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Insurers tightening belts. What shops need to know about volume and pricing pressure.
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Insurance headwinds intensify; shops feel the squeeze
Tuesday, August 11 · #68
~2 min read
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Markets
Mobileye$8.75+0.23%YTD -16.19%
Aptiv$49.81+0.52%YTD -34.54%
Tesla$330.88+0.70%YTD -26.43%
Nvidia$217.55-2.86%YTD +16.65%
LKQ Corp$24.57-1.17%YTD -18.64%
Nvidia dragged while the auto names quietly gained ground, a split day with no clear story tying it all together.
Data via Yahoo Finance
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Two big insurance signals hit this week. Full-coverage premiums are rising in 32 states by year-end, and claim frequencies are climbing faster than expected. Both matter to your shop's workload and margins.

INSURANCE

1. 32 states facing full-coverage premium hikes by year-end

Insurify's mid-year report shows auto insurance rates climbing nationwide, with full-coverage premiums rising in nearly two-thirds of states. Premium pressure usually means insurers tighten claim approval, stretch timelines, and push harder on scopes. Your supplement volume and negotiation load will likely spike in Q4.

Mark says: Front your estimators with denial talking points now; supplement denials climb when insurers bleed.

Source: Repairer Driven News →

INSURANCE

2. GEICO claim frequency up 3-5%, underwriting earnings crater 45%

GEICO's Q2 report shows property damage and collision claim frequencies rising faster than expected through the first half of 2026. The carrier is bleeding money, which historically means tighter claim scrutiny, slower authorizations, and pushback on labor rates and parts choices. This usually hits shops hardest in August and September.

Mark says: Flag GEICO claims this week; expect stricter reviews and longer hold times on estimates and supplements.

Source: CollisionWeek →

INDUSTRY

3. California storage fee regs back under review; public comment coming

California's BAR is revising storage fee regulations again after OAL feedback on the 2024 AB1263 rules. Changes are pending public comment. If you store vehicles in California, watch for new caps or compliance burdens. The timeline is unclear, but expect a shift in the next 60 days.

Mark says: California shops should flag this; new storage rules may shrink your hold window or revenue per day.

Source: Repairer Driven News →

INDUSTRY

4. Driven Brands reports 7% revenue growth; Auto Glass Now still in incubation

Driven Brands' Q2 earnings show solid growth across collision and auto glass portfolios. Auto Glass Now continues to be positioned as an incubation project, signaling the parent company is still testing the model. No major operational changes announced, but consolidation pressure remains in the sector.

Mark says: If you're independent, monitor consolidation; Driven Brands' size and growth signal continued M&A appetite.

Source: Repairer Driven News →

INDUSTRY

5. Used vehicle values down 1.4% in July; wholesale prices soften

Manheim's index shows wholesale prices declining in July, though remaining above year-ago levels. Softer used car values can signal weaker demand for parts vehicles, lower scrap values for total losses, and pressure on insurance total-loss thresholds. Watch for carriers to raise the point-of-loss ceiling.

Mark says: Total-loss thresholds may shift upward; confirm LKQ and parts vendor pricing weekly through Q4.

Source: CollisionWeek →

Facing denied ADAS or calibration claims? Get a free audit from Absolute ADAS. Submit a denied estimate and get an OEM-cited rebuttal in 60 seconds—no pitch attached.

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📬 Hit reply. Reply: has GEICO slowed down your authorizations or pushed back on labor rates in the last 30 days?

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Published by Absolute ADAS. Mark Fowler, owner. Mobile ADAS calibration in Western Washington. 50,000+ calibrations on the floor.

👀 Tomorrow: GEICO's August scrutiny window opens as Manheim values drop, watch for total-loss threshold shifts hitting shops hardest on older ADAS-equipped vehicles.
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