ADAS Legislation Update 2025: Utah, Geico, and Everything Else Repair Shops Need to Know

It usually takes a few years for regulations to catch up to new technologies. ADAS features are no different. 

In 2020, Utah became one of the first to pass  comprehensive legislation regulating ADAS calibration pricing and procedures. Since then, several states have also passed their own ADAS legislation and while insurance companies are simultaneously negotiating pricing agreements that bypass shops entirely. 

In this post, we’ll discuss what this could mean for the industry and what you need to know to protect your business as regulatory attention on ADAS services increases.

What Utah's law actually says

Utah Code Section 41-6a-1645 covers several key areas that directly affect how repair shops handle ADAS calibrations. 

Pricing restrictions

 The law states that repair facilities "may only bill or charge for vehicle glass repair, replacement, or recalibration services that are performed and necessary." 

More significantly, it includes language about insurance companies not being required to pay more than "a fair and competitive price for the local market area." More on that in a minute. 

Disclosure requirements

Shops must inform customers in writing before performing work if ADAS recalibration is required or will be performed. This includes providing itemized descriptions of work and, when insurance is involved, the total amount the insurer has agreed to pay.

Performance standards

 The law requires that any ADAS recalibration "meet or exceed the manufacturer's specifications," while also stating that shops are "not limited to vehicle glass, tooling, or equipment dictated or recommended by the manufacturer's procedures."

What this means? You need to follow OEM documentation carefully. 

Penalties for non-compliance

 Violations can result in infractions and civil penalties of $500, plus potential civil action damages of at least $1,500 for failure to provide proper notice about inoperable ADAS systems.

The state-by-state regulatory wave

Multiple states have enacted legislation that directly affects how shops handle ADAS calibrations. What started in Utah has spread across the country, with at least 17 states now having specific ADAS-related regulations in place.

Common requirements across these ADAS regulations and laws include:

• Written disclosure to customers before performing ADAS work.
• Itemized descriptions of calibration services and costs.
• Requirements that calibrations "meet or exceed manufacturer specifications."
• Penalties ranging from $500 to $2,500 per violation.
• Language allowing insurers to limit payment to "fair and competitive" local market rates.

Key states with enacted or in-consideration laws include:

• Utah: The original law with $500 penalties and pricing restrictions.
• Arizona: Senate Bill 1410 with penalties up to $2,500 per violation.
• Maryland: S.B. 793 establishing consumer protections for ADAS-equipped vehicles.
• Illinois: Multiple bills introduced with similar disclosure and OEM compliance requirements.

The insurance company approach: Bypassing shops entirely

While states are passing laws to regulate ADAS pricing, insurance companies are taking a different approach. They’re negotiating pricing agreements directly with technology providers that completely bypass repair shops.

The GEICO-asTech agreement

In 2024, GEICO entered into a pricing agreement with asTech, a collision technology company, to standardize pricing for certain ADAS scans and calibrations. According to asTech president Craig Edmonds, the goal was addressing what he called the "Wild Wild West" of calibration pricing by creating transparent, standardized rates.

While standardized rates can be appealing for shops and customers who want fast processes with increased likelihood of insurance reimbursement, there’s also a clear downside: You weren't invited to the negotiation table. 

The agreement essentially sets rates for services you perform, using equipment you bought, without your input on what constitutes fair pricing. And it may impact what you can charge not only for insurance reimbursement, but in states like Utah that require that you’re charging fair market pricing. 

This approach appears to be expanding. Repairer Driven News reported that GEICO has extended similar pricing agreements to Protech Automotive Solutions, suggesting this model may become more widespread across the industry.

How this affects your shop

The asTech-GEICO agreement creates several challenges for repair facilities:

• Different rates for different insurance companies, creating pricing complexity.
• Reduced revenue potential compared to existing market rates if price caps are considered the new industry standard.
• No consideration of your specific equipment, training, or facility costs.
• Pressure to accept predetermined rates or lose insurance work.

Why this approach is problematic

Industry experts have raised significant concerns about legislation that attempts to cap or control ADAS calibration pricing:

Equipment and training costs aren't uniform

ADAS calibration requires substantial ongoing investment in equipment updates, software subscriptions, and technician training. A "fair price" in one market might not cover these costs in another, especially in areas with fewer qualified facilities.

Safety implications

When shops face pressure to reduce ADAS calibration costs, the temptation to cut corners becomes real. This could mean rushing through procedures, using less precise equipment, or reducing quality control measures. ADAS calibrations could be missed, all of which can compromise the safe driving experience that properly calibrated ADAS systems provide.

Market reduction

If pricing restrictions make ADAS calibration unprofitable, some shops may choose not to offer these services at all. This reduces the pool of qualified providers and could force customers to travel longer distances for proper calibration.

ADAS calibration complexity that pricing caps ignore

Unlike traditional auto repair services, ADAS calibration involves variables that make standardized pricing problematic. 

VIN-specific requirements

Every vehicle's ADAS configuration is unique, so VIN-specific calibrations are often required. Two identical-looking vehicles might require completely different calibration procedures, equipment, and time investments based on their specific sensor packages and software versions.

Multiple system interactions

Modern vehicles often have interconnected ADAS systems. A simple windshield replacement might require calibrating forward-facing cameras, steering angle sensors, and lane keeping systems. These each have different requirements and complexity levels, which may not be accounted for with standardized pricing.

Environmental and facility requirements

Proper ADAS calibration demands controlled environments with specific lighting, space, and surface requirements. These facility costs vary significantly by location and aren't easily standardized. A shop in Manhattan would likely have a significantly higher lease than a small shop in Oklahoma. 

Impact on shop operations

Utah's law creates operational challenges that shops need to navigate carefully. 

Documentation requirements 

The law's disclosure and documentation requirements add administrative complexity to ADAS work. Shops must track not only what work is performed but also communicate with customers and insurance companies about pricing and necessity. 

Choosing software like Revv that can provide upfront estimates, grant access to clear OEM-specific calibration processes, and streamline documentation will be more important than ever. 

Insurance relationship management

 The "fair and competitive price" language potentially gives insurance companies additional leverage in pricing negotiations. Understanding what to expect from insurance reimbursement becomes even more critical when state law creates additional pricing scrutiny.

Quality assurance pressures

Shops must balance meeting the law's requirement for manufacturer-specification compliance while operating under potential pricing constraints. This requires careful attention to process efficiency without compromising safety standards.

Operating successfully under current ADAS regulations 

Shops in Utah and states with similar regulations can still operate profitably while complying with the new requirements. These are good standards for all shops to adopt, even if you aren’t in an impacted state. 

Focus on value communication 

Clear communication about why specific ADAS calibrations are necessary helps justify appropriate pricing within the "fair and competitive" framework. Proper documentation of OEM requirements becomes even more important for demonstrating compliance with both manufacturer specifications and state disclosure requirements.

Invest in efficiency 

Streamlined procedures and proper equipment can reduce calibration time without compromising quality. When customers understand the missed calibrations that commonly occur in the industry, they're more likely to accept professional recommendations.

Maintain quality standards

 The law's requirement to meet or exceed manufacturer specifications provides protection for shops that invest in proper procedures and equipment. Quality work at appropriate pricing is defensible under the law's framework, especially when shops can demonstrate that calibrations frequently get missed without proper identification systems.

The need for better solutions

Utah's law highlights the need for better approaches to ADAS calibration cost and quality concerns:

• Industry standards development. Clear industry standards for ADAS calibration pricing and procedures could provide frameworks that protect both consumer interests and shop profitability.
• Technology solutions. Platforms that provide clear, VIN-specific calibration requirements help eliminate disputes about necessity while ensuring proper procedures are followed.
• Education initiatives. Better education for consumers, insurance companies, and regulators about ADAS calibration complexity and safety importance could lead to more informed policy decisions.

Looking ahead

The regulatory and insurance pressure on ADAS calibration is intensifying. Shops need tools that help navigate this complexity while ensuring complete compliance with manufacturer requirements.

Revv provides instant access to VIN-specific OEM procedures and automatically generates the comprehensive documentation that satisfies both regulatory requirements and insurance demands. Our platform ensures you always have current procedures while streamlining the compliance process.

Rather than trying to track changing regulations across multiple states and insurance requirements, Revv keeps you current with the latest requirements while ensuring every calibration is properly documented and justified.

Book a demo today to see how Revv can help your shop maintain compliance with evolving regulations while ensuring every ADAS calibration is properly documented and justified.