Insurance Reimbursement and ADAS Calibration: What to Expect

As ADAS features become standard offerings in vehicles, more shops are running into the same problem: You perform a necessary ADAS calibration after a windshield replacement or collision repair, only to have the insurance company deny or delay payment. This can leave you with unhappy customers, complicated appeal processes, and potentially lost revenue. 

Your customers expect their insurance to cover necessary repairs, and when it doesn't, they often blame the shop— not the insurer. Meanwhile, you're caught in the middle, trying to perform proper repairs while managing customer expectations and fighting for fair compensation.

This post will guide you through what to expect during the insurance reimbursement process for ADAS calibrations, helping you understand how to meet an insurance company’s expectations to increase reimbursement success for necessary calibration work. 

Why insurance companies may push back against ADAS calibrations 

When it comes to ADAS calibrations, getting insurance reimbursement can be challenging for several reasons:

• Lack of understanding: Many adjusters aren't fully aware of the complexity and importance of ADAS calibrations.
• Policies that don’t account for new calibrations: In some cases, their reimbursement policies may not all account for ADAS calibrations. As new technology rolls out, it can take time for insurance companies to catch up. 
• Outdated pricing models: Insurance companies may use outdated labor rates that don't account for the specialized equipment and training required, or the additional time it takes to complete certain calibrations. 
• Resistance to change: Some insurers are slow to adapt to the increasing prevalence of ADAS technologies in modern vehicles.
• Documentation demands: Insurers require extensive documentation to approve calibration reimbursement.

This disconnect can lead to denied claims, partial payments, delayed reimbursements, and frustrated customers. 

What insurance typically covers for ADAS calibration

Understanding what insurance companies generally cover is crucial for setting expectations with your customers:

When calibration is typically covered:

• After windshield replacement (under comprehensive glass coverage).
• Following collision repairs that affect ADAS sensors or components.
• When repairs involve bumpers, mirrors, or other components housing ADAS sensors.
• After suspension work that affects camera or sensor alignment.

When coverage may be denied, depending on the customer’s insurance and vehicle:

• When proper documentation of necessity isn't provided.
• If the calibration is performed by a shop without the correct setup or layout that could cause calibrations to be completed incorrectly. 
• When the policy specifically excludes electronic systems calibration.

Many comprehensive insurance policies include coverage for ADAS calibration, particularly when it's related to collision repair or windshield replacement. However, the level of coverage can vary significantly between insurers and individual policies.

Negotiating with insurance adjusters for payment

When discussing ADAS calibration reimbursement with insurance adjusters, these strategies can help:

• Choose the right representative: Select a team member who stays calm, logical, and friendly when dealing with adjusters. Choose someone familiar with insurance processes. 
• Sending an early invoice or getting pre-authorization will indicate when needs to be calibrated before the repair begins, which can improve reimbursement success. 
• Explain complexity clearly: Help adjusters understand why proper calibration is crucial for safety and why it costs what it does.
• Break down costs: Provide a line-by-line explanation of your pricing, including equipment costs, labor rates, and time requirements.
• Focus on OEM requirements: Emphasize that you're following manufacturer specifications, and not adding unnecessary services.
• Reference industry standards: Cite industry publications and research that validate calibration requirements; use OEM-specific instructions when possible. 
• Be prepared for common objections: Anticipate questions about why the procedure is necessary, what it costs, and whether it's covered.
• Follow up consistently: If reimbursement is delayed, maintain regular, professional contact until the issue is resolved. 

Communicating with customers about insurance coverage

Clear communication with customers about ADAS calibration insurance coverage can prevent frustration and improve their experience. 

When discussing calibration with customers, you should:

• Explain calibration necessity before beginning repairs, stressing the importance of the calibration in order to keep their favorite safety features functional.
• Let them know that while most insurance policies cover calibration, coverage varies.
• Advise them to contact their insurance company specifically about ADAS calibration coverage.
• Prepare them for potential out-of-pocket costs if insurance doesn't fully cover the service.
• Provide documentation they can use when communicating with their insurer.
• Offer to help explain technical requirements to their insurance company if needed.

This proactive approach prevents surprises and builds trust with your customers, while potentially improving the chances of getting insurance reimbursement. 

Common reimbursement challenges and solutions

There are a few common challenges that you can face when it comes to insurance reimbursement and how it impacts a customer’s ability or willingness to pay for necessary services. Let’s look at some obstacles you may face and simple solutions to each. 

Challenge: Insurance denies the calibration as unnecessary

This issue is becoming less common as ADAS features become standard, but it does still happen— and it’s important that you’re ready for it. 

Solution: Provide OEM documentation that specifically requires calibration for the repair performed. Include the relevant position statements and highlight the safety implications of skipping calibration.

Challenge: Insurance approves only partial payment

Insurance companies have been known to only approve partial payments instead of full reimbursement. There are opportunities to appeal this, however. 

Solution: Break down your costs in detail, explaining equipment investments, technician training, facility requirements, and the time involved. Compare your rates to industry standards and provide documentation of your shop's certifications.

Challenge: Delays in reimbursement processing

It happens: Things take time, and reimbursement processing gets delayed. This can be frustrating, but the right processes on your end can help resolve potential issues. 

Solution: Submit complete documentation upfront, follow up regularly, and establish relationships with insurance contacts. Document all communication regarding the claim and maintain consistent follow-up procedures.

Challenge: Customer's policy doesn't cover calibration

This is an unfortunate reality: Sometimes an insurance company just won’t cover calibration under the client’s policy. Fortunately, there are workarounds. 

Solution: Have a clear policy for communicating costs upfront. Consider offering financing options or payment plans for customers facing out-of-pocket expenses. Educate customers about the importance of checking their coverage.

Challenge: Disagreements about calibration methods

Insurance companies may disagree about which calibration processes are needed, or which methods to use. 

Solution: Always follow and document adherence to OEM specifications. Be prepared to explain why specific procedures are required and how they differ between vehicle makes and models.

How Revv simplifies insurance reimbursement

Revv helps repair shops streamline the entire ADAS calibration process, including insurance reimbursement documentation. Our platform enables you to:

• Generate comprehensive reports instantly: Simply enter a VIN and Revv will identify all required calibrations, OEM guidelines, and compliance documentation in seconds.
• Create insurance-compliant invoices: Auto-generate professional invoices that include all the information that insurance companies require for reimbursement.
• Access OEM documentation: Quickly access manufacturer-specific calibration requirements to validate your work.
• Provide visual documentation: Include photos and detailed calibration records that help justify the work performed.
• Maintain documentation archives: Keep detailed records of all calibrations performed for warranty and liability protection.

Create compliant workflows to increase insurance reimbursements for ADAS calibrations 

Getting properly reimbursed for ADAS calibrations doesn't have to be a battle. With thorough documentation, professional communication, and the right tools, you can reduce friction around securing reimbursements while providing your customers with the services they need. 

Revv helps repair professionals quickly identify required calibrations, access OEM repair procedures, and generate insurance-friendly documentation in seconds. Our insurance-compliant reports and invoices help eliminate pushback, reduce payment delays, and maximize revenue.

Book a demo today to see how we can help you offer safe, compliant, and revenue-boosting ADAS calibrations at scale.