As State Farm rolls out its calibration requirements to Select Service repair facilities nationwide, multiple professionals in the repair industry share concerns about pressure to meet State Farm prices for calibration procedures. 

The insurer announced the national rollout earlier this month after completing a regional pilot program based on an agreement with Opus IVS. 

It started in Colorado and Michigan in October and was expanded to Illinois, Indiana, Missouri, and Wisconsin in February.  

Repair facility professionals who work in the State Farm Select Service network, and ones who don’t, have told Repairer Driven News they’ve felt recent pressure from the insurance company about how to identify calibrations for a repair. They’ve also shared stories on how the insurance provider has asked shops to either meet State Farm calibration pricing or use calibration providers that will. 

The image below was taken from a State Farm supplement, demonstrating how recommended service providers are listed, however the price has been redacted from the image.

State Farm says in its recent email that Select Service shops are required to use ADAS MAP by Opus IVS to scrub estimates and/or repair orders to identify VIN-specific ADAS and necessary calibrations. It adds that the system provides OE repair procedures. 

“Repair facilities will incur a $3 charge per VIN when an estimate is run through ADAS MAP,” State Farm says. “This charge represents a 40% discount on the retail price of $5 per VIN. This operating expense should not be passed on to State Farm or our customers.”

It notes that shops don’t have to use Opus equipment to complete their own calibrations but must meet the price provided by State Farm. 

“Repairers are free to choose their diagnostic tool and remote service provider; however, the amount billed for calibrations should not exceed the price State Farm would have paid per the part code table,” State Farm’s email says. 

According to the State Farm email, repair facilities can find mobile/car-side providers that work in their area on the Opus landing page.  

“Enter the collision shop’s location into the search bar,” the landing page says. “View results for all mobile providers within the same zip code. Use the provided contact details to schedule an appointment. Resolve issues quickly and boost your revenue!” 

Brian Herron, Opus IVS president, reiterated Monday that the company’s agreement with State Farm is focused on ADAS MAP identifying calibrations, and does not involve a price agreement. He said the company is not involved in discussion regarding the completion of calibrations. 

“We didn’t set the price,” Herron said. “We are not one of the providers that they have negotiated some type of pricing with.” 

Herron said Opus did agree to house a list of providers who support the program on its website. He said anytime a calibration provider wants to be added to the network, Opus adds them to the website. 

“If there is a provider in that area that works with State Farm, they could be added to the zip code locator so that shops know some options that they have,” Herron said. 

He said the calibration providers don’t necessarily use Opus tools. 

“It is just a search function,” he said. “The only requirement to be on the list is to be mobile or brick and mortar calibration provider that wants to be in the program.” 

Protech Automotive Solutions, a Caliber company, is one of the calibration service providers on the list. The company’s technicians are trained in scans, calibrations, auto glass, and mechanical repairs, according to the company’s website. 

Don Mikrut, Protech vice president, said the company has more than 1,300 technicians in 41 states. 

“I believe we are one of the largest providers, and therefore we can be an option in many of these states where insurers may struggle to provide shops with providers that they feel comfortable with,” Mikrut said. “Some shops may not have a provider who can provide services in their marketplace.” 

He said one service Protech provides is the certification of floor space for static calibrations at a repair facility. He said techs can verify if a shop has enough space in the right environment to perform a calibration to OEM specifications. He said this keeps the vehicle in the repair shop and helps reduce cycle time for the customer. 

Mikrut said State Farm allows diagnostic providers to choose their tooling. It could be OEM or aftermarket, he said. 

He said Protech’s team will also do its own validation of what calibrations are needed. It won’t fully depend on Opus ADAS MAP. 

Repairer Driven News was provided an email from a Protech general manager that noted, “Protech is the preferred calibration partner for State Farm Insurance. See attached State Farm pricing sheet.”

Mikrut said he doesn’t believe “preferred” is the correct term for the relationship. 

“We are willing to support State Farm shops,” Mikrut said. “We are a provider who has agreed to service those shops if they don’t have a diagnostic provider. Is State Farm out there recommending us? The answer is no. I think it is the wrong terminology.” 

Protech also did not make an agreement about specific pricing with State Farm, Mikrut said. 

“They came up with the pricing,” Mikrut said. “We are honoring their pricing.” 

Mikrut also noted that State Farm has a list of multiple providers. 

“State Farm has talked to many providers to make sure that they had ample coverage in the marketplace,” Mikrut said. 

Gary Wano, owner of GW & Son Autobody located in Oklahoma, said he currently has a vehicle that requires more calibrations than what State Farm has identified. 

The insurer indicates a “Calibration-Level 3C” is needed to repair the BMW, he said. 

However, after removal of the bumper, the calibration provider that Wano’s shop uses, Advanced Auto Technologies (AAT), has indicated three calibrations are needed. 

“For me to safely repair a car, I can’t do it unless I do all three,” Wano said. 

He said he knows AAT’s building was constructed specifically for calibrations. 

“Not only do I know that the environment is perfect for calibrations but I’ve also met their technicians,” Wano said. 

Yet, his State Farm appraiser has said that soon, Wano will have to match a pricing matrix created by State Farm or use two local calibration providers the insurance company has confirmed will match the price. Wano’s collision shop is not in State Farm’s Select Service Network. 

“Both are competitors in my market space,” he said. “Why do I want to supply revenue to one of my competitors? God forbid something was to fail in one of those calibrations. If I’m going to a court of law because that failure hurt someone or caused a fatality, what makes State Farm feel like [my competitors are] going to sit in that courtroom and defend me as the provider of that service?” 

Wano said the pressure is even more concerning because he isn’t a Select Service shop. 

“If they want to tell their network shops, then fine, but I’m not a network shop,” Wano said. “The fact that I don’t subscribe to what you [State Farm] want to do to save you money should have no effect on what I am doing.” 

State Farm’s position is restricting the free market environment for shops and calibration providers, Wano added. 

Kevin Daly, Perillo Collision Center general manager in Chicago, said State Farm is dominant in his shop’s market, with roughly 50% of the claim volume being State Farm claims. 

The BMW-certified shop is also not in State Farm’s Select Service Network but has been told by the insurance provider that the company will only pay certain amounts for calibrations. It has also given the shop local companies that are able to do it at the State Farm price. 

“Our main concerns with this is trying to perform as a BMW-certified repair facility and be compliant as a BMW-certified center,” Daly said. 

Daly said all services have to be carried out by a certified technician, with certified tools. 

This includes using BMW-certified software to find calibrations, Daly said. At the time of talking, Daly was unsure if BMW would agree to the use of Opus IVS. 

Daly said it’s possible the shop could negotiate the price with State Farm via documentation directly from BMW. However, he said it is also likely the shop would have to repeat this step with each customer. 

“It will be the same uphill battle each time, with all the documentation,” Daly said. “It is a constant wear-down technique that they use to make it as difficult as possible to repair these cars correctly,” Daly said. 

The shop will always use BMW procedures, Daly said. If State Farm refuses to reimburse the consumer for that cost, the consumer will be forced to cover the cost out-of-pocket, he said. 

The loss of income from the short payment would make it difficult to generate a profit, he said. 

Darrell Amberson, Quality Collision Group vice president of industry and OEM relations, said he has concerns about State Farm requiring the use of Opus’ ADAS MAP in Select Service shops, along with providing pricing for calibration procedures. 

“It is unsettling, it feels forced upon us,” Amberson said. 

Quality Collision Group operates 92 repair facilities, including some shops that are in the Select Service Network. 

“My perception is they are a really good tool, they bring a lot of information to light, but not fully conclusive,” Amberson said. “I want to do some comparisons.” 

There are concerns that ADAS MAP might not match factory repair information 100% of the time, Amberson said. 

In a February interview, Herron said the ADAS scrubber works by recommending calibrations based on the vehicle and information uploaded about the damage by the repairer. The scrubber also provides service information from the OEMs.

He said the scrubber does not take the place of repairers looking at OEM procedures.

“The shop is always going to be responsible for the repair plan of the vehicle,” Herron said.

Amberson said. “It really concerns me that State Farm is directing us to be reliant on this. Speaking as a repairer, when we are confronted with an insurer telling us to do it a certain way, different from the OEM, we are stuck in a difficult position.”

Repair shops always have to follow manufacturer procedures because manufacturers designed and crash-tested the vehicle, Amberson said. 

Mobile calibration providers also have been a “hot topic” in the industry for a while, Amberson said. 

“We know that many of the repair procedures call for controlled lighting and certain conditions that indicate the floor is flat,” Amberson said. 

There’s concern that some mobile calibration providers perform calibrations in settings that don’t meet OEM requirements, he said. 

Amberson said Quality Collision Group has invested in doing calibrations properly at its shops. He has concerns about the shops being able to do it at the prices provided by State Farm. 

“We would prefer to do the job ourselves, especially those of us who have already invested in training and equipment to do it right,” Amberson said. “It is not fair or reasonable to expect us to sublet work.”

Amberson said State Farm’s actions are even more concerning because it is now the second major insurance company to create a pricing model for calibrations. 

In July, GEICO announced standardized pricing for repair scans and calibrations for its repair network based on an agreement with asTech. 

As the GEICO news swept through a Collision Industry Conference (CIC) meeting held in Denver, attendees crowded a mic, raising concerns.

Amberson reiterated that repairs have to be done according to the factory repair procedures. 

“We intend to keep doing it the way we have been doing it through the factory procedures, and hopefully we can negotiate it with them,” Amberson said. “One way or another, we are going to do it the right way. We do the right thing for the customer, no matter what the insurer tells us.”

IMAGE

Photo courtesy of JHVEPhoto/iStock