California Bureau of Automotive Repair (BAR) is proposing regulation changes that will require collision repair shops to give consumers an itemized estimate prior to performing a teardown.

BAR will be accepting comments on the proposed regulation changes until Dec. 16. To provide comments and feedback send emails to Holly.Helsing@dca.ca.gov and Kayla.Shelton@dca.ca.gov

According to the proposed language, repair shops will need to detail the areas and vehicle components where a teardown is necessary. This should include the cost of reassembling the area and the cost of all parts and labor to replace parts normally destroyed during a teardown. 

The estimate also should include the maximum time it will take for the vehicle to be reassembled in the event the customer elects not to proceed with the repair, the proposed regulation says. 

Andrew Batenhorst, California Autobody Association Glendale/Foothill Chapter president and Pacific BMW Collision Center body shop manager, said current regulations require shops to provide a general statement about the teardown process, the hourly labor rate, and a maximum dollar amount for the process. 

“It’s going to be a lot more complex for us now,” Batenhorst said. “We have to give a price per item.” 

For example, shops will likely have to have a price for the removal of items such as bumpers, fenders, and headlights. He said no one really knows exactly how specific BAR will want shops to be. 

Batenhorst said the estimate will have to be created as the consumer drops off the car. He said the estimate will have to be compiled on assumptions of what is necessary. If a repairer decides more is needed during the teardown process, the repairer will likely need to stop work and wait for another authorization from the consumer. 

“Let’s say for example, we take the bumper, fender, and headlight off and now we see there is structural damage,” Batenhorst said. “Now we need to measure the frame or maybe now we need to remove the battery, then you have to stop. You can’t continue with the diagnosis.” 

He said the regulation will add a lot of administrative burden to an already complex process. 

The length of repair will likely become longer because of the regulation changes, he said. 

Batenhorst said the regulation changes are being driven by insurance companies. He said it also could be used as a way to cap total loss charges. 

Any shop that doesn’t get authorization for every step from the customer could be disputed by the insurance companies later, he said. 

BAR’s proposed regulation changes also require shops to notify customers prior to authorization of any known out-of-pocket costs or the possibility of out-of-pocket costs. 

The proposed regulation requires shops to specifically tell consumers, “This estimate is for repairs to meet vehicle manufacturer and industry standards. Any agreement you have with a third-party payor of the final repair bill may be adjusted based upon policy provisions, resulting in you becoming responsible for an additional portion of the cost of repair beyond any deductible contained within the policy. You will be notified by the insurer of any such adjustments.” 

Batenhorst said most ethical shops will already alert customers of any out-of-pocket expenses they are notified about from a third-party payer. However, he said the regulation puts the burden of notification on the shop and not the insurance company that makes the decision. 

“I have respect for BAR,” Batenhorst said. “I don’t have a problem with them and I understand that there needs to be consumer protection, but the accountability side towards the insurance industry is completely lopsided versus us and we’re the ones carrying all the risk terms of fixing cars correctly and then needing to be paid fairly for what we do.” 

The collision industry needs more educated voices in the rooms at workshops, Batenhorst said. He said this includes shops that study the proposals and engage in the meetings in meaningful ways. 

“If we sit quiet, nothing is going to change,” Batenhorst said. “Insurance is going to dominate that conversation.” 

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