Driven Brands starts pricing guidelines for calibration and scanning operations for Farmers GRP July 1

Driven Brands has outlined calibration and scanning pricing guidelines for a partnership with the Farmers Guaranteed Repair Program (GRP) to start July 1. 

The guidelines have brought confusion to some of the collision repair industry after a document circulated titled “Farmers ADAS Calibration & Scanning Pricing.” 

It stated the price structure reflects the “final allowable cost” for estimate entry. 

Driven Brands sent out an amended document last week titled, “ADAS Calibration & Scanning Pricing Guidance for Farmers GRP Partnership.” This document does not state that a price range given for 11 operations is a “final allowable cost.” 

“We recently informed our network about non-mandatory pricing guidance for ADAS calibration and scanning services, effective July 1,” said Arlo Johnson, Driven Brands senior vice president, in an email to Repairer Driven News. “We apologize for any confusion caused by the initial communication, but the pricing framework is a voluntary, self-managed effort to support competitive alignment in the market and is not a mandated rate structure from Farmers.”

The newest document outlines what is called “competitive guidance” for ADAS calibration and scanning costs.

It notes entries in the estimate are to be entered as appropriately as a vehicle diagnostic, supporting invoices and report printouts for sublet providers are to be included in the file at final supplement, operations performed in-house should include support as being completed including in-process images, and report printouts and calibrations being completed need to be validated as necessary and may require support for inclusion. 

“Scanning should be supported as necessary based on the loss damage, year, make, model, vehicle equipment, and indications (damage near ADAS equipment on indicator lights),” the document states. “Example, a pre-scan may not be deemed as necessary for cost of repairs, if there are not any indications of it being a diagnostic measure for determining and estimating damages.” 

Many automakers have documented repair instructions indicating the necessity of pre-scanning, in-process scanning and post-repair scanning.

Farmers did not respond with a statement by publication. 

Operations listed on the document include but are not limited to seat weight sensor, steering angle, static and dynamic calibrations, and programming. The top price range for each of these operations matches the exact prices GEICO set in place in January for the operations as part of a standardized pricing agreement with asTech and Protech. 

GEICO updated prices in January after originally announcing its agreement with asTech in July. The announcement was met immediately with criticism during a Collision Industry Conference meeting open mic. 

Jeff Butler, owner of Haury’s Collision and Vintage and Collision Consulting, both located in Washington, said during the open mic that the agreement is an example of a third party vertically inserting itself into the process to set, control, or fix a price. 

“I strongly object to third parties engaging in negotiating, setting prices, coming up with agreements, or fixing or controlling a market price on behalf of me, my industry, my customers, and anything like that,” Butler said. “I object to that kind of behavior in the marketplace. That is control market price in my opinion and not a free market.”

State Farm also rolled out its calibration requirements to Select Service repair facilities nationwide in January. 

Repair facility professionals who work in the State Farm Select Service network, and ones who don’t, have told Repairer Driven News they’ve felt recent pressure from the insurance company about how to identify calibrations for a repair. They’ve also shared stories on how the insurance provider has asked shops to either meet State Farm calibration pricing or use calibration providers that will. 

According to a State Farm email, facilities are free to choose their diagnostic tool and remote service provider; however, the amount billed for the calibration should not exceed the price State Farm would have paid per the part code table that it has established. 

It adds that State Farm has identified local mobile/car-side service providers that will perform the calibrations at State Farm’s part code table pricing. It directs repair facilities to an Opus landing page as a way to find mobile/car-side providers. 

Protech Automotive Solutions, a Caliber company, is one of the calibration service providers on the list. 

While an email from a Protech general manager noted the company as a “preferred” calibration partner for State Farm Insurance, Don Mikrut, Protech vice president, previously stated “preferred” is not the correct term for the relationship. 

“We are willing to support State Farm shops,” Mikrut said. “We are a provider who has agreed to service those shops if they don’t have a diagnostic provider. Is State Farm out there recommending us? The answer is no. I think it is the wrong terminology.”

Protech also did not make an agreement about specific pricing with State Farm, Mikrut said. 

“They came up with the pricing,” Mikrut said. “We are honoring their pricing.” 

Mikrut also noted that State Farm has a list of multiple providers. 

“State Farm has talked to many providers to make sure that they had ample coverage in the marketplace,” Mikrut said.

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