LKQ and Mobileye led the losers today while Tesla bucked the trend, finishing as the only green name in the group.
Data via Yahoo Finance
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Insurers just had their best underwriting year in two decades. That means higher pressure on your labor rates and parts choices. We have the details and what to push back on.
INSURANCE
1. Insurers post most profitable year in two decades
Public Citizen's analysis found 2025 was the most profitable underwriting year for property and casualty insurers in more than 20 years. That cash position strengthens their negotiating leverage against shops. Expect supplement denials to tighten and rate pressure to intensify in the second half of 2026.
Mark says: Document every denied supplement with OEM citations. Insurers are flush and betting you'll accept lower payouts. Make them cite the spec.
2. Driven Brands franchise pushes alternative parts across network
During Q1 earnings, Driven Brands CEO Danny Rivera told investors the company is focused on cash and encouraging alternative parts use across its franchise brands. This signals a top-down mandate to franchisees to spec non-OEM parts on more repairs. If you're a CARSTAR or Maaco franchisee, expect pressure on your parts choices.
Mark says: If you franchise under Driven, know this directive is coming down. Build your rebuttal on warranty and ADAS integration now.
3. Massachusetts affirms shop and insurer duty to agree on repairs
The Massachusetts Auto Damage Appraiser Licensing Board is moving forward with an advisory ruling that registered repair shops and insurers must agree on repair scope. The ruling reaffirms shops' rights to reject below-spec estimates. This is a rare regulatory win for the collision industry.
Mark says: If you operate or estimate in Massachusetts, cite this ruling on every estimate variance. It's your legal shield.
4. Toyota Canada crosses 660K electrified vehicles on road
Toyota reports over 660,000 electrified vehicles now in service across Canada, with plans to expand the lineup further. This volume means more hybrid and EV damage claims landing in your queue. Many shops still lack the equipment and training for high-voltage battery damage assessment.
Mark says: Audit your high-voltage damage protocols now. Toyota volume is climbing and insurers will spec your shop if you lack certification.
5. Ford's LFP battery plant ships first units in 2026
Ford's BlueOval Battery Park in Michigan is on track to deliver lithium-iron phosphate batteries this year, making Ford the first U.S. OEM to produce LFP cells domestically. LFP batteries have different thermal and structural properties than traditional lithium. Repair protocols for LFP-equipped vehicles will differ materially from what you've trained on.
Mark says: Watch for Ford's LFP service bulletins starting Q4 2026. This is a new safety and repair challenge. Get ahead of it.
When an insurer denies your supplement, you need an OEM citation fast. Our Calibration Denial Audit pulls the exact bulletin, procedure, and spec in 60 seconds. Free.
Published by Absolute ADAS. Mark Fowler, owner. Mobile ADAS calibration in Western Washington. 50,000+ calibrations on the floor.
👀 Tomorrow: watch for franchisee pushback on Driven Brands' alt-parts mandate and whether Massachusetts shops start rejecting below-spec estimates under the new advisory ruling.