Virginia body shop laws: what insurers and shops must do

What it means in Virginia

No one, including the insurer and its representatives, can require your customer to use a designated shop as a condition of settling or paying a claim, or pressure them into one. When the insurer recommends a shop, it must tell your customer right then that they don't have to use it, and disclose any financial interest it has in that shop. It may name nearby qualified shops, and it doesn't have to pay more than the going competitive rate in the area.

The insurer may give the names of conveniently located qualified shops (14VAC5-400-80). It need not pay more than prevailing competitive charges in the area.

The law's own words

“Require an insured or claimant to utilize designated replacement or repair facilities or services, or the products of designated manufacturers, as a prerequisite to settling or paying any claim arising under a policy or policies of insurance”

Va. Code § 38.2-517

“Engage in any act of coercion or intimidation causing or intended to cause an insured or claimant to utilize designated replacement or repair facilities or services”

Va. Code § 38.2-517

“that the insured or claimant is under no obligation to use the replacement or repair facility or service or products of the manufacturer recommended by the insurer or by a representative of the insurer”

Va. Code § 38.2-517

What it means in Virginia

Before the insurer stops paying storage, it must give the claimant reasonable notice and reasonable time to move the car, with no set number of days. You have a lien for towing and storage until you're paid. If the title shows a lender, your storage lien is capped at $500, though you can also claim what's left after the lender is paid. With no lender on the title, the cap is the car's value.

"Keeper of vehicles" includes garage keepers, self-storage facilities and tow operators.

The law's own words

Shop

“Every keeper of vehicles shall have a lien upon such vehicles for the amount that may be due him for the towing, storage, recovery, and care thereof, until such amount is paid.”

Va. Code § 46.2-644.01

Shop

“In the case of any vehicle for which the title shows an existing lien, the keeper of vehicles shall have a lien upon the vehicle for his reasonable charges for storage under this section not to exceed $500; however, the keeper of vehicles shall also be entitled to a lien against any proceeds remaining after the satisfaction of all prior security interests or liens.”

Va. Code § 46.2-644.01

Shop

“In the case of any vehicle not subject to an existing lien on the title, the keeper of vehicles shall have a lien thereon for his reasonable charges for storage under this section, alone or in combination with a lien under § 46.2-644.02 not to exceed the value of the vehicle as determined by the provisions of § 8.01-419.1.”

Va. Code § 46.2-644.01

Insurer

“G. An insurer shall provide reasonable notice to a claimant prior to termination of payment for automobile storage charges. The insurer shall provide reasonable time for the claimant to remove the automobile from storage prior to the termination of payment.”

14VAC5-400-80, effective 1/1/2018

What it means in Virginia

You can keep the car until you're paid, but if the title shows a lender, your lien is capped at $1,000, plus a claim on anything left after the lender is paid. Check the title with the DMV within seven business days after the invoice is due; once it's 10 days past due, you can enforce. For a car worth $12,500 or less, sell at public auction after notifying the DMV ($40), which gives the owner and lender 15 days to reclaim it; a costlier car needs a court petition. Your customer can get the car back by suing you and posting a bond.

The repair lien is capped at $1,000 when the title shows a lien. Vehicles worth more than $12,500 need a court petition. The mechanic must check the title for liens within seven business days after the invoice is due.

The law's own words

Keep the car

“Every mechanic who shall alter or repair any vehicle at the request of the owner or authorized person in possession of such vehicle shall have a lien thereon for his just and reasonable charges therefor and may retain possession of such property until such charges are paid.”

Va. Code § 46.2-644.02

Keep the car

“Every keeper of vehicles shall have a lien upon such vehicles for the amount that may be due him for the towing, storage, recovery, and care thereof, until such amount is paid.”

Va. Code § 46.2-644.01

Sell or title it

“Any bailee eligible to enforce a lien under § 46.2-644.01 or 46.2-644.02, if the value of the vehicle affected by the lien does not exceed $12,500, may sell such vehicle by public auction, for cash, in accordance with the provisions of this section.”

Va. Code § 46.2-644.03, effective 7/1/2026

Sell or title it

“If the Department confirms owner or lienholder information, the Department shall notify the owner, at the last known address of record, and any lienholder, at the last known address of record, of the intent to sell the vehicle, by certified mail, return receipt requested, and advise them to reclaim the vehicle and repay the debt owed within 15 days from the date the notice was sent.”

Va. Code § 46.2-644.03, effective 7/1/2026

Get it back

“If the owner of the vehicle held by the mechanic shall desire to obtain possession thereof, he shall make the mechanic defendant in proceeding in the county or municipal court to recover the vehicle. The owner may give a bond payable to the court, in a penalty of the amount equal to the lien claimed by the mechanic and court costs”

Va. Code § 46.2-644.02

What it means in Virginia

Virginia's rule binds the insurer. It can't prepare or use an estimate based on aftermarket exterior sheet metal or plastic parts unless it gives the claimant written notice, on or attached to the estimate, that the parts must be at least equal in like kind and quality in fit, quality and performance to the originals. These sections say nothing about consent, warranty or vehicle age; that's a question for state insurance regulators or a lawyer.

The aftermarket rule covers only exterior sheet metal or plastic parts, including inner and outer panels, not made by the original equipment manufacturer. Under 38.2-510 B a violation does not by itself create a cause of action for anyone but the Commission, though other rights to seek redress are kept. The consumer protection section quoted is the version in force today; the publisher prints four dated versions.

The law's own words

Insurer

“No insurer shall prepare or use an estimate of the cost of automobile repairs based on the use of an after market part, as defined herein, unless: The insurer discloses to the claimant in writing either on the estimate or in a separate document attached to the estimate the following information:”

Va. Code § 38.2-510, effective 7/1/2026

Parts standard

“THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF AUTOMOBILE PARTS NOT MADE BY THE ORIGINAL MANUFACTURER. PARTS USED IN THE REPAIR OF YOUR VEHICLE BY OTHER THAN THE ORIGINAL MANUFACTURER ARE REQUIRED TO BE AT LEAST EQUAL IN LIKE KIND AND QUALITY IN TERMS OF FIT, QUALITY AND PERFORMANCE TO THE ORIGINAL MANUFACTURER PARTS THEY ARE REPLACING.”

Va. Code § 38.2-510, effective 7/1/2026

Parts standard

“"After market part" as used in this section shall mean an automobile part which is not made by the original equipment manufacturer and which is a sheet metal or plastic part generally constituting the exterior of a motor vehicle, including inner and outer panels.”

Va. Code § 38.2-510, effective 7/1/2026

Shop

From a list that begins: “The following fraudulent acts or practices committed by a supplier in connection with a consumer transaction are hereby declared unlawful:”

“Misrepresenting that goods or services are of a particular standard, quality, grade, style, or model;”

Va. Code § 59.1-200, effective 10/1/2026

What it means in Virginia

Virginia's captured law has no appraisal statute or required appraisal clause. The insurer's estimate must be enough to fix the car properly, your customer gets a copy, and a total-loss valuation comes on request. Cutting an adjuster's estimate of $3,000 or more requires a detailed explanation to the policyholder. If a court finds the insurer refused your customer's own property damage claim in bad faith, it owes double the judgment plus attorney fees; third-party claims of $3,500 or less get a similar remedy.

Section 38.2-510 creates no cause of action for anyone but the Commission, though other legal remedies remain. The double-judgment remedy in 8.01-66.1(A) covers the insured's own property damage claim under a motor vehicle policy; (B) covers third-party claims of $3,500 or less against the at-fault driver's insurer. In disputed repairs, supplements need a personal inspection.

The law's own words

Other dispute rules

“D. When reducing a loss estimate of $3,000 or more, no insurer shall alter or amend an insurance adjuster's estimate of damages, photographic report data, or narrative report without (i) providing the policyholder with a detailed explanation as to why any change that has the effect of reducing the loss estimate was made;”

Va. Code § 38.2-510, effective 7/1/2026

Other dispute rules

From a list that begins: “No person shall commit or perform with such frequency as to indicate a general business practice any of the following:”

“7. Compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by such insureds;”

Va. Code § 38.2-510, effective 7/1/2026

Other dispute rules

“it is subsequently found by the judge of a court of proper jurisdiction that such denial, refusal or failure to pay was not made in good faith, the company shall be liable to the insured in an amount double the amount of the judgment, plus interest from 30 days after the date the claim was submitted in writing to the insurer or its authorized agent, together with reasonable attorney fees and expenses.”

Va. Code § 8.01-66.1

Other dispute rules

“a claim of $3,500 or less made by such third party claimant and if the judge of a court of proper jurisdiction finds that the insured is liable for the claim, the third party claimant shall have a cause of action against the insurance company.”

Va. Code § 8.01-66.1

Other dispute rules

“D. When an insurer prepares an estimate of the cost of automobile repairs, the estimate shall be an amount for which the damage may reasonably be expected to 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 or more conveniently located qualified repair shops. A total loss valuation shall be provided to the claimant upon request.”

14VAC5-400-80, effective 1/1/2018

What it means in Virginia

Virginia doesn't set a labor rate. The insurer doesn't have to pay more than the prevailing competitive charges of similar shops within a reasonable area around your shop for repairs needed to restore the car to pre-loss condition. An estimate the insurer writes must be enough to reasonably expect a satisfactory repair, and your customer gets a copy. No one may set arbitrary, unreasonable caps on paint and materials. The Commission must investigate written complaints, including a shop's, with the insured's or claimant's written authorization.

Under 38.2-517, an insurer explaining the extent of its obligation to its policyholder or a third party claimant is not a violation. An insurer is accountable for violations by its third party representative, and violators face the penalty and enforcement provisions of Chapter 2 of Title 38.2.

The law's own words

Survey or rate standard

“B. This section shall not be construed to require an insurer to pay an amount for motor vehicle repair services or repair products necessary to properly and fairly repair the vehicle to its pre-loss condition that is greater than the prevailing competitive charges for equivalent services or products charged by similar contractors or repair shops within a reasonable geographic or trade area of the address of the repair facility.”

Va. Code § 38.2-517

Related claim rule

From a list that begins: “No person shall:”

“6. Engage in the practice of capping. As used in this subdivision, "capping" means the setting of arbitrary and unreasonable limits on what an insurer will allow as reimbursement for paint and materials.”

Va. Code § 38.2-517

Related claim rule

“The Commission shall investigate, with the written authorization of the insured or the claimant, any written complaints received pursuant to this section, regardless of whether such written complaints are submitted by an individual or a repair facility.”

Va. Code § 38.2-517

What the insurer pays

“D. When an insurer prepares an estimate of the cost of automobile repairs, the estimate shall be an amount for which the damage may reasonably be expected to 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 or more conveniently located qualified repair shops.”

14VAC5-400-80, effective 1/1/2018

What the insurer pays

“D. In any case where there is no dispute as to coverage or liability, an insurer shall offer to a first party claimant an amount that is fair and reasonable as shown by the investigation of the claim, provided the amount so offered is within policy limits and in accordance with policy provisions.”

14VAC5-400-70, effective 1/1/2018

What it means in Virginia

Virginia bans capping: no one may set arbitrary and unreasonable limits on what an insurer will allow for paint and materials. The insurer still doesn't have to pay more than the going rate similar shops in your area charge to fix the car to pre-loss condition. The Commission must investigate written complaints about this, including ones from a repair shop, with the insured's or claimant's written authorization, and the insurer answers for its third-party representatives.

A violator is subject to the injunction, penalty and enforcement provisions of Chapter 2 of Title 38.2. Explaining the extent of the insurer's obligation to its policyholder or a third-party claimant is not a violation.

The law's own words

Capping rule

From a list that begins: “No person shall:”

“Engage in the practice of capping. As used in this subdivision, "capping" means the setting of arbitrary and unreasonable limits on what an insurer will allow as reimbursement for paint and materials.”

Va. Code § 38.2-517

What the insurer pays

“This section shall not be construed to require an insurer to pay an amount for motor vehicle repair services or repair products necessary to properly and fairly repair the vehicle to its pre-loss condition that is greater than the prevailing competitive charges for equivalent services or products charged by similar contractors or repair shops within a reasonable geographic or trade area of the address of the repair facility.”

Va. Code § 38.2-517

Related claim rule

“The Commission shall investigate, with the written authorization of the insured or the claimant, any written complaints received pursuant to this section, regardless of whether such written complaints are submitted by an individual or a repair facility.”

Va. Code § 38.2-517

Related claim rule

“When an insurer prepares an estimate of the cost of automobile repairs, the estimate shall be an amount for which the damage may reasonably be expected to be satisfactorily repaired.”

14VAC5-400-80, effective 1/1/2018

Related claim rule

“Offering an explanation of the extent of an insurer's obligation under this section to its policyholder or third party claimant shall not constitute a violation of this section.”

Va. Code § 38.2-517

What it means in Virginia

Virginia's rules give the insurer 15 calendar days to acknowledge a claim and 15 calendar days after a proof of loss to accept or deny its insured's claim, with written updates every 45 days while investigating. No rule sets a payment deadline. If a court finds the insurer refused its insured's auto property damage claim in bad faith, it owes double the judgment, interest from 30 days after the written claim, and attorney fees; third-party claims of $3,500 or less can be doubled too.

The 15-day decision and 45-day update rules cover first-party claimants; the acknowledgment rule's 'claimant' includes third-party claimants. Before making a demand under 8.01-66.1, the claimant must give the insurer 45 days' notice with enough information to assess the claim, and an insurer that tenders the policy limits or the amount demanded, whichever is less, within 45 days of that notice faces no bad-faith action under it.

The law's own words

If late

“the company shall be liable to the insured in an amount double the amount of the judgment, plus interest from 30 days after the date the claim was submitted in writing to the insurer or its authorized agent, together with reasonable attorney fees and expenses.”

Va. Code § 8.01-66.1

If late

“whenever any insurance company licensed in this Commonwealth to write insurance as defined in § 38.2-124 denies, refuses or fails to pay to a third party claimant, on behalf of an insured to whom such company has issued a policy of motor vehicle liability insurance, a claim of $3,500 or less made by such third party claimant”

Va. Code § 8.01-66.1

Respond

“A. An insurer, upon receiving notification of a claim shall, within 15 calendar days, acknowledge the receipt of such notice to the claimant unless payment is made within such period of time”

14VAC5-400-50, effective 1/1/2018

Accept or deny

“A. Within 15 calendar days after receipt by the insurer of any required properly executed proof of loss, a first party claimant shall be advised of the acceptance or denial of the claim by the insurer.”

14VAC5-400-60, effective 1/1/2018

Accept or deny

“B. If an investigation of a first party claim has not been completed, an insurer shall, within 45 calendar days from the date of the notification of a first party claim and every 45 calendar days thereafter, send to the first party claimant a written notice setting forth the reasons additional time is needed for investigation.”

14VAC5-400-60, effective 1/1/2018