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Claim frequency surges as rates climb nationwide. What shops need to know about Q2 patterns.
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When insurance pain becomes your shop's leverage
Wednesday, August 12 · #69
~2 min read
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Markets
Mobileye$8.87+1.37%YTD -15.04%
Aptiv$49.62-0.38%YTD -34.79%
Tesla$332.81+0.58%YTD -26.00%
Nvidia$217.50-0.02%YTD +16.62%
LKQ Corp$24.70+0.53%YTD -18.21%
Mobileye led the group with a 1.4% bump while everything else was basically flat, no clear theme, just a quiet day.
Data via Yahoo Finance
🎯 Carrier of the Week
Allstate

Allstate's cutting calibration sublets, here's the cite that pushes back

What they're cutting
  • Capping or outright denying sublet calibration invoices above their internal labor rate schedule
  • Refusing to pay pre- and post-scan as separate line items, calling them 'included in diagnostics'
  • Flagging R&R time for camera and radar brackets as not required or already covered in overlap
Rebuttal that's flipping it
OEM procedures for nearly every major platform, Toyota, GM, Stellantis, Honda, publish calibration as a required, standalone operation with its own time and equipment specification, and I-CAR's position is clear that pre- and post-repair scanning are not diagnostic procedures but necessary repair process steps. When Allstate rolls them together or caps the sublet, you have documented OEM procedure
▶ Play this weekPull the OEM repair procedure page that calls out calibration as a required post-repair operation, attach it to your supplement with the sublet invoice, and submit it as a hard-copy packet so it lands in the file and can't be buried in a portal queue
Good morning, {{firstName}}.

Insurance carriers are bleeding. GEICO's collision claim frequency jumped 3 to 5% in the first half of 2026, and rate increases are spreading across 27 states with 32 projected by year-end. That volatility signals one thing: shops that document ADAS calibration properly will own the supplement negotiation.

INSURANCE

1. GEICO collision claims spike 3-5%; 27 states raise rates

Berkshire Hathaway reports GEICO saw property damage and collision claim frequency jump in the 3% to 5% range through H1 2026. Insurify predicts 32 states will post rate increases by December, with Connecticut facing the steepest. When carriers tighten underwriting, they scrutinize supplements harder. That means your calibration documentation gets read, not skimmed.

Mark says: Attach OEM calibration bulletins to every ADAS supplement this month. Carriers paying claims with tighter margins will defend denials harder; your cite makes the difference.

Source: Repairer Driven News / CollisionWeek →

INDUSTRY

2. Boyd Group tops $1B quarterly revenue; scanning and calibration driving margins

Boyd reported 30% sales growth and higher margins in Q2 2026, with scanning, calibration, and glass cited as key expansion drivers. The chain is consolidating adjacent services to lock in better profitability per vehicle. Independent shops still own the local ADAS recalibration work, but consolidators are building the systems to scale it.

Mark says: If you're not charging separate line items for pre-scan and post-scan calibration, you're leaving margin on every job. Boyd's results prove the math works.

Source: BodyShop Business →

ADAS

3. IIHS-HLDI: crash avoidance systems cut claim frequency despite repair cost surge

Sensor-equipped vehicles show higher repair severity but sharply lower claim frequency, producing lower overall insurance losses. HLDI data reinforces that ADAS systems work: they prevent crashes. But when they fail or need calibration, the bill is steep. Shops that can't recalibrate will lose those jobs to dealers.

Mark says: Every sensor-equipped vehicle you touch needs a pre-scope for ADAS functionality. Customers and insurers both expect it now. Make it a checklist item at intake.

Source: CollisionWeek →

INSURANCE

4. CCC AI claims processing surges 45% year-over-year

CCC Intelligent Solutions reported 45% revenue growth in AI-driven claims handling during Q2 2026. Insurers are automating damage assessment and estimate reviews with machine learning. The algorithm learns from past denials, repeats them faster, and flags ADAS costs it deems excessive. Shops without calibration bulletins and OEM references will get flagged first.

Mark says: AI estimating systems are now your opponent. Cite OEM bulletins by part number and procedure code on every ADAS line. Generic labor descriptions get denied by algorithm.

Source: Repairer Driven News →

INSURANCE

5. California storage fee rules back under revision; third-party liability still unsolved

California's BAR storage fee regulations are being revised again after OAL concerns. Repairers testified that the current rules don't hold third-party payers accountable. The fight over who pays for holding vehicles continues. Shops in California need to monitor this closely; storage disputes eat margin fast and distract from the bay.

Mark says: If you operate in California, flag this regulation revision. Join SCRS public comment if you hold vehicles waiting on insurer approvals.

Source: Repairer Driven News / SCRS →

Denied a calibration supplement? Run it through a free audit and get an OEM-cited rebuttal you can send back the same day. No pitch, no signup required.

Get a free audit →
📬 Hit reply. Reply: has a GEICO supplement come back flagged on a calibration line this month? What reason did they give?

📤 Know a shop that should read this?

One forward could save them three hours of denial fights this month.

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

👀 Tomorrow: CCC's AI denial patterns hit calibration line items hardest, we're pulling real supplement examples from shops getting flagged this week.
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