The Worst Auto Insurance Companies for Body Shops: 2026 Industry Report
For body shop owners, not all insurance companies are created equal. While some insurers work collaboratively with repair facilities to ensure vehicles are fixed properly, others have built business models around minimizing claim payments—often at the expense of repair quality and shop profitability. This report examines which insurance companies consistently rank lowest in body shop satisfaction and why.
Methodology: How We Rank Insurance Companies
Our rankings are based on multiple data sources, including the annual CRASH Network Insurer Report Card, which surveys collision repair professionals nationwide about their experiences with different insurance companies. The survey asks shops to grade insurers on criteria including:
- Willingness to pay for proper repairs
- Fairness of labor rates
- Parts policies (OEM vs. aftermarket)
- Supplement handling
- Overall ease of working with
The Bottom Five: Insurers Body Shops Struggle With Most
1. GEICO
GEICO consistently ranks at or near the bottom in body shop satisfaction surveys. Common complaints include aggressive use of aftermarket parts, resistance to paying for OEM repair procedures, and low labor rate reimbursements.
"GEICO's business model seems built around paying as little as possible, regardless of what's needed for a proper repair." — Survey respondent
2. Progressive
Progressive has faced criticism for its photo-based estimating practices and resistance to supplements. Body shops report that Progressive's initial estimates often miss significant damage, leading to disputes during the repair process.
3. Allstate
Allstate's DRP program has been criticized for pressuring shops to accept below-market rates. Non-DRP shops report particular difficulty getting fair compensation for repairs.
4. State Farm
While State Farm has historically had a better reputation, recent years have seen declining satisfaction scores. Shops report increased pushback on labor rates and repair procedures.
5. Liberty Mutual
Liberty Mutual rounds out the bottom five, with shops citing inconsistent claim handling and difficulty reaching resolution on disputed items.
Common Tactics Used by Low-Ranked Insurers
| Tactic | Impact on Body Shops | Impact on Consumers |
|---|---|---|
| Aftermarket Parts Mandates | Fit issues, rework, reduced margins | Potential safety concerns, diminished value |
| Labor Rate Suppression | Below-cost reimbursement | Quality pressure, out-of-pocket costs |
| Procedure Denials | Unpaid work or skipped steps | Improper repairs, safety risks |
| Supplement Delays | Extended cycle times, cash flow issues | Longer rental periods, inconvenience |
| ADAS Calibration Denials | Liability exposure | Safety system failures |
State-by-State Variations
Insurance company behavior varies significantly by state, influenced by local regulations, market conditions, and enforcement. States with stronger consumer protection laws and active insurance departments tend to see better insurer behavior.
States with mandatory appraisal clauses (Texas, Washington, Rhode Island, and others) provide consumers with a powerful tool for resolving disputes, which can improve insurer behavior.
What Body Shops Can Do
- Document Everything: Maintain detailed records of insurer behavior, denials, and disputes.
- Educate Customers: Help vehicle owners understand when their insurer isn't paying for proper repairs.
- Utilize the Appraisal Clause: When disputes can't be resolved, help customers invoke their right to appraisal.
- Report Bad Actors: File complaints with state insurance departments when insurers violate regulations.
- Support Industry Advocacy: Join associations working to improve insurer accountability.
How National Appraisers Can Help
When your customers are being underpaid by these problematic insurers, National Appraisers LLC can help. We specialize in invoking the appraisal clause and advocating for fair claim settlements. Our process is simple:
- Customer signs electronic authorization
- We send formal appraisal demand to the insurer
- We represent the customer through the appraisal process
- Customer receives fair compensation for proper repairs
References
- CRASH Network. "Insurer Report Card." Annual Survey Results. crashnetwork.com/irc
- Collision Advice and CRASH Network. "Who Pays for What?" Survey Results.
- Hawley, R.E. "Who pays for safety? Body shops say insurers increasingly refuse to cover full OEM collision repairs." Bankrate, June 11, 2025.
- Society of Collision Repair Specialists. Industry Position Statements.
Need Help with an Insurance Dispute?
National Appraisers LLC helps body shop customers get fair compensation through the appraisal process. It's easy to get started—just an electronic signature and we handle the rest.