor study on calibrations and asked the adjustor for a copy. The adjuster replied that he couldn’t provide the study. 

State Farm also provided suplements based on a nearby dealership’s pricing. 

“When they called the dealership, they gave the wrong wording and got the wrong pricing,”  Arellano said. “We called the dealership and were able to get the right pricing.” 

Arellano said there have been multiple situations where State Farm repeatedly sends supplements below the cost of doing the calibration. 

The supplements are nearly 50% below the costs State Farm uses in announcements to Select Service shops for the pilot program, he said. 

Arellano said work was completed on one vehicle three weeks ago but it’s still sitting at the shop because State Farm has failed to pay the total cost of the repair. 

Rick Elsinger, owner of Aurora Collision Center, said the prices offered by State Farm are not enough to provide a markup on any services. 

He also has noticed that he’s getting pushback on doing certain collision procedures. 

“They didn’t want to pay for a calibration on a rear-end collision but the GM position statement says all collisions,” Elsinger said. 

The customer ended up covering half of the cost for the calibration, he said. 

State Farm’s most recent email on the pilot, sent last month, states Select Service shops will incur a $3 charge per VIN when an estimate is run through Opus’ ADAS Map. It says the charge represents a 40% discount from the retail price of $5 per VIN. The email also says this operating expense “should not be passed on to State Farm or our customers.” 

It is unclear in the email why an expense that is directly incurred as a result of an estimate written to document a loss would be identified as an operating expense rather than a loss cost.

State Farm’s email goes on to explain the part code table includes calibration entries for use on repair estimates. It instructs shops in the pilot to utilize ADAS Map to assist in determining necessary calibration operations and to enter those operations onto repair estimates using the part code table.

Repairer Driven News previously reported that a shop owner within a pilot state that does not participate in State Farm’s Select Service network provided a screenshot of a recent supplement from State Farm. The screenshot provides a sublet price for a Level 3A additional calibration. The insurance company’s sublet price is less than what a Level 3A calibration is listed for in the part code table sent to shops. 

The supplement also notes a list of vendors to call to perform the calibration.

Elitek Vehicle Services, an LKQ Company, also recently launched its ADAS MAP solution powered by technology from Opus. It says through its solution, shops can identify and calibrate ADAS systems based on OEM data, generate detailed records of each calibration, programming, and scanning event, and streamline insurance conversations.

ADAS MAP can”simplify interactions with insurers, providing precise and easy-to-understand documentation that supports the work completed, helping repair shops get paid faster,” the release says.

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