Arizona body shop laws: what insurers and shops must do

What it means in Arizona

Your customer has the right to choose any repair shop in Arizona; glass has its own rule. The insurer can still recommend a shop or give out shop information, but it must tell your customer about that right at the same time. If your customer picks a shop the insurer owns an interest in, the adjuster on the car can't work for that shop or have direct authority over its repair decisions. The law says it creates no right to sue.

The statute states it creates no private right of action. Glass has its own section (A.R.S. § 20-469).

The law's own words

“For repair facilities other than glass repair facilities and subject to the rights of an insurer to receive notice of loss or claim consistent with the provisions of its policy, a person in this state has the right to choose any repair facility for the repair of a motor vehicle loss.”

A.R.S. § 20-468, azleg.gov text, 2026 session update

“If an insurer provides information about a repair facility, the insurer shall inform the person of this right at the same time as making the recommendation or providing the information.”

A.R.S. § 20-468, azleg.gov text, 2026 session update

“the adjuster for the motor vehicle shall not be employed by the repair facility or have any direct authority over that facility's recommendations or decisions relating to the repair of the insured's or claimant's motor vehicle”

A.R.S. § 20-468, azleg.gov text, 2026 session update

What it means in Arizona

No rule in our Arizona collection makes the insurer pay storage or give notice before it stops. You have a lien for storage only when you and the owner agreed on the charges. If a car becomes abandoned at your shop and you don't report it to the state within the following 30 days, you lose all claims for towing, repair estimates and storage. Towing companies on accident tows have no lien for unpaid towing or storage.

A.R.S. § 28-4847 applies to tows that result from motor vehicle accidents and binds towing companies, not repair shops. No rule in our Arizona collection requires an insurer to pay storage or give notice before it stops.

The law's own words

Shop

“Proprietors of garages and repair and service stations shall have a lien upon motor vehicles of every kind and aircraft, and the parts and accessories placed thereon, for labor, materials, supplies and storage for the amount of the charges, when the amount of the charges is agreed to by the proprietor and the owner.”

A.R.S. § 33-1022, azleg.gov text, 2026 session update

Shop

“an operator of a repair facility who fails to make the report to the director by the end of the succeeding thirty days forfeits all claims for towing, repair estimates or storage of the vehicle.”

A.R.S. § 28-4840, azleg.gov text, 2026 session update

Tow and storage lot

“If the towing company fails to provide a detailed list of charges by the close of business on the day of the request, the towing company shall not assess any storage charges on subsequent days until the day that the towing company provides the detailed statement of charges to the owner or insurance company.”

A.R.S. § 28-4847, azleg.gov text, 2026 session update

Tow and storage lot

“A lien does not exist in favor of a towing company or storage lot for unpaid towing or storage fees or charges that are incurred.”

A.R.S. § 28-4847, azleg.gov text, 2026 session update

What it means in Arizona

You have a lien for labor, parts and storage only if you and the owner agreed on the charges. Once the car has sat unpaid with you for 20 days, you can tell your customer to pay; if they don't within 10 days, you can sell it at public auction after 5 days' notice of the sale. A lender already on the title comes first unless the work was done with its knowledge and consent. The sale route depends on your keeping the car; whether the lien survives letting it go is a question for a lawyer. You can't use the abandoned-vehicle process instead.

A.R.S. § 33-1021.01, referenced in 33-1023, is the dry cleaners' lien and does not apply to vehicles. The abandoned-vehicle process in 28-4840 may not be used instead of the 33-1022 lien.

The law's own words

Keep the car

“Proprietors of garages and repair and service stations shall have a lien upon motor vehicles of every kind and aircraft, and the parts and accessories placed thereon, for labor, materials, supplies and storage for the amount of the charges, when the amount of the charges is agreed to by the proprietor and the owner.”

A.R.S. § 33-1022, azleg.gov text, 2026 session update

Keep the car

“The lien shall not impair any other lien or conditional sale of record at the time the labor, materials, supplies and storage were commenced to be furnished, unless furnished with the knowledge and consent of the record lienor or vendor.”

A.R.S. § 33-1022, azleg.gov text, 2026 session update

Sell or title it

“when possession of any property described in this article or any other personal property held under lien without provision at law for foreclosure of the lien has continued for twenty days after the charges accrue and remain unpaid, the person holding the property may notify the owner, if in the county where the property is located, to pay the charges.”

A.R.S. § 33-1023, azleg.gov text, 2026 session update

Sell or title it

“Upon failure of the owner within ten days thereafter to pay the charges, the holder of the property may sell it at public auction and apply the proceeds to payment of the charges.”

A.R.S. § 33-1023, azleg.gov text, 2026 session update

Limit

“This section does not impair any lien of a proprietor of a garage or repair or service station under the laws of this state or the right of a lienholder to foreclose, and a proprietor of a garage or repair or service station shall not use this section instead of section 33-1022.”

A.R.S. § 28-4840, azleg.gov text, 2026 session update

What it means in Arizona

Arizona allows non-OEM crash parts only on conditions. The insurer can't settle on non-OEM exterior sheet metal or plastic parts, and you can't install them, unless each part carries its maker's name or logo and the estimate identifies each one with a 10-point notice that the parts maker, not the carmaker, provides the warranty. A shop violation is an unlawful practice under the consumer fraud law; the insurer rule is enforced only by the Director of Insurance.

The parts rules cover only nonmechanical exterior sheet metal or plastic parts, including inner and outer panels. The insurer rule in 20-461 applies when the conduct is frequent enough to be a general business practice and gives no private right to sue: only the Director of Insurance enforces it. Under 44-1294 a violation by a shop or installer is an unlawful practice under Arizona's consumer fraud chapter.

The law's own words

Insurer

From a list that begins: “A person shall not commit or perform with such a frequency to indicate as a general business practice any of the following:”

“Attempting to settle claims for the replacement of any nonmechanical sheet metal or plastic part which generally constitutes the exterior of a motor vehicle, including inner and outer panels, with an aftermarket crash part which is not made by or for the manufacturer of an insured's motor vehicle unless the part meets the specifications of section 44-1292”

A.R.S. § 20-461, azleg.gov text, 2026 session update

Shop

“A motor vehicle repair facility or motor vehicle parts installer shall not use a nonoriginal equipment manufacturer aftermarket crash part to repair a vehicle unless the part meets the specifications of section 44-1292 and unless the consumer is advised in a written notice attached to or printed on a repair estimate which:”

A.R.S. § 44-1293, azleg.gov text, 2026 session update

Parts standard

“This estimate has been prepared based on the use of replacement parts supplied by a source other than the manufacturer of your motor vehicle. Warranties applicable to these replacement parts are provided by the manufacturer or distributor of these parts rather than the manufacturer of your vehicle.”

A.R.S. § 44-1293, azleg.gov text, 2026 session update

Parts standard

“A nonoriginal equipment manufacturer that supplies an aftermarket crash part for use in this state shall affix to the part or inscribe on the part the logo or name of the manufacturer.”

A.R.S. § 44-1292, azleg.gov text, 2026 session update

Shop

“Violation of this article is declared to be an unlawful practice and is subject to all of the penalties and enforcement procedures provided in chapter 10, article 7 of this title.”

A.R.S. § 44-1294, azleg.gov text, 2026 session update

What it means in Arizona

Arizona's captured law has no appraisal rule or required appraisal clause. The insurer can't make a practice of lowballing your customer into suing, must try in good faith to settle once liability is clear, and must explain a compromise offer, but only the Department enforces those rules. A first-party claim unpaid 30 days after a complete proof of loss earns interest. How a policy's appraisal clause works is a question for the Department of Insurance or a lawyer.

Section 20-461 gives only an administrative remedy to the director, not a private right to sue. The 30-day interest rule covers claims paid directly to the insured, a named beneficiary or an assigned provider, and not claims denied in good faith within 30 days.

The law's own words

Other dispute rules

From a list that begins: “A person shall not commit or perform with such a frequency to indicate as a general business practice any of the following:”

“8. Compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by the insureds.”

A.R.S. § 20-461, azleg.gov text, 2026 session update

Other dispute rules

From a list that begins: “A person shall not commit or perform with such a frequency to indicate as a general business practice any of the following:”

“6. Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear.”

A.R.S. § 20-461, azleg.gov text, 2026 session update

Other dispute rules

From a list that begins: “A person shall not commit or perform with such a frequency to indicate as a general business practice any of the following:”

“15. Failing to promptly provide a reasonable explanation of the basis in the insurance policy relative to the facts or applicable law for denial of a claim or for the offer of a compromise settlement.”

A.R.S. § 20-461, azleg.gov text, 2026 session update

Other dispute rules

“D. Nothing contained in this section is intended to provide any private right or cause of action to or on behalf of any insured or uninsured resident or nonresident of this state.”

A.R.S. § 20-461, azleg.gov text, 2026 session update

Other dispute rules

“any first party claim not paid within thirty days after the receipt of an acceptable proof of loss by the insurer which contains all information necessary for claim adjudication shall be required to pay interest at the legal rate from the date the claim is received by the insurer.”

A.R.S. § 20-462, azleg.gov text, 2026 session update

What it means in Arizona

Arizona has no law on how the insurer sets the labor rate and no labor rate survey rule. Under the unfair claims statute, an insurer can't, as a general business practice, skip good faith efforts to settle fairly, lowball an insured into suing, or fail to explain a compromise offer. First-party claims unpaid 30 days after an acceptable proof of loss earn interest. Whether this reaches a labor rate dispute is a question for the Department of Insurance or a lawyer.

The unfair claims statute gives the Department an administrative remedy only and creates no private right to sue; the director can fine up to $1,000 per act ($10,000 total), or $5,000 per act ($50,000 in six months) if intentional. The interest rule covers only claims paid directly to the insured, a named beneficiary or an assignee.

The law's own words

Related claim rule

From a list that begins: “A person shall not commit or perform with such a frequency to indicate as a general business practice any of the following:”

“6. Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear.”

A.R.S. § 20-461, azleg.gov text, 2026 session update

Related claim rule

From a list that begins: “A person shall not commit or perform with such a frequency to indicate as a general business practice any of the following:”

“8. Compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by the insureds.”

A.R.S. § 20-461, azleg.gov text, 2026 session update

Related claim rule

From a list that begins: “A person shall not commit or perform with such a frequency to indicate as a general business practice any of the following:”

“15. Failing to promptly provide a reasonable explanation of the basis in the insurance policy relative to the facts or applicable law for denial of a claim or for the offer of a compromise settlement.”

A.R.S. § 20-461, azleg.gov text, 2026 session update

Related claim rule

“any first party claim not paid within thirty days after the receipt of an acceptable proof of loss by the insurer which contains all information necessary for claim adjudication shall be required to pay interest at the legal rate from the date the claim is received by the insurer.”

A.R.S. § 20-462, azleg.gov text, 2026 session update

What it means in Arizona

Arizona has no rule on capping paint and materials. The closest protection is the unfair claims law: the insurer can't fail to try in good faith to settle promptly and fairly once liability is reasonably clear, and must promptly explain a compromise offer. It reaches only a general business practice, and only the Director of Insurance enforces it. Whether a low materials allowance breaks it is a question for the Department of Insurance or a lawyer.

The unfair claims rules apply only when the conduct happens often enough to show a general business practice. The text says it gives no private right to sue and provides only an administrative remedy through the Director of Insurance.

The law's own words

Related claim rule

From a list that begins: “A person shall not commit or perform with such a frequency to indicate as a general business practice any of the following:”

“Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear.”

A.R.S. § 20-461, azleg.gov text, 2026 session update

Related claim rule

From a list that begins: “A person shall not commit or perform with such a frequency to indicate as a general business practice any of the following:”

“Failing to promptly provide a reasonable explanation of the basis in the insurance policy relative to the facts or applicable law for denial of a claim or for the offer of a compromise settlement.”

A.R.S. § 20-461, azleg.gov text, 2026 session update

What it means in Arizona

Arizona auto insurers must acknowledge electronic claim submissions within 10 business days, third-party claimants included. Otherwise the law sets no number of days: just respond promptly and accept or deny within a reasonable time. If a first-party claim isn't paid within 30 days of a complete proof of loss, the insurer owes interest at the legal rate from the day it got the claim, unless it denied the claim in good faith within those 30 days.

The interest rule covers only claims paid to the insured, a named beneficiary or a provider the insured assigned benefits to, so it does not reach third-party claims. The unfair claims list gives the Director an administrative remedy only, with no private right to sue. The 10-business-day acknowledgment section carries a 9/26/2025 effective date.

The law's own words

Respond

“Electronic content submissions and communications may include time-sensitive documents and demands. The insurer shall respond with an acknowledgment of receipt within ten business days.”

A.R.S. § 20-269, amended effective 9/26/2025

Respond

From a list that begins: “A person shall not commit or perform with such a frequency to indicate as a general business practice any of the following:”

“Failing to acknowledge and act reasonably and promptly upon communications with respect to claims arising under an insurance policy.”

A.R.S. § 20-461, azleg.gov text, 2026 session update

Accept or deny

From a list that begins: “A person shall not commit or perform with such a frequency to indicate as a general business practice any of the following:”

“Failing to affirm or deny coverage of claims within a reasonable time after proof of loss statements have been completed.”

A.R.S. § 20-461, azleg.gov text, 2026 session update

If late

“any first party claim not paid within thirty days after the receipt of an acceptable proof of loss by the insurer which contains all information necessary for claim adjudication shall be required to pay interest at the legal rate from the date the claim is received by the insurer.”

A.R.S. § 20-462, azleg.gov text, 2026 session update

If late

“D. This section shall apply only to claims that are to be paid by the insurer directly to the insured, to a beneficiary named in the contract, or to a provider who has been assigned the right to receive benefits under the contract by the insured.”

A.R.S. § 20-462, azleg.gov text, 2026 session update