| ArizonaAll Arizona rules | 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. | Related claim ruleFrom 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 ruleFrom 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 ruleFrom 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 |
| CaliforniaAll California rules | In California, a labor rate survey is the insurer's choice, but one that sets a prevailing rate must be reported to the Department with shop names. In the standardized survey, the prevailing rate is the rate at or below which a simple majority of surveyed shops charge. To cut your rate using it, the insurer must show your rate is above that rate, your posted rate, or what you charged in the last 60 days, and the cut doesn't mean you must accept it. A standardized survey gives the insurer a rebuttable presumption of good faith on the labor rate only if it meets 2695.81's standards, including filing no more than a year old and rate data no older than 16 months (extendable to 2 years and 28 months with an inflation adjustment), and it can't use discounted direct repair program rates. The insurer may pay less than the prevailing rate if your shop charges less. | Survey or rate standard“Any insurer that conducts an auto body repair labor rate survey to determine and set a specified prevailing auto body rate in a specific geographic area shall report the results of that survey to the department, which shall make the information available upon request. The survey information shall include the names and addresses of the auto body repair shops and the total number of shops surveyed.” Cal. Ins. Code 758, effective 1/1/2001 Survey or rate standard“establish a standardized labor rate survey that the Commissioner recommends insurers use as a
basis to settle or pay automobile repair insurance claims in a fair and equitable manner, if the
insurer elects to use a survey” 10 CCR 2695.81, effective 1/1/2017 (PDF) Survey or rate standard“For purposes of a Standardized Labor Rate Survey, “prevailing auto body rate” or
“prevailing rate” shall be calculated as the labor rate at or below which a simple majority of
surveyed shops charge in a specific Geographic Area, as defined in subdivision (d)(8)(A)4.” 10 CCR 2695.81, effective 1/1/2017 (PDF) What the insurer pays“An insurer may use a Standardized Labor Rate Survey as a basis to reasonably adjust the
labor rate in a written estimate provided by a claimant’s chosen repair shop pursuant to
subdivision (f)(3) of Section 2695.8 only if the insurer can demonstrate at least one of the
following:” 10 CCR 2695.81, effective 1/1/2017 (PDF) What the insurer pays“This subdivision (e) shall not be construed to imply that the repair shop must accept the
amount offered for payment by the insurer or that the amount charged by the repair shop is
excessive or unreasonable” 10 CCR 2695.81, effective 1/1/2017 (PDF) |
| ColoradoAll Colorado rules | 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. | Survey or rate standardFrom 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 paysFrom 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 paysFrom 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 ruleFrom 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 |
| FloridaAll Florida rules | Florida has no labor rate or survey law. If the insurer settles on its own estimate it must give the insured a copy, and it can't make material misrepresentations to settle for less than the policy provides. As a general business practice, it can't fail to explain in writing the policy basis for a compromise offer. A person harmed by these practices, or an insured hurt by bad faith, can sue, but only after 60 days' written notice to the Department and the insurer. Section 626.9743 covers personal and commercial motor vehicle claims. Section 624.155 lets any damaged person sue over a 626.9541(1)(i) violation without proving a general business practice, and lets an insured sue over the insurer's bad faith, but the Department and the insurer must first get 60 days' written notice, and no action lies if the insurer pays the damages or corrects the violation within those 60 days. The adjuster rule requiring market-price data in electronic estimates (69B-220.201(3)(m)) applies only to residential coverage. | Related claim rule“Every insurer shall, if partial losses are settled on the basis of a written estimate prepared by or for the insurer, supply the insured a copy of the estimate upon which the settlement is based.” Fla. Stat. 626.9743, 2026 edition Related claim rule“A material misrepresentation made to an insured or any other person having an interest in the proceeds payable under such contract or policy, for the purpose and with the intent of effecting settlement of such claims, loss, or damage under such contract or policy on less favorable terms than those provided in, and contemplated by, such contract or policy;” Fla. Stat. 626.9541, 2026 edition Related claim ruleFrom a list that begins: “Committing or performing with such frequency as to indicate a general business practice any of the following:” “Failing to promptly provide a reasonable explanation in writing to the insured of the basis in the insurance policy, in relation to the facts or applicable law, for denial of a claim or for the offer of a compromise settlement;” Fla. Stat. 626.9541, 2026 edition Related claim ruleFrom a list that begins: “By the commission of any of the following acts by the insurer:” “Not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests;” Fla. Stat. 624.155, 2026 edition |
| GeorgiaAll Georgia rules | 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. | Related claim ruleFrom 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 |
| IllinoisAll Illinois rules | Illinois has no labor rate or survey law; its cap rule covers paint and materials, not labor. On a private passenger auto claim, the insurer's estimate must be reasonable and enough for workmanlike repairs. If the insured's own estimate is higher, the insurer must respond promptly and name a shop that will do the work, or promise in writing to reimburse all reasonable costs above its estimate. Knowingly or repeatedly failing to try in good faith to settle fairly is an improper claims practice. A 154.6 act is an improper claims practice only if committed knowingly or often enough to show a persistent tendency (154.5), and the Director enforces it through a statement of charges and a hearing (154.7). Rule 919.80 covers private passenger automobile claims, and its estimate and reimbursement duties run to the insured. Section 154.6(j), quoted below, reaches caps on paint or materials only; it does not mention labor. | Related claim ruleFrom a list that begins: “Any of the following acts by a company, if committed without just cause and in violation of Section 154.5, constitutes an improper claims practice:” “Not attempting in good faith to effectuate prompt, fair and equitable settlement of claims submitted in which liability has become reasonably clear;” 215 ILCS 5/154.6, effective 7/1/2022 Related claim ruleFrom a list that begins: “Any of the following acts by a company, if committed without just cause and in violation of Section 154.5, constitutes an improper claims practice:” “Attempting to settle a claim for less than the amount to which a reasonable person would believe the claimant was entitled, by reference to written or printed advertising material accompanying or made part of an application or establishing unreasonable caps or limits on paint or materials when estimating vehicle repairs;” 215 ILCS 5/154.6, effective 7/1/2022 What the insurer pays“The estimate prepared by or for the company shall be reasonable, in accordance with applicable policy provisions, and of an amount which will allow for repairs to be made in a workmanlike manner.” 50 Ill. Adm. Code 919.80, effective 7/22/2002 What the insurer pays“If the insured subsequently claims, based upon a written estimate which he obtains, that necessary repairs will exceed the written estimate prepared by or for the company, the company shall review and respond promptly to the insured and provide the insured with the name of a repair shop that will make the repairs in a workmanlike manner.” 50 Ill. Adm. Code 919.80, effective 7/22/2002 What the insurer pays“Failure of the company to so inform the insured of the name of such a repair shop shall require the company to provide written notice to the insured that any and all reasonable costs incurred for repair or replacement related to the partial loss in excess of the company's estimate will be reimbursed by the company.” 50 Ill. Adm. Code 919.80, effective 7/22/2002 |
| IndianaAll Indiana rules | Indiana has no law on how the insurer sets the labor rate and no labor rate survey rule. The nearest rules are unfair claim practices when done as a general practice: not trying in good faith to settle fairly once liability is reasonably clear, lowballing an insured into suing, and not explaining a compromise offer. The law gives no right to sue over them. Whether they reach a labor rate dispute is a question for the Department of Insurance or a lawyer. The section 4.5 practices become unfair methods under section 4 when committed often enough to indicate a general practice. Indiana's body-parts rules, which let the insured approve the type of parts on vehicles within five years of the model year, do not address labor rates. | Related claim rule“(16) Committing or performing, with such frequency as to indicate a general practice, unfair claim settlement practices (as defined in section 4.5 of this chapter).” IC 27-4-1-4, Indiana Code 2026 edition Related claim ruleFrom a list that begins: “The following are unfair claim settlement practices:” “(6) Not attempting in good faith to effectuate prompt, fair, and equitable settlements of claims in which liability has become reasonably clear.” IC 27-4-1-4.5, Indiana Code 2026 edition Related claim ruleFrom a list that begins: “The following are unfair claim settlement practices:” “(7) 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 such insureds.” IC 27-4-1-4.5, Indiana Code 2026 edition Related claim ruleFrom a list that begins: “The following are unfair claim settlement practices:” “(14) Failing to promptly provide a reasonable explanation of the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement.” IC 27-4-1-4.5, Indiana Code 2026 edition Related claim rule“Sec. 18. This article does not create a cause of action other than an action by:
(1) the commissioner to enforce his order; or
(2) a person, as defined in section 1 of this chapter, to appeal an order of the commissioner.” IC 27-4-1-18, Indiana Code 2026 edition |
| MarylandAll Maryland rules | Maryland has no law on how the insurer sets the labor rate and no labor rate survey rule. The nearest rules: an insurer can't refuse to pay a claim for an arbitrary or capricious reason, and must act in good faith, an honest, diligent judgment backed by evidence, when settling a first-party property and casualty claim. As a general business practice it can't lowball insureds into suing. Whether these reach a labor rate dispute is a question for the Maryland Insurance Administration or a lawyer. The unfair claim settlement subtitle provides administrative remedies only and neither creates nor bars a private right of action. The Commissioner may fine up to $2,500 per violation of 27-303, or $125,000 per good-faith violation, and order restitution. A first-party good-faith lawsuit under Courts § 3-1701 generally must start as a complaint filed with the Insurance Administration. | Related claim ruleFrom a list that begins: “It is an unfair claim settlement practice and a violation of this subtitle for an insurer, nonprofit health service plan, or health maintenance organization to:” “(2) refuse to pay a claim for an arbitrary or capricious reason based on all available information;” Md. Code, Ins. § 27-303, mgaleg.maryland.gov text in effect as of 10/1/2026 Related claim ruleFrom a list that begins: “It is an unfair claim settlement practice and a violation of this subtitle for an insurer, nonprofit health service plan, or health maintenance organization to:” “(9) fail to act in good faith, as defined under § 27–1001 of this title, in settling a first–party claim under a policy of property and casualty insurance; or” Md. Code, Ins. § 27-303, mgaleg.maryland.gov text in effect as of 10/1/2026 Related claim ruleFrom a list that begins: “when committed with the frequency to indicate a general business practice, to:” “(7) compel insureds to institute litigation to recover amounts due under policies by offering substantially less than the amounts ultimately recovered in actions brought by the insureds;” Md. Code, Ins. § 27-304, mgaleg.maryland.gov text in effect as of 10/1/2026 Related claim rule“(a) In this section, “good faith” means an informed judgment based on honesty and diligence supported by evidence the insurer knew or should have known at the time the insurer made a decision on a claim.” Md. Code, Ins. § 27-1001, mgaleg.maryland.gov text in effect as of 10/1/2026 Related claim ruleFrom a list that begins: “B. A prohibited unfair claim settlement practice occurs if an insurer commits one or more of the following acts with such frequency as to indicate a general business practice:” “(14) Refuses or unreasonably delays payment to claimants of amounts due them when coverage, liability, and amount of damages are reasonably clear.” COMAR 31.15.07.03, effective 1/26/2009 |
| MassachusettsAll Massachusetts rules | Massachusetts has a labor rate survey law: 2026 session-law text, approved July 9, 2026. Every 4 years the insurance commissioner sends a labor reimbursement rate survey to body shops and insurers and checks for a reasonable degree of competition. If there isn't enough, the commissioner must hold a rate hearing to set a minimum labor rate. No captured law sets an hourly rate today: the insurer's appraiser and your shop must try to agree on the repair cost. St. 2026, c. 137, § 78 is session-law text adding M.G.L. c. 175, §§ 231 and 232; the General Laws page did not yet print it. It creates an advisory board, a survey and a possible rate hearing, not a minimum labor rate. In setting any rate the commissioner must also consider the best available market data and the impact on premiums, including phasing the rate in over no more than 3 years. | Survey or rate standard“Section 232. (a) The commissioner of insurance shall, every 4 years, issue the labor reimbursement rate survey to auto body shops and insurers, as established by the auto body labor reimbursement rate advisory board established in section 231.” St. 2026, c. 137, § 78, approved 7/9/2026 Survey or rate standard“The survey shall compile data pertaining to contracted hourly labor reimbursement rates, posted hourly labor reimbursement rates and any additional information the advisory board deems relevant.” St. 2026, c. 137, § 78, approved 7/9/2026 Survey or rate standard“(2) If the commissioner, through review of the labor reimbursement rate surveys and consideration of competition concludes that a reasonable degree of competition does not exist, then the commissioner shall implement a full rate hearing, under the regulations of the division of insurance, to establish a minimum auto body labor reimbursement rate for the commonwealth or a region thereof.” St. 2026, c. 137, § 78, approved 7/9/2026 Related claim rule“If the appraiser and the repair shop fail to agree on a price for repairs, the appraiser shall not obtain a competitive estimate from another repair shop unless the owner of such other shop, or his authorized agent, either of which shall be a licensed appraiser, has inspected the vehicle and prepared an itemized estimate of repairs to be performed.” M.G.L. c. 26, § 8G, General Laws text with amendments passed before 5/31/2026 What the insurer pays“The appraisers representing the insurance company and the registered
repair shop selected by the insured to do the repair shall attempt to agree on the estimated
cost for such repairs. The registered repair shop must prepare an appraisal for the purpose
of negotiation. No appraiser shall modify any published manual (i.e., Motors, Mitchell or
any automated appraisal system) without prior negotiation between the parties.” 212 CMR 2.04, mass.gov date 9/9/2008 |
| MichiganAll Michigan rules | Michigan has no labor rate or survey law. The insurer can't unreasonably restrict the insured from using your shop. The law also tells the state insurance office to inform consumers that the insurer needn't pay more than a reasonable amount for repairs and parts. As a persistent practice, the insurer can't fail to try in good faith to settle fairly or lowball insureds into suing. Whether a rate is reasonable is a question for the Department of Insurance and Financial Services or a lawyer. Section 2110b covers automobile insurers and protects insureds; its consumer-information part is a duty on the state insurance office (named in the statute as the office of financial and insurance services), not a payment rule for insurers. Section 2026 practices count only as a course of conduct showing a persistent tendency, not isolated incidents. | Related claim rule“An automobile insurance policy and an automobile insurer and its employees, agents, and adjusters shall not unreasonably restrict an insured from using a particular person, place, shop, or entity for the providing of any automobile repair or automobile glass repair or replacement service or product covered by the policy.” MCL 500.2110b, effective 7/8/2004 Related claim rule“The office of financial and insurance services shall develop a plan whereby the office informs consumers of their rights regarding insurance coverage of automobile repairs, that the insurer is not required to pay more than a reasonable amount for repairs and parts” MCL 500.2110b, effective 7/8/2004 Related claim ruleFrom a list that begins: “Unfair methods of competition and unfair or deceptive acts or practices in the business of insurance, other than isolated incidents, are a course of conduct indicating a persistent tendency to engage in that type of conduct and include:” “Failing to attempt in good faith to effectuate prompt, fair, and equitable settlements of claims in which liability has become reasonably clear.” MCL 500.2026, effective 4/1/1977 What the insurer pays“Compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts due the insureds.” MCL 500.2026, effective 4/1/1977 |
| MinnesotaAll Minnesota rules | Minnesota has no law on how the insurer sets the labor rate and no labor rate survey rule. On a partial loss, the insurer must either pay all costs of satisfactory repair, hidden damage included, or offer cash enough to pay for it. When a claim is reported, it must tell your customer the policy covers reasonable repair costs no matter where the car is fixed. Refusing to pay part of an insured's claim with no good faith dispute is an unfair settlement practice. The partial-loss rule applies when the policy settles partial losses by repair or replacement with like kind and quality and the insured is not a dealer; the commissioner need not show a general business practice to act. Section 604.18 helps only an insured, not a third-party claimant, and caps the award at half the excess over the insurer's offer or $250,000, whichever is less, plus up to $100,000 in attorney fees. The insurer's assumption of repair costs may be reduced by applicable policy provisions. | What the insurer paysFrom a list that begins: “the following acts by an insurer, adjuster, or a self-insured or self-insurance administrator constitute unfair settlement practices:” “(2) if an automobile insurance policy provides for the adjustment and settlement of an automobile partial loss on the basis of repair or replacement with like kind and quality and the insured is not an automobile dealer, failing to offer one of the following methods of settlement:
(a) to assume all costs, including reasonable towing costs, for the satisfactory repair of the motor vehicle.” Minn. Stat. § 72A.201, 2025 edition What the insurer pays“At the time a claim is reported, the insurer must provide the following advisory to the insured or claimant:
"You have the legal right to choose a repair shop to fix your vehicle. Your policy will cover the reasonable costs of repairing your vehicle to its pre-accident condition no matter where you have repairs made.” Minn. Stat. § 72A.201, 2025 edition Related claim ruleFrom a list that begins: “The following acts by an insurer, an adjuster, a self-insured, or a self-insurance administrator constitute unfair settlement practices:” “(3) refusing to pay one or more elements of a claim by an insured for which there is no good faith dispute;” Minn. Stat. § 72A.201, 2025 edition Related claim rule“(a) The court may award as taxable costs to an insured against an insurer amounts as provided in subdivision 3 if the insured can show:
(1) the absence of a reasonable basis for denying the benefits of the insurance policy; and” Minn. Stat. § 604.18, 2025 edition What the insurer paysFrom a list that begins: “(2) if an automobile insurance policy provides for the adjustment and settlement of an automobile partial loss on the basis of repair or replacement with like kind and quality and the insured is not an automobile dealer, failing to offer one of the following methods of settlement:” “(b) to offer a cash settlement sufficient to pay for satisfactory repair of the vehicle. Satisfactory repair includes repair of obvious and hidden damage caused by the claim incident, and includes reasonable towing costs;” Minn. Stat. § 72A.201, 2025 edition |
| MissouriAll Missouri rules | Missouri has no law on how the insurer sets the labor rate and no labor rate survey rule. The nearest rules: an insurer's repair estimate must be an amount that can reasonably be expected to get the car satisfactorily repaired, and the claimant gets a copy. The insurer can't base a first-party cash settlement on less than it would pay for repairs unless the insured agrees. Lowballing insureds to force them to sue is an improper claims practice. The listed acts are improper claims practices only when committed in conscious disregard of the law or often enough to indicate a general business practice (section 375.1005). The cash-settlement rule protects first-party claimants and does not apply to total losses. | Related claim ruleFrom a list that begins: “Any of the following acts by an insurer, if committed in violation of section 375.1005, constitutes an improper claims practice:” “(4) Not attempting in good faith to effectuate prompt, fair and equitable settlement of claims submitted in which liability has become reasonably clear;” RSMo 375.1007, effective 8/28/1993 Related claim ruleFrom a list that begins: “Any of the following acts by an insurer, if committed in violation of section 375.1005, constitutes an improper claims practice:” “(5) Compelling insureds or beneficiaries to institute suits to recover amounts due under its policies by offering substantially less than the amounts ultimately recovered in suits brought by them;” RSMo 375.1007, effective 8/28/1993 What the insurer pays“1. If an insurer prepares an estimate of the cost of automobile repairs, the estimate shall be in an amount for which it may be reasonably expected the damages can be satisfactorily repaired. The insurer shall give a copy of the estimate to the claimant and may furnish to the claimant the names of one (1) or more conveniently located repair shops.” 20 CSR 100-1.050, effective 7/30/2019 (PDF) What the insurer pays“(G) The insurer shall not use as a basis for cash settlement with a first-party claimant an amount which is less than the amount which the insurer would pay if repairs were made, other than in total loss situations, unless the amount is agreed to by the insured.” 20 CSR 100-1.050, effective 7/30/2019 (PDF) |
| MontanaAll Montana rules | Montana has no labor rate survey law. The insurer must pay the reasonable and necessary cost of covered repairs at the shop your customer chooses, less the deductible, but it doesn't have to pay more than the market price: the price you and the insurer agree on, or the prevailing competitive rate that is reasonable and necessary locally. The insurer can't ignore a cost in an estimating system you both agreed to use, and you can't charge a claimant more than an uninsured customer. The market price may not be less than cost as provided in 30-14-209. Section 33-18-224 binds insurers that issue or renew motor vehicle policies in Montana and covers both insureds and third-party claimants; an insurer that contracts with an independent adjuster isn't liable for that adjuster's failure to comply. | Survey or rate standard“"market price" means the:
(a) price agreed upon between the insurer and the business; or
(b) prevailing competitive rate that is reasonable and necessary in the local area where the repairs are to be performed.
(2) The market price may not be less than cost as provided in 30-14-209.” MCA 33-18-222, 2025 edition What the insurer pays“The claimant may use an automobile body repair business or location at the claimant's sole discretion, and the insurance company shall pay for the reasonable and necessary cost of the automobile body repair services for covered damages, less any deductible under the terms of the policy. This section does not require an insurer to pay more for automobile body repair services than the market price, as defined in 33-18-222.” MCA 33-18-224, 2025 edition What the insurer paysFrom a list that begins: “An insurance company, including its producers and adjusters, that issues or renews a policy of insurance in this state covering, in whole or in part, a motor vehicle may not:” “unilaterally disregard a repair operation or cost identified by an estimating system that the insurer and an automobile body repair business or location have agreed to utilize in determining the cost of repair.” MCA 33-18-224, 2025 edition What the insurer pays“It is unlawful for an automobile body repair business or location to charge or agree to charge a claimant more than an uninsured customer for any automobile body repair service.” MCA 33-18-224, 2025 edition |
| New JerseyAll New Jersey rules | New Jersey has no labor rate or survey law. An insurer with a shop network can't deny your customer the right to use you, as long as you accept the same terms, including price, as its most generous arrangement. It must negotiate in good faith and make all reasonable efforts to reach an agreed price with the shop the insured picks. Department guidance from 2007, mainly about paint and materials, says insurers should be ready to justify repair allowances. Under 17:33B-36.1, before repairs your shop must give the insured a signed notice that accepting the network's terms may jeopardize a manufacturer or dealer warranty or lease. N.J.A.C. 11:3-10.3 is the Department's own publication of the rule and covers the insured's own physical damage claim. Bulletin 07-20 (guidance, issued 10/25/2007) is not law and cites no statute or rule. Bulletin 07-20 is chiefly about paint and materials allowances. | What the insurer pays“the insurer shall not deny a person the right to select an auto body repair shop or other repair facility of his choice for repair of a covered vehicle, provided that such auto body repair shop or other repair facility elected by the person accepts the same terms and conditions from the insurer, including, but not limited to, price, as the shop, facility, or network with which the insurer has the most generous arrangement.” N.J.S.A. 17:33B-36.1, text through P.L.2026, c.50 Related claim ruleFrom a list that begins: “Committing or performing with such frequency as to indicate a general business practice any of the following:” “(f) Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear;” N.J.S.A. 17:29B-4, text through P.L.2026, c.50 Related claim rule“(b) Negotiations must be conducted in good faith, with the basic goal of promptly arriving at an agreed price. Early in negotiations, the insurer must inform and confirm in writing to the insured or the insured's designated representative all deductions that will be made from the agreed price, including the amount of applicable deductible.” N.J.A.C. 11:3-10.3, DOBI copy, readopted 11/3/2021 (PDF) What the insurer pays“The insurer must make all reasonable efforts to obtain an agreed price with the facility selected by the insured. The insurer may recommend, and if the insured requests, must recommend a qualified repair facility at a location reasonably convenient to the insured motor vehicle who will repair the damaged motor vehicle at the insurer's estimated cost of repairs” N.J.A.C. 11:3-10.3, DOBI copy, readopted 11/3/2021 (PDF) Related claim rule“The Department is monitoring insurer claim practices to confirm that allowances for all aspects of the repair process are sufficient. As complaints are received by insurers and the Department, our Office of Consumer Protection Services will be conducting appropriate reviews during the market analysis and market conduct examination process. Insurers are expected to be prepared to justify their repair allowances.” N.J. DOBI Bulletin 07-20, issued 10/25/2007 (PDF) |
| New YorkAll New York rules | New York has no labor rate survey law. As a general business practice, the insurer can't artificially lower cost data used to adjust claims or use cost data that doesn't fit the region of the loss. On your customer's own collision or comprehensive claim, if it inspects first, it must make a good faith offer enough to repair the car within six business days, negotiate in good faith toward an agreed price, and on request name a shop that will repair it for its estimate. Section 216.7 covers collision and comprehensive claims, and its text comes from the LII mirror, not the official publisher. Section 2601 practices count only when committed without just cause and often enough to be a general business practice; each violation can draw a monetary penalty, and a violation is not a misdemeanor. If the insured designates your registered shop in writing as the designated representative, you can negotiate the repair amount on the insured's behalf. | What the insurer paysFrom a list that begins: “Any of the following acts by an insurer, if committed without just cause and performed with such frequency as to indicate a general business practice, shall constitute unfair claim settlement practices:” “artificially deflating or otherwise lowering cost data used for adjusted claims, or using cost data that is not appropriate for the region of the state where the loss occurred;” N.Y. Ins. Law 2601, revised 1/4/2019 What the insurer pays“In addition, negotiations shall commence and a good faith offer of settlement, sufficient to repair the vehicle to its condition immediately prior to the loss, shall be made within the aforesaid six-day period to the designated representative” 11 NYCRR 216.7, effective 6/9/2021 (Cornell LII copy) Related claim rule“Negotiations must be conducted in good faith, with the basic goal of promptly arriving at an agreed price with the insured or the insured's designated representative.” 11 NYCRR 216.7, effective 6/9/2021 (Cornell LII copy) Related claim rule“Each item of damage must be detailed as to the paint, parts and labor hours it will require to repair that particular item. If the appraisal is made at a repair shop, the registration number of the shop must be included on the estimate form.” 11 NYCRR 216.7, effective 6/9/2021 (Cornell LII copy) What the insurer pays“The insurer must furnish the insured or the designated representative, at the express request of either, with the name and address of a New York State registered motor vehicle repairer, properly equipped to complete the repairs on the damaged motor vehicle (back-up shop), at a location reasonably convenient to the insured, who will repair the damaged motor vehicle at the insurer's estimated cost of repair.” 11 NYCRR 216.7, effective 6/9/2021 (Cornell LII copy) |
| North CarolinaAll North Carolina rules | North Carolina has no labor rate or survey law. Your customer picks the shop, and the insurer must pay the amount it decides is payable no matter which shop does the work. A 2026 session law requires payments, supplements included, within 10 business days after settlement on claims arising on or after October 1, 2026. Trying to settle for less than a reasonable person would think is owed is an unfair practice when done as a general business practice. G.S. 58-63-15(11) creates no cause of action for anyone other than the Commissioner. The 10-business-day rule rewrites G.S. 58-3-180(b) for claims arising on or after October 1, 2026, and the codified page did not yet show it. A violation of 58-3-180 carries a civil penalty of up to $2,000. | Related claim ruleFrom a list that begins: “Committing or performing with such frequency as to indicate a general business practice of any of the following:” “h. Attempting to settle a claim for less than the amount to which a reasonable man would have believed he was entitled;” G.S. 58-63-15, ncleg.gov text through S.L. 2026-30 Related claim ruleFrom a list that begins: “Committing or performing with such frequency as to indicate a general business practice of any of the following:” “f. Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear;” G.S. 58-63-15, ncleg.gov text through S.L. 2026-30 What the insurer pays“(a) A policy covering damage to a motor vehicle shall allow the claimant to select the repair service or source for the repair of the damage.
(b) The amount determined by the insurer to be payable under a policy covering damage to a motor vehicle shall be paid regardless of the repair service or source selected by the claimant.” G.S. 58-3-180, ncleg.gov text through S.L. 2026-30 Related claim ruleFrom a list that begins: “the insurer shall adhere to the following procedures:” “(2) Mail or deliver loss and claim payments within 10 business days after the claim is settled. Supplemental claims shall be handled in the same manner.” S.L. 2026-41, s. 32.3, effective 10/1/2026 Related claim rule“(6) An insurer shall, upon request, provide copies of the original estimate and all supplemental estimates to the claimant.” 11 NCAC 04 .0419, effective 10/1/2020 |
| OhioAll Ohio rules | Ohio has no labor rate or survey law. If the insurer settles on its own estimate and your customer gets a higher one, it must pay the difference or name a shop that will do the job for its estimate, and if it names just one, make sure the work is workmanlike. As a practice, it must offer fair and reasonable amounts based on its investigation. The Superintendent enforces these rules, and the claims rule itself creates no right to sue. Rule 3901-1-54 states it creates no private cause of action, and it judges conduct as a practice, not a single act, unless the act is malicious, deliberate, conscious and knowing. The superintendent may recover investigation costs and a penalty from the insurer. | What the insurer pays“If the claimant subsequently claims that necessary repairs will exceed the written estimate, the insurer shall pay the difference between the written estimate and a higher estimate obtained by the claimant or promptly provide the claimant with the name of at least one repair shop that will make the repairs for the amount of the written estimate.” OAC 3901-1-54, effective 2/14/2022 Related claim rule“An insurer shall not use settlement practices that result in compelling first party claimants to litigate by offering substantially less than the amounts claimed compared to the amount ultimately recovered in actions brought by such claimants.” OAC 3901-1-54, effective 2/14/2022 What the insurer paysFrom a list that begins: “It shall be deemed an unfair or deceptive practice to commit or perform with such frequency as to indicate a general business practice any of the following:” “Not offering first party or third party claimants, or their authorized representatives who have made claims which are fair and reasonable and in which liability has become reasonably clear, amounts which are fair and reasonable as shown by the insurer's investigation of the claim, providing the amounts so offered are within policy limits and in accordance with the policy provisions;” OAC 3901-1-07, effective 2/14/2022 Related claim ruleFrom a list that begins: “It shall be deemed an unfair or deceptive practice to commit or perform with such frequency as to indicate a general business practice any of the following:” “Misrepresenting a pertinent policy provision by making any payment, settlement, or offer of first party benefits, which, without explanation, does not include all amounts which should be included according to the claim filed by the first party claimant and investigated by the insurer;” OAC 3901-1-07, effective 2/14/2022 |
| PennsylvaniaAll Pennsylvania rules | Pennsylvania has no labor rate or survey law. An appraisal must be in the amount needed to return the car to its pre-damage condition and describe the labor involved. The appraiser must review it with your shop, if your customer chose you, or another person reasonably needed to show actual repair costs are covered. As a business practice, the insurer can't fail to try in good faith to settle fairly. Whether a rate complies is a question for the Insurance Department or a lawyer. The unfair claim practices in 40 P.S. 1171.5(a)(10) count only when frequent enough to indicate a business practice. Penalties for breaking the appraisal rules are set in sections 5, 6 and 9 of the appraisers act (63 P.S. 855, 856 and 859). | Related claim ruleFrom a list that begins: “Any of the following acts if committed or performed with such frequency as to indicate a business practice shall constitute unfair claim settlement or compromise practices:” “Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which the company's liability under the policy has become reasonably clear.” 40 P.S. 1171.5, amended 7/15/2024 What the insurer pays“An appraisal for the repair of the motor vehicle shall be made in the amount necessary to return the motor vehicle to its predamaged condition.” 31 Pa. Code 62.3, effective 10/23/1999 Related claim ruleFrom a list that begins: “In addition to the requirements in the act, the appraisal shall contain a written disclosure which includes the following:” “A description of repairs, known at the time of appraisal, necessary to return the vehicle to its predamaged condition, including labor involved, cost of all parts, necessary painting or refinishing and all sublet work to be done.” 31 Pa. Code 62.3, effective 10/23/1999 What the insurer paysFrom a list that begins: “In addition to the requirements in section 11 of the act (63 P. S. § 861), an appraiser shall:” “Review the appraisal with an authorized representative of the repair shop which is selected by the consumer or with any other person reasonably necessary to demonstrate that the actual costs of repairs are adequately covered in the appraisal.” 31 Pa. Code 62.3, effective 10/23/1999 What the insurer pays“If an insurer prepares an appraisal of the cost of automobile repairs, the appraisal shall be in an amount for which it may be reasonably expected the damage can be satisfactorily repaired.” 31 Pa. Code 146.8, effective 12/16/1978 |
| TennesseeAll Tennessee rules | Tennessee has no rule in this collection on how the insurer sets the labor rate and no survey rule. The insurer's estimate must be reasonable, allow workmanlike repairs, and be copied to the insured. If your customer's higher written estimate stays unresolved, the insurer must pay the difference or promptly name a shop that will do the work for its estimate, possibly one in the closest major metro area, even out of state. Undisputed amounts are due within 30 days after the insurer accepts liability. These are Department of Commerce and Insurance rules; the codified Tennessee Code is not in this collection, so no Tennessee statute is quoted. The estimate rule covers partial losses on the insured's own policy, and the named shop's price for the insurer's estimate does not include supplemental repairs found during the job. | What the insurer pays“The estimate prepared by or for the insurer shall be reasonable, in accordance with applicable policy provisions, and of an amount which will allow for repairs to be made in a workmanlike manner.” Tenn. Comp. R. & Regs. 0780-01-05-.09, effective 10/9/2017 (PDF) What the insurer paysFrom a list that begins: “and differences remain unresolved during the course of the repair or negotiation process, the insurer shall:” “(a) Pay the difference between the written estimate and a higher estimate obtained by the insured; or” Tenn. Comp. R. & Regs. 0780-01-05-.09, effective 10/9/2017 (PDF) What the insurer paysFrom a list that begins: “and differences remain unresolved during the course of the repair or negotiation process, the insurer shall:” “(b) Promptly provide the insured with the name of at least one (1) repair shop in areas proximate to the local market area, including the closest major metropolitan areas within or without the state, that will make the repairs for the amount of the written estimate, not considering the cost of supplemental or additional repairs which may be uncovered as part of the repair process.” Tenn. Comp. R. & Regs. 0780-01-05-.09, effective 10/9/2017 (PDF) Related claim rule“(6) The insurer shall tender payment within thirty (30) days of affirmation of liability, if the amount of the claim is determined and not in dispute, unless the policyholder does not want payment within thirty (30) days.” Tenn. Comp. R. & Regs. 0780-01-05-.08, effective 10/9/2017 (PDF) |
| TexasAll Texas rules | Texas has no labor rate or survey law. The insurer's required notice to your customer says it needn't pay more than a reasonable amount for repairs and parts. Discounting your labor for insurer referrals can't cut the insured's coverage, and the insurer can't stop you from telling your customer what you charged it for labor. Department guidance calls paying less than a reasonable amount an unfair claim practice. Whether a rate is reasonable is a question for the Department of Insurance or a lawyer. Chapter 1952 covers automobile insurance policies, and the 28 TAC 5.501 notice rule does not apply to the policy's "towing and labor costs coverage". Section 541.060 does not give a cause of action to a third party claiming against an insured. TDI Bulletin B-0031-10 (August 2, 2010) is Department guidance, not a statute or rule; it also says neither the required notice nor policy language suggests the reasonable amount be based on a limited number of preferred repair facilities. | What the insurer pays“A contract between an insurer and a repair person or facility, including an agreement under which the repair person or facility agrees to extend discounts for parts or labor to the insurer in exchange for referrals by the insurer, may not result in a reduction of coverage under an insured's automobile insurance policy.” Tex. Ins. Code 1952.303, effective 4/1/2007 Related claim rule“An insurer may not prohibit a repair person or facility from providing a beneficiary or third-party claimant with information that states:
(1) the description, manufacturer, or source of the parts used; and
(2) the amounts charged to the insurer for the parts and related labor.” Tex. Ins. Code 1952.304, effective 4/1/2007 Related claim ruleFrom a list that begins: “It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to engage in the following unfair settlement practices with respect to a claim by an insured or beneficiary:” “failing to attempt in good faith to effectuate a prompt, fair, and equitable settlement of:
(A) a claim with respect to which the insurer's liability has become reasonably clear;” Tex. Ins. Code 541.060, effective 4/1/2005 What the insurer pays“BY LAW, YOU HAVE THE RIGHT TO SELECT WHERE YOUR MOTOR VEHICLE IS REPAIRED AND THE PARTS USED FOR REPAIRS. HOWEVER, AN INSURANCE COMPANY IS NOT REQUIRED TO PAY MORE THAN A REASONABLE AMOUNT FOR SUCH REPAIRS AND PARTS.” 28 TAC 5.501, effective 10/12/2006 What the insurer pays“It is an unfair claim settlement practice for insurers to pay claimants an amount for the repair of the vehicle, including parts, that is not a reasonable amount for repairing or replacing the property with other of like kind and quality or is not sufficient enough to make the repairs necessary for the manufacturer to honor the vehicle warranty.” TDI Bulletin B-0031-10, issued 8/2/2010 (agency guidance, not a statute or rule) |
| VirginiaAll Virginia rules | Virginia doesn't set a labor rate. The insurer doesn't have to pay more than the prevailing competitive charges of similar shops within a reasonable area around your shop for repairs needed to restore the car to pre-loss condition. An estimate the insurer writes must be enough to reasonably expect a satisfactory repair, and your customer gets a copy. No one may set arbitrary, unreasonable caps on paint and materials. The Commission must investigate written complaints, including a shop's, with the insured's or claimant's written authorization. Under 38.2-517, an insurer explaining the extent of its obligation to its policyholder or a third party claimant is not a violation. An insurer is accountable for violations by its third party representative, and violators face the penalty and enforcement provisions of Chapter 2 of Title 38.2. | Survey or rate standard“B. This section shall not be construed to require an insurer to pay an amount for motor vehicle repair services or repair products necessary to properly and fairly repair the vehicle to its pre-loss condition that is greater than the prevailing competitive charges for equivalent services or products charged by similar contractors or repair shops within a reasonable geographic or trade area of the address of the repair facility.” Va. Code § 38.2-517 Related claim ruleFrom a list that begins: “No person shall:” “6. Engage in the practice of capping. As used in this subdivision, "capping" means the setting of arbitrary and unreasonable limits on what an insurer will allow as reimbursement for paint and materials.” Va. Code § 38.2-517 Related claim rule“The Commission shall investigate, with the written authorization of the insured or the claimant, any written complaints received pursuant to this section, regardless of whether such written complaints are submitted by an individual or a repair facility.” Va. Code § 38.2-517 What the insurer pays“D. When an insurer prepares an estimate of the cost of automobile repairs, the estimate shall be an amount for which the damage may reasonably be expected to be satisfactorily repaired. The insurer shall give a copy of the estimate to the claimant and may furnish to the claimant the names of one or more conveniently located qualified repair shops.” 14VAC5-400-80, effective 1/1/2018 What the insurer pays“D. In any case where there is no dispute as to coverage or liability, an insurer shall offer to a first party claimant an amount that is fair and reasonable as shown by the investigation of the claim, provided the amount so offered is within policy limits and in accordance with policy provisions.” 14VAC5-400-70, effective 1/1/2018 |
| WashingtonAll Washington rules | Washington doesn't set a labor rate, but since October 18, 2026 the insurer must show its math. If it uses a database, survey, estimating software or benchmarks for labor rates, it must tell your customer on request when and where the data was collected and which businesses supplied it. If it pays less than your estimate, it must disclose all the reasons, and on request explain in writing how it set labor and material costs. Breaking these rules is an unfair practice. These rules took effect October 18, 2026, and the survey-data and labor-cost explanations are owed on the claimant's request. If the claimant picks a shop whose cost exceeds the insurer's estimate, the insurer must tell the claimant he or she may be responsible for the difference (WAC 284-30-390(4)(c)). | Survey or rate standardFrom a list that begins: “A violation of any of the following is hereby defined as an unfair method of competition and an unfair or deceptive act or practice of the insurer in the business of insurance, specifically applicable to the settlement of claims:” “If an insurer uses a database, survey, estimating software, or benchmarks to account for either material pricing, labor rate, or both, and upon request of the claimant, the insurer must provide the claimant with the date the data was collected, where the data was collected from, and which businesses provided the cost data to the database, survey, estimating software, or benchmarks.” WAC 284-30-380, effective 10/18/2026 Survey or rate standard“If requested by the claimant, the insurer must provide in writing how the labor and material costs and repair processes were determined and cite relevant policy language.” WAC 284-30-390, effective 10/18/2026 What the insurer paysFrom a list that begins: “the following acts or practices of the insurer are hereby defined as unfair methods of competition and unfair or deceptive acts or practices in the business of insurance, specifically applicable to the settlement of motor vehicle claims:” “Unreasonably denying a claimant's estimate for repairs. If the insurer pays less than the amount of the estimate from the claimant's chosen repair facility, the insurer must promptly and fully disclose all of the reasons it paid less than the claimant's estimate” WAC 284-30-390, effective 10/18/2026 Related claim ruleFrom a list that begins: “the following acts or practices of the insurer are hereby defined as unfair methods of competition and unfair or deceptive acts or practices in the business of insurance, specifically applicable to the settlement of motor vehicle claims:” “Failing to prepare or accept an estimate provided by the claimant that will restore the loss vehicle to its condition prior to the loss.” WAC 284-30-390, effective 10/18/2026 Related claim rule“Insurers are responsible for the accuracy of their evaluations including, but not limited to, evaluations made on their behalf, to determine the amounts owed under the applicable insurance policy.” WAC 284-30-380, effective 10/18/2026 |
