Rule 120-2-52-.04 Vehicle Repairs
(1) If losses are settled on the basis of a written estimate prepared by or for the insurer, the insurer shall supply, upon request of the insured, a copy of the estimate upon which the settlement is based. The estimate prepared by or for the insurer shall be reasonable, and of an amount which will allow for repairs to be made in a workmanlike manner which would restore the damaged vehicle to its pre-accident condition relative to quality, safety, function and appearance. If the insured subsequently shows, based upon a written estimate which he obtains, that necessary repairs will exceed the written estimate prepared by or for the insurer, the insurer shall review and respond within fifteen (15) days. The insurer shall either provide the insured with the name of a repair shop that will make the repairs according to the written estimate obtained by the insurer which are commercially acceptable and conform with industry standards, or pay the difference between the written estimate and the one obtained by the insured.
(2) When the monetary amount claimed by the insured is reduced because of betterment or depreciation, all reasons for such reduction shall be contained and documented in the insurer’s claim file. Such deductions shall be itemized and specified as to dollar amount and shall be appropriate for the amount of deductions. Deductions for betterment and depreciation shall be allowable only if:
(a) They reflect a measurable decrease in market value attributable to the poorer condition of; or prior damage to, the vehicle;
(b) They reflect the general overall condition of the vehicle considering its age, for either or both:
1. The wear and tear, or rust, limited to no more than a deduction of $1,000, and/or
2. Missing parts, limited to no more of a deduction than the replacement cost of such part or parts.
(c) The deductions set forth in sub-paragraphs (2)(a) and (b) above shall be limited to 20% of the market value of the vehicle prior to the loss.
(3) No insurer shall require the insured to supply parts for replacement.