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Insurance reimbursement for ADAS calibrations has become one of the most pressing operational challenges facing collision and glass repair shops.
Our State of ADAS Calibration Industry Benchmark Report found that 77% of shops experience friction with insurance on ADAS calibrations “at least sometimes”, with 19% citing reimbursement as a leading business obstacle.
As calibration volume continues to climb—now appearing on more than a third of all DRP estimates—the gap between what shops need to get paid and what insurers are willing to approve is widening.
At the same time, insurers are experimenting with standardized pricing agreements, state legislatures are introducing new compliance frameworks, and a federal ADAS bill is advancing through Congress. This post breaks down the latest developments shaping ADAS reimbursement and what they mean for your shop.
Calibrations are surging, and so is the reimbursement timeline
The scale of the reimbursement challenge is directly tied to how quickly calibration volume is growing.
CCC Intelligent Solutions' Q4 2025 Crash Course report found that the share of DRP estimates including at least one calibration reached 35.6% in Q3 2025, up from 26.9% in the same period a year earlier. Diagnostic scans, meanwhile, now appear on roughly 88% of DRP estimates.
But here's the critical gap: While over 92% of scans are captured in the initial estimate, the majority of calibrations still appear on supplements. That means they require additional review and approval while the vehicle is already in the repair process, stretching cycle times and creating more back and forth communication with adjusters.
For shops, this creates a compounding problem. Each supplemental calibration request is another point where an insurer can delay, question, or partially deny payment. And as Revv's benchmark data shows, 19% of shops cite insurance reimbursement as a leading operational challenge, while another 15% point to insurance documentation requirements as a primary obstacle. This is actively keeping shops from getting paid on-time, and directly impacts your cash flow.
Insurer pricing agreements: the GEICO-asTech model
One of the most significant developments in ADAS reimbursement arrived in mid-2024, when GEICO announced a pricing agreement with asTech to standardize rates for certain diagnostic scans and calibrations. The agreement set specific price points for different calibration levels and established asTech's Rules Engine as a reference for determining when aftermarket scans could substitute for OEM scans.
The industry reaction was immediate. At the Collision Industry Conference in Denver, attendees lined up at open mic sessions to voice concerns.
The core objection was the agreement sets rates for services that shops perform, using equipment shops purchased, without shop input on what constitutes fair pricing. A static calibration reimbursed at $400, with $75 for each additional calibration, doesn't account for the significant variability between calibration types or the differences in labor costs across markets.
GEICO updated the agreement later that year, increasing prices for certain calibration levels, and emphasized that all items remain open to negotiation with supporting documentation. But the broader concern persists—that insurer-technology provider pricing agreements could become a template for the industry, effectively setting reimbursement ceilings rather than floors.
Some industry observers have noted that other carriers may follow GEICO's approach, and shops that cannot demonstrate why their pricing should differ from a standardized rate schedule may find themselves under increasing pressure to accept predetermined rates or risk losing insurance-directed work.
State legislation is accelerating, and it cuts both ways
Legislation around ADAS calibration has shifted dramatically over the past year. A wave of state-level bills, many modeled on template legislation from the National Council of Insurance Legislators (NCOIL), is reshaping how calibrations are disclosed, documented, and reimbursed.
As of early 2026, states that have enacted ADAS-related legislation include Utah, Arizona, Florida, Kentucky, Maryland, and New York. In 2026 alone, Louisiana, Illinois, Virginia, Washington, and South Carolina have all filed bills based on the NCOIL model, and California's SB 988 is moving through the state legislature.
Common requirements across these bills include:
- Written disclosure to customers before performing ADAS work
- Itemized descriptions of calibration services and costs
- Requirements that calibrations meet or exceed manufacturer specifications
- Civil penalties ranging from $500 to $2,500 per violation
Many also include language allowing insurers to limit payment to "fair and competitive" local market rates.
Maryland's proposed SB 789, introduced in February 2026, goes further than most. If enacted, it would require businesses performing ADAS calibrations to obtain a specific license through the state's Motor Vehicle Administration, maintain controlled environments that meet OEM specifications, and follow documented OEM repair procedures and position statements.
It would also prohibit insurance companies from denying coverage for manufacturer-recommended ADAS recalibrations, and require that insurance estimates include specific line items for diagnostic scanning and recalibration costs.
For shops, the implications are mixed.
On one hand, legislation that mandates calibration disclosure and requires OEM-compliant procedures validates the work that shops are already doing and creates clearer expectations for insurers.
On the other hand, industry groups like the Auto Glass Safety Council have raised concerns that some of these bills follow a template promoted by large corporate repair networks and their insurance partners, potentially tightening insurer control over the claims process rather than strengthening independent shop positions.
That last provision—prohibiting denial of OEM-recommended calibrations—represents a significant potential shift in the reimbursement dynamic. Most current legislation focuses on shop obligations around disclosure and documentation rather than directly addressing insurer reimbursement requirements.
What this means for your shop
The reimbursement landscape is evolving on multiple fronts simultaneously, and the shops that navigate it successfully tend to share a few common practices.
Documentation is the single highest-leverage investment
The shops that get reimbursed consistently and quickly treat documentation as part of the calibration itself, and not as a separate administrative task. This means:
- Capturing photos during check-in
- Documenting calibration setup before beginning work
- Attaching both pre- and post-repair scans to the final invoice
- Referencing specific OEM procedures by name and version
When adjusters can see exactly what was repaired, why calibration was required, and how it was performed, reimbursement becomes significantly more predictable.
Know your state's legislative landscape
Whether your state has already passed ADAS-related legislation or is considering it, understanding what's required or proposed directly affects your compliance obligations, your documentation requirements, and your leverage in reimbursement discussions.
Shops in states with enacted legislation need to ensure their processes meet current requirements, while shops in states considering bills should be engaging with their industry associations now.
Build insurer relationships proactively
The earlier you start the conversation after producing an estimate, the better. Establishing direct communication channels with the adjusters you work with regularly, maintaining organized records, and creating standardized documentation packages for common procedures all reduce the friction that leads to delays and denials.
Track pricing trends in your market
As standardized pricing agreements and "fair and competitive" market rate language become more common, understanding how your pricing compares to your local market—and being prepared to justify differences based on your equipment, training, and facility investments—becomes increasingly important.
Staying ahead of the curve
The collision repair industry is navigating a period where calibration demands are growing faster than reimbursement frameworks can adapt. Insurers are experimenting with standardized pricing, legislators are introducing new compliance requirements, and the gap between what vehicles need and what estimates capture remains significant.
For shops, the consistent thread across all of these developments is the growing importance of accurate, complete, and current information. Knowing exactly which calibrations a specific vehicle requires, following the most current OEM procedures, and documenting every step of the process aren't just best practices—they're becoming the baseline requirements for getting paid.
Revv helps shops stay ahead of these shifting requirements by providing instant access to current, VIN-specific calibration procedures and generating the documentation that insurers increasingly require, including individual line items of every calibration needed.
Rather than tracking multiple manufacturer subscriptions and monitoring legislative changes across states, Revv ensures you always have the most current procedures while automatically identifying all required calibrations for each vehicle.
Book a demo today to see how Revv can help your shop navigate the evolving reimbursement landscape while ensuring complete compliance with both OEM and regulatory requirements.
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