Ohio body shop laws: what insurers and shops must do

What it means in Ohio

No rule in our Ohio collection bars an insurer from requiring or recommending a shop beyond a travel limit: it can't make your customer travel an unreasonable distance for an estimate or to a specific shop. If your customer's estimate is higher, the insurer must pay the difference or promptly name a shop that will do the job for its estimate. If it chooses to repair and picks the shop, it must restore the car to pre-loss condition. The rule gives no right to sue.

No rule in our Ohio collection bars an insurer from requiring or recommending a shop beyond the travel limit. The rule states it creates no private cause of action.

The law's own words

“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

“An insurer shall not require a claimant to travel an unreasonable distance to inspect a replacement automobile, to obtain a repair estimate, or to have the automobile repaired at a specific repair shop.”

OAC 3901-1-54, effective 2/14/2022

“An insurer which elects to repair and designates a specific repair shop for automobile repairs shall cause the damaged automobile to be restored to its condition prior to the loss.”

OAC 3901-1-54, effective 2/14/2022

What it means in Ohio

Before the insurer stops paying storage, it must notify the claimant, but no number of days is set. The insurer can sue a tow or storage company to get a car back or challenge its bill. If a car worth under $3,500 sits unclaimed 15 days after the repair is done, you must send the owner and any lender a notice to remove it. Lots holding cars under ORC 4513.60 and 4513.601 can charge at most $22 a day for vehicles rated under 10,001 pounds.

The insurer notice runs to "a claimant." The $22-a-day cap applies only to vehicles towed or stored under ORC 4513.60 and 4513.601 (effective January 1, 2026).

The law's own words

Shop

“Any repair garage or place of storage in which a motor vehicle with a value of less than three thousand five hundred dollars has been left unclaimed for fifteen days or more following completion of the requested repair or the agreed term of storage shall send a notice to remove the motor vehicle to the last known address of any owner and any lienholder of the motor vehicle.”

ORC 4505.101, effective 4/7/2023

Insurer

“An insurance company may commence a civil action against a towing service or storage facility on its own behalf, on behalf of the holder of a policy of automobile insurance, or on behalf of a motor vehicle owner for either or both of the following reasons: (a) The recovery of a motor vehicle that has been towed or stored and for which a claim has been filed with the insurance company; (b) Objecting to the amount billed by the towing service or storage facility.”

ORC 4513.70, effective 6/30/2017

Insurer

“An insurer shall provide notice to a claimant prior to termination of payment for automobile storage charges.”

OAC 3901-1-54, effective 2/14/2022

Tow and storage lot

“If a motor vehicle has a manufacturer's gross vehicle weight rating less than ten thousand one pounds, any fee for the storage of the vehicle charged by a storage facility pursuant to sections 4513.60 and 4513.601 of the Revised Code shall not exceed the reasonable cost of complying with the requirements of those sections, but in no instance exceed twenty-two dollars per day.”

OAC 4901:2-24-03, effective 1/1/2026

What it means in Ohio

Our Ohio collection has no repair-lien statute; a 2021 Ohio appeals court decision says a repair shop has a common-law lien for the reasonable value of the work, which a Consumer Sales Practices Act estimate violation can defeat. For a car worth under $3,500 left 15 days after the repair, send every owner and lender a notice to remove it by certified mail or another tracked method; if no one claims it in 15 days, the lender's lien is invalid and the clerk of courts issues you a clean title. For costlier cars, see a lawyer. Unregistered shops that must register have no lien.

The hold row is a court decision (First District Court of Appeals, 2021), not a statute; it also says a Consumer Sales Practices Act estimate violation can defeat the lien. There is no statutory sale route for vehicles worth $3,500 or more; enforcing the common-law lien goes through court, so take it to counsel. An unregistered shop has no lien (ORC 4775.09).

The law's own words

Limit

“(D) No person required to be registered under this chapter shall have the benefit of any lien for labor or materials unless the person is registered under this chapter.”

ORC 4775.09, effective 10/6/2026

Court decision

“In Ohio, a mechanic who receives a motor vehicle from a consumer for the purpose of repairing it has a common law lien on the vehicle for the reasonable value of the labor and materials.”

Marreez, 2021-Ohio-4075 (Ohio Ct. App., 1st Dist., decided 11/17/2021) (PDF)

Sell or title it

“Any repair garage or place of storage in which a motor vehicle with a value of less than three thousand five hundred dollars has been left unclaimed for fifteen days or more following completion of the requested repair or the agreed term of storage shall send a notice to remove the motor vehicle to the last known address of any owner and any lienholder of the motor vehicle.”

ORC 4505.101, effective 4/7/2023

Sell or title it

From a list that begins: “(2) The repair garage or place of storage may obtain a certificate of title to the motor vehicle if all of the following apply:”

“(a) The motor vehicle remains unclaimed by any owner or lienholder of the vehicle for fifteen days after the sending of the required notice.”

ORC 4505.101, effective 4/7/2023

Sell or title it

“(C)(1) The clerk of courts shall issue a certificate of title, free and clear of all liens and encumbrances as follows: (a) To a repair garage or place of storage that presents an affidavit that complies with all of the requirements of division (A) of this section;”

ORC 4505.101, effective 4/7/2023

What it means in Ohio

In Ohio, whoever writes the estimate, the insurer or you, must clearly identify each non-OEM aftermarket crash part and add a 10-point notice that the parts maker or distributor, not the carmaker, provides the warranty; your customer signs the estimate to acknowledge it. You or the insurer may use salvage parts of like kind and quality from a licensed salvage dealer, and the insurer's estimate must say where that dealer is. In a consumer transaction, a violation is an unfair and deceptive act.

If your customer takes an oral estimate or none, the notice must be given then and again with the final invoice. Non-OEM aftermarket crash parts made after October 16, 1990 must carry the maker's name or logo. Under the claims rule, a like kind and quality part means a salvage part equal to or better than the replaced part from a licensed salvage dealer.

The law's own words

Insurer

“the insurer, repair facility, or installer providing the estimate shall identify, clearly in the written estimate, each non-OEM aftermarket crash part and shall contain a written notice with the following language in ten-point or larger type:”

ORC 1345.81, effective 9/13/2022

Parts standard

“Warranties applicable to these aftermarket crash parts are provided by the parts manufacturer or distributor rather than by your own motor vehicle manufacturer.”

ORC 1345.81, effective 9/13/2022

Shop

“Receipt and approval of the written estimate shall be acknowledged by the signature of the person requesting the repair at the bottom of the written estimate.”

ORC 1345.81, effective 9/13/2022

Parts standard

“(D) An insurer, repair facility, or installer may use a salvage motor vehicle part in the repair of a motor vehicle, if the salvage motor vehicle part is of a like kind and quality to the part in need of repair and is sourced from a salvage motor vehicle dealer licensed under Chapter 4738. of the Revised Code.”

ORC 1345.81, effective 9/13/2022

Insurer

“When like kind and quality parts are expected to be used in the repair, the estimate shall clearly indicate the location of the licensed salvage dealer where the like kind and quality parts are to be obtained.”

OAC 3901-1-54, effective 2/14/2022

What it means in Ohio

Ohio has no law requiring an appraisal clause or setting appraisal rules for auto claims. If your estimate is higher, the insurer must pay the difference or name at least one shop that will repair for its estimate, and if it names only one, make sure the work is done right. On a cash total loss on your customer's own claim, it must share valuation documents on request and tell your customer about renegotiating if no comparable car is available within 35 days.

OAC 3901-1-54 states that it creates no private cause of action. The practices listed in 3901-1-07 are violations when done often enough to indicate a general business practice.

The law's own words

Other dispute rules

“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

Other dispute rules

“If the insurer provides the name of only one repair shop, it shall ensure that the repairs are performed in a workmanlike manner.”

OAC 3901-1-54, effective 2/14/2022

Other dispute rules

“An insurer that settles a total loss on a cash settlement basis must maintain in the claim file the documentation used to determine the loss. Such information shall be provided to the first party claimant upon request. An insurer shall notify the first party claimant of any rights to renegotiate the settlement if a comparable vehicle is not available for purchase within thirty-five days of receipt of the settlement.”

OAC 3901-1-54, effective 2/14/2022

Other dispute rules

“(10) 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

Other dispute rules

From 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:”

“(6) 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

What it means in Ohio

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.

The law's own words

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 pays

From 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 rule

From 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

What it means in Ohio

Ohio has no rule on paint and materials caps. If your customer shows the repairs will cost more than the insurer's written estimate, the insurer must pay the difference or promptly name at least one shop that will do the job for its estimate. It can't use settlement practices that force first-party claimants to sue by offering substantially less. The rule gives no right to sue, but the Superintendent can recover a penalty through a consent agreement with the insurer.

The estimate rule covers both first-party and third-party claimants, and the rule states that nothing in it creates or implies a private cause of action. A "practice" means conduct frequent enough to be routine; a single act isn't one, though a malicious, deliberate, conscious and knowing act can still draw corrective action from the Superintendent. Whether a materials cut breaks the rule is a question for the Department of Insurance or a lawyer.

The law's own words

Related claim rule

“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

“(10) 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

Related claim rule

“Pursuant to section 3901.22 of the Revised Code and a consent agreement with the insurer, the superintendent may recover the cost of an investigation under this rule and/or a penalty from the insurer.”

OAC 3901-1-54, effective 2/14/2022

What it means in Ohio

Ohio's rules bind the insurer. It must acknowledge a claim within 15 days, decide to accept or deny within 21 days of a properly executed proof of loss, pay an agreed settlement or authorize agreed repairs within 5 days, and pay its own insured within 10 days of accepting an undisputed claim. The rules set no late-payment penalty. Ohio's general interest law covers money due on a settlement; whether it applies to a late claim payment is a question for a lawyer.

Days are calendar days, extended when the last day falls on a weekend or holiday. Rule 3901-1-54 covers first and third party claimants but says it creates no private cause of action; the 5-day payment rule in 3901-1-07 is a violation only when done often enough to show a general business practice. If an investigation runs past 21 days, the insurer must update the claimant in writing at least every 45 days.

The law's own words

If late

“upon any settlement between parties, upon all verbal contracts entered into, and upon all judgments, decrees, and orders of any judicial tribunal for the payment of money arising out of tortious conduct or a contract or other transaction, the creditor is entitled to interest at the rate per annum determined pursuant to section 5703.47 of the Revised Code,”

ORC 1343.03, effective 9/8/2016

Pay

From 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:”

“(16) Failing to pay any amount finally agreed upon in settlement of all or part of any claim or authorized repairs to be made upon final agreement not later than five days from the receipt of such agreement by the insurer at the place from which the payment or authorization is to be made”

OAC 3901-1-07, effective 2/14/2022

Respond

“An insurer shall acknowledge the receipt of a claim within fifteen days of receiving such notification. An insurer may satisfy this requirement by making payment within this fifteen day period.”

OAC 3901-1-54, effective 2/14/2022

Accept or deny

“An insurer shall within twenty-one days of the receipt of properly executed proof(s) of loss decide whether to accept or deny such claim(s). If more time is needed to investigate the claim than the twenty-one days allow, the insurer shall notify the claimant within the twenty-one day period,”

OAC 3901-1-54, effective 2/14/2022

Pay

“An insurer shall tender payment to a first party claimant no later than ten days after acceptance of a claim if the amount of the claim is determined and is not in dispute,”

OAC 3901-1-54, effective 2/14/2022