New Webpage Offers Guidance on Storage Fees
Effective January 1, 2024, Assembly Bill 1263 (Berman, Chapter 681, Statutes of 2023) authorizes the Bureau of Automotive Repair (BAR) to adopt regulations to clarify its authority to regulate storage fees charged by automotive repair dealers (ARDs) consistent with provisions of the Vehicle Code, Civil Code, and any related regulations of the California Department of Insurance. BAR regulations on storage fees will be developed with input from all stakeholders to enhance consumer protections and improve industry education and compliance. A regulatory workshop will be held on April 25, 2024, to discuss proposed regulations on this issue.
To help support consumers and both the automotive repair and insurance industries while the regulation process is ongoing, BAR has published an Automotive Repair Dealers and Storage Fees webpage. It is important to note this page is intended to provide general guidance only and is not a definitive source for specific questions related to the Vehicle or Civil Code provisions relating to storage fees.
The webpage provides important information on:
Charging storage fees – find information on the circumstances under which an ARD may or may not charge storage fees, the definition of reasonable and unreasonable storage fees, and when liens may occur.
Towing and storage services – learn about reasonable towing and storage rates and fees, how an ARD should invoice towing charges, and the notifications an ARD is required to post and/or provide to consumers.
Working with insurers – get information about an ARD’s option to decline to perform repairs, the California Fair Claims Settlement Practices Regulations adopted by the California Department of Insurance, actions to take when a vehicle is determined to be a total loss, and who is responsible for payment of storage fees.
Resolving complaints and disputes – read about BAR’s consumer complaint process and the importance of constant and open communication between ARDs and their customers.
Visit the Automotive Repair Dealers and Storage Fees webpage at www.bar.ca.gov.To receive email notifications from BAR, including important updates about regulatory actions and opportunities for public participation, subscribe to BAR’s email list.