Who pays what
On an insurance repair, the insurer pays the covered cost less the policy's deductible. On a $10,000 repair with a $500 deductible, the insurer pays $9,500 and the customer owes the $500, along with anything they asked for that the claim doesn't cover. When the claim is against the other driver's insurer, there's no deductible.
Customer-pay work is simpler: the customer owes the authorized estimate and any approved changes. Either way, the estimate and the customer's authorization are the foundation of getting paid; our estimate guide covers the state rules.
Free toolAuto body invoice templateOne invoice for insurance jobs that shows the deductible and the balance due from the insurance company, with sales tax and your payment details.Collecting the deductible
Collect the deductible before the car leaves. Washington requires shops to post a sign telling customers they must pay for authorized repairs before taking the car, and a repair lien lets you hold it until they do.
Deductibles can be large: in CCC's mid-2026 figures, 28.4% of repairable collision claims carried a deductible of $1,000 or more. Tell the customer what they'll owe when they authorize the repair, not at pickup.
Insurer checks and payment times
The claim belongs to the insured, so the insurer's check is usually made out to them, sometimes with the lender or the shop named too. New York's rules spell it out: with the insured's agreement, the check can name the insured and the lienholder or the chosen shop, and the insurer can't make paying the claim depend on the repair being done. In North Carolina, towing and storage money paid to the owner must be a joint check to the owner and the storage facility.
Direction to pay and assignment of benefits
A direction to pay is the customer's instruction to the insurer to pay the shop. An assignment of benefits goes further and transfers the claim, so the shop can bill and sue the insurer itself. Oklahoma banned assigning benefits to body shops from November 1, 2025, and the law is being challenged in court.
| State | The rule |
|---|---|
| New York | Within five business days after the insured accepts, or three after a completed proof of loss |
| California | Accept or deny within 40 days of proof of claim, and pay within 30 days of accepting |
| Texas | Within five business days of accepting a claim under the customer's own policy |
| Florida | Within 20 days of a written settlement, or interest runs at 12% a year |
Check your state's claim settlement rules; most states have them, and the details differ.
Storage charges
Storage is where shops and insurers argue most, especially on total losses, now about a quarter of claims. Disclose your daily rate in advance and in writing, and know your state's rules:
| State | The rule |
|---|---|
| Florida | The estimate states the daily storage charge, which can't start until three working days after you tell the customer the car is ready |
| Colorado | Storage needs a separate written agreement, and charges start on the fourth day |
| Connecticut and Pennsylvania | Post or disclose your storage terms |
| California | Fees must be reasonable, and some, such as administrative, security and most gate fees, are presumed unreasonable (from January 1, 2026). Insurers must pay reasonable storage and give reasonable notice before they stop. The Bureau of Automotive Repair's proposed rule would also bar storage charges during repairs |
| North Carolina | The insurer pays reasonable storage until three days after written notice to the owner and the shop, and can't leave a total loss at the shop without the shop's consent |
| Oklahoma | Storage on total-loss vehicles is capped at $39 a day, or $125 for an EV with a damaged battery, rising to $75 and $200 from day 11. The cap is being challenged in court |
California's BAR storage rule was still a proposal when we checked in October 2026.
Holding the car: repair liens
A repair lien lets you keep a car until you're paid for authorized work. In most states it depends on keeping the car, so you lose it when the car leaves. Two exceptions: Texas keeps the lien if the customer's check bounces, and Washington lets a lien survive if you file it with the county auditor within 90 days. Breaking the estimate rules can cost you the lien for the excess, as in Colorado, Washington and Connecticut.
| State | What to know |
|---|---|
| California | The lien arises when the bill is presented, or 15 days after the work is done, and is lost unless you apply for a lien sale or sue within 30 days. Against a lender it's capped at $1,500 for work and $1,025 for storage unless the lender agreed in writing |
| Texas | Send a certified notice to the owner and lienholders. Shops other than franchised dealers must also file it with the county tax assessor-collector within 30 days, with the signed work order. A sale can't be before the 31st day |
| Florida | Send certified notice through a state-approved service within seven business days after storage starts. No sale until 60 days after the repair is done, published 15 days ahead |
| New York | The lien can't exceed the written estimate, and unregistered shops get none. The owner has at least 10 days to pay and may challenge the lien |
| Washington | A lien survives returning the car if you file a notice with the county auditor within 90 days and enforce it within nine months |
Lien sales have strict notice steps and deadlines. Follow your state's law exactly, or the lien can be lost.
Collecting what's owed
When a customer owes you and the car has gone, small claims court is usually the cheapest route:
| State | Limit |
|---|---|
| California | $6,250 for businesses ($12,500 for individuals and sole proprietors) |
| Texas | $20,000 in justice court, including enforcing liens on personal property |
| Florida | $8,000 |
| New York | $10,000 in New York City, $5,000 in other city courts, $3,000 in town and village courts. Businesses use commercial claims, with a demand letter first |
Habits that get you paid
- Get the authorization and the estimate right, in the form your state requires, before any work.
- Tell the customer the deductible and your storage terms when they authorize the repair.
- Confirm how the insurer will pay, and who the check will name, before the car is ready.
- Invoice the day the work is done, and tell the customer in writing when the car is ready.
- Collect the deductible and any customer-pay balance before the car leaves.
- Chase unpaid insurer balances against your state's payment deadlines, in writing.
