Farmers Insurance is now telling its own policyholders that repairs on ADAS-equipped vehicles may include diagnostic scans before and after repairs, safety system testing, and calibration of cameras, sensors, and radar, and that those steps may add time, labor, and specialized equipment to a claim. The consumer guidance, points readers to a Farmers.com resource titled How New Car Technology Is Changing Repairs and Car Insurance. It puts specific language in writing: windshield replacement may require camera transfer, diagnostic scans and calibration, front-end repair may affect radar, cameras or sensors used for automatic emergency braking and adaptive cruise control, and rear bumper repair may involve parking sensors, rear cameras or cross-traffic alert systems. Side mirror and parking sensor work get the same treatment. The guide advises customers to ask whether a shop has the right expertise, ask whether safety technology may be affected, plan for added repair time, and keep estimates, invoices, and repair records including any notes about diagnostics, calibration or safety system testing. It also tells customers that some shops may need to transfer the vehicle to another facility for specific work.
Collision coverage: The number of vehicles carrying collision coverage among insurers reporting to the Independent Statistical Service (ISS) continued to decline through the first quarter of this year. The decline in insured vehicles with collision coverage, combined with lower claim frequency, resulted in insurers paying just under 1.3 million collision claims in the first quarter, 6.8% fewer than in the first quarter of 2025, and 21% fewer than at the third-quarter 2022 peak.
Dealers with on-site body shops: The share of dealers with on-site body shops has fallen every year since 2020 from 37.2% in 2020 to 31.2% in 2026, according to NADA’s data. The report counts 16,991 franchised dealers nationwide. Its body shop section tracks the share of dealers operating on- site body shops, how much dealership body shops sell, and how much they bring in per repair order, according to NADA. Dealer-owned collision centers have also drawn interest from multi-shop operators (MSOs). A 2024 look at why MSOs are purchasing dealership collision centers described some dealers selling their collision businesses and converting the body shop space for service work.
Lower rates: Three in ten collision repair shops (30%) responding to CRASH Network’s “Collision Industry Business Perspectives” survey last month said at least one insurer is paying a lower labor rate now than it was at the start of 2026. That finding comes after the same survey in 2025 found that 24% of shops had seen a labor rate reduction during the same period last year. Also, like last year, State Farm was the insurer most often named by shops seeing a decline in the labor rate being paid. A full two-thirds (68%) of those shops reporting a rate cut mentioned State Farm by name, while 7% named other top 10 insurers like Progressive and Allstate.
