Updated tear down disclosure requirements in effect
Effective July 1, 2025, the Bureau of Automotive Repair (BAR) adopted new tear down disclosure regulations for automotive repair dealers (ARDs). The regulations are intended to make the tear down estimate and approval process clearer and more consistent for both ARDs and their customers.
General tear down disclosure requirements
These regulations focus primarily on tear down repair transaction requirements for ARDs performing mechanical and/or collision repairs:
When preparing a tear down estimate, the ARD must record the cost of the tear down and a description of the portion(s) or area(s) of the vehicle, or vehicle component(s), that require a tear down to evaluate its condition.
In addition, the regulations continue to require that tear down estimates include:
- The cost of reassembly of the vehicle or component(s)
- The cost of parts normally destroyed by the tear down (such as O rings and gaskets)
- The maximum amount of time necessary to reassemble the vehicle or component(s) in the event the customer does not want to proceed with the repairs
- Whether the act of performing the tear down prevents the vehicle or component(s) from being reassembled
Upon completion of the tear down, the ARD must provide the customer with an itemized estimate for parts and labor for the necessary repairs.
If, after performing a tear down, the customer declines repair or reassembly, the ARD must note this on the repair order.
Additional requirements for collision repair transactions
Collision damage often includes hidden issues that can’t readily be seen during a visual inspection. A tear down of the damaged area(s) of the vehicle helps the ARD determine the full extent of the damage. The tear down process not only allows the ARD to prepare a more accurate repair estimate, but it also requires the ARD to clearly describe the work to be done and obtain the customer’s authorization before disassembly begins.
This process benefits both the ARD and their customers by:
Reducing the need for supplemental estimate revisions, leading to faster repair times.
Giving customers a more realistic timeline for repairs.
Preventing situations where a vehicle is declared a total loss after extensive repairs have already been performed.
In addition to the general tear down requirements affecting all ARDs, the new regulations also include requirements specific to ARDs performing collision repairs:
Description of disassembly on tear down estimate: ARDs must specify the general area of the vehicle that will be disassembled as part of a tear down estimate. For example:
- For a front-end collision, “front of vehicle” is acceptable.
- “Area of damage” is not sufficient.
ARDs are not required or expected to provide an itemized list of every part that will be removed during a tear down.
Third-party payor estimates: While not required, if an ARD decides to accept or adopt a third-party payor’s estimate as the method of repair, the ARD’s estimate must include:
- The third-party payor’s name
- The estimated cost of repair
- A unique identifying number such as the estimate, claim, or Work file ID
- A statement of the intent to repair the vehicle per the third-party estimate
- A copy of the third-party payor’s estimate attached to the ARD’s estimate. For example, “See attached estimate from [Name of Third-Party Payor]” is acceptable.
Customers must be informed that the third-party payor estimate is subject to the Department of Insurance’s Fair Claims Settlement Practices Regulations (Title 10, California Code of Regulations sections 2695.8 and 2695.85).
ARDs must notify the third-party payor of any customer-authorized changes that alter the estimated amount to be paid by the third-party payor.
Third-party payor payment authorization: If the ARD knows the repair amount approved by the third-party payor, it must be recorded on the estimate before customer authorization is obtained.
If the approved amount is not known, the ARD must notify the customer that they (the customer) are responsible for contacting the third-party payor to confirm payment. The following disclosure must be included:
“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 payment of the repairs you have authorized.”
Resources for ARDs
To support ARDs in meeting these requirements, BAR has updated the Write It Right guide. The revised guide includes:
- FAQs
- Updated definitions
- Sample estimates reflecting the new requirements
Review the updated Write It Right guide and be sure to bookmark it for future reference.