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State Farm is fighting hard to kill an ACV lawsuit in North Carolina while NHTSA's final fuel economy rule hits the street. Both matter to your P&L and your estimating.
INSURANCE
1. State Farm fights dismissal of N.C. ACV lawsuit
State Farm is again seeking dismissal of a lawsuit alleging it systematically undervalues total loss claims in North Carolina. The suit claims the insurer uses flawed pricing data to lower actual cash values and shift loss burden to shops and customers. If this case moves forward, it could open the door for similar actions in other states and expose how carriers set loss reserves.
Mark says: Track this case closely. If dismissed fails, ACV leverage shifts to shops nationwide. Document every total loss estimate with your pricing methodology.
NHTSA released its final corporate average fuel economy standards rule for model years 2022-2031. The agency eliminated credit trading and reclassified crossovers to reduce crashes and maintenance costs. This affects OEM production planning and the mix of vehicles hitting your bay over the next five years. Heavier vehicles may increase, which changes structural repair complexity.
Mark says: Monitor your intake mix over the next 18 months. Vehicle weight and structural composition shifts will change your labor estimates and steel sourcing costs.
3. NHTSA opens investigation into comma.ai driving system crashes
NHTSA is investigating comma.ai after receiving notice of five crashes resulting in three deaths and injuries linked to its driving system. This adds pressure on OEMs to validate aftermarket Level 2 systems and tighten calibration requirements for all ADAS hardware. Shops may see stricter OEM protocols and documentation demands on any vehicle with third-party autonomous tech installed.
Mark says: If a customer arrives with aftermarket Level 2 or comma.ai hardware, flag it. OEMs will demand factory calibration before release, adding cycle time and liability.
4. AASP/NJ pushes OEM safety inspections as standard practice
The Alliance of Automotive Service Providers of New Jersey held a vehicle safety inspection course Sept. 24, urging collision shops to make OEM safety checks routine. The seminar covered inspection procedures, documentation, and regulatory compliance tied to post-repair verification. As ADAS complexity grows, OEMs are requiring documented safety sign-offs before vehicle release.
Mark says: Build OEM safety verification into every estimate and work order. Document every check. Insurers and OEMs will demand proof before supplementing or paying final.
State Farm announced plans to add 3,000 claims employees next year, citing new vehicle technology, changing repair methods, and severe weather. The staffing push signals the insurer expects higher claims volume and more complex vehicles entering the system. This also suggests State Farm is preparing for tighter oversight of repair estimates and supplement justification.
Mark says: State Farm is scaling up review capacity. Supplements need airtight OEM documentation and clear labor justification. Sloppy estimates will get hammered next year.
Running into denied supplements or estimates rejected for missing OEM justification? The Calibration Denial Audit gives you an OEM-cited rebuttal in 60 seconds, free. Upload a denied claim and get immediate language you can send back to the carrier.