Concerns have been growing since the partnership between GEICO and asTech was announced in July 2024. It is crucial for repair facilities—whether ARX, DRP, or otherwise—to fully understand the details of this partnership and the potential impact on the automotive repair industry.
Following their announcement, GEICO released a statement specifically to its Auto Repair Xpress (ARX) network detailing their arrangement.
Key Points of the GEICO-asTech Partnership
- asTech’s Rules Engine: GEICO will now rely on asTech’s proprietary Rules Engine for determining when a scan should be OEM or OEM-Compatible. This engine, backed by data from tens of thousands of scans, will guide repair facilities in choosing the appropriate scan.
- OEM-Compatible Scans: asTech guarantees that data from non-OEM scans will be equivalent to that of OEM scan tools, ensuring the same level of accuracy and safety.
- No Requirement to Use asTech: While GEICO is incentivizing the use of asTech tools, facilities are not required to use them. However, those who do can benefit from specialized pricing agreements and access to asTech’s suite of services.
- Pricing Structure: GEICO has outlined a new pricing structure for ADAS services completed by ARX centers working with asTech, but GEICO acknowledges that some procedures may require additional documentation or negotiation to ensure proper compensation. This structure is an agreement solely between GEICO and asTech.
Repair facilities not affliliated with GEICO’s ARX program are not required to adhere to the agreement between GEICO and asTech.
Industry Reactions and Concerns
Independent repair centers have raised concerns over the partnership and its potential effects on their operations. In response to this criticism, GEICO’s president, Craig Edmonds, issued a statement, emphasizing:
“Our primary goal with this agreement remains to reduce friction and streamline the scanning, programming, and calibration process for all our customers… We remain open to ongoing dialogue with the collision repair community to ensure transparency and address any misconceptions.”
Despite GEICO’s intentions, there are still unanswered questions. Their pricing structure does not fully address the nuances of diagnosing and repairing vehicles, especially when dealing with faulty modules or partial repairs. This can result in discrepancies over compensation, as GEICO’s current approach may not always cover the full scope of work required.
As the electric vehicle (EV) industry grows, the need for comprehensive diagnostics becomes even more critical. For example, some manufacturers, like Tesla, require scan tools to disable and update modules before reassembly. These tools also allow facilities to test new wiring harnesses or monitor live data from the vehicle—tasks that are essential for ensuring the integrity of repairs.
Conclusion
This partnership between GEICO and asTech marks a significant step towards standardizing diagnostics in the automotive repair industry. However, it is vital for repair facilities to carefully consider the implications, especially regarding their pricing structure and local market conditions. Independent repair facilities should continue collaborating to ensure that the industry evolves in a way that benefits both the businesses involved and the customers they serve.