Pennsylvania body shop laws: what insurers and shops must do

What it means in Pennsylvania

An appraiser, or whoever employs the appraiser, can't require repairs at a particular shop. Every appraisal must state that your customer doesn't have to use any specific shop, and that costs above the appraisal may be the owner's responsibility. An appraiser who names a shop must include that same no-requirement statement. The insurer may give the names of two or more nearby shops when your customer asks on their own.

On a claimant's unsolicited request, an insurer may give the names of two or more conveniently located shops (31 Pa. Code 146.8).

The law's own words

“No appraiser or his employer shall require that repairs be made in any specified repair shop.”

63 P.S. 861, amended 4/14/2016

“Not mention the name of any repair shop, unless the appraiser includes disclosure that there is no requirement to use any specified repair shop.”

31 Pa. Code 62.3, effective 10/23/1999

“A statement that there is no requirement to use any specified repair shop.”

31 Pa. Code 62.3, effective 10/23/1999

What it means in Pennsylvania

The insurer's written appraisal must list storage and other incidental charges known then, plus any date after which the insurer won't pay towing or storage and your customer becomes responsible. No rule in our Pennsylvania collection sets a minimum notice period. The appraiser needs the customer's consent before having the car moved, except the first tow from the accident scene. Before the customer authorizes repairs, you must tell them when you charge daily or hourly storage and how much.

The insurer items are disclosures required in the written appraisal. Consent is not needed for the first removal from the accident scene.

The law's own words

Insurer

“The date, if any, after which an insurer will not be responsible for any related towing services or storage charges, known at the time of appraisal, and after which the charges will be the responsibility of the consumer.”

31 Pa. Code 62.3, effective 10/23/1999

Insurer

“Incidental charges, known at the time of appraisal, including towing, protective care, custody, storage, depreciation, battery and tire replacement.”

31 Pa. Code 62.3, effective 10/23/1999

Insurer

“Obtain the consumer’s consent before authorizing the removal of a motor vehicle from one location to another.”

31 Pa. Code 62.3, effective 10/23/1999

Shop

From a list that begins: “With regard to a repair shop, the following is considered unfair methods of competition and unfair or deceptive acts or practices:”

“The conditions under which the repair shop may impose daily or hourly storage charges for a vehicle and the amount of the charges.”

37 Pa. Code 301.5

What it means in Pennsylvania

Pennsylvania's repair lien comes from common law, and the 1925 sale law works only while the car is still in your hands. Give your customer written notice of the amount owed; if it isn't paid within 30 days, you can sell the car at public sale on 10 days' notice, given the way a sheriff or constable would. If your customer disputes the bill, they can file a replevin suit within those 30 days, and the dispute is settled in that case. Whether your lien beats a lender that didn't consent to the repairs is a question for a lawyer.

6 P.S. §§ 11-14 (Act 300 of 1925) carries no stated effective date. Whether a common-law lien beats a lender that did not consent to the repairs is a question for counsel; Pennsylvania courts have tied priority to the lender's consent.

The law's own words

Keep the car

“where any person, corporation, firm, or copartnership may have what is known as a "common law lien" for work done or material furnished about the repair of any personal property belonging to another person, corporation, firm, or copartnership,”

6 P.S. §§ 11-14 (Act 300 of 1925), enacted 5/7/1925

Lender priority

“A possessory lien on goods has priority over a security interest in the goods unless the lien is created by a statute which expressly provides otherwise.”

13 Pa.C.S. 9333, effective 7/1/2001

Sell or title it

“it shall be lawful for such person, corporation, firm, or copartnership having said common law lien, while such property is in the hands of the said person, corporation, firm, or copartnership contributing such work and material, to give notice in writing to the owner of the amount of indebtedness for which said common law lien is claimed”

6 P.S. §§ 11-14 (Act 300 of 1925), enacted 5/7/1925

Sell or title it

“if said claim is not paid within said thirty days then the said claimant may sell the said property at public sale by giving ten days' notice thereof in the same manner as personal property is sold by sheriff or constable.”

6 P.S. §§ 11-14 (Act 300 of 1925), enacted 5/7/1925

Get it back

“Provided, however, That the owner of said property, if he disputes said bill, may issue a writ of replevin, as provided by law, within the said thirty days, and the said dispute shall be settled in said action of replevin.”

6 P.S. §§ 11-14 (Act 300 of 1925), enacted 5/7/1925

What it means in Pennsylvania

Pennsylvania has no rule on whether the insurer can require aftermarket parts. Its rules bind the appraiser, including the insurer's own staff: an appraisal using aftermarket crash parts must say so, identify each one, and state that a part that voids an existing warranty must carry one at least equal to what's left. The appraisal must cover returning the car to its predamaged condition, with safety paramount, especially on brakes, steering and suspension. Anything more is a question for the Insurance Department or a lawyer.

These duties bind licensed motor vehicle physical damage appraisers, and an appraisal includes estimates made by the insurer, its employees or agents. Aftermarket crash parts here means non-OEM exterior parts, new or used. The captured Pennsylvania law has no matching parts disclosure rule for repair shops.

The law's own words

Parts standard

“Because an appraiser is charged with a high degree of regard for the public safety, the operational safety of the vehicle shall be paramount in considering the specification of new parts. This consideration is vitally important where the parts involved pertain to the drive train, steering gear, suspension units, brake system or tires.”

63 P.S. 861, amended 4/14/2016

Insurer

From a list that begins: “In addition to the requirements in the act, the appraisal shall contain a written disclosure which includes the following:”

“(10) If the appraisal includes aftermarket crash parts, a statement that the appraisal has been prepared based on the use of aftermarket crash parts, and that if the use of an aftermarket crash part voids the existing warranty on the part being replaced or any other part, the aftermarket crash part shall have a warranty equal to or better than the remainder of the existing warranty.”

31 Pa. Code 62.3, effective 10/23/1999

Insurer

From a list that begins: “In addition to the requirements in the act, the appraisal shall contain a written disclosure which includes the following:”

“(11) Identification of all aftermarket crash parts and a definition of aftermarket crash parts consistent with § 62.1 (relating to definitions), if these parts are used.”

31 Pa. Code 62.3, effective 10/23/1999

Insurer

From a list that begins: “In addition to the requirements in the act, the appraisal shall contain a written disclosure which includes the following:”

“(9) The location where the listed parts are available in a condition equivalent to, or better than, the condition of the replaced parts prior to the accident.”

31 Pa. Code 62.3, effective 10/23/1999

Parts standard

“(c) An appraisal for the repair of the motor vehicle shall be made in the amount necessary to return the motor vehicle to its predamaged condition.”

31 Pa. Code 62.3, effective 10/23/1999

What it means in Pennsylvania

Pennsylvania has no rule requiring a policy appraisal clause; there, an appraisal is the licensed appraiser's damage estimate. The appraiser must be impartial and independent, and review the appraisal with your shop or another person reasonably needed to show repair costs are covered. It must cover restoring pre-damage condition, and nothing bars any party from getting a second licensed appraiser. On a total loss priced by actual cost, if your customer shows the replacement isn't like kind and quality, the higher figure must be offered.

These rules govern licensed motor vehicle physical damage appraisers and their appraisals; they do not address a policy's appraisal clause. The higher-value rule applies when the actual cost method is used for a car listed in two approved guide sources. Penalties are set in sections 5, 6 and 9 of the act (63 P.S. 855, 856 and 859).

The law's own words

How appraisal works

From a list that begins: “Every appraiser shall:”

“(2) Approach the appraisal of damaged property without prejudice against, or favoritism toward, any party involved in order to make fair and impartial appraisals. (3) Disregard any efforts on the part of others to influence his judgment in the interest of the parties involved. (4) Prepare an independent appraisal of damage.”

63 P.S. 861, amended 4/14/2016

How appraisal works

“(g) There are no provisions of the act or this chapter which shall be construed as intended in any way to prohibit or limit the subsequent appraisal or reappraisal of damage by different licensed appraisers, if desired by any of the involved parties.”

31 Pa. Code 62.3, effective 10/23/1999

Other dispute rules

“(c) An appraisal for the repair of the motor vehicle shall be made in the amount necessary to return the motor vehicle to its predamaged condition.”

31 Pa. Code 62.3, effective 10/23/1999

Other dispute rules

From a list that begins: “In addition to the requirements in section 11 of the act (63 P. S. § 861), an appraiser shall:”

“(3) Review the appraisal with an authorized representative of the repair shop which is selected by the consumer or with any other person reasonably necessary to demonstrate that the actual costs of repairs are adequately covered in the appraisal.”

31 Pa. Code 62.3, effective 10/23/1999

Other dispute rules

“If the actual cost method is used, and the owner of the damaged vehicle shows that the replacement vehicle is not of the same kind and quality, both calculations referenced in this paragraph shall be made, and the higher of the values obtained shall be offered in settlement.”

31 Pa. Code 62.3, effective 10/23/1999

What it means in Pennsylvania

Pennsylvania has no labor rate or survey law. An appraisal must be in the amount needed to return the car to its pre-damage condition and describe the labor involved. The appraiser must review it with your shop, if your customer chose you, or another person reasonably needed to show actual repair costs are covered. As a business practice, the insurer can't fail to try in good faith to settle fairly. Whether a rate complies is a question for the Insurance Department or a lawyer.

The unfair claim practices in 40 P.S. 1171.5(a)(10) count only when frequent enough to indicate a business practice. Penalties for breaking the appraisal rules are set in sections 5, 6 and 9 of the appraisers act (63 P.S. 855, 856 and 859).

The law's own words

Related claim rule

From a list that begins: “Any of the following acts if committed or performed with such frequency as to indicate a business practice shall constitute unfair claim settlement or compromise practices:”

“Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which the company's liability under the policy has become reasonably clear.”

40 P.S. 1171.5, amended 7/15/2024

What the insurer pays

“An appraisal for the repair of the motor vehicle shall be made in the amount necessary to return the motor vehicle to its predamaged condition.”

31 Pa. Code 62.3, effective 10/23/1999

Related claim rule

From a list that begins: “In addition to the requirements in the act, the appraisal shall contain a written disclosure which includes the following:”

“A description of repairs, known at the time of appraisal, necessary to return the vehicle to its predamaged condition, including labor involved, cost of all parts, necessary painting or refinishing and all sublet work to be done.”

31 Pa. Code 62.3, effective 10/23/1999

What the insurer pays

From a list that begins: “In addition to the requirements in section 11 of the act (63 P. S. § 861), an appraiser shall:”

“Review the appraisal with an authorized representative of the repair shop which is selected by the consumer or with any other person reasonably necessary to demonstrate that the actual costs of repairs are adequately covered in the appraisal.”

31 Pa. Code 62.3, effective 10/23/1999

What the insurer pays

“If an insurer prepares an appraisal of the cost of automobile repairs, the appraisal shall be in an amount for which it may be reasonably expected the damage can be satisfactorily repaired.”

31 Pa. Code 146.8, effective 12/16/1978

What it means in Pennsylvania

Pennsylvania has no rule on paint and materials caps. The appraisal must be written for the amount needed to return the vehicle to its pre-damage condition and must describe the repairs, including necessary painting or refinishing. The appraiser must review it with the shop your customer chose, or anyone else reasonably needed, to show the actual repair costs are covered. Whether a materials cut breaks these rules is a question for the Department of Insurance or a lawyer.

The unfair claim practices in 40 P.S. 1171.5(a)(10) count only when done often enough to show a business practice. Penalties for breaking the appraiser rules are in sections 5, 6 and 9 of the appraisers act (63 P.S. 855, 856 and 859).

The law's own words

Related claim rule

From a list that begins: “(10) Any of the following acts if committed or performed with such frequency as to indicate a business practice shall constitute unfair claim settlement or compromise practices:”

“(vi) Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which the company's liability under the policy has become reasonably clear.”

40 P.S. 1171.5, amended 7/15/2024

What the insurer pays

From a list that begins: “the appraisal shall contain a written disclosure which includes the following:”

“(5) A description of repairs, known at the time of appraisal, necessary to return the vehicle to its predamaged condition, including labor involved, cost of all parts, necessary painting or refinishing and all sublet work to be done.”

31 Pa. Code 62.3, effective 10/23/1999

Related claim rule

“(c) An appraisal for the repair of the motor vehicle shall be made in the amount necessary to return the motor vehicle to its predamaged condition.”

31 Pa. Code 62.3, effective 10/23/1999

What the insurer pays

From a list that begins: “an appraiser shall:”

“(3) Review the appraisal with an authorized representative of the repair shop which is selected by the consumer or with any other person reasonably necessary to demonstrate that the actual costs of repairs are adequately covered in the appraisal.”

31 Pa. Code 62.3, effective 10/23/1999

Related claim rule

“(d) If an insurer prepares an appraisal of the cost of automobile repairs, the appraisal shall be in an amount for which it may be reasonably expected the damage can be satisfactorily repaired.”

31 Pa. Code 146.8, effective 12/16/1978

What it means in Pennsylvania

Pennsylvania insurers must acknowledge a claim within 10 working days, finish investigating within 30 days, and tell their own insured within 15 working days of proof of loss whether the claim is accepted or denied. No captured rule sets a deadline to pay after agreement, only a duty to settle promptly and in good faith; ask the Insurance Department or a lawyer about timing. A court finding bad faith toward the insured can award interest at prime plus 3%, punitive damages and attorney fees.

The 15-working-day accept-or-deny rule covers first-party claimants; the acknowledgment and investigation rules apply to any claim, and if an investigation runs past 30 days the insurer must send a written explanation then and every 45 days after. The 8371 bad-faith remedy runs to the insured only. The 1171.5 list applies to acts frequent enough to indicate a business practice. Separately, a licensed appraiser must inspect a vehicle within six working days of assignment unless circumstances make it impossible (63 P.S. 861).

The law's own words

If late

“In an action arising under an insurance policy, if the court finds that the insurer has acted in bad faith toward the insured, the court may take all of the following actions: (1) Award interest on the amount of the claim from the date the claim was made by the insured in an amount equal to the prime rate of interest plus 3%.”

42 Pa.C.S. 8371, effective 7/1/1990

Pay

From a list that begins: “Any of the following acts if committed or performed with such frequency as to indicate a business practice shall constitute unfair claim settlement or compromise practices:”

“(vi) Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which the company's liability under the policy has become reasonably clear.”

40 P.S. 1171.5, amended 7/15/2024

Respond

“Every insurer, upon receiving notification of a claim, shall, within 10 working days, acknowledge the receipt of the notice unless payment is made within the period of time.”

31 Pa. Code 146.5, effective 12/16/1978

Accept or deny

“Every insurer shall complete investigation of a claim within 30 days after notification of claim, unless the investigation cannot reasonably be completed within the time.”

31 Pa. Code 146.6, effective 12/16/1978

Accept or deny

“Within 15 working days after receipt by the insurer of properly executed proofs of loss, the first-party claimant shall be advised of the acceptance or denial of the claim by the insurer.”

31 Pa. Code 146.7, effective 5/22/1982