Written by Hao Nguyen and Jack Molodanof
Since the expansion of the California Bureau of Automotive Repair’s (BAR) citation and fine authority in July of 2023, the BAR has issued citations and conducted disciplinary actions against almost 2,500 automotive repair dealers (which includes service departments) throughout California. These violations include improper documentation (e.g., estimates, revised estimates, and final invoices), unauthorized repairs, poor recordkeeping, unlicensed activity, and others. Penalties range from $5,000 per violation to publishing the repair facility’s violations on a public website to a full suspension of a repair facility’s license.
With a continued emphasis on enforcement and the recent passage of these new regulations, the BAR is becoming emboldened and there is no sign of BAR slowing down. The following regulations will take effect on July 1, 2025. All service departments and body shops in California should take steps to ensure they are complying with the requirements. Here are some key highlights of these regulations:
Separate Estimate and Invoice for Towing Charges
If the facility contracted for a towing service then it is considered a separate stand-alone transaction. Any towing charges must be included in a separate estimate and invoice, and authorization for towing fees must now be obtained by the customer and separate from authorization for repair work. This means dealers will need to create separate estimates and invoices for any towing services and charges.
Accepting Payment from Third-Party Payor
If the dealer accepts payment for repairs from a third-party payor (e.g. insurance companies for collision repairs or warranty service) then the dealer must include specific information if the third-party payor’s amount to be paid is known or unknown:
- If the amount is known – the dealer must include the amount approved to be paid by the third-party payor on the estimate
- If the amount is unknown – the dealer must include the following disclosure on the estimate:
“This estimate is for repairs to meet vehicle manufacturer and industry standards. As the customer, it is your responsibility to contact the third-party payor for approval of payment.”
Estimates Must be Free of Technical Terms & Clearly Describe Each Repair
Descriptions of the work performed must be free of technical or industry-specific terms so that a person without professional or specialized knowledge can understand it.
Tear Down or Disassembly Estimate
The tear down estimate must specify the areas of the vehicle or component that must be worked on to adequately assess the extent of the damage or evaluate the condition of the vehicle or component. For auto body tear down estimates, the area of the vehicle being disassembled must be clearly identified.
Using an Estimate Prepared by a Third-Party Payor
Shops that choose to use a third-party payor’s estimate instead of creating their own must meet stringent requirements including notifying the customer that the third-party estimate is subject to the Fair Claims Settlement Practice Regulations. Additionally, the estimate must include specific information.
The dealer must then attach the third-party estimate to the original estimate the dealer generates for the customer. If the customer approves changes to the repair before proceeding, the dealer must notify the third-party payor of these customer-approved changes on the dealer estimate.
A Resource in ComplyAuto EduTech
The BAR’s requirements are as complex as they are comprehensive and failure to abide by them can be very costly and significantly damage your reputation. However, rest assured ComplyAuto has you covered. The BAR has viewed any prior training completed by repair facilities from approved programs as a significant mitigating factor should problems ever arise in the future. As one of these programs led by BAR-approved instructors, the team at ComplyAuto EduTech is ready to help you. Train your entire staff on all facets of proper documentation standards through our interactive training courses backed by our Compliance Guarantee.
For more information, contact ComplyAuto today.