Colorado body shop laws: what insurers and shops must do

What it means in Colorado

The insurer and its agents can't require your customer to use a particular shop, or threaten, pressure or offer incentives to push them to one, though warranty repairs don't count as an incentive. The insurer must tell your customer they can pick any shop, and it may offer a list to consider. If it recommends a shop it owns or is affiliated with, it must say so. This protects third-party claimants too, and covers property insurance generally, not just auto.

The statute covers property insurance generally, not only auto. An insurer that recommends a shop must disclose any ownership interest in or affiliation with it.

The law's own words

“Directly or indirectly require that appraisals or repairs to the property be made or not be made by a specified repair business;”

CRS 10-4-120, 2026 edition

“Intimidate, coerce, threaten, or induce by incentive a beneficiary or claimant to use a particular repair business for repairs; except that an inducement by incentive does not include warranty or guaranty repairs;”

CRS 10-4-120, 2026 edition

“an insurer or its agent shall inform the beneficiary or claimant that he or she may select any repair business of his or her choosing, and, if the insurer chooses, the insurer may also inform the beneficiary or claimant that the insurer can provide a list of repair businesses for the beneficiary or claimant to consider.”

CRS 10-4-120, 2026 edition

What it means in Colorado

No rule in our Colorado collection says the insurer must give notice before it stops paying storage. It must tell the insured or claimant what towing and storage the policy pays and warn about extra charges they may owe. Your storage rates must be printed clearly on a separate written authorization, and storage can't start until 3 days after you tell the customer the car is done, not counting weekends, holidays or days you're closed. You have a lien for reasonable storage charges.

The repair-facility rules (CRS 42-9-104 and 42-9-106) govern storage a customer agrees to in writing. No rule in our Colorado collection requires an insurer to give notice before it stops paying storage.

The law's own words

Insurer

“An insurer shall clearly disclose to an insured or inform a third-party claimant what benefits are provided related to towing and storage of a motor vehicle that sustains property damage and shall specifically advise an insured or third-party claimant concerning excess charges that may be incurred related to towing and storage of a motor vehicle for which the insured or third-party claimant may be responsible.”

CRS 10-4-639, 2026 edition

Shop

“The amounts that a customer may be charged for storage charges shall be conspicuously printed on the separate written authorization provided to the customer.”

CRS 42-9-104, 2026 edition

Shop

“No charge shall be made for storage of the motor vehicle unless the motor vehicle is not picked up by the customer within three days, exclusive of Saturday, Sunday, legal holidays, and any days the repair facility is closed for business, after the customer is notified that the repairs have been completed and the customer was notified, as required by section 42-9-104 (2)(a), that such storage charges would accrue.”

CRS 42-9-106, 2026 edition

Shop

“every other person who safely keeps or stores any personal property at the request of the owner or person lawfully in possession of the personal property has a lien upon the personal property for reasonable charges for the transportation, storage, or keeping of the personal property”

CRS 38-20-105, 2026 edition

What it means in Colorado

You have a lien for labor and materials, but enforcing it normally takes a court case. You can file to foreclose once the bill is 30 days past due; the lien ends if you haven't filed within 90 days after the charges came due. After judgment, you sell at public auction after 10 days' newspaper notice and a copy to the owner. A separate route skips court when your customer refused to authorize repairs, remove the car or pay: certified letters to the owner and every lender, at least 30 days' wait, then a title application with a surety bond for twice the car's value.

No court action is needed for the separate abandoned-vehicle title route (CRS 38-20-116), which applies when the owner refused to authorize repairs, remove the car or pay, and requires a surety bond for twice the vehicle's fair market value. No bond release during a dispute appears in our collection.

The law's own words

Keep the car

“Any mechanic or other person who makes, alters, repairs, or bestows labor upon any article of personal property, at the request of the owner of such personal property or his agent shall have a lien upon such property for the amount due for such labor done or material furnished and for all costs incurred in enforcing such lien.”

CRS 38-20-106, 2026 edition

Sell or title it

“(1) If any such charges for which a lien is given by section 38-20-102, 38-20-105, 38-20-106, or 38-20-106.2 or for which a lien is restored by section 38-20-106.5 are not paid within thirty days after the same become due and payable, the mechanic, innkeeper, or other person to whom such lien is given may file a foreclosure action in the county or district court”

CRS 38-20-107, 2026 edition

Sell or title it

“(1) When the lienor has received a judgment and after giving ten days' prior notice of the time and place of such sale, with a description of the property to be sold, by one publication in some newspaper published in the county wherein he or she resides”

CRS 38-20-109, 2026 edition

Sell or title it

From a list that begins: “(c) If a repair shop seeks to obtain a certificate of title for an abandoned motor vehicle for purposes of selling such vehicle, a repair shop, or where practicable, its agent, shall:”

“(IV) Use the information provided through the Colorado title record search or out-of-state title and lien search to notify by certified mail the owner of record, including an out-of-state owner of record, and all lienholders of its possession of the abandoned motor vehicle.”

CRS 38-20-116, 2026 edition

Sell or title it

From a list that begins: “(c) If a repair shop seeks to obtain a certificate of title for an abandoned motor vehicle for purposes of selling such vehicle, a repair shop, or where practicable, its agent, shall:”

“(A) Not less than thirty days after the postmarked date of the notice mailed pursuant to subparagraph (IV) of this paragraph (c), present documentation of the requirements specified in subparagraphs (I) to (VI) of this paragraph (c) to the county motor vehicle office in the county in which the repair shop is located and apply for a certificate of title for the abandoned motor vehicle.”

CRS 38-20-116, 2026 edition

What it means in Colorado

In Colorado, the insurer can specify non-OEM crash parts only if it tells the insured. Its written estimate must mark each one as non-OEM and carry a notice, in 10-point type or larger, that any warranty comes from the parts maker or distributor, not the car maker. Your estimate must say whether each part is new OEM, new non-OEM, used, reconditioned or rebuilt, and you need your customer's consent before installing it. An insurer's violation is an unfair insurance practice.

The insurer disclosure rule covers exterior sheet metal and plastic crash parts on the insured's own vehicle. If your customer agrees to used, reconditioned or rebuilt parts, you must adjust the estimate to reflect the changed cost; oral consent must be recorded on the work order.

The law's own words

Insurer

“No insurer shall specify the use of nonoriginal equipment replacement crash parts in the repair of an insured's motor vehicle without disclosing the intended use of such parts to the insured.”

CRS 10-3-1305, 2026 edition

Parts standard

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

CRS 10-3-1305, 2026 edition

Parts standard

“Any nonoriginal equipment replacement crash part supplied for use in this state shall have the name or trademark of the manufacturer affixed to or inscribed on it.”

CRS 10-3-1304, 2026 edition

Shop

“The motor vehicle repair facility shall specify in the original estimate whether any parts to be installed are new original equipment manufacturer, new nonoriginal equipment manufacturer, used, reconditioned, or rebuilt and then shall obtain the consent of the customer before any new original equipment manufacturer, new nonoriginal equipment manufacturer, used, reconditioned, or rebuilt parts are installed in the motor vehicle.”

CRS 42-9-107, 2026 edition

Insurer

“A violation of or noncompliance with any provision of this part 13 shall be an unfair method of competition and unfair or deceptive act or practice in the business of insurance subject to the provisions of part 11 of this article.”

CRS 10-3-1306, 2026 edition

What it means in Colorado

Colorado has no statute or rule requiring an appraisal clause or setting how appraisal works. The insurer can't require that appraisals or repairs be done by a particular shop, and its estimate must be enough to restore the car to pre-loss condition. On your customer's own claim, the insurer has 60 days to decide or pay unless there's a reasonable dispute, and an appraisal in progress can count as one. You or your customer can complain in writing to the commissioner.

3 CCR 702-5-1-14 applies to first party property and casualty claims; if the insurer misses the 60 days with no reasonable dispute, the commissioner may impose a penalty paid to the insured, 8% annual interest on claims over $100. A claim isn't complete until any appraisal to set its value is finished. CRS 10-4-120 covers policies insuring real or personal property.

The law's own words

Other dispute rules

From a list that begins: “An insurer or its agent that issues or renews a policy that insures real or personal property shall not:”

“(a) Directly or indirectly require that appraisals or repairs to the property be made or not be made by a specified repair business;”

CRS 10-4-120, 2026 edition

Other dispute rules

From a list that begins: “An insurer or its agent that issues or renews a policy that insures real or personal property shall:”

“(b) Require that any estimate prepared by or for the insurer covering damages that are visible or evident at the time of inspection is adequate to restore the property within a reasonable time to its condition before the loss, in accordance with applicable policy provisions;”

CRS 10-4-120, 2026 edition

Other dispute rules

“(5) A beneficiary, claimant, or repair business may submit a written, documented complaint to the commissioner alleging a violation of this section.”

CRS 10-4-120, 2026 edition

How appraisal works

From a list that begins: “b. A reasonable dispute may include, but is not limited to:”

“(6) Litigation is commenced on the claim; or (7) Negotiations or appraisals are in process to determine the value of a claim.”

3 CCR 702-5-1-14, effective 9/1/2012

How appraisal works

From a list that begins: “a. A valid and complete claim is deemed received by the insurer when:”

“(7) Negotiations or appraisals to determine the value of the claim have been completed; and/or”

3 CCR 702-5-1-14, effective 9/1/2012

What it means in Colorado

Colorado tells the insurer how to price repairs but not how to run a survey. It must pay based on a prevailing competitive price, set by competitive bids, a generally accepted insurer method, or market surveys that find a fair and reasonable market price, and no less than the prevailing competitive market price in the same area. How a survey must be done, or whether you can see it, is a question for the Division of Insurance or a lawyer.

Section 10-4-120 covers insurers that issue or renew policies insuring real or personal property. A beneficiary, claimant or repair business may submit a written, documented complaint to the commissioner. The Division's Bulletin B-5.04 restates these duties as guidance, not a binding rule.

The law's own words

Survey or rate standard

From a list that begins: “An insurer or its agent that issues or renews a policy that insures real or personal property shall:”

“Pay for repair services and products based on a prevailing competitive price, as established by competitive bids, generally accepted insurer-based methodology, or market surveys that determine a fair and reasonable market price for similar services;”

CRS 10-4-120, 2026 edition

What the insurer pays

From a list that begins: “An insurer or its agent that issues or renews a policy that insures real or personal property shall:”

“Promptly pay the cost of property repair services and products from any repair facility location that is within a reasonable distance, less any applicable deductible amount payable by the beneficiary or claimant according to the terms of the insurance policy, at no less than the prevailing competitive market price in the same geographic area;”

CRS 10-4-120, 2026 edition

What the insurer pays

From a list that begins: “An insurer or its agent that issues or renews a policy that insures real or personal property shall:”

“Assume all reasonable costs sufficient to pay for the beneficiary's or claimant's repairs including materials or parts, less any applicable deductible or reduction for comparative negligence;”

CRS 10-4-120, 2026 edition

Related claim rule

From a list that begins: “An insurer or its agent that issues or renews a policy that insures real or personal property shall not:”

“Contract with a person to manage, handle, or arrange insurance repair work or to act as an agent for the insurer if: (I) The contract requires a particular repair business to do claims work for the insurer at a price established by the insurer; and (II) The person retains a percentage of any compensation paid by the insurer;”

CRS 10-4-120, 2026 edition

What it means in Colorado

Colorado has no rule that names paint and materials caps. The insurer must pay all reasonable costs to repair the vehicle, including materials or parts, less the deductible, and base what it pays on a prevailing competitive price set by competitive bids, a generally accepted insurer method, or market surveys. You or your customer can file a written complaint with the commissioner. Whether a materials formula meets that standard is a question for the Department of Insurance or a lawyer.

The section covers any insurer that issues or renews a policy insuring real or personal property, not only auto, and protects both the beneficiary and the claimant. The general assembly directs that it be liberally construed.

The law's own words

What the insurer pays

From a list that begins: “An insurer or its agent that issues or renews a policy that insures real or personal property shall:”

“(e) Assume all reasonable costs sufficient to pay for the beneficiary's or claimant's repairs including materials or parts, less any applicable deductible or reduction for comparative negligence;”

CRS 10-4-120, 2026 edition

What the insurer pays

From a list that begins: “An insurer or its agent that issues or renews a policy that insures real or personal property shall:”

“(c) Pay for repair services and products based on a prevailing competitive price, as established by competitive bids, generally accepted insurer-based methodology, or market surveys that determine a fair and reasonable market price for similar services;”

CRS 10-4-120, 2026 edition

Related claim rule

From a list that begins: “An insurer or its agent that issues or renews a policy that insures real or personal property shall:”

“(b) Require that any estimate prepared by or for the insurer covering damages that are visible or evident at the time of inspection is adequate to restore the property within a reasonable time to its condition before the loss, in accordance with applicable policy provisions;”

CRS 10-4-120, 2026 edition

Related claim rule

“(5) A beneficiary, claimant, or repair business may submit a written, documented complaint to the commissioner alleging a violation of this section.”

CRS 10-4-120, 2026 edition

What the insurer pays

From a list that begins: “An insurer or its agent that issues or renews a policy that insures real or personal property shall:”

“Promptly pay the cost of property repair services and products from any repair facility location that is within a reasonable distance, less any applicable deductible amount payable by the beneficiary or claimant according to the terms of the insurance policy, at no less than the prevailing competitive market price in the same geographic area;”

CRS 10-4-120, 2026 edition

What it means in Colorado

Colorado insurers must decide or pay their own insured's claim within 60 days of a valid and complete claim, unless there is a reasonable dispute. If they miss it, the Commissioner can make them pay the insured 8% yearly interest on claims over $100. An insured whose claim is unreasonably delayed or denied can sue for twice the covered benefit plus attorney fees. For a third-party total loss, payment is due 3 business days after written acceptance and title.

The 60-day rule and its penalties cover first party claims and run from a 'valid and complete claim', which the rule defines narrowly (for example, once repairs are completed and the insured authorizes payment, or negotiations or appraisals are finished). The two-times-benefit lawsuit excludes anyone claiming against an insured under a liability policy. The 3-business-day third-party total loss payment rule sits in the rule's rental replacement section. Colorado's statute requires acknowledging claim communications reasonably promptly but sets no day count.

The law's own words

Respond

From a list that begins: “Committing or performing, either in willful violation of this part 11 or with such frequency as to indicate a tendency to engage in a general business practice, any of the following:”

“(II) Failing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies; or”

CRS 10-3-1104, 2026 edition

If late

“A first-party claimant as defined in section 10-3-1115 whose claim for payment of benefits has been unreasonably delayed or denied may bring an action in a district court to recover reasonable attorney fees and court costs and two times the covered benefit.”

CRS 10-3-1116, 2026 edition

Accept or deny

“shall make a decision on claims and/or pay benefits due under the policy within sixty (60) days after receipt of a valid and complete claim unless there is a reasonable dispute between the parties concerning such claim”

3 CCR 702-5-1-14, effective 9/1/2012

If late

“(2) If the claim is more than $100.00, the penalty shall be 8 percent annual interest on the amount of benefits due, computed from the latest of the time a valid and complete claim is received”

3 CCR 702-5-1-14, effective 9/1/2012

Pay

“The insurer shall issue payment within three (3) business days of the date of the third-party claimant accepts, in writing, the written settlement offer, and the insurer has received a transferrable title to the vehicle.”

3 CCR 702-5-2-15, effective 11/1/2018