Okla. association/body shops file suit against storage fees, benefit assignment laws
The Oklahoma Auto Body Association (OKABA) and 13 auto body shops are calling two new laws unconstitutional in separate lawsuits they’ve filed against the state.
Both suits request a temporary injunction and declaratory judgment from a judge, claiming that the laws, which took effect on Nov. 1, are unconstitutional.
House Bill 1084, passed by the 2025 legislature, creates a law that bans consumers from assigning benefits to an auto body shop. Read the full suit filed against the law here.
Senate Bill 641, also passed by the 2025 legislature, created a law that caps the daily storage fees for total loss vehicles at $39 for gas vehicles and $125 for EVs with a damaged battery. It can be increased to $75 for gas and $200 for EVs on the 11th day.
Sen. Lonnie Paxton (R-23), an Oklahoma Farm Bureau insurance agent, introduced the bill in February. He attempted to pass similar bills (SB1853 and SB1741) last year.
Read the full suit filed against the law here.
Peyton Bell, a plaintiff in the case, owns Bell Auto Body and was the verifying signer for the suits.
“We are finally starting this war of David and Goliath,” Bell said Thursday.
The laws are unconstitutional because they violate the free market clause, Bell said.
If storage rates are capped, insurance companies have no incentive to move total loss vehicles that can sit in review for, at times, up to six or seven months, he said.
During this time, customers are not getting paid, they don’t have a vehicle, and they can’t get a new vehicle, he said. He added that repair shops have real estate tied up during the process as well.
“It will bankrupt a few shops, more than a handful, if it goes into play,” Bell said. “If you are looking at losing your business, there is a huge emotional turmoil there.”
Bell said shops in metro areas face higher real estate costs and limited space. He said it could cost them five, six, or seven times what it takes to operate rural businesses.
“When you start charging storage, it puts pressure on insurance to make a decision,” Bell said. “That really gets them moving. It may be only a couple days before the consumer is contacted and the car is pulled off your property.”
Otherwise, an insurance company could leave a vehicle there indefinitely, he said.
“You have tied the shop’s hands,” Bell said.
Removing the assignment of benefits also limits actions repair shops can take if insurance companies refuse to pay for proper repair operations.
Bell said assigning benefits allows shops to take an insurance company directly to court and sue on behalf of the customer. He said shops are better equipped to sue because they understand how to repair vehicles properly.
“The state has completely tied our hands and removed our ability to do that, and that jeopardizes consumers,” Bell said.
A hearing on the assignment of benefits petition for injunction has been set for Nov. 12. A hearing for the storage fees petition has been set for Nov. 24.
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