Locked Out and Short-Changed: How State Farm’s Calibration Policy Is Squeezing Shops and Skirting Antitrust Boundaries

by Sean Preston, Coverall Law

You spend thousands on training. You buy the right tools. You follow the rules the car makers set. Then State Farm steps in and says they won’t pay for the job you just did – or they’ll only pay part of it.

That’s not a misunderstanding. That’s a setup.

State Farm has rolled out a new national policy for ADAS calibrations. If you’re in their Select Service program, you now have to use software from OPUS IVS called ADAS MAP. This software tells you what calibrations are “needed” and how to do them. But here’s the catch – State Farm decides what’s worth paying for! Not you, the shop. Not the OEM. And definitely not the actual repair plan your techs build after dismantling the car.

They’ve also created their own price list. And if your cost is higher? Too bad. They’ll only pay what’s on their table. And if you’re not in their Select Service network at all? You get even less – or nothing. Same job. Same car. Same procedure. Less pay.

This isn’t just about one software tool or one insurance company being cheap. This looks and feels like a power grab. One that locks out independent shops, short-changes hard-working techs and funnels work to vendors State Farm picks. And it may not just be unfair; it might be illegal under federal antitrust law.

If you’re wondering how they can get away with it – and what you can do about it – keep reading.

Here’s what State Farm is doing – and why it’s a problem.

If you’re in their Select Service program, you now have to use OPUS IVS software to check which calibrations are needed on every repair. That’s not a suggestion. It’s a rule. And they charge you $3 for every VIN the software runs. You eat that cost. You don’t get it back.

But it gets worse. Once the system spits out what it thinks the car needs, State Farm decides how much it’s worth. Not based on what you charge. Not based on your time or tools. Just a number from their own “part code table” – which they made up themselves. If your real cost is more than what’s on their list, they won’t cover the difference.

They’re also steering shops to use mobile vendors they’ve already picked. These vendors work for less. And if you don’t use them? Good luck getting paid the full amount for doing the work in-house.

Now, if you’re not in their Select Service network at all? You’re out of luck. You don’t get the same rates. You don’t get the same approvals. Even if you do the exact same job, you get short-paid – or flat-out denied.

And what about following OEM repair procedures? Doesn’t matter. Shops have already reported State Farm refusing to pay for calibrations after rear-end hits – even though General Motors says those calibrations are required after any collision. State Farm calls them “suggestions.” You call them safety.

This isn’t about fixing cars. It’s about control. And if shops don’t push back now, they’ll lose more than just a few dollars on a supplement. They’ll lose their say in how cars get fixed – and who gets to do the work.

Some shops thought this new program might be a step forward. At first glance, it sounded like it could help – more structure, clear procedures, maybe even better rates. But in real life, that’s not how it’s working out.

In a report by Repairer Driven News (RDN) on April 16, 2025, several shop owners described exactly what they’ve experienced since the State Farm and OPUS rollout began.

Ozzie’s Body Shop in Colorado was hopeful at first. They liked the sound of clear pricing and better communication. But as co-owner Megan Mueller told RDN, they quickly found out the better pricing only applied to Select Service shops. Independent shops like hers were left out – getting lower rates or no payment at all for the same work.

Michael Arellano at Rickenbaugh Collision Center in Aurora said State Farm started calling dealerships to confirm calibration prices – but they used the wrong language, got bad info and lowballed the quotes. His shop had to go back and get the real numbers themselves just to be treated fairly.

According to Rick Elsinger at Aurora Collision Center, the prices State Farm is offering don’t even cover the cost of the work. There’s no profit. No margin. And in some cases, the customer has to cover the difference out of pocket just to get the job done right.

This is what shops are dealing with. They’re being asked to either eat the cost or pass it on to the customer. Neither is fair, and neither keeps the repair industry sustainable.

On top of that, State Farm’s policy steers shops toward using specific mobile vendors they’ve pre-selected. It doesn’t matter if you’ve got a better provider down the street – if they’re not on the list, State Farm may not pay the full amount.

So, what started as a program for “quality repairs” is turning into something else: a system that cuts out independents, underpays real work and funnels jobs to whoever agrees to State Farm’s terms. And shops are left holding the bill.

This might look like a business decision, but when you step back and look at the whole picture, it starts to look like something much bigger – and much more serious. It might be an antitrust violation.

Here’s the simple version: antitrust laws exist to stop powerful companies from crushing smaller ones by setting prices, blocking fair competition or controlling entire markets. And right now, it looks like that’s exactly what State Farm is doing.

They’ve made up their own pricing tables – and they’re telling shops what they will or won’t pay, no matter what the actual work costs. That’s not negotiating. That’s vertical price fixing – one big company forcing lower prices onto a bunch of smaller businesses.

They’re picking the vendors. They’re deciding who gets paid and how much. That’s the kind of monopsony behavior – one powerful buyer controlling an entire service market – that the law is supposed to prevent.

And they’re leaving independent shops out in the cold. If you’re not in their network, you get underpaid or skipped altogether. That’s a form of group boycott, where the big player pressures the market to push out the competition – in this case, the independent shops who won’t fall in line.

There’s actual case law that lines up with what’s happening here.

In Quality Auto Painting v. State Farm (2019), a group of shops said insurers were working together to keep labor rates down across the board. That case is still developing, but the court made it clear: if you can prove a pattern of suppression, there may be a serious antitrust case.

In Royal Drug Co. v. Group Life & Health (1979), the Supreme Court said that contracts with third-party service providers – like shops – are not protected by insurance exemptions. That means insurers can’t hide behind the idea that this is just “how insurance works.”

And in Pireno v. Union Labor Life (1982), the Court laid out a test: to be protected under the McCarran-Ferguson Act (the law insurers often lean on), a business practice has to spread risk, involve the customer and stay inside the insurance industry. Telling shops what to charge and who to work with? That doesn’t pass the test.

So if you’re feeling like this isn’t just unfair – like it’s crossing a line – you’re probably right. This isn’t just about a policy. It’s about power…and whether State Farm is using too much of it in ways that may break federal law.

And if shops don’t start speaking up, the rules won’t change – they’ll only get worse.

If this whole situation with State Farm feels familiar, that’s because it is.

For years, labor rates in Massachusetts have barely moved, even while the cost of living, tools, training and wages have all gone up. Shops have had to do more with less, just to keep their doors open. And all the while, insurance companies have held the wheel – deciding what gets paid, how much and to whom.

Ask any shop owner: the “prevailing rate” surveys are a joke. They aren’t real reflections of the market. They’re built and controlled by the insurers themselves. That’s how the numbers stay low – by design.

Now with this calibration rollout, State Farm has added another tool to the box. It’s not just about labor rate suppression anymore – it’s about procedure suppression, vendor control and reimbursement caps that shops can’t challenge.

They’re deciding what work is “necessary” based on their software. They’re telling shops which vendors to use. And they’re locking out any shop that won’t play by those rules.

This isn’t just about ADAS. It’s not just about calibrations. It’s about setting a precedent.

If State Farm – or any insurer – can dictate the price, the process and the provider, then what’s left for the shop to decide? At that point, the insurer isn’t just paying the bill – they’re running the business.

That’s the danger. If this goes unchecked, we’ll see more programs like this, more forced partnerships and more short-pays. And little by little, shops will lose their power to do the job the right way – the safe way – and still stay in business.

That’s why it matters now. Not later. Because once the precedent is set, it’s a lot harder to roll back.

So, what can shops do? A lot more than you might think.

First, know your rights. You are not required to accept a lowball payment just because an insurer says it’s “standard.” If you followed OEM repair procedures, used the right equipment and did the job the right way, you deserve to be paid fairly. And if they refuse? You can push back.

You can challenge short-pays. You can submit supplements. And if the insurer keeps denying them without a good reason – especially when the OEM backs you up – that’s something regulators, attorneys and lawmakers care about.

But here’s the key: document everything. Keep records of every denied supplement, every time you’re told to use a cheaper vendor, every time they ignore OEM guidance. Write it down. Save the emails. Take screenshots. These aren’t just annoyances – they’re evidence. Evidence that shows a pattern of bad behavior.

And don’t stay quiet about it. Raise your voice. Share your story with trade groups. Bring it to the Collision Industry Conference. Talk to your legislators. File a DOI complaint if you need to. One shop’s story can be brushed aside. But a hundred shops telling the same story? That’s when the pressure starts to build.

Regulators and antitrust enforcers won’t move until they see the full picture. It’s up to us to paint that picture for them. And we do that by standing together, staying organized and refusing to let insurers rewrite the rules behind closed doors.

You’ve got more power than they want you to believe. Use it.

Let’s be clear – this isn’t about a $3 software charge. And it’s not about one insurer making a policy change. This is about something much bigger.

It’s about control – over your work, your prices, your vendors and your ability to run your business the way it should be run. It’s about a major insurer using its size and power to shift all the leverage to their side of the table, one decision at a time. And if we don’t call it what it is, that control will only grow stronger.

Because when an insurer like State Farm can decide:

•  Who does the work,

•  How much that work is worth,

•  and whether you get paid at all –

That’s not a partnership. That’s a rigged game.

And in that game, the ones doing the repairs – the ones with the training, the tools, the certifications, the responsibility – get treated like disposable vendors.

That’s the line that’s been crossed. And if the industry doesn’t push back now, insurers will keep moving that line until there’s nothing left to fight for.

It’s time to speak up.

It’s time to push back.

It’s time to take our seat back at the table — before it’s gone for good.

Want more? Check out the June 2025 issue of New England Automotive Report!