Navigating the aftermath of a car accident or breakdown can be stressful, and unexpected fees only add to the burden. One common concern for vehicle owners is whether an auto repair shop can charge storage fees, especially in Rhode Island. This article breaks down the regulations in Rhode Island to clarify when and how auto repair shops can legally impose storage fees, ensuring you’re informed and prepared.
The Legal Basis for Storage Fees in Rhode Island
In Rhode Island, the Department of Business Regulation (Department) sets the rules regarding storage fees for licensed automobile body repair shops. These regulations are established under Rhode Island General Laws § 5-38-27, aiming to protect consumers and provide clear guidelines for repair shops. Understanding these rules is crucial for both vehicle owners and repair shop operators.
Purpose of Rhode Island’s Storage Fee Regulations
The primary goal of these regulations is to create a transparent and fair system for storage fees. Specifically, the regulations aim to:
- Define Key Terms: Clearly define terms like “storage” and “day” to avoid ambiguity.
- Establish Maximum Rates: Set reasonable limits on how much repair shops can charge for storage, protecting consumers from excessive fees.
- Clarify Fee Categories: Distinguish between different types of storage fees and when each applies.
- Standardize Notice Procedures: Ensure repair shops follow a specific process for notifying vehicle owners before storage fees are applied.
These regulations apply to all licensed auto body repair shops in Rhode Island. It’s important to note that these rules don’t require shops to charge storage, nor do they prevent them from charging less than the maximum allowed rates. The focus is on setting boundaries and ensuring fair practice.
Key Definitions: “Day” and “Storage” Explained
To understand storage fees, it’s essential to grasp the definitions provided by Rhode Island regulations:
- Day: A “day” is defined as any calendar day where your vehicle is at the repair shop for eight (8) hours or more. This clarifies that short periods at the shop may not count as a full storage day.
- Storage: “Storage” refers to vehicles kept in a secure, well-lit area that is fenced (at least six feet high) and equipped with a working security system. This definition ensures a basic standard of security for vehicles in storage, justifying the storage fee.
Maximum Allowable Storage Rates in RI
Rhode Island law does not set a specific dollar amount for storage fees. Instead, it links the maximum storage rates for auto body repair shops to the rates set by the Division of Public Utilities and Carriers (DPUC) for vehicle towing and storage. This means storage fees are tied to established rates for similar services within the state, ensuring consistency and reasonableness. To know the exact maximum rate, you would need to refer to the DPUC’s current regulations on tow away motor vehicle operations.
Storage Fees for Repaired Vehicles: When Can They Be Charged?
A crucial point in Rhode Island’s regulations is the restriction on storage fees for vehicles that are fully repaired. Shops cannot charge storage fees for repaired vehicles immediately. However, they can begin charging storage under specific conditions designed to give vehicle owners ample time to retrieve their cars after repairs are complete.
Here’s when storage fees can start for repaired vehicles:
- Written Notice: The repair shop must send you a written notice via certified mail, return receipt requested, informing you that repairs are finished and that storage fees will begin after seven days from when you (or a household member) receive the notice.
- Seven-Day Grace Period: Storage fees can only begin on the seventh day after you receive the written notice, as confirmed by the return receipt from the post office. This gives you a week to arrange for vehicle pickup without incurring storage charges.
- Lienholder Notification: If, eight days after you received the notice, you haven’t contacted the shop, the repair shop is required to make reasonable efforts to inform any lienholders (e.g., banks, finance companies) about the vehicle’s status. This protects the interests of all parties involved.
This process ensures you are formally notified about repair completion and impending storage fees, preventing surprise charges.
Storage Fees for Totaled and Partially Repaired Vehicles
The rules for storage fees are different for vehicles declared a total loss or those that are only partially repaired.
Total Loss After Initial Appraisal:
- If your vehicle is declared a total loss after the initial insurance appraisal, the repair shop can charge storage fees.
- However, they cannot charge storage for any day they prevented the insurance carrier from inspecting the vehicle within three business days of the insurer’s request. This encourages shops to cooperate with insurance appraisals promptly.
Total Loss After Supplemental Appraisal (Partial Repairs Started):
- If repairs have begun after an initial appraisal, but a supplemental appraisal leads to the vehicle being totaled, storage fees can be charged under specific circumstances.
- Storage fees can start two business days after the shop requests the supplemental appraisal that resulted in the total loss declaration. This accounts for the time needed for the supplemental appraisal process.
- If the insurance company delays the supplemental appraisal beyond two business days after the shop’s request, the shop can start charging storage after that two-business-day period.
- Similar to the initial appraisal rule, storage fees are disallowed for any days the shop hinders the insurance carrier’s inspection within three business days of a request.
- Importantly, shops cannot charge storage fees for any days they are performing partial repairs on the vehicle.
Total Loss with No Insurance Responsibility:
- If a vehicle is totaled and no insurance company is responsible for covering the loss, the repair shop must make reasonable attempts to notify any lienholders in writing about the vehicle’s situation. This ensures all relevant parties are informed even when insurance is not involved.
Insurance Inspections and Their Impact on Storage Fees
Rhode Island regulations also address the interaction between repair shops and insurance representatives to prevent storage fee disputes related to inspection delays.
- Access for Basic Inspection: Repair shops must allow insurance representatives access to vehicles for basic inspections (photos, VIN checks) within four hours of the request.
- Appraisal Inspections: Insurance appraisers must be allowed to inspect vehicles as soon as practically possible, and no later than three days after their request (oral or written). This can be with or without an appointment.
- Storage Fee Restrictions Due to Inspection Delays: If a vehicle isn’t made available for inspection within three days of the request, storage fees cannot be charged for more than three days. Furthermore, storage fees are prohibited for any day between the insurance representative’s access request for appraisal and the day the shop actually permits the inspection. For example, if an appraiser requests access on Monday but is only allowed on Wednesday, Tuesday’s storage fee is disallowed (unless the appraiser was unavailable until Wednesday).
These rules incentivize repair shops to facilitate timely insurance inspections, preventing storage fees from accumulating due to delays in the appraisal process.
Storage Fees for Stolen Vehicles
When a repair shop takes custody of a stolen vehicle, they have a specific notification responsibility. They must send written notice via registered mail to the vehicle’s owner or insurer to inform them that the shop has the vehicle. The regulations do not explicitly detail storage fee rules for stolen vehicles beyond this notification requirement, suggesting standard storage fee rules would likely apply once the owner or insurer is notified and has had reasonable time to respond.
Enforcement of Storage Fee Regulations
The Department of Business Regulation is responsible for enforcing these storage fee regulations. If a repair shop violates these rules, they are subject to enforcement actions under applicable Rhode Island law. This provides a mechanism for addressing violations and ensuring compliance within the auto repair industry.
Conclusion: Know Your Rights and Responsibilities Regarding Storage Fees in RI
Understanding Rhode Island’s regulations on auto repair shop storage fees empowers you as a vehicle owner. Key takeaways include:
- Storage fees are regulated to protect consumers.
- Maximum rates are linked to DPUC towing rates.
- Strict rules govern when storage fees can start, especially for repaired vehicles, requiring written notice and a grace period.
- Regulations address storage fees for totaled vehicles and the importance of timely insurance inspections.
By being aware of these regulations, you can better navigate interactions with auto repair shops in Rhode Island and ensure you are treated fairly regarding storage fees. If you believe a shop is violating these regulations, you can contact the Department of Business Regulation for assistance.
