Advanced Driver Assistance Systems (ADAS) calibrations represent a significant revenue opportunity for repair shops.
With an average calibration cost of $350 to $500 dollars and most vehicles having at least one system, offering these services at your shop can add roughly $1,250 per vehicle repair.
ADAS technology is only becoming increasingly prevalent. With 90%+ of new vehicles rolling off production lines equipped with at least one ADAS feature, there’s an important factor to consider: working with insurance companies.
In this article, we’ll help you establish proper pricing and insurance protocols that will be crucial for shop success.
Information to use for ADAS pricing
Effective ADAS calibration pricing requires balancing multiple factors to ensure profitability while remaining competitive.
There are two important things to consider:
1) Market Analysis and Positioning
The first, most helpful step to gauging where exactly your prices should fall is to take a peek around at other businesses in your area. Be sure to:
- Consider your shop's unique value propositions (for example: specialized equipment, certified technicians, faster turnaround times)
- Research local dealership pricing to understand current pricing dynamics
- Survey competitor rates in your market area
2) Operational Cost Factors
With a baseline established, think about your own shop’s needs. Factor in things like:
- Equipment investment and maintenance
- Facility space requirements and modifications
- Ongoing training and certification costs
- Labor time and expertise
- Software and documentation systems
- Insurance and liability coverage
Current industry standard pricing guidelines
With those factors in mind, here are some ballpark figures you can use to arrive at your final number with special thanks to our friends at ADAS Depot.
- Radar Calibration: $300 - $400
- Blind Spot Monitor Calibration: $300 - $400
- Backup Camera/Sensor Calibration: $250 - $300
- Lane Keep Assist/Lane Departure Warning: $300 - $400
- All-View-Monitor/360-Degree Calibration: $350 - $450
Please remember: these are baseline figures. There are a lot of other factors to consider including the variation for domestic, asian, and euro models.
Your actual pricing must reflect your market conditions and operational costs. Many successful shops price their services at 70 - 80% of dealership rates and still maintain healthy margins.
How to get ADAS calibrations covered by insurance
Fair and reasonable pricing is only one piece of the puzzle. Successfully securing insurance coverage for ADAS calibrations requires having systems and processes in place that ensure you’ve got two things crystal clear: documentation and communication.
Comprehensive Documentation Requirements
- Pre-repair scanning results showing system status
- OEM documentation specifying calibration requirements
- Photos of calibration setup and completion
- Post-repair scan results confirming successful calibration
- Detailed invoicing showing specific procedures performed
- Time stamps and technician certification information
If you’re using a system like Revv ADAS, documentation can be generated quickly making this part of the process take zero effort from your team.
Communicating with insurance professionals
The second piece to consider is having a friendly working relationship with insurance companies that you work with often. This might mean:
- Establish direct communication channels with insurance adjusters
- Maintain organized records of all calibration procedures
- Create standardized documentation packages for common procedures
- Develop a clear process for handling disputes or questions
The earlier you can start the conversation after producing an estimate, the better. This can help ease conversations around getting approval while the car is actually in your shop versus having already left.
Evidence-Based Justification
Insurance is all based on risk. One of the ways to bolster your reasoning for why the calibration is a necessary part of the repair is justifying the need for the system to be properly calibrated based on data.Recent studies indicate that ADAS features significantly reduce accident rates:
- Vehicles equipped with FCW and AEB have 50% fewer front-to-rear crashes
- Automatic Emergency Braking reduces front-to-rear crashes by 50%
- Blind Spot Detection eliminates 14% of lane change crashes
These potential crashes were only prevented because the system was functioning properly which accurate ADAS calibration ensures.
Tips for Negotiating with Insurance Providers
Success in working with insurance providers often comes down to preparation and professionalism.
Here are proven strategies from experienced shop owners who are members of the Revv ADAS Community:
Proactive education and communication
Insurance pros may not have the context for why ADAS calibrations are so vital to prevent further collisions. One of the best ways to build trust with providers you work with is to be ready with the answers to any questions. Some ideas of how to do that:
- Provide educational materials about ADAS technology and calibration requirements
- Maintain open lines of communication regarding pricing and procedures
- Document all interactions and agreements
- Schedule regular check-ins with claims supervisors as appropriate
Handling Common Objections
Should you run into any questions from insurance providers, here’s some guidance on how to handle them.
1. "The scan tool shows no codes"
This is a common one that even trips up shop owners who aren’t in the know. Diagnostic Trouble Codes (DTCs) are just an electrical test. If it responds to the test, the tool says it’s working. That doesn’t mean it’s calibrated properly (eg. the camera is aimed in the precise angle it needs to be.)In these cases, explain that:
- Explain that physical misalignment may not trigger diagnostic codes
- Provide OEM documentation showing calibration requirements
- Share examples of accidents caused by uncalibrated systems
2. "The price seems high"
This concern is exactly why it’s important to understand what others are charging in your area. It comes from not understanding the true cost and complexity of ADAS calibrations. When you break down what goes into a proper calibration, the pricing makes sense. In these cases, explain that:
- There are costs associated with calibration icluding equipment, expertise, and facility requirements
- Compare to dealership pricing
- Emphasize safety implications and liability concerns
3. "Is calibration really necessary?"
This question often stems from older approaches to repairs, where mechanical fixes were more straightforward. Since cars made today are basically computers on wheels, their safety systems need precise calibration to function correctly. Missing a required calibration could mean the difference between a vehicle repair cost and a life insurance payout.
Your response in these situation should be to:
- Reference manufacturer requirements
- Share safety statistics and research
- Explain potential liability issues
Ultimately though, if an insurer will not pay an invoice, we at Revv ADAS suggest completing the calibration regardless to help ensure a safe vehicle.
Everything you need to address all ADAS Calibrations at the right price at your shop
Implementing a successful ADAS calibration program requires the right tools, processes, and support systems.
Here's what you need:
Essential equipment and resources
ADAS calibration does require some specialized tool. Here’s the most important things you need.
- OEM repair information access
- Calibration targets and tools
- Documentation and reporting software
- Training and certification programs
- Quality control procedures
Process management
Ensure calibrations happen without a hitch by handling these items.
- Standardized calibration procedures
- Clear communication protocols
- Quality assurance checks
- Customer education materials
- Insurance documentation templates
Success metrics to track
These will help you understand where your team can improve.
- Calibration success rates
- Insurance approval rates
- Average revenue per calibration
- Customer satisfaction scores
- Cycle time performance
Ensuring (and insuring) your shop’s future
When it comes to offering ADAS calibration services at your shop, the right equipment or charging the right prices is only part of the story.
Insurance providers are a vital part of that conversation and making sure those relationships are smooth will support your business for years to come.
Proper documentation systems, maintaining open communication with insurers, and staying current with the latest calibration requirements will help serve your customers' safety needs and protect your bottom line.
The shops that will thrive in this evolving landscape are those that view ADAS calibrations not just as an additional service, but as a core component of their business strategy. With proper pricing, clear processes, and strong insurance relationships in place, you'll be ready to meet the growing demand for these critical safety services.
Looking to streamline insurance documentation?
Revv ADAS can effortlessly produce the exact documentation that insurers are looking for. Streamline your documentation, pricing, and insurance processes today so you can focus on what matters most: putting safe vehicles back on the road.
