Missouri body shop laws: what insurers and shops must do

What it means in Missouri

No rule in our Missouri collection bars an insurer from requiring or recommending a shop beyond a travel limit: the insurer can't make your customer travel unreasonably for an estimate or to a specific shop. It must give your customer a copy of its estimate and may name nearby shops. If it designates the shop, it must restore the car to pre-loss condition at no extra cost beyond the policy, and it must have reasonable standards so shops it owns or requires do workmanlike repairs.

No rule in our Missouri collection bars an insurer from requiring or recommending a shop beyond the travel limit. When the insurer designates a shop, it must restore the car to pre-loss condition at no added cost beyond the policy.

The law's own words

“Insurers shall not require a claimant to travel unreasonably either to inspect a replacement automobile, to obtain a repair estimate, or to have the automobile repaired at a specific repair shop.”

20 CSR 100-1.050, effective 7/30/2019 (PDF)

“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)

“Failing to adopt and implement reasonable standards to assure that the repairs of a repairer owned by or required to be used by the insurer are performed in a workmanlike manner”

RSMo 375.1007, effective 8/28/1993

What it means in Missouri

The one insurer storage rule in our Missouri collection covers only abandoned cars towed under police authority: the insurer pays the lot's reasonable fees up to its coverage, and the car must be claimed or titled to the lot within 30 days after the later of the total-loss payment or the insurer learning where it is. Your storage lien needs the daily rate in the owner's written request. Report a car unclaimed 15 days within 5 more days or lose your storage claims and liens.

The insurer rule covers only abandoned vehicles removed under RSMo 304.155 or 304.157.

The law's own words

Shop

“where the maximum amount to be charged for labor, services, skill or material has been stated as part of the written request or the daily charge for storage has been stated as part of the written request, have a lien upon the chattel beginning upon the date of commencement of the expenditure of labor, services, skill, materials or storage”

RSMo 430.082, effective 8/28/2012

Insurer

“The owner of the abandoned vehicle, lienholder or insurer, to the extent the vehicle owner's insurance policy covers towing and storage charges, shall pay reasonable fees assessed by the towing company and storage facility.”

RSMo 304.156, effective 1/1/2005

Insurer

“The property shall be claimed and removed or title transferred to the towing company or storage facility within thirty days of the date that the insurer paid a claim for the total loss of the property or is notified as to the location of the abandoned property, whichever is the later event.”

RSMo 304.156, effective 1/1/2005

Shop

“Any dealer or person operating a public garage who fails to report a motor vehicle as unclaimed as herein required forfeits all claims and liens for its garaging, parking or storing.”

RSMo 301.280, effective 8/28/2021

What it means in Missouri

Your lien exists only if your customer's written request stated the maximum repair charge or the daily storage rate, and it ends when you voluntarily give the car back. If the car isn't redeemed within 45 days after the work, you can apply to the Director of Revenue for a lien title, swearing you sent certified notice to the owners and lenders, who can demand a hearing. Within 10 days of getting the lien title, start the sale, with at least 20 days' registered-mail notice to your customer and two newspaper notices.

The RSMo 430.040 possession rule belongs to the 430.020 lien, which for repairs needs a written memorandum signed by the owner and is junior to a prior perfected financing statement without the secured party's written consent.

The law's own words

Keep the car

From a list that begins: “Every person expending labor, services, skill or material upon any motor vehicle or trailer, as defined in chapter 301, vessel, as defined in chapter 306, outboard motor, or aircraft, or part or equipment of an aircraft, at a written request of its owner, authorized agent of the owner, or person in lawful possession thereof,”

“shall, where the maximum amount to be charged for labor, services, skill or material has been stated as part of the written request or the daily charge for storage has been stated as part of the written request, have a lien upon the chattel”

RSMo 430.082, effective 8/28/2012

Keep the car

“No person shall have the right to take any vehicle or aircraft, or part or equipment thereof, or any horse, mule or other animal out of the custody of the person having the lien, except with the consent of the person, or upon paying the amount, lawfully due, for keep, storage, labor or material.”

RSMo 430.040, effective 8/28/1983

Sell or title it

“If the chattel is not redeemed within forty-five days of the completion of the requested labor, services, skill or material, the lienholder may apply to the director of revenue for a certificate of ownership or certificate of title.”

RSMo 430.082, effective 8/28/2012

Sell or title it

“Upon receipt of a lien title, the holder shall within ten days begin proceedings to sell the chattel as prescribed in section 430.100.”

RSMo 430.082, effective 8/28/2012

Sell or title it

“Such sale shall be held only after giving not less than twenty days' notice, first, by mailing a copy of notice, by registered mail, if the address is known, addressed to the owner for whom such expenditure of labor, material, skill or services are performed, in which case a return receipt shall be evidence of due notice;”

RSMo 430.100, effective 8/28/1945

What it means in Missouri

In Missouri the insurer can't specify non-OEM crash parts without disclosing it: the estimate must identify each part, with a 10-point notice that the parts maker, not the carmaker, provides the warranty. It can't require aftermarket parts unless they're at least equal in kind and quality to the original in fit, quality and performance, and must consider the cost of needed modifications. Each part must carry its maker's name or logo; violating the statute is an unlawful practice under sections 407.010 to 407.130.

Both rules cover exterior sheet metal or plastic parts, including inner and outer panels. The regulation's estimate rules don't apply to an estimate prepared at the insured's request by someone with no contractual relationship with the insurer. The statute protects the insured and took effect January 1, 1990.

The law's own words

Insurer

“No insurer shall specify directly or indirectly the use of non-OEM aftermarket crash parts in the repair of an insured's motor vehicle without disclosing the intended use of such parts. In all instances where non-OEM aftermarket crash parts are intended for use by an insurer: (1) The written estimate shall clearly identify each such part; and”

RSMo 407.295, effective 1/1/1990

Parts standard

“This estimate has been prepared based on the use of one or more crash parts supplied by a source other than the manufacturer of your motor vehicle. Warranties applicable to these replacement parts are provided by the parts manufacturer or distributor rather than by the manufacturer of your vehicle.”

RSMo 407.295, effective 1/1/1990

Parts standard

“Any aftermarket crash part supplied by a nonoriginal equipment manufacturer for use in this state after January 1, 1990, shall have affixed thereto or inscribed thereon the logo or name of its manufacturer.”

RSMo 407.295, effective 1/1/1990

Parts standard

“No insurer shall require the use of after-market parts in the repair of an automobile unless the after-market part is at least equal in kind and quality to the original part in terms of fit, quality, and performance. Insurers specifying the use of after-market parts shall consider the cost of any modifications which may become necessary when making the repair; and”

20 CSR 100-1.050, effective 7/30/2019 (PDF)

Insurer

From a list that begins: “2. No insurer may prepare an estimate, except an estimate prepared at the insured’s request by a person or entity having no contractual relationship with the insurer, of the cost of automobile repairs based on the use of an after-market part, unless each of the following conditions are met:”

“A. The insurer discloses to the claimant in writing, either on the estimate or in a separate document attached to the estimate, the following information in no smaller than ten- (10-) point type: “This estimate has been prepared based on the use of an automobile part(s) not made by the original equipment manufacturer. Parts used in the repair of your vehicle by other than the original manufacturer are required to be at least equal in kind and quality in terms of fit, quality, and performance to the original manufacturer parts they are replacing.””

20 CSR 100-1.050, effective 7/30/2019 (PDF)

What it means in Missouri

Missouri's captured law has no appraisal rule and doesn't require an appraisal clause. The Department's arbitration rule says an arbitration clause can't stop your customer from suing and binds them only if they choose to arbitrate. Whether that reaches a policy's appraisal clause is a question for the Department of Commerce and Insurance or a lawyer. Separately, the insurer's estimate must be enough to fix the car properly, and lowballing to force a suit can be an improper claims practice.

The Department's arbitration rule covers property and casualty policies and also voids arbitration clauses for uninsured motorist claims. RSMo 435.350, the general arbitration statute, leaves insurance contracts out of its rule that arbitration agreements are enforceable. The improper-claims list applies to acts committed in violation of RSMo 375.1005.

The law's own words

Other dispute rules

“A written agreement to submit any existing controversy to arbitration or a provision in a written contract, except contracts of insurance and contracts of adhesion, to submit to arbitration any controversy thereafter arising between the parties is valid, enforceable and irrevocable,”

RSMo 435.350, effective 8/28/1996

Other dispute rules

From 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

Other dispute rules

“(1) Any contract or agreement entered into containing any clause or provision providing for an adjustment by arbitration shall not preclude any party or beneficiary under the contract or agreement from instituting suit or legal action on the contract at any time”

20 CSR 500-1.600, effective 8/22/1974 (PDF)

Other dispute rules

“and the compliance with the clause or provision shall not be a condition precedent to the right to bring or recover in the action. A party is bound by an arbitration provision only when s/he elects to arbitrate and a lawful and binding arbitration follows.”

20 CSR 500-1.600, effective 8/22/1974 (PDF)

Other dispute rules

“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 it means in Missouri

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.

The law's own words

Related claim rule

From 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 rule

From 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)

What it means in Missouri

Missouri has no rule on capping paint and materials. An insurer's estimate must be an amount that can reasonably be expected to satisfactorily repair the car, and your customer gets a copy. On your customer's own claim, the insurer can't base a cash settlement on less than it would pay for repairs, unless your customer agrees. Whether a low materials figure breaks these rules is a question for the Department of Commerce and Insurance or a lawyer.

Section 375.1007 applies only when the act is in conscious disregard of the law or frequent enough to show a general business practice (375.1005), and the director enforces it. The cash settlement rule doesn't apply to total losses.

The law's own words

Related claim rule

From 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:”

“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 rule

“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”

20 CSR 100-1.050, effective 7/30/2019 (PDF)

Related claim rule

“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)

What it means in Missouri

Missouri's rules give the insurer 10 working days to acknowledge your customer's own claim or reply to any claimant, 15 working days after all forms arrive to accept or deny a first-party claim, and 30 days to finish investigating unless that's not reasonably possible. No rule sets a payment deadline. In a suit on the policy, if the insurer refused to pay a loss without reasonable cause, a court can add 20 percent of the first $1,500, 10 percent above that, and attorney fees.

The acknowledgment and decision rules are written for first-party claimants; the reply rule covers any claimant, and a first-party investigation that runs long needs written reasons within 45 days and every 45 days after. The vexatious-refusal penalty covers suits on automobile and other policies but expressly excludes automobile liability insurance.

The law's own words

If late

“if it appears from the evidence that such company has refused to pay such loss without reasonable cause or excuse, the court or jury may, in addition to the amount thereof and interest, allow the plaintiff damages not to exceed twenty percent of the first fifteen hundred dollars of the loss, and ten percent of the amount of the loss in excess of fifteen hundred dollars and a reasonable attorney's fee;”

RSMo 375.420, effective 8/28/1975

Respond

From a list that begins: “The following conduct by an insurer is deemed to be the type of conduct set forth in section 375.1007(2).”

“(A) Failing to acknowledge the receipt of a notification of claim from a first party claimant. For the purposes of this subsection, acknowledgment of receipt by an insurer may be made by either: 1. Making payment within ten (10) working days of receipt; 2. Sending the first party claimant a written acknowledgment within ten (10) working days of receipt and maintaining a copy of the written acknowledgment in the claim file of the insurer; or”

20 CSR 100-1.030, effective 11/30/2019 (PDF)

Respond

From a list that begins: “The following conduct by an insurer is deemed to be the type of conduct set forth in section 375.1007(2).”

“(B) Failing to provide an appropriate reply within ten (10) working days on all communications from any claimant that reasonably suggests a response is expected.”

20 CSR 100-1.030, effective 11/30/2019 (PDF)

Accept or deny

“(A) Within fifteen (15) working days after the submission of all forms necessary to establish the nature and extent of any claim, the first-party claimant shall be advised of the acceptance or denial of the claim by the insurer.”

20 CSR 100-1.050, effective 7/30/2019 (PDF)

Accept or deny

“(4) Standards for Prompt Investigations of Claims. Every insurer shall complete an investigation of a claim within thirty (30) days after notification of the claim, unless the investigation cannot reasonably be completed within this time.”

20 CSR 100-1.050, effective 7/30/2019 (PDF)