No single rule covers every state. California and Michigan require a written estimate before repair work, Florida's rule starts above $150, Illinois and Washington use $100 thresholds, and each state sets its own limit on going over. Federal law says outside maintenance does not void a warranty and safety recalls are remedied free. General information, not legal advice.
Why This Belongs in Advisor Training
Most advisors learn the estimate rules from whoever sat next to them, and what gets passed along is often out of date or borrowed from another state.
This page states each rule as its text reads, checked October 2026. It is general information, not legal advice. State rules change, so confirm your state's current rule with counsel before you train to it.
State Rules on Estimates and Authorization
A dealership service department is a repair shop under each of these laws. The first six rows were read from the state's own statute or code site. New York's row, and the Massachusetts and New Jersey rules below the table, are stated as published by Cornell's Legal Information Institute (LII). This is not a fifty-state survey: if your state is not here, we did not verify it.
| State and source | Estimate and authorization | Going over, and recording approval |
|---|---|---|
| California, Bus. & Prof. Code 9884.9 | A written estimated price for labor and parts for a specific job, with no dollar threshold. No work and no charges before the customer authorizes. Excepted: listed preventative maintenance services that are free or whose total price is conspicuously displayed or acknowledged. | No tolerance. Any charge above the estimate needs oral or written consent, obtained before the added work. Oral consent is noted on the work order with date, time, name, number called and the added parts, labor and cost. |
| Florida, Fla. Stat. 559.905, 559.909 | When repair work will cost the customer more than $150: a written estimate before any diagnostic work or repair, and a signed disclosure in which the customer chooses a written estimate, no estimate up to an amount the customer writes in, or no estimate. | If the bill will exceed the written estimate "by more than $10 or 10 percent, whichever is greater, but not to exceed $50," the shop must promptly notify the customer, who authorizes, modifies or cancels orally or in writing. |
| Illinois, 815 ILCS 306/15, 306/25 | "No work for compensation that exceeds $100 shall be commenced without specific authorization from the consumer." The shop gives a written estimate or a written price limit. Estimates must say whether repairs are "required or suggested." | A written estimate may not be exceeded by more than 10% without oral or written consent. Oral consent is noted on the work order or estimate and on the invoice with date, time, name and number called. |
| Michigan, MCL 257.1332 | Before beginning repair work, a written estimate "that itemizes as closely as possible the price for labor and parts," including the cost of diagnosis. A customer can sign a prescribed waiver stating a dollar limit. | No charge above the estimate without "knowing written or oral consent." If the estimate "is exceeded by not more than 10% or $50.00, whichever is lesser," consent is not required unless the customer asked for it. |
| Washington, RCW 46.71.015, 46.71.025 | Before providing parts or labor, a written price estimate or an offer of three prescribed choices. "All estimates that exceed one hundred dollars shall be in writing." | The shop "may not charge the customer more than one hundred ten percent, exclusive of retail sales tax," of the written estimate without oral or written authorization, noted with date, time, cost, employee and the person authorizing. |
| Pennsylvania, 37 Pa. Code 301.5 | It is an unfair practice to charge for repairs "not authorized in writing," or at a price not authorized in writing or conspicuously posted. When costs are not known at drop-off, the customer picks one of three prescribed options. | Oral authorization is recorded with date, time, employee, person authorizing and number called. It is also an unfair practice to say repairs are necessary when they are not. |
| New York, 15 NYCRR 82.5, as published by LII | A written estimate of parts and labor for each specific repair "upon the request of any customer." No services the customer did not authorize. | No charge above the estimate without the customer's consent. Oral authorization is noted on the invoice with date, time and manner. |
Two more, as published by LII. In Massachusetts (940 CMR 5.05) it is an unfair or deceptive act to charge for repairs without written authorization signed by the customer or a prescribed waiver with a dollar limit, or to continue when the price will exceed the authorized amount by more than $10 without new authorization. In New Jersey (N.J.A.C. 13:45A-26C.2) starting work without a written estimate or a signed waiver, or charging above the estimate without consent, is a deceptive practice.
California's Bureau of Automotive Repair adds detail in its Write It Right guide, updated January 2026. Authorization may be written, oral or electronic. An approval by email or text must record the date, time, name and the email address or phone number contacted, and the thread is kept as part of the transaction.
Replaced Parts and Shop Supplies
The parts-return trigger differs by state. In Michigan, replaced parts are returned when the work is completed, with no request needed (MCL 257.1333). In California, Florida and Washington they are returned if the customer asks when the work order is taken or the work is authorized (BPC 9884.10; Fla. Stat. 559.909; RCW 46.71.021). Pennsylvania requires the shop to disclose the right to return or inspection on request. As published by LII, New York returns parts "if a timely written demand is made by the customer." Warranty-return parts are excepted in California, and warranty and exchange parts in Florida and Michigan.
Shop supplies differ too. California's guide says "charging for items generally noted as shop supplies or miscellaneous parts is prohibited." Florida allows the charge if the estimate states it with a prescribed sentence (559.905(1)(h)).
What an Advisor May and May Not Say About the Warranty
The Magnuson-Moss Warranty Act bars a warrantor from conditioning a warranty on the consumer's use of any article or service identified by brand, trade or corporate name, other than one provided without charge under the warranty, unless the FTC grants a waiver (15 U.S.C. 2302(c)). The FTC's interpretation at 16 CFR 700.10(c) reads: "No warrantor may condition the continued validity of a warranty on the use of only authorized repair service and/or authorized replacement parts for non-warranty service and maintenance."
The FTC's consumer page, Auto Warranties and Auto Service Contracts (modified 30 June 2026), says "it's illegal for a dealer to deny your warranty coverage because you had routine maintenance or repairs done by someone else. But if the warranty says that the work will be done for free, the dealer or manufacturer can make you use repair facilities it chooses."
- May say: where you service the car does not void the warranty; keep your maintenance records.
- May not say: "You have to service here to keep your warranty."
- May not say: "Aftermarket parts void your warranty." The FTC page says the manufacturer or dealer "must prove the aftermarket or recycled part caused the damage before they can deny warranty coverage" for the damaged part.
- Also wrong: "A claim can never be denied." Coverage for a damaged part can be denied when that proof exists.
Safety Recalls at the Service Desk
Under 49 U.S.C. 30120(a)(1), when a safety recall notification is required, the manufacturer "shall remedy the defect or noncompliance without charge when the vehicle or equipment is presented for remedy." The duty is the manufacturer's; the dealer does the work. Subsection (g)(1) says the free remedy does not apply if the vehicle "was bought by the first purchaser more than 15 calendar years" before the recall notice.
Subsection (i)(1) concerns new vehicles: a dealer notified of a recall on a new vehicle in its possession may sell or lease it only if the defect is remedied before delivery. It contains no equivalent ban on a dealer selling a used vehicle.
Two Federal Rules That Do Not Apply Here
The FTC's Rule on Unfair or Deceptive Fees, effective 12 May 2025, covers only "the live-event ticketing and short-term lodging industries," per the FTC's announcement; it does not reach auto repair. The CARS Rule never took effect: the Fifth Circuit vacated it and the FTC withdrew it on 12 February 2026 (91 Fed. Reg. 6507), as our page on advertising compliance after the CARS Rule explains.
How to Train It
Advisors need four habits, not statutes by heart.
- Get the authorization your state requires before work starts. Have counsel review the forms once, then train to the forms.
- Call before the bill passes the estimate. "Any increase gets a call" meets the strictest rule in the table.
- Record every approval when it happens: date, time, who approved, the number or address contacted, what was added and the cost. "Customer said OK" with no notation fails these rules.
- Present by evidence, not by alarm. Separate needed now from suggested. Illinois estimates must mark repairs "required or suggested," and Pennsylvania bars saying a repair is necessary when it is not. Then handle declined services without pressure.
Then audit: pull ten closed repair orders per advisor each month and check each added line for a recorded approval. Related: writing the repair order, declined service follow-up and what an advisor training curriculum should cover.
Pinnacle's Service Advisor Training page names warranty communication and compliance among its advanced modules. Ask any trainer how this is taught for your state. More is in our compliance library and the Service Advisor Training Resource Center.
Frequently Asked Questions
Does a dealership have to give a written estimate for every repair?
It depends on the state. California and Michigan require one before repair work. Florida's requirement starts when the work will cost more than $150. New York's rule, as published by Cornell LII, is a written estimate on request.
Can a customer approve additional work by phone or text?
Every state we read allows oral consent and expects a record: date, time, who approved and what was added. California's Bureau of Automotive Repair expressly recognizes approval by email or text and requires the thread to be kept. Confirm other states with counsel.
Does an oil change at an independent shop void the factory warranty?
No. The FTC's consumer guidance says you do not have to use the dealer for maintenance to keep a warranty in effect. Coverage for a damaged part can be denied if the manufacturer or dealer can show outside work or an aftermarket part caused the damage, so customers should keep records.
Are safety recall repairs always free?
The federal statute requires the manufacturer to remedy a safety recall without charge when the vehicle is presented, but not if the vehicle was bought by its first purchaser more than 15 calendar years before the recall notice. The dealer performs the work.
Summary
Estimate and authorization rules are state rules, and the nine states here differ on when a written estimate is required, how far a bill may exceed it, and when replaced parts go back. The habits hold everywhere: authorize before work, call before any increase, record every approval, present by evidence. Checked October 2026; confirm your state's rule with counsel.
