Massachusetts body shop laws: what insurers and shops must do

What it means in Massachusetts

Appraisers and insurers can't ask or suggest that your customer use a particular shop, refer your customer to or away from any shop, or require one. Inside an approved direct payment plan, the insurer still can't require a shop, but referral shops are allowed: the plan must give your customer one list of every registered shop, and the insurer may mark at least five nearby referral shops on it. It can't hand out a separate list of only its referral shops.

Referral shops are allowed inside approved direct payment plans, which must give the claimant one list of all registered shops.

The law's own words

“No appraiser or insurer shall request or suggest that repairs be made in a specified repair shop.”

M.G.L. c. 26, § 8G, General Laws text with amendments passed before 5/31/2026

“No staff or independent appraiser, insurer, representative of insurer, or employer of an independent appraiser shall refer the claimant to or away from any specific repair shop or require that repairs be made by a specific repair shop or individual.”

212 CMR 2.04, mass.gov date 9/9/2008

“No direct payment plan approved under 211 CMR 123.00, and no insurer in implementing such plan, shall require a claimant to have repairs made at any specific repair shop.”

211 CMR 123.06, mass.gov text, undated

What it means in Massachusetts

No rule in our Massachusetts collection makes the insurer pay storage or sets a notice period before it stops. If you give the insurer written notice of your lien, its check for your charges must name you as a payee, along with any lender. A car can't be moved to a holding area as a total loss without the owner's consent. Before repairs are authorized, tell the customer when you charge storage and the rate; a clear sign at your shop counts.

The loss-payee rule applies when an insurer pays or reimburses the garage's charges. The storage disclosure is met if the shop posts it clearly on its premises.

The law's own words

Shop

“Persons maintaining public garages for the storage and care of motor vehicles brought to their premises or placed in their care by or with the consent of the owners thereof and persons engaged in performing work upon or in connection with the inspection, reconditioning and repairing of motor vehicles shall have a lien upon such motor vehicles for proper charges due them for the storage, work and care”

M.G.L. c. 255, § 25, General Laws text with amendments passed before 5/31/2026

Insurer

“upon written notice by the holder of such lien to the insurance company, the check or draft issued by such insurance company for such charges shall name the holder of the lien, together with the holder of a security interest as defined by ARTICLE 9 of chapter one hundred and six, as a loss payee, unless otherwise provided by law.”

M.G.L. c. 255, § 25, General Laws text with amendments passed before 5/31/2026

Shop

“It is an unfair or deceptive act or practice for a repair shop to fail to inform a customer, prior to obtaining oral or written authorization to perform repairs on the customer's vehicle, of the following information: (a) The conditions under which the repair shop may impose storage charges and the daily or hourly amount of such charges;”

940 CMR 5.05, mass.gov date 7/9/2004

Insurer

“No motor vehicle may be deemed a total loss unless it has been inspected or appraised by a licensed appraiser nor shall any such motor vehicle be moved to a holding area without the consent of the owner.”

212 CMR 2.04, mass.gov date 9/9/2008

What it means in Massachusetts

You have a lien for proper storage and repair charges, but Massachusetts law doesn't expressly say you can hold the car; that's a question for a lawyer. If your customer gets the car by fraud, a trick or a bounced check, the lien stays alive and you can keep enforcing it. To sell, deliver a written demand; if you're not paid within 10 days, you can sue in superior or district court, and the car is sold only if the court orders it. Our collection shows no bond or deposit that lets your customer get the car back during the dispute.

Massachusetts law grants the lien but does not expressly say the garage may retain possession. The sale route is court-only (c. 255, §§ 26 and 29). No bond or deposit release appears in our collection.

The law's own words

Keep the car

“Persons maintaining public garages for the storage and care of motor vehicles brought to their premises or placed in their care by or with the consent of the owners thereof and persons engaged in performing work upon or in connection with the inspection, reconditioning and repairing of motor vehicles shall have a lien upon such motor vehicles for proper charges due them for the storage, work and care of the same.”

M.G.L. c. 255, § 25, General Laws text with amendments passed before 5/31/2026

Keep the car

“If the owner of such motor vehicle obtains possession of the same by fraud, trick or by check, draft or order upon any depository or bank which is not honored, the lien on said motor vehicle shall not be deemed to have been discharged and the lien holder may thereafter continue to enforce said lien until the proper charges due him have been paid.”

M.G.L. c. 255, § 25, General Laws text with amendments passed before 5/31/2026

Sell or title it

“in the case of a lien described in section twenty-four, twenty-five or twenty-five A within ten days, or in other cases within sixty days, after a demand in writing delivered to the debtor or left at his usual place of abode, if within the commonwealth, or mailed postpaid to him at his usual place of abode without the commonwealth, may bring a civil action in the superior court or in a district court”

M.G.L. c. 255, § 26, General Laws text with amendments passed before 5/31/2026

Sell or title it

“If, upon a default or a trial it is found that a lien exists upon the property and that the property ought to be sold for the satisfaction of the debt, the court may make an order for such sale, determine and record the amount then due and award costs to the prevailing party.”

M.G.L. c. 255, § 29, General Laws text with amendments passed before 5/31/2026

What it means in Massachusetts

In Massachusetts, when a part must be replaced, the insurer's appraiser must write a rebuilt, aftermarket or used part of like kind and quality, unless safety would suffer, none can be found, new OEM is cheaper overall, or the car has 20,000 miles or less. Every estimate, the insurer's or yours, must identify each major non-OEM crash part with a 10-point warranty notice. If you use the appraisal's parts and both sides agree they're unfit, the insurer pays to make them usable.

Section 34R covers visible exterior sheet metal or plastic crash parts and requires your repair order to name the maker or supplier of any non-OEM crash parts used; a violation is an unfair or deceptive act under chapter 93A. The mileage exception in 211 CMR 133.04 is 20,000 miles for policies written or renewed on or after January 1, 2004 (15,000 for older policies), unless the pre-accident condition warrants otherwise. A part is of like kind and quality when it is of equal or better condition than the pre-accident part.

The law's own words

Insurer

“Whenever repairs are necessary to the visible exterior sheet metal or plastic parts of a damaged motor vehicle, any insurer or repairer preparing a written estimate of the cost of such repairs shall clearly identify in such estimate each major replacement crash part to be used which is not manufactured or supplied by the original manufacturer of the motor vehicle.”

M.G.L. c. 90, § 34R, General Laws text with amendments passed before 5/31/2026

Parts standard

“The repair estimate is based in part on the use of replacement parts which are not made by the original manufacturer of the damaged parts in your vehicle. Warranties, if any, applicable to these replacement parts are provided by their manufacturer or supplier rather than the manufacturer of your vehicle.”

M.G.L. c. 90, § 34R, General Laws text with amendments passed before 5/31/2026

Shop

“The repairer shall, on the customer's repair order or repair certification form, identify by name the manufacturer or supplier of any non-original manufacturer crash parts used in making the actual repairs.”

M.G.L. c. 90, § 34R, General Laws text with amendments passed before 5/31/2026

Insurer

“When it is determined that a part must be replaced, a rebuilt, aftermarket or used part of like kind and quality shall be used in the appraisal unless: (a) the operational safety of the vehicle might otherwise be impaired;”

211 CMR 133.04, mass.gov text, undated

Insurer

“When an insurance company specifies the use of used, rebuilt, or aftermarket parts, the source and specific part(s) must be indicated on the appraisal. If the repairer uses the source and specified part(s) indicated on the appraisal and these parts are later determined by both parties to be unfit for use in the repair, the insurance company shall be responsible for the costs of restoring the parts to usable condition.”

211 CMR 133.04, mass.gov text, undated

What it means in Massachusetts

Massachusetts requires every policy covering physical damage to the insured's own car to include an appraisal clause. If your customer, as named insured, and the insurer can't agree on the amount of loss, either can demand appraisal in writing within 60 days after the insurer gets proof of loss. Each picks an appraiser, the two pick an umpire, a written award by any two sets the amount, and each side pays its own appraiser and splits the rest.

Section 191A covers the named insured's own physical damage policy, not third-party claims; if the appraisers can't agree on an umpire within 15 days, a judge picks one, and the insurer must pay within 60 days after proof of loss as the policy provides. Outside appraisal, the insurer's appraiser and your shop must try to agree on the repair cost, and under c. 26, § 8G, no appraiser may complete an auto damage report unless licensed.

The law's own words

Appraisal right

“If the named insured and the company fail to agree as to the amount of loss, each shall, on the written demand of either, made within sixty days after receipt of proof of loss by the company, select a competent and disinterested appraiser, and the appraisal shall be made at a reasonable time and place.”

M.G.L. c. 175, § 191A, General Laws text with amendments passed before 5/31/2026

How appraisal works

“An award in writing of any two shall determine the amount of loss. The named insured and the company shall each pay his or its chosen appraiser and shall bear equally the other expenses of the appraisal and umpire.”

M.G.L. c. 175, § 191A, General Laws text with amendments passed before 5/31/2026

Other dispute rules

“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

Other dispute rules

“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

How appraisal works

“The appraisers shall first select a competent and disinterested umpire, and failing for fifteen days to agree upon such umpire, then, on the request of the named insured or the company, such umpire shall be selected by a judge of a court of record in the county and state in which such appraisal is pending.”

M.G.L. c. 175, § 191A, General Laws text with amendments passed before 5/31/2026

What it means in Massachusetts

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.

The law's own words

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

What it means in Massachusetts

Massachusetts has no rule banning paint and materials caps by name, but it sets the method. The appraiser must itemize all parts, labor, materials and procedures needed to restore the car to pre-accident condition. For paint, paint materials, body materials and related materials, if your shop or the appraiser won't accept the dollars-times-hours formula, a published manual or other documentation must be used unless the two sides negotiate otherwise. The appraiser can't modify a published manual without first negotiating.

These are licensed-appraiser rules; the shop side must be a registered repair shop with a licensed appraiser. The insurer may skip assigning an appraiser on claims where the loss, less any deductible, is under $1,500. The text doesn't say which manual or documentation must be used; that's a question for the Division of Insurance or a lawyer.

The law's own words

Capping rule

“With respect to paint, paint materials, body materials and related materials, if the formula of dollars times hours is not accepted by a registered repair shop or licensed appraiser, then a published manual or other documentation shall be used unless otherwise negotiated between the parties.”

212 CMR 2.04, mass.gov date 9/9/2008

What the insurer pays

“The appraiser shall itemize the cost of all parts, labor, materials, and necessary procedures required to restore the vehicle to pre-accident condition and shall total such items.”

212 CMR 2.04, mass.gov date 9/9/2008

Related claim rule

“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.”

212 CMR 2.04, mass.gov date 9/9/2008

Related claim rule

“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

What it means in Massachusetts

On collision claims, the insurer has 7 days to pay after it gets your customer's claim form saying the work is done, and must pay you directly in that time if your customer asked in writing. If it doesn't, your customer can sue, and a court can double damages for an unreasonable refusal. Appraisers must be assigned within 2 business days (claims under $1,500 after the deductible can be excluded), and a third party's written demand gets a written decision within 15 working days.

The 7-day payment and double-damages rules apply to collision and limited collision claims, and the court remedy belongs to the insured; missing the 7-day direct payment to the shop also brings penalties set by the appraisers licensing board. The 15-working-day decision covers property damage liability and certain limited collision claims made by written demand. Under an approved direct payment plan, payment is due within 5 business days after the appraisal. If the insurer, shop and customer agree to expedited supplements, the insurer must answer a shop's supplement request within 2 business days.

The law's own words

Accept or deny

“The insurer shall, within fifteen working days after receipt of such written demand respond in writing setting forth its decision as to whether it accepts the claim, accepts a part of the claim, rejects the claim, or, if applicable, the amount at which it is willing to compromise the claim and the reasons therefor.”

M.G.L. c. 90, § 34O, General Laws text with amendments passed before 5/31/2026

Pay

“The insurer shall be required to make payment directly to the repair shop within seven days of receipt of the claim form stating that the work has been completed if the insured has so indicated to the insurer in writing.”

M.G.L. c. 90, § 34O, General Laws text with amendments passed before 5/31/2026

If late

“where the insurer fails to make payment within seven days of receipt of the above claim form, the insured may commence a civil action for payments claimed to be due. If the court determines that the insurer was unreasonable in refusing to pay said insured's claim, the claimant shall be entitled to recover double the amount of damage plus costs and reasonable attorneys' fees fixed by the court.”

M.G.L. c. 90, § 34O, General Laws text with amendments passed before 5/31/2026

Respond

“the insurer shall assign either a staff or an independent appraiser to appraise the damage. Assignment of an appraiser shall be made within two business days of the receipt of such claim. However, the insurer may exclude any claim for which the amount of loss, less any applicable deductible, is less than $1,500.00.”

212 CMR 2.04, mass.gov date 9/9/2008

Pay

“Unless such direct payment is refused by the claimant, the insurer shall make such payment at the time of, or within five business days after, the preparation of said appraisal.”

211 CMR 123.05, mass.gov text, undated