Rewriting the Rules: How Coverall Law’s Forever Forms Are Fixing the Direction to Pay
by Sean Preston, Managing Attorney, Coverall Law
For years, collision repair shops have relied on the same Direction to Pay (DTP) forms.
The problem is, most of those forms were built decades ago to address insurer problems – not shop problems. They were meant to make it easier for insurance companies to pay a shop directly when the customer agreed, but they left out critical protections for the repairer.
At Coverall Law, we saw the flaws. The old DTPs didn’t protect against delays, didn’t address liability or safe repairs and didn’t put enough responsibility on insurers. This was especially troubling in Massachusetts, where 211 CMR 123 clearly outlines both the proper form of payment and the timeliness required for payments – for original estimates and for supplements. Insurers break these rules all the time, and the old DTP didn’t do much to stop them.
We decided to change that.
A Stronger Direction to Pay
In Forever Forms version 2.3, we gave the DTP a complete overhaul. Now, our DTP doesn’t just authorize payment – it demands compliance with the law. It cites 211 CMR 123 to require timely payments, and it cites MGL c. 255, s. 25 to make sure the shop’s name appears on any payment, even if there’s a lienholder.
We also added something new: the insurer must now notify the shop of any attempt to rescind the DTP. This closes a loophole we saw in real life.
When Fraud Made the Case for Change
One of our member shops faced a situation where a hacker posed as a few of their customers and told insurers to reroute payments to the hacker instead of the shop. Three insurers were involved. Two of them quickly corrected the payments. The third delayed – and that delay made it clear that a stronger DTP was needed. Now, our DTP puts the burden squarely on the insurer to communicate and take corrective action right away.
Why Insurers Are Nervous
The Forever Forms shift control back to the shop. Insurers now understand that when a shop controls the terms and conditions of payment, they lose the ability to stall or short-pay without consequences. In one recent case, an insurer refused to pay $2,500 on a total loss. After a supervisor verified the customer’s signature on our DTP, they called us to settle for $9,000. That’s the kind of leverage a strong DTP creates.
Best Practices, Built In
The Forever Forms are about best corporate practices – giving shops the best tools available, every time. They’ve never lost in court. And with each version, we find new ways to close loopholes and protect members.
Massachusetts Forever Forms took us seven months to build. California has been in the works for just a couple of months, but the process is faster now. Still, California’s complex regulations mean we take our time to make sure every line is right. Our goal is always thorough, tested and enforceable forms that can stand anywhere.
The Bottom Line
The new Direction to Pay isn’t just a form – it’s a legal tool that enforces your rights, demands timely and correct payment and keeps insurers accountable. When shops use the same strong forms, we’re stronger as an industry.
At Coverall Law, we’re not just updating paper. We’re rewriting the rules – and we’re doing it together.
Want more? Check out the September 2025 issue of New England Automotive Report!