Minnesota body shop laws: what insurers and shops must do

What it means in Minnesota

The insurer or adjuster can't make payment depend on using a particular shop, or use pressure, threats or incentives to push an insured toward or away from one; perks in a preferred vendor program don't count. When a claim is reported, the insurer must tell your customer they have the legal right to choose a shop and the policy covers reasonable repair costs wherever they go. Once an insured picks a shop, the insurer must stop all efforts to influence that choice.

Once the insured has picked a shop, the insurer must stop trying to influence that choice.

The law's own words

“requiring as a condition of payment of a claim that repairs to any damaged vehicle must be made by a particular contractor or repair shop”

Minn. Stat. § 72A.201, 2025 edition

“engaging in any act or practice of intimidation, coercion, threat, incentive, or inducement for or against an insured to use a particular contractor or repair shop. Consumer benefits included within preferred vendor programs must not be considered an incentive or inducement.”

Minn. Stat. § 72A.201, 2025 edition

“"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. Have you selected a repair shop or would you like a referral?"”

Minn. Stat. § 72A.201, 2025 edition

What it means in Minnesota

No rule in our Minnesota collection requires the insurer to pay storage or give notice before it stops. You have a lien for storage, but if a lender is listed on the title, your lien covers storage past 15 days only after you send that lender certified-mail notice. On consumer repairs over $100, tell the customer with the written estimate that storage is extra, and post a sign showing your storage charge, when it starts and how often it's charged.

The disclosure rules apply to consumer repairs over $100. No rule in our Minnesota collection requires an insurer to pay storage or give notice before it stops; § 72A.201 mentions towing but not storage.

The law's own words

Shop

“Whoever, at the request of the owner or legal possessor of any personal property, shall store or care for or contribute in any of the modes mentioned in section 514.19 to its preservation, care, or to the enhancement of its value, shall have a lien upon such property for the price or value of such storage, care, or contribution”

Minn. Stat. § 514.18, 2025 edition

Shop

“If the property subject to the lien is a motor vehicle registered in this state and subject to a certificate of title and one or more secured creditors is listed on the certificate of title, a lien for storage charges for a period greater than 15 days accrues only after written notice is sent by certified mail to all listed secured creditors.”

Minn. Stat. § 514.19, 2025 edition

Shop

“At the time a shop provides a customer with a written estimate, the shop shall inform the customer that any charge for storage or care, a service call or a charge for making an estimate shall be in addition to the estimated price for the repairs.”

Minn. Stat. § 325F.58, 2025 edition

Shop

“If the shop charges a fee for the storage or care of repaired motor vehicles or appliances, the shop shall conspicuously display a sign that states the amount assessed for storage or care, when the charge begins to accrue, and the interval of time between assessments.”

Minn. Stat. § 325F.62, 2025 edition

What it means in Minnesota

You can keep the car until your lien is paid; the filing that preserves a lien after you give property back doesn't apply to cars. If the bill is unpaid 90 days after it's due, you can sell at public auction in the county, with notice to your customer at least three weeks ahead and three weekly newspaper notices. Send every lender on the title a certified letter 45 days before your right to sell takes effect, or your lien is ineffective against them. Your customer gets the car back by paying the bill minus unauthorized work and anything over 110% of the approved estimate.

Secured creditors on the title must get certified-mail notice 45 days before the right to sell is effective, or the lien is ineffective against them. No title transfer procedure appears in our collection.

The law's own words

Keep the car

From a list that begins: “Whoever, at the request of the owner or legal possessor of any personal property, shall store or care for or contribute in any of the modes mentioned in section 514.19 to its preservation, care, or to the enhancement of its value,”

“shall have a lien upon such property for the price or value of such storage, care, or contribution, and for any legal charges against the same paid by such person to any other person, and the right to retain possession of the property until such lien is lawfully discharged.”

Minn. Stat. § 514.18, 2025 edition

Keep the car

From a list that begins: “A lien and right of detainer exists for:”

“(4) making, altering or repairing any article, other than livestock, or expending any labor, skill or material on it;”

Minn. Stat. § 514.19, 2025 edition

Sell or title it

“If any sum secured by such lien be not paid within 90 days after it becomes due, the lienholder may sell the property and out of the proceeds of such sale there shall be paid, first, the disbursements aforesaid;”

Minn. Stat. § 514.20, 2025 edition

Sell or title it

“The sale herein provided for shall be made at public auction between nine o'clock in the morning and five o'clock in the afternoon in the county where the property or some part thereof is situated.”

Minn. Stat. § 514.21, 2025 edition

Get it back

“A shop shall return to a customer, upon reasonable demand, the customer's repaired motor vehicle or appliance if the customer pays the shop's bill except the proportion of the bill which represents: (a) repairs, service calls, or estimates which were performed but not authorized;”

Minn. Stat. § 325F.61, 2025 edition

What it means in Minnesota

In Minnesota the insurer or adjuster can't make paying a claim conditional on replacing parts, other than window glass, with non-OEM parts. You must mark parts on the written estimate and invoice as new, used, rebuilt, reconditioned or replated when you know it, and say whether new parts are OEM. The invoice rule covers insurance-paid work of any value. These sections set no quality or warranty standard for aftermarket parts.

The written estimate definition applies to repairs over $100 on vehicles used mainly for personal, family or household purposes, and a shop gives one on the customer's request (325F.58). 72A.201 is enforced by the commissioner, and an individual violation is not an unlawful practice for purposes of section 8.31.

The law's own words

Insurer

From a list that begins: “the following acts by an insurer, adjuster, or a self-insured or self-insurance administrator constitute unfair settlement practices:”

“requiring as a condition of payment of a claim that repairs to any damaged vehicle must be made by a particular contractor or repair shop or that parts, other than window glass, must be replaced with parts other than original equipment parts”

Minn. Stat. § 72A.201, 2025 edition

Shop

From a list that begins: “"Written estimate" means a writing which includes:”

“the charges for parts or materials listed with reasonable particularity and indicating whether the parts are new, used, rebuilt, reconditioned, or replated if this information is known by the shop. If parts, other than window glass, used in the repair are new parts, the estimate must indicate whether or not those parts are original equipment parts;”

Minn. Stat. § 325F.56, 2025 edition

Shop

From a list that begins: “The invoice shall contain the following information:”

“a notation specifying which parts, if any, are new, used, rebuilt, reconditioned, or replated if that information is known by the shop. If parts, other than window glass, used in the repair are new parts, the invoice must indicate whether or not those parts are original equipment parts;”

Minn. Stat. § 325F.60, 2025 edition

Shop

“for the purpose of this section "repair" means work of any value performed under a manufacturer's warranty, a service contract, or an insurance policy; or any repair work performed for a total value of more than $50,”

Minn. Stat. § 325F.60, 2025 edition

What it means in Minnesota

Minnesota's captured law has no appraisal statute or required appraisal clause. On your customer's own policy, an actual cash value settlement can't be less than the car's pre-loss value plus taxes and fees, a repair settlement must cover satisfactory repair including hidden damage and towing, and a total-loss offer off the comparable-car method must be justified and explained. The bad-faith cost award isn't available once appraisal resolves a claim.

Section 604.18 protects only the insured, not third-party claimants; the extra award is capped at half the excess over the insurer's offer or $250,000, and attorney fees at $100,000. The subd. 6 settlement methods apply when the insured is not an automobile dealer.

The law's own words

Other dispute rules

From a list that begins: “The following acts by an insurer, an adjuster, a self-insured, or a self-insurance administrator constitute unfair settlement practices:”

“(14) failing to inform an insured or a claimant that the insurer will pay for an estimate of repair if the insurer requested the estimate and the insured or claimant had previously submitted two estimates of repair.”

Minn. Stat. § 72A.201, 2025 edition

Other dispute rules

From a list that begins: “The following acts by an insurer, an adjuster, a self-insured, or a self-insurance administrator constitute unfair settlement practices:”

“(7) settling or attempting to settle a claim or part of a claim with an insured under actual cash value provisions for less than the value of the property immediately preceding the loss, including all applicable taxes and license fees.”

Minn. Stat. § 72A.201, 2025 edition

Other dispute rules

From a list that begins: “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

Other dispute rules

From a list that begins: “The costs must be determined by:”

“(iii) any settlement or offer of settlement which deviates from the procedure above must be documented and justified in detail. The basis for the settlement or offer of settlement must be explained to the insured;”

Minn. Stat. § 72A.201, 2025 edition

How appraisal works

“(c) An award of taxable costs under this section is not available in any claim that is resolved or confirmed by arbitration or appraisal.”

Minn. Stat. § 604.18, 2025 edition

What it means in Minnesota

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.

The law's own words

What the insurer pays

From 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 rule

From 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 pays

From 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

What it means in Minnesota

Minnesota has no rule on capping paint and materials. On your customer's own partial-loss claim, the insurer must pay all costs of a satisfactory repair, including hidden damage, or offer cash enough for one, and can't refuse any part of a claim with no good faith dispute. The sales tax law's labor-hours-times-rate method for paint and materials is a tax rule only. Whether a materials cut breaks the claims rules is a question for the Department of Commerce or a lawyer.

The partial-loss rule applies when the insured is not an automobile dealer. The commissioner need not show a general business practice to act, but the text says no individual violation is an unfair practice for purposes of section 8.31. Section 297A.61 is a sales tax rule for the shop's invoice and says nothing about what the insurer must pay.

The law's own words

Related claim rule

From a list that begins: “the following acts by an insurer, adjuster, or a self-insured or self-insurance administrator constitute unfair settlement practices:”

“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:”

Minn. Stat. § 72A.201, 2025 edition

Related claim rule

From a list that begins: “failing to offer one of the following methods of settlement:”

“to assume all costs, including reasonable towing costs, for the satisfactory repair of the motor vehicle. Satisfactory repair includes repair of both obvious and hidden damage as caused by the claim incident. This assumption of cost may be reduced by applicable policy provision; or (b) to offer a cash settlement sufficient to pay for satisfactory repair of the vehicle.”

Minn. Stat. § 72A.201, 2025 edition

Related claim rule

From a list that begins: “The following acts by an insurer, an adjuster, a self-insured, or a self-insurance administrator constitute unfair settlement practices:”

“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

What it means in Minnesota

Minnesota's statute covers both your customer's own claim and third-party claims: acknowledge within 10 business days, accept or deny within 30 business days unless the insurer explains the delay, and pay agreed settlements within 5 business days. An insurer that wants to inspect the insured's car before repair must do it within 5 business days if the car can't be safely driven, 15 days otherwise. The Commissioner can fine even a single violation.

Health insurance claims are carved out of the acknowledgment rule. The 5-business-day payment clock starts when the insurer receives the agreement or the claimant meets its conditions, whichever is later. The Commissioner need not show a general business practice to act, but the statute also says no single violation is an unlawful trade practice for purposes of section 8.31; whether your customer can sue over a delay is a question for a lawyer.

The law's own words

Respond

From a list that begins: “The following acts by an insurer, an adjuster, a self-insured, or a self-insurance administrator constitute unfair settlement practices:”

“(1) except for claims made under a health insurance policy, after receiving notification of claim from an insured or a claimant, failing to acknowledge receipt of the notification of the claim within ten business days, and failing to promptly provide all necessary claim forms and instructions to process the claim, unless the claim is settled within ten business days.”

Minn. Stat. § 72A.201, 2025 edition

Accept or deny

From 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)(i) unless provided otherwise by clause (ii) or (iii), other law, or in the policy, failing to complete its investigation and inform the insured or claimant of acceptance or denial of a claim within 30 business days after receipt of notification of claim unless the investigation cannot be reasonably completed within that time.”

Minn. Stat. § 72A.201, 2025 edition

Accept or deny

From a list that begins: “In addition to the acts specified in subdivisions 4, 5, 7, 8, and 9, the following acts by an insurer, adjuster, or a self-insured or self-insurance administrator constitute unfair settlement practices:”

“(3) regardless of whether the loss was total or partial, in the event that a damaged vehicle of an insured cannot be safely driven, failing to exercise the right to inspect automobile damage prior to repair within five business days following receipt of notification of claim. In other cases the inspection must be made in 15 days;”

Minn. Stat. § 72A.201, 2025 edition

Pay

From a list that begins: “The following acts by an insurer, an adjuster, a self-insured, or a self-insurance administrator constitute unfair settlement practices:”

“(5) notwithstanding any inconsistent provision of section 65A.01, subdivision 3, failing to issue payment for any amount finally agreed upon in settlement of all or part of any claim within five business days from the receipt of the agreement by the insurer or from the date of the performance by the claimant of any conditions set by such agreement, whichever is later;”

Minn. Stat. § 72A.201, 2025 edition

If late

“The commissioner may, in accordance with sections 72A.22 to 72A.25, seek and impose appropriate administrative remedies, including fines, for (1) a violation of this section or the rules adopted pursuant to this section; or (2) a violation of section 72A.20, subdivision 12. The commissioner need not show a general business practice in taking an administrative action for these violations.”

Minn. Stat. § 72A.201, 2025 edition