Georgia body shop laws: what insurers and shops must do

What it means in Georgia

The insurer can't require your customer to use a particular shop to settle the claim if another shop will do the work for the same cost. It also can't say that using, or not using, a certain shop could mean the claim isn't paid. Under the claims rule, an insured can pick any shop but pays the difference if it costs more than the price the insurer found. That rule's own ban on requiring a shop gives way if the policy allows it.

The statute text is from Georgia's 2019 official release; confirm it is current. Under the rule, an insured who picks a costlier shop pays the difference.

The law's own words

“No insurer shall require a person making a claim under a motor vehicle insurance policy to use a particular repair facility or particular repair facilities in order to settle a claim if the person making the claim can obtain the repair work on the motor vehicle at the same cost from another source.”

O.C.G.A. 33-34-6, 2019 official release (public.resource.org copy)

“no insurer shall represent to a person making a claim under a motor vehicle insurance policy that the use of or the failure to use a particular repair facility or particular repair facilities may result in the nonpayment of a claim.”

O.C.G.A. 33-34-6, 2019 official release (public.resource.org copy)

“However, the insured has the right to choose the place of repair and pay the difference in cost, if the cost of the repair shop selected by the insured is greater than that obtained by the insurer.”

Ga. Comp. R. & Regs. 120-2-52-.03, effective 7/1/2022

What it means in Georgia

Once the insurer accepts liability, it must pay the third-party claimant's reasonable towing and storage, total losses included, but only actual losses, and the claimant must still keep costs down. This covers policies issued or renewed since January 1, 2009; no rule in our Georgia collection sets a notice period before payment stops. Your storage lien exists only after you meet the statute's notice requirements, and it counts storage at the Department of Public Safety's maximum daily rate from when your notice was received.

The insurer rule covers third-party liability claims under policies issued or renewed on or after January 1, 2009. Georgia statute text is from the 2019 official release; confirm it is current.

The law's own words

Insurer

“Any insurer, upon acceptance of liability, pursuant to any automobile liability or motor vehicle liability insurance policy, shall pay reasonable benefits for losses, including total losses, to a third party on behalf of an insured for loss of use and towing and storage costs of such a motor vehicle”

O.C.G.A. 33-7-11.1, 2019 official release (public.resource.org copy)

Insurer

“provided, however, in no event shall this Code section be construed so as to relieve the claimant of his or her obligation to mitigate his or her losses or to require the payment of loss of use and towing and storage costs benefits in an amount which is greater than the actual losses suffered.”

O.C.G.A. 33-7-11.1, 2019 official release (public.resource.org copy)

Shop

“Any towing and storage firm, repair facility, or salvage dealer shall have a lien on a motor vehicle located on its property in the amount of any unpaid and incurred fees upon compliance with the notice requirements of this Code section.”

O.C.G.A. 40-11-19, 2019 official release (public.resource.org copy)

Shop

From a list that begins: “Fees that have actually been incurred by any towing and storage firm, repair facility, or salvage dealer and which are documented to the court are recoverable under such lien and shall be limited to the following:”

“For a repair facility or salvage dealer, the maximum allowable daily rate for the storage of the motor vehicle as set forth by rule and regulation of the Department of Public Safety for maximum state-wide rate tariffs multiplied by the number of days such motor vehicle has been stored from the date notification required under this Code section was received to the date any judgment is issued plus 25 days;”

O.C.G.A. 40-11-19, 2019 official release (public.resource.org copy)

What it means in Georgia

You can keep the car until you're paid, or release it and keep the lien by recording your claim under the title law. Your lien beats other liens except taxes and liens you had notice of before the work. If your customer disputes the bill in writing, start foreclosure within 30 days or lose the lien; every foreclosure must start within a year. Selling takes a court: a foreclosure affidavit, or magistrate court after a certified notice letter sent once the car has sat unpaid 15 to 180 days. During the case, your customer can keep the car by posting a bond.

Georgia statute text is from the 2019 official release; confirm it is current. Foreclosure can run under 40-3-54 or through the magistrate court petition in 40-11-19 and 40-11-19.1.

The law's own words

Keep the car

“All mechanics of every sort shall have a special lien on any vehicle required to have a certificate of title by Code Section 40-3-20 for work done, or for work done and materials furnished, or for materials furnished in repairing or servicing such vehicle.”

O.C.G.A. 40-3-54, 2019 official release (public.resource.org copy)

Keep the car

“The lien may be asserted by retention of the vehicle, and all contracts for repairs or service to vehicles shall be deemed to incorporate a right of retention by the mechanic to protect this lien until it is paid or satisfied through foreclosure as provided in this Code section.”

O.C.G.A. 40-3-54, 2019 official release (public.resource.org copy)

Sell or title it

“When a motor vehicle has been left with a repair facility for at least 15 days, and no later than 180 days, without payment of amounts owed, the repair facility desiring to file a petition pursuant to Code Section 40-11-19.1 shall send all owners by certified mail the notification letter form developed by the Council of Magistrate Court Judges for such purpose.”

O.C.G.A. 40-11-19, 2019 official release (public.resource.org copy)

Sell or title it

“Not sooner than ten calendar days and not later than six months after compliance with the notice requirements set forth in Code Section 40-11-19, a towing and storage firm, repair facility, or salvage dealer may file an action for a petition to foreclose a lien against the motor vehicle in any magistrate court in the county where the motor vehicle is located.”

O.C.G.A. 40-11-19.1, 2019 official release (public.resource.org copy)

Get it back

“The owner-debtor may retain possession of the vehicle by giving bond and security in the amount determined to be probably due and the costs of the action;”

O.C.G.A. 40-3-54, 2019 official release (public.resource.org copy)

What it means in Georgia

In Georgia the insurer can price the repair with non-OEM crash parts only if they'd restore the car's pre-accident quality, safety, function and appearance, and it can't require the insured to authorize them to settle the claim. Any estimate the adjuster or you write with them must identify each part and attach a 10-point notice that the parts maker, not the carmaker, warrants them. Each part must carry its maker's logo, ID number or name.

The rules cover exterior sheet metal or plastic crash parts, including inner and outer panels. The consent and pricing rules in 120-2-52-.05 protect the insured. The statute text is a RepairMCP consolidation of O.C.G.A. 33-6-5 through SB 201 (effective 1/1/2026), not an official text.

The law's own words

Insurer

“In all instances where nonoriginal equipment manufacturer aftermarket crash parts are used in preparing an estimate for repairs the written estimate prepared by the insurance adjuster and repair facility shall clearly identify each such part.”

O.C.G.A. 33-6-5, 2019 official release (public.resource.org copy)

Parts standard

“THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF AFTERMARKET CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. THE AFTERMARKET CRASH PARTS USED IN THE PREPARATION OF THIS ESTIMATE ARE WARRANTED BY THE MANUFACTURER OR DISTRIBUTOR OF SUCH PARTS RATHER THAN THE MANUFACTURER OF YOUR VEHICLE.”

O.C.G.A. 33-6-5, 2019 official release (public.resource.org copy)

Parts standard

“Any aftermarket crash part manufactured or supplied for use in this state on or after January 1, 1990, shall have affixed thereto or inscribed thereon the logo, identification number, or name of its manufacturer.”

O.C.G.A. 33-6-5, 2019 official release (public.resource.org copy)

Parts standard

“The price of nonoriginal manufacturer aftermarket crash parts may be used by insurers to determine repair costs, provided the use of such parts would restore the damaged vehicle to its preaccident condition relative to quality, safety, function and appearance.”

Ga. Comp. R. & Regs. 120-2-52-.05, effective 4/18/1994

Insurer

“No insurer, as part of a claims settlement, may require an insured to authorize the use of nonoriginal manufacturer aftermarket crash parts in the repair of a damaged vehicle.”

Ga. Comp. R. & Regs. 120-2-52-.05, effective 4/18/1994

What it means in Georgia

Georgia doesn't require an appraisal clause. Its rules offer Commissioner arbitration only if the Commissioner has set up a panel, which the captured law doesn't confirm. Then, once the insurer affirms liability on your customer's own claim and the amount is disputed, either side can ask in writing; the result binds both and they split the cost. If your customer's written estimate is higher, the insurer must respond within 15 days and name a shop that will repair for its estimate or pay the difference.

The arbitration rule sits in the first-party property damage rules for personal private passenger policies and applies once liability is affirmed. The Commissioner 'may' set up the panel; each case is heard by three members, at least one attorney and one licensed adjuster, and the decision is not the Commissioner's own. The statute authorizing the panel speaks of total-loss disputes; the rule does not limit it that way. Under the estimate rule, the shop the insurer names must make repairs that are commercially acceptable and conform with industry standards.

The law's own words

How appraisal works

From a list that begins: “Such procedures may include, but shall not be limited to:”

“(6) Establishment of a panel for arbitration of disputed property damage claims where such claims involve total losses.”

O.C.G.A. 33-34-8, 2019 official release (public.resource.org copy)

Appraisal right

“If the insurer has affirmed liability on a claim, or affirmed liability for individual coverages where the claim involves multiple coverages and the amount payable is in dispute, the insured, or the insurer, may submit to the Commissioner a request for their case to be arbitrated.”

Ga. Comp. R. & Regs. 120-2-52-.03, effective 7/1/2022

How appraisal works

“Any claim settled pursuant to this Chapter shall be binding on both parties and fulfill any arbitration provision currently contained in the motor vehicle insurance policy, but shall not preclude or waive any other rights either party has under common law.”

Ga. Comp. R. & Regs. 120-2-52-.03, effective 7/1/2022

How appraisal works

“If an arbitration panel has been established, the Commissioner shall forward the written request for arbitration to the three (3) individuals selected to hear such request. The cost of the arbitration shall be borne equally by the parties to the arbitration.”

Ga. Comp. R. & Regs. 120-2-52-.03, effective 7/1/2022

Other dispute rules

“If the insured subsequently shows, based upon a written estimate which he obtains, that necessary repairs will exceed the written estimate prepared by or for the insurer, the insurer shall review and respond within fifteen (15) days. The insurer shall either provide the insured with the name of a repair shop that will make the repairs according to the written estimate obtained by the insurer”

Ga. Comp. R. & Regs. 120-2-52-.04, effective 4/18/1994

What it means in Georgia

Georgia has no labor rate or survey law. On your customer's own claim, the insurer's estimate must be reasonable and enough for workmanlike repairs that restore the car to preaccident condition. If your customer's written estimate shows repairs cost more, the insurer has 15 days to respond and must name a shop that will do the work for its estimate or pay the difference. Your customer can still choose you, but pays any difference if you cost more than the insurer's figure.

The repair estimate rules protect the insured on their own policy. O.C.G.A. 33-4-7 covers third-party property claims under a motor vehicle liability policy and requires a demand letter and 60 days before extra recovery (the greater of 50 percent or $5,000, plus attorney's fees); 33-3-20 fines run up to $1,000 per act, or $5,000 if willful. The statute text is the 2019 official release and is not certified current. If liability is affirmed and the amount is in dispute, the insured or the insurer may ask the Commissioner for arbitration where a panel has been established, with the cost split equally.

The law's own words

Related claim rule

From a list that begins: “has with such frequency as to indicate its general business practice in this state:”

“(2) Compelled, without just cause, insureds, claimants, or other persons entitled to the proceeds of its policies in this state to accept less than the amount due them or to bring an action against the insurer or an insured to secure full payment or settlement thereof; or”

O.C.G.A. 33-3-20, 2019 official release (public.resource.org copy)

Related claim rule

“(b) An insurer breaches the duty of subsection (a) of this Code section when, after investigation of the claim, liability has become reasonably clear and the insurer in bad faith offers less than the amount reasonably owed under all the circumstances of which the insurer is aware.”

O.C.G.A. 33-4-7, 2019 official release (public.resource.org copy)

What the insurer pays

“The estimate prepared by or for the insurer shall be reasonable, and of an amount which will allow for repairs to be made in a workmanlike manner which would restore the damaged vehicle to its preaccident condition relative to quality, safety, function and appearance.”

Ga. Comp. R. & Regs. 120-2-52-.04, effective 4/18/1994

What the insurer pays

“the insurer shall review and respond within fifteen (15) days. The insurer shall either provide the insured with the name of a repair shop that will make the repairs according to the written estimate obtained by the insurer which are commercially acceptable and conform with industry standards, or pay the difference between the written estimate and the one obtained by the insured.”

Ga. Comp. R. & Regs. 120-2-52-.04, effective 4/18/1994

Related claim rule

“However, the insured has the right to choose the place of repair and pay the difference in cost, if the cost of the repair shop selected by the insured is greater than that obtained by the insurer.”

Ga. Comp. R. & Regs. 120-2-52-.03, effective 7/1/2022

What it means in Georgia

Georgia has no rule on capping paint and materials. On your customer's own claim, the insurer's estimate must be reasonable and enough to restore the car's pre-accident quality, safety, function and appearance. If your customer's written estimate shows repairs cost more, the insurer must respond within 15 days and either name a shop that will do it for its estimate or pay the difference. Whether a materials cut breaks this is a question for the Department of Insurance or a lawyer.

The estimate rule protects the insured on the insured's own policy. The unfair claims statute applies only when the act is flagrant and in conscious disregard of the law or frequent enough to show a general business practice (33-6-33), and the article creates no private right to sue (33-6-37).

The law's own words

Related claim rule

From a list that begins: “Any of the following acts of an insurer when committed as provided in Code Section 33-6-33 shall constitute an unfair claims settlement practice:”

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

O.C.G.A. 33-6-34, 2019 official release (public.resource.org copy)

Related claim rule

“The estimate prepared by or for the insurer shall be reasonable, and of an amount which will allow for repairs to be made in a workmanlike manner which would restore the damaged vehicle to its preaccident condition relative to quality, safety, function and appearance.”

Ga. Comp. R. & Regs. 120-2-52-.04, effective 4/18/1994

Related claim rule

“If the insured subsequently shows, based upon a written estimate which he obtains, that necessary repairs will exceed the written estimate prepared by or for the insurer, the insurer shall review and respond within fifteen (15) days.”

Ga. Comp. R. & Regs. 120-2-52-.04, effective 4/18/1994

Related claim rule

“The insurer shall either provide the insured with the name of a repair shop that will make the repairs according to the written estimate obtained by the insurer which are commercially acceptable and conform with industry standards, or pay the difference between the written estimate and the one obtained by the insured.”

Ga. Comp. R. & Regs. 120-2-52-.04, effective 4/18/1994

What it means in Georgia

On your customer's own claim under a personal auto policy, Georgia's rule gives the insurer 15 days to acknowledge, 15 days after a completed proof of loss to accept or deny, and 10 days to pay once coverage is confirmed and the amount isn't disputed. If it refuses in bad faith to pay its insured within 60 days of a demand, it can owe up to the greater of 50 percent of its liability or $5,000, plus attorney's fees. Third-party claimants have a similar remedy.

The rule covers first party property damage claims under personal private passenger auto policies; if the insurer needs more time it must say so within 5 business days, with a 60-day cap unless requested information is missing. The third-party remedy requires a demand letter by certified mail or statutory overnight delivery, a 60-day wait, and a recovery at least equal to the demand. Both statutes are 2019 official text the collection has not certified as current: check the current Code before relying on them.

The law's own words

If late

“the refusal of the insurer to pay the same within 60 days after a demand has been made by the holder of the policy and a finding has been made that such refusal was in bad faith, the insurer shall be liable to pay such holder, in addition to the loss, not more than 50 percent of the liability of the insurer for the loss or $5,000.00, whichever is greater”

O.C.G.A. 33-4-6, 2019 official release (public.resource.org copy)

If late

“Any insurer who breaches this duty may be liable to pay the claimant, in addition to the loss, not more than 50 percent of the liability of the insured for the loss or $5,000.00, whichever is greater, and all reasonable attorney's fees for the prosecution of the action.”

O.C.G.A. 33-4-7, 2019 official release (public.resource.org copy)

Respond

“(1) Every insurer, upon receiving notification of a claim shall, within fifteen (15) days, acknowledge the receipt of such notice by the insured, unless payment is made within that time period.”

Ga. Comp. R. & Regs. 120-2-52-.03, effective 7/1/2022

Accept or deny

“(3) The insurer shall affirm or deny liability on claims within fifteen (15) days of receiving the completed proof of loss from the insured for losses arising from motor vehicle policies”

Ga. Comp. R. & Regs. 120-2-52-.03, effective 7/1/2022

Pay

“(4) Payment shall be tendered within ten (10) days after coverage is confirmed and the full amount of the claim is determined and not in dispute.”

Ga. Comp. R. & Regs. 120-2-52-.03, effective 7/1/2022