07/10/2026
🚨 PUBLIC SERVICE ANNOUNCEMENT 🚨
$250 Administrative Fee for State Farm and Progressive Claims
At Leonardtown Collision Center, our goal has always been simple: repair every vehicle safely and correctly according to manufacturer standards. We're car people, and we take pride in returning every vehicle to its pre-accident condition whenever possible.
Unfortunately, we've reached a point where processing claims with certain insurance companies requires significantly more time and administrative work than most others. State Farm and Progressive are two companies where we consistently experience extended delays, multiple estimate revisions, and additional administrative requirements. sometimes cars sit weeks for final paperwork to get handled by them.
The estimate shown in this post is a good example. The vehicle is a 2026 Ford Mustang GT with only 2,229 miles. Despite its age and mileage, the initial estimate specified all ford parts, SF changed it to aftermarket and recycled parts in several key areas. There is also repair procedure concerns on their revision that we'll discuss in a future post after we dig further into the repair plan.
Our customer requested new ford parts and was told this was the approved repair method. From our standpoint, However, we still have a responsibility to research Ford's repair procedures, locate the correct parts, rewrite the estimate, submit additional supplements, and negotiate for the OEM parts necessary to properly repair the vehicle.
That process often includes:
Researching manufacturer repair procedures
Writing multiple estimate revisions
Sourcing OEM replacement parts
Negotiating with vendors and adjusters
Spending hours of additional administrative time that is not reimbursed
In this particular case, the customer was informed they would be responsible for approximately $1,153 if they wanted certain new OEM Ford parts used on their nearly new Mustang.
Whether you agree or disagree with that decision, we believe our customers deserve to understand how some claims are handled and why repair shops sometimes have to advocate so aggressively on their behalf.
Why We're Implementing an Administrative Fee
Effective immediately, Leonardtown Collision Center will charge a $250 administrative fee for claims involving State Farm and Progressive.
This decision was not made lightly. In over 30 years in the collision repair industry, I never imagined we would have to charge customers an administrative fee simply to manage the claim process.
However, the increasing amount of uncompensated administrative work required to process these claims has made it necessary. As insurance companies continue relying more heavily on centralized and AI-assisted claims processing, repair facilities are being required to dedicate additional staff and resources simply to navigate the process.
Make sure you as a customer know what your insurance company is doing. READ YOUR POLICY. Change insurance if you need before you need them. Not all companies are the same.. Car insurance is going to be like health care before too long. You already have a Deductible/Co-pay but now they are not covering normal fees and expect the customer to pay for them.
