Local North Carolina news station explores concerns about State Farm auto claims practices
A North Carolina news segment that aired Monday explores concerns about State Farm claims practices brought by Michael Bradshaw, K&M Collision vice president and Society of Collision Repair Specialists (SCRS) chairman.
“It shouldn’t surprise you that insurance companies never want to pay more than they have to for repairs, but some say State Farm is cutting back more than others,” Jason Stoogenke, Action 9 (WSOC-TV) attorney, says at the start of the broadcast.
Bradshaw told the news station that State Farm is paying less for ADAS calibrations and lowering their adjuster’s estimates.
“Each and every time something agreed upon gets deleted, and we have to re-engage in that process, it adds another five to seven days,” Bradshaw said.
Labor is also getting reduced, Bradshaw added.
“If they were paying certain businesses $62 to $64 an hour for labor three years ago, they are now paying $54 to $56 an hour for labor,” Bradshaw said.
Stoogenke asked how the rate compares with insurance companies such as Allstate, Farm Bureau, and GEICO. He questioned whether State Farm had been paying more and was reducing its rate to align more with other insurers.
Bradshaw responded that the type of reduction is pretty unprecedented.
“You may be thinking: ‘Obviously, body shops — like Bradshaw’s — want insurance companies to pay more,’” a news article attached to the segment video states. “But he argues this impacts drivers as well.”
Bradshaw says in the article, “I go back to the families that need their car, right? They want their car repaired in a safe manner because they want everybody in their family to be safe when they travel in that vehicle. And they paid their premium, many times, year over year over year.”
The insurance company did directly respond to questions from the news station about claims the company is cutting labor rates, revising estimates, and paying less for calibrations.
“State Farm is there for our customers and pays what we owe within the terms of our auto policy,” the insurer said in a statement to Action 9. “If a body shop has concerns, we encourage them to reach out directly to us so that we can have a conversation.”
The article ends by giving consumers advice. This includes picking a body shop that “will go to bat for you.” It adds that consumers should read the fine print of their policies, look for an appraisal clause, and shop around for insurance.
Last month, Bradshaw also voiced concerns about State Farm during an SCRS open board meeting and Collision Industry Conference meeting.
Earlier this month, the California Department of Insurance announced it found 398 violations related to State Farm’s handling of wildfire claims.
In Missouri, Fox 4 reports that U.S. Sen. Josh Hawley is threatening to subpoena State Farm if it doesn’t comply with an inquiry he sent them last month.
Hawley demanded that State Farm pay policyholders for tornado damage that occurred in 2025, and asked the company to answer questions about its claim practices in the state in a letter that he made public in April.
He gave the insurer until May 14 to answer questions, including how many insurance claims were brought by property owners and how many policyholders had yet to receive a final adjudication.
Hawley notes that just days before the storm, a State Farm executive testified under oath before his subcommittee that the company pays its policyholders “promptly, courteously, and efficiently.”
“It is disappointing, but not surprising, that these words were an empty promise,” Hawley said.
During the subcommittee hearing, Hawley grilled Allstate and State Farm executives, saying testimony from adjusters and policyholders, along with previous lawsuits, appears to show the companies are “running a racket” and “pattern of fraud” while making “outrageous profits.”
The Homeland Security & Governmental Affairs Subcommittee on Disaster Management, District of Columbia, and Census heard from two adjusters who testified that they were pressured to lower estimates.
A P&C Specialist article, also recently explored changes State Farm has made to its auto claim practices, including moving to centralized auto claim audit teams and cutting labor rates.
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