Tennessee body shop laws: what insurers and shops must do

What it means in Tennessee

No rule in our Tennessee collection bars requiring a shop, and our collection doesn't include the Tennessee Code. The insurer must tell the policyholder they can choose who does the repairs, unless the policy names the vendor. It can't make an insured travel an unreasonable distance for an estimate or to a specific shop. If an insured's estimate is higher and the dispute stays unresolved, the insurer must pay the difference or name at least one nearby shop that will repair for its estimate.

The notice duty does not apply when the policy itself specifies a vendor. Our collection does not include the Tennessee Code Annotated.

The law's own words

“An insurer shall notify a policyholder of his or her right to choose a vendor to complete repairs of damages covered under the policy, unless use of a specified vendor is provided pursuant to the terms of the policy.”

Tenn. Comp. R. & Regs. 0780-01-05-.08, effective 10/9/2017 (PDF)

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

Tenn. Comp. R. & Regs. 0780-01-05-.09, effective 10/9/2017 (PDF)

“Promptly provide the insured with the name of at least one (1) repair shop in areas proximate to the local market area, including the closest major metropolitan areas within or without the state, that will make the repairs for the amount of the written estimate,”

Tenn. Comp. R. & Regs. 0780-01-05-.09, effective 10/9/2017 (PDF)

What it means in Tennessee

Before the insurer stops paying storage, it must give your customer, the insured, reasonable notice and time to move the car. Session-law text bars charging storage past 21 days without the owner's or lender's consent unless they refused to pick up a ready car or you gave the required notice; that limit doesn't cover a car you were authorized to repair once the owner is told it's done. You can't charge storage for days the car isn't available for release, except a police hold.

Statute rows are session-law text. A 2026 amendment (Public Chapter 661, effective July 1, 2026) exempts storage of a vehicle held for authorized repairs after the owner is told the work is done. The insurer notice runs to an insured.

The law's own words

Shop

“Garagekeepers are entitled to a lien upon all motor vehicles that lawfully come into their possession and are retained in their possession until all reasonable charges due are paid.”

Tenn. Pub. Ch. 1017 (2024), § 5 (T.C.A. 66-19-103), session-law text (PDF)

Shop

“Except as otherwise provided in this section, a garagekeeper shall not charge the owner or lienholder of a stored motor vehicle a storage fee for a period exceeding twenty-one (21) days without the consent of the owner or lienholder, unless the owner or lienholder has been notified that the motor vehicle is available to be released from the garagekeeper and the owner or lienholder refuses to retrieve the motor vehicle.”

Tenn. Pub. Ch. 457 (2025), § 1 (T.C.A. 55-31-207), session-law text (PDF)

Shop

“A garagekeeper shall not charge a storage fee for any day on which the motor vehicle is not available for release to the owner, lienholder, or insurer, unless the failure to release is based on a hold placed on the motor vehicle by law enforcement.”

Tenn. Pub. Ch. 457 (2025), § 1 (T.C.A. 55-31-207), session-law text (PDF)

Insurer

“The insurer shall provide reasonable notice to an insured prior to termination of payment for reasonable automobile storage charges and documentation of the denial as required by rule 0780-01-05-.05. Such insurer shall provide reasonable time for the insured to remove the vehicle from storage prior to the termination of payment, subject to any applicable policy provisions.”

Tenn. Comp. R. & Regs. 0780-01-05-.09, effective 10/9/2017 (PDF)

What it means in Tennessee

Session-law text amending T.C.A. 66-19-103 (not the codified section) gives you a lien on a car that lawfully comes into your possession, kept until all reasonable charges are paid. After 30 days you can enforce it through the artisans' lien sale procedure, which isn't in our collection; read it first. If you couldn't get written permission to store the car, the 2026 act keeps your lien if you tried in good faith and sent the required notice. Unless licensed under title 55, chapter 17, part 1, you have no lien for repairs over $250 against a seller-lender holding title that didn't authorize them in writing.

These rows are session-law text amending T.C.A. 66-19-103, not the codified section. The artisans' lien sale procedure it incorporates (T.C.A. 66-14-102 to 66-14-106) is not in our collection; read it before a sale.

The law's own words

Keep the car

“Garagekeepers are entitled to a lien upon all motor vehicles that lawfully come into their possession and are retained in their possession until all reasonable charges due are paid.”

Tenn. Public Chapter 1017 (2024), section 5, replacing T.C.A. 66-19-103, effective 7/1/2024 (session-law text) (PDF)

Keep the car

“A garagekeeper's failure to obtain express written authorization to store a motor vehicle under § 55-31-205(a) does not abrogate the garagekeeper's right to a lien under this section if the garagekeeper makes the good faith attempt to acquire consent and provides notice to the owner under§ 55-31-205(c).”

Tenn. Public Chapter 661 (2026), section 2, amending T.C.A. 66-19-103, effective 7/1/2026 (session-law text) (PDF)

Sell or title it

“A garagekeeper may, after thirty (30) days, enforce such lien in the manner prescribed for the enforcement of artisans' liens under §§ 66-14-102 - 66-14-106; except, that the garagekeeper:”

Tenn. Public Chapter 1017 (2024), section 5, replacing T.C.A. 66-19-103, effective 7/1/2024 (session-law text) (PDF)

Limit

“A person, firm, or entity, unless licensed and regulated under title 55, chapter 17, part 1, does not have a right to a lien against a lienor, who is also the seller of such motor vehicle or who retains title under a title retention or conditional sale agreement, for repairs in excess of two hundred fifty dollars ($250) made on such motor vehicle, unless the person, firm, or entity making the repairs has received a written authorization from the lienor or seller to make such repairs on the motor vehicle.”

Tenn. Public Chapter 1017 (2024), section 5, replacing T.C.A. 66-19-103, effective 7/1/2024 (session-law text) (PDF)

What it means in Tennessee

Tennessee's rules bind the insurer and protect both the insured and third-party claimants. The insurer can't specify non-OEM exterior 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. On a current-year or prior-year model, non-OEM crash parts can't be used without your customer's express permission. Violations are enforced under the Unfair Claim Settlement Practices Act.

These rules (Chapter 0780-01-59) took effect 7/12/2005 and cover non-mechanical exterior sheet metal or plastic parts, including inner and outer panels. Rule .05 sends enforcement through the Unfair Claim Settlement Practices Act, T.C.A. 56-8-104(8). The codified Tennessee Code is not in this collection.

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 or third party claimant’s motor vehicle without disclosing the intended use of such parts to the insured or third party claimant.”

Tenn. Comp. R. & Regs. 0780-01-59-.04, effective 7/12/2005 (PDF)

Insurer

“In all instances where non-OEM aftermarket crash parts are intended for use by an insurer: (a) The written estimate shall clearly identify each such part.”

Tenn. Comp. R. & Regs. 0780-01-59-.04, effective 7/12/2005 (PDF)

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.”

Tenn. Comp. R. & Regs. 0780-01-59-.04, effective 7/12/2005 (PDF)

Insurer

“Non-OEM after market crash parts shall not be used on current year model or immediate prior year model motor vehicles without the express permission of the insured or third party claimant.”

Tenn. Comp. R. & Regs. 0780-01-59-.04, effective 7/12/2005 (PDF)

Parts standard

“Any aftermarket crash part specified by an insurer for use in the repair of an insured’s or a third party claimant’s motor vehicle, supplied by a non-original equipment manufacturer for use in this State after the effective date of this regulation shall have affixed thereto or inscribed thereon the logo or name of its manufacturer.”

Tenn. Comp. R. & Regs. 0780-01-59-.03, effective 7/12/2005 (PDF)

What it means in Tennessee

Tennessee's captured law has no appraisal statute or required appraisal clause. On your customer's own claim, if their written estimate is higher and the gap stays unresolved, the insurer must pay the difference or promptly name at least one shop that will repair for its estimate. A cash total-loss offer must cover a comparable car plus taxes and fees, with deductions itemized and explained. On request, the insurer must disclose the policy's provisions, so your customer can ask about an appraisal clause.

These rules govern the insured's own (first-party) automobile claims. The insurer-named shop's price need not include supplements found during repair, and the insurer must make sure that shop's work is workmanlike.

The law's own words

Other dispute rules

“If the insured subsequently claims, based upon a written estimate which he or she obtains, that necessary repairs will exceed the written estimate prepared by or for the insurer, and differences remain unresolved during the course of the repair or negotiation process, the insurer shall:”

Tenn. Comp. R. & Regs. 0780-01-05-.09, effective 10/9/2017 (PDF)

Other dispute rules

From a list that begins: “and differences remain unresolved during the course of the repair or negotiation process, the insurer shall:”

“(a) Pay the difference between the written estimate and a higher estimate obtained by the insured; or (b) Promptly provide the insured with the name of at least one (1) repair shop in areas proximate to the local market area, including the closest major metropolitan areas within or without the state, that will make the repairs for the amount of the written estimate,”

Tenn. Comp. R. & Regs. 0780-01-05-.09, effective 10/9/2017 (PDF)

Other dispute rules

“(b) The insurer may elect a cash settlement based upon the actual cost, less any deductible provided in the policy, to purchase a comparable automobile including all applicable taxes, license fees and other fees incident to transfer of evidence of ownership of a comparable automobile.”

Tenn. Comp. R. & Regs. 0780-01-05-.09, effective 10/9/2017 (PDF)

Other dispute rules

“Any deductions from the cost, including deduction for salvage, must be as specific as reasonably possible, and specific and appropriate as to dollar amount, and shall be documented in the claim file as required by rule 0780-01-05-.05. The basis for the settlement shall be fully explained to the first party claimant.”

Tenn. Comp. R. & Regs. 0780-01-05-.09, effective 10/9/2017 (PDF)

Other dispute rules

“(1) No insurer shall fail to fully disclose, upon request, to first party claimants all pertinent benefits, coverages or other provisions of a policy or contract under which a claim is presented.”

Tenn. Comp. R. & Regs. 0780-01-05-.06, effective 10/9/2017 (PDF)

What it means in Tennessee

Tennessee has no rule in this collection on how the insurer sets the labor rate and no survey rule. The insurer's estimate must be reasonable, allow workmanlike repairs, and be copied to the insured. If your customer's higher written estimate stays unresolved, the insurer must pay the difference or promptly name a shop that will do the work for its estimate, possibly one in the closest major metro area, even out of state. Undisputed amounts are due within 30 days after the insurer accepts liability.

These are Department of Commerce and Insurance rules; the codified Tennessee Code is not in this collection, so no Tennessee statute is quoted. The estimate rule covers partial losses on the insured's own policy, and the named shop's price for the insurer's estimate does not include supplemental repairs found during the job.

The law's own words

What the insurer pays

“The estimate prepared by or for the insurer shall be reasonable, in accordance with applicable policy provisions, and of an amount which will allow for repairs to be made in a workmanlike manner.”

Tenn. Comp. R. & Regs. 0780-01-05-.09, effective 10/9/2017 (PDF)

What the insurer pays

From a list that begins: “and differences remain unresolved during the course of the repair or negotiation process, the insurer shall:”

“(a) Pay the difference between the written estimate and a higher estimate obtained by the insured; or”

Tenn. Comp. R. & Regs. 0780-01-05-.09, effective 10/9/2017 (PDF)

What the insurer pays

From a list that begins: “and differences remain unresolved during the course of the repair or negotiation process, the insurer shall:”

“(b) Promptly provide the insured with the name of at least one (1) repair shop in areas proximate to the local market area, including the closest major metropolitan areas within or without the state, that will make the repairs for the amount of the written estimate, not considering the cost of supplemental or additional repairs which may be uncovered as part of the repair process.”

Tenn. Comp. R. & Regs. 0780-01-05-.09, effective 10/9/2017 (PDF)

Related claim rule

“(6) The insurer shall tender payment within thirty (30) days of affirmation of liability, if the amount of the claim is determined and not in dispute, unless the policyholder does not want payment within thirty (30) days.”

Tenn. Comp. R. & Regs. 0780-01-05-.08, effective 10/9/2017 (PDF)

What it means in Tennessee

Tennessee has no rule on capping paint and materials. On your customer's own claim, the insurer's estimate must be reasonable and enough for workmanlike repairs. If your customer's higher written estimate leaves a gap that isn't resolved during repair or negotiation, the insurer must pay the difference or promptly name at least one shop that will do the job for its estimate. Whether a low materials figure breaks this is a question for the Department of Insurance or a lawyer.

The rule covers partial losses on the insured's own policy. The named shop can be anywhere near the local market area, including the closest major metropolitan areas in or out of state, and only has to match the insurer's estimate, not the cost of supplemental repairs found during the job. Tennessee's codified statutes aren't in this collection, so only the Department's rules are quoted.

The law's own words

Related claim rule

“The estimate prepared by or for the insurer shall be reasonable, in accordance with applicable policy provisions, and of an amount which will allow for repairs to be made in a workmanlike manner.”

Tenn. Comp. R. & Regs. 0780-01-05-.09, effective 10/9/2017 (PDF)

Related claim rule

“If the insured subsequently claims, based upon a written estimate which he or she obtains, that necessary repairs will exceed the written estimate prepared by or for the insurer, and differences remain unresolved during the course of the repair or negotiation process, the insurer shall:”

Tenn. Comp. R. & Regs. 0780-01-05-.09, effective 10/9/2017 (PDF)

Related claim rule

From a list that begins: “the insurer shall:”

“Pay the difference between the written estimate and a higher estimate obtained by the insured; or (b) Promptly provide the insured with the name of at least one (1) repair shop in areas proximate to the local market area, including the closest major metropolitan areas within or without the state, that will make the repairs for the amount of the written estimate”

Tenn. Comp. R. & Regs. 0780-01-05-.09, effective 10/9/2017 (PDF)

What it means in Tennessee

Tennessee's rules give the insurer 30 days to acknowledge a claim and 30 days to answer its insured's other messages. On its insured's claim, it has 60 days after a complete proof of loss to accept or deny, or must explain and update every 60 days, then 30 days to pay once the amount is settled. The rules set no interest and are enforced under a statute not in this collection: penalties are a question for the Department of Commerce and Insurance or a lawyer.

These rules bind property and casualty insurers, and the decision and payment deadlines are written for first-party claimants; a documented fraud suspicion relaxes the decision deadline. For third-party claimants the rules only require telling them in writing that they can contact the Department. The rules say they create no private cause of action. The Tennessee Code itself is not in this collection, so any statutory penalty or interest rule is not shown here.

The law's own words

Respond

“(1) Every insurer, upon receiving notification of a claim, shall, within thirty (30) days, acknowledge the receipt of such notice unless payment is made within that period of time.”

Tenn. Comp. R. & Regs. 0780-01-05-.07, effective 10/9/2017 (PDF)

Respond

“(3) An appropriate reply shall be made within thirty (30) days on all other pertinent communications from a first party claimant which reasonably suggest that a response is expected.”

Tenn. Comp. R. & Regs. 0780-01-05-.07, effective 10/9/2017 (PDF)

Accept or deny

“(1) Within sixty (60) days after receipt by the insurer of properly completed and executed proofs of loss and such information or documents required under the policy, the first party claimant shall be advised of the acceptance or denial of liability for the claim by the insurer.”

Tenn. Comp. R. & Regs. 0780-01-05-.08, effective 10/9/2017 (PDF)

Accept or deny

“(2) If the insurer needs more time to determine whether liability for a first party claim should be accepted or denied, it shall so notify the first party claimant within sixty (60) days after receipt of the proofs of loss and such information or documents required under the policy, giving the reasons more time is needed.”

Tenn. Comp. R. & Regs. 0780-01-05-.08, effective 10/9/2017 (PDF)

Pay

“(6) The insurer shall tender payment within thirty (30) days of affirmation of liability, if the amount of the claim is determined and not in dispute, unless the policyholder does not want payment within thirty (30) days.”

Tenn. Comp. R. & Regs. 0780-01-05-.08, effective 10/9/2017 (PDF)