Maryland body shop laws: what insurers and shops must do

What it means in Maryland

An adjuster, appraiser, insurance producer or insurer employee can't require your customer to use a specific repair shop, for the appraisal or the repair. They can recommend a shop, but only if they tell your customer they don't have to use it. This protects insureds and claimants alike. Adjusters and appraisers also can't take payment from a shop for recommending it.

Applies to "an adjuster, appraiser, or insurance producer or employee of an insurer." Adjusters and appraisers also may not accept payment from a shop for recommending it. Quoted from the Maryland General Assembly's statute text, checked October 23, 2026.

The law's own words

“require that an appraisal or repair be made in a specific repair shop”

Md. Code, Ins. § 10-503

“require that a claimant or insured use a specific contractor or repair shop for a repair service or repair product”

Md. Code, Ins. § 10-503

“recommend the use of a specific repair service or source for the repair or replacement of property damage to a motor vehicle without informing the claimant or insured that the claimant or insured does not have to use the recommended repair service or source”

Md. Code, Ins. § 10-503

What it means in Maryland

No rule in our Maryland collection requires the insurer to pay storage or give notice before it stops. You have a lien for storage when the owner left the car with you and asked for the work. If you hand a car you hold a lien on to someone else to store, their fees can't exceed $5 a day or $300 total. If a car is abandoned at your garage, report it within 10 days or lose any claim for service, storage or repair.

The parking-lot tow limits yield to local law. No rule in our Maryland collection requires an insurer to pay storage or give notice before it stops.

The law's own words

Shop

“Any person who, with the consent of the owner, has custody of a motor vehicle and who, at the request of the owner, provides a service to or materials for the motor vehicle, has a lien on the motor vehicle for any charge incurred for any: (i) Repair or rebuilding; (ii) Storage; or”

Md. Code, Com. Law § 16-202, mgaleg.maryland.gov text in effect as of 10/1/2026

Shop

“If property is stored, storage fees of the third party holder may not exceed $5 per day or a total of $300.”

Md. Code, Com. Law § 16-207, mgaleg.maryland.gov text in effect as of 10/1/2026

Shop

“Any garage keeper who fails to report the vehicle within 10 days after it becomes abandoned no longer has any claim for servicing, storage, or repair of the vehicle.”

Md. Code, Transp. § 25-208, mgaleg.maryland.gov text in effect as of 10/1/2026

Tow and storage lot

From a list that begins: “Unless otherwise set by local law, a person who undertakes the towing or removal of a vehicle from a parking lot:”

“If a political subdivision does not establish a fee limit for the public safety towing, recovery, or storage of impounded vehicles, $250 for towing and recovering a vehicle and $30 per day for vehicle storage; and”

Md. Code, Transp. § 21-10A-04, mgaleg.maryland.gov text in effect as of 10/1/2026

What it means in Maryland

You can keep the car until you're paid. Letting it go doesn't end the lien against your customer, but you can sell only a car you still have. Within 30 days after the lien arises, send every lender on the title a registered or certified letter, or a sale can't recover your storage. After 30 days unpaid, you can sell at public sale with two weekly newspaper notices and a letter 10 days ahead to the owner, lenders and the MVA. A disputing customer can take the car with a corporate bond for double your charge, discharged if you don't sue within six months.

Holders of perfected security interests must get notice within 30 days after the lien is created. The owner's corporate bond is discharged if the lienor does not sue within six months.

The law's own words

Keep the car

“Any person who, with the consent of the owner, has custody of a motor vehicle and who, at the request of the owner, provides a service to or materials for the motor vehicle, has a lien on the motor vehicle for any charge incurred for any: (i) Repair or rebuilding; (ii) Storage; or (iii) Tires or other parts or accessories.”

Md. Code, Com. Law § 16-202, mgaleg.maryland.gov text in effect as of 10/1/2026

Keep the car

“The lienor may retain possession of the property subject to the lien until: (1) The charges which give rise to the lien are paid; or (2) The lien is otherwise discharged in accordance with this subtitle.”

Md. Code, Com. Law § 16-203, mgaleg.maryland.gov text in effect as of 10/1/2026

Sell or title it

“If the charges which give rise to a lien are due and unpaid for 30 days and the lienor is in possession of the property subject to the lien, the lienor may sell the property to which the lien attaches at public sale.”

Md. Code, Com. Law § 16-207, mgaleg.maryland.gov text in effect as of 10/1/2026

Sell or title it

“In addition, the lienor shall send the notice by registered or certified mail at least 10 days before the sale to: (i) The owner of the property, all holders of perfected security interests in the property and, in the case of a sale of a motor vehicle or mobile home, the Motor Vehicle Administration;”

Md. Code, Com. Law § 16-207, mgaleg.maryland.gov text in effect as of 10/1/2026

Get it back

“If the owner of property subject to a lien disputes any part of the charge for which the lien is claimed, he immediately may repossess his property by filing a corporate bond for double the amount of the charge claimed.”

Md. Code, Com. Law § 16-206, mgaleg.maryland.gov text in effect as of 10/1/2026

What it means in Maryland

Maryland's crash parts rules bind you. Before starting, list the replacement parts for the owner and say whether they're genuine; if any are aftermarket, include a 10-point capitals statement that they may modify the carmaker's warranty and that you'll provide any available parts warranty on request. A violation is an unfair or deceptive practice. On request, the insurer must give the insured a copy of any available aftermarket parts warranty. Whether it can require them is a question for state insurance regulators or a lawyer.

Crash parts mean exterior or interior sheet metal or fiberglass body panels and parts, and the subtitle covers passenger cars, not motor homes. The subtitle does not stop a person from suing a body shop for damages or require using administrative remedies first. Nothing in this collection says whether the insurer may require aftermarket parts.

The law's own words

Insurer

“An insurer that issues or delivers in the State a policy of motor vehicle liability insurance that provides coverage for the repair of physical damage to the motor vehicle shall provide, on request of the insured, a copy of the warranty for aftermarket crash parts, if available.”

Md. Code, Ins. § 27-906, mgaleg.maryland.gov text in effect as of 10/1/2026

Shop

“Before beginning repair work on crash parts, a body shop shall: (1) Provide a list to the vehicle owner of the replacement crash parts that the body shop intends to use in making repairs; and (2) Specify whether the replacement parts are genuine crash parts.”

Md. Code, Com. Law § 14-2302, mgaleg.maryland.gov text in effect as of 10/1/2026

Shop

“If the replacement crash parts to be used by the body shop in the repair work are aftermarket crash parts, the body shop shall include with its estimate the following written statement:”

Md. Code, Com. Law § 14-2302, mgaleg.maryland.gov text in effect as of 10/1/2026

Parts standard

“The use of certain aftermarket crash parts may modify the original manufacturer’s warranty on the crash parts being replaced. Upon request of the customer, the body shop shall provide, if available, a copy of any warranty for an aftermarket crash part used.”

Md. Code, Com. Law § 14-2302, mgaleg.maryland.gov text in effect as of 10/1/2026

Shop

“The invoice shall state clearly: (1) If any used, rebuilt, or reconditioned parts have been supplied or if a part of a component system supplied is composed of used, rebuilt, or reconditioned parts; and”

Md. Code, Com. Law § 14-1003, mgaleg.maryland.gov text in effect as of 10/1/2026

What it means in Maryland

Maryland's captured law has no appraisal statute or required appraisal clause. On a total loss, the insurer's offer must tell your customer they can get the valuation method in writing and can reject the offer in writing with a counteroffer; if the insurer rejects that, it must explain why within 5 business days. A pattern of lowballing to force lawsuits is an unfair practice. On their own policy, your customer can file a bad-faith complaint with the Maryland Insurance Administration first, then sue.

The total-loss rules cover first- and third-party claimants; the insurer must answer a written-information request within 7 business days, and the 5-day explanation comes from COMAR 31.15.12.06. The bad-faith action covers first-party property and casualty claims only, attorney fees are capped at one-third of actual damages, and small-claims cases skip the Administration step.

The law's own words

Other dispute rules

From 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, 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

Other dispute rules

“(d) (1) A complaint stating a cause of action under § 3–1701 of the Courts Article shall first be filed with the Administration.”

Md. Code, Ins. § 27-1001, mgaleg.maryland.gov text in effect as of 10/1/2026

Other dispute rules

“(e) Notwithstanding any other provision of law, if the trier of fact in an action under this section finds in favor of the insured and finds that the insurer failed to act in good faith, the insured may recover from the insurer:”

Md. Code, Cts. & Jud. Proc. § 3-1701, mgaleg.maryland.gov text in effect as of 10/1/2026

Other dispute rules

From a list that begins: “A settlement offer made by an insurer pursuant to Regulation .04 of this chapter shall:”

“(2) Inform the claimant that, on request from the claimant, the insurer shall provide the claimant in writing: (a) A copy of the settlement offer; (b) The method used to arrive at the value of the motor vehicle, including identification of any books, manuals, or databases used;”

COMAR 31.15.12.05, effective 7/5/2004

Other dispute rules

From a list that begins: “A settlement offer made by an insurer pursuant to Regulation .04 of this chapter shall:”

“(3) Inform the claimant that the claimant may, in writing, reject the settlement offer and make a counteroffer in accordance with Regulation .06 of this chapter.”

COMAR 31.15.12.05, effective 7/5/2004

What it means in Maryland

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.

The law's own words

Related claim rule

From 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 rule

From 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 rule

From 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 rule

From 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

What it means in Maryland

Maryland has no rule on capping paint and materials. It's an unfair claim practice for an insurer to fail to act in good faith in settling a first-party property and casualty claim, meaning an informed judgment based on honesty and diligence, backed by evidence. A lawsuit over it under the Courts Article must first go to the Insurance Administration as a complaint. Whether a materials cut is bad faith is a question for the Insurance Administration or a lawyer.

The good-faith rule and the complaint process cover first-party claims under the insured's own property and casualty policy. The complaint-first step doesn't apply to small claims cases, when both sides waive it, or to commercial claims with limits over $1,000,000; attorney's fees awarded can't exceed one-third of actual damages.

The law's own words

Related claim rule

From 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:”

“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 rule

“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 rule

“A complaint stating a cause of action under § 3–1701 of the Courts Article shall first be filed with the Administration.”

Md. Code, Ins. § 27-1001, mgaleg.maryland.gov text in effect as of 10/1/2026

Related claim rule

From a list that begins: “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:”

“Fails to make good faith attempts to settle claims promptly, fairly, or equitably once liability has become reasonably clear.”

COMAR 31.15.07.03, effective 1/26/2009

What it means in Maryland

Maryland's rules give the insurer 15 working days to acknowledge a claim and 15 working days after a completed claim form or proof of loss to accept or deny. They define unreasonable payment delay as not paying amounts properly due within 15 working days of that claim form or proof of loss, when coverage, liability and amount aren't seriously disputed. If the insurer fails to act in good faith on your customer's own claim, a court can award interest from when it should have paid.

The 15-working-day rules apply when the conduct is frequent enough to be a general business practice, a longer period in the policy controls, and days spent waiting on information the insurer asked for don't count. On a first-party claim, an investigation past 45 days needs a written reason, repeated every 45 days. The good-faith remedy covers first-party property and casualty claims, generally requires a complaint to the Maryland Insurance Administration first, and caps attorney fees at one third of actual damages. A 1.5 percent monthly interest rule applies only to PIP benefits.

The law's own words

If late

From a list that begins: “if the trier of fact in an action under this section finds in favor of the insured and finds that the insurer failed to act in good faith, the insured may recover from the insurer:”

“(3) Interest on all actual damages, expenses, and litigation costs incurred by the insured, computed: (i) At the rate allowed under § 11–107(a) of this article; and (ii) From the date on which the insured’s claim would have been paid if the insurer acted in good faith.”

Md. Code, Cts. & Jud. Proc. § 3-1701, mgaleg.maryland.gov text in effect as of 10/1/2026

Respond

From a list that begins: “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:”

“(10) Fails, upon receipt of notification of claims, to acknowledge receipt of the notification within 15 working days, unless payment is made within that period of time.”

COMAR 31.15.07.03, effective 1/26/2009

Accept or deny

From a list that begins: “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:”

“(12) Fails to affirm or deny coverage of claims within 15 working days after receiving properly completed claim forms or other proofs of loss, unless the provisions of Regulation .04B of this chapter apply or unless there is a time limit specified in the policy.”

COMAR 31.15.07.03, effective 1/26/2009

Pay

““Unreasonable delay” means, except with respect to claims for personal injury protection benefits made pursuant to Insurance Article, §19-505, Annotated Code of Maryland, the failure to make payment to claimants of amounts properly due them within 15 working days after receipt of a properly completed claim form or other proof of loss unless a longer period of time is provided for in the insurance contract or unless otherwise provided for by law, when there is no significant dispute as to coverage, liability, and amount of damages.”

COMAR 31.15.07.02, effective 2/1/2016

Pay

From a list that begins: “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