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Yes. Under California Insurance Code §758.5, your insurer can recommend a body shop but cannot require one, intimidate you into using one, or pay less because you picked a different shop. You choose; just tell your adjuster which shop and they send the assignment there.
→ send us photos: free written estimate, usually same day.If your insurance company has ever pushed you toward “their preferred shop” after an accident, you should know two things:
- It’s illegal for them to require it.
- You almost certainly want to choose a different shop.
Here’s why, and exactly what the law says.
The Law: California Insurance Code §758.5
California is one of the most consumer-friendly states for auto body repair.
“No insurer shall require that an automobile be repaired at a specific automotive repair dealer.”
That’s the headline. The statute also makes it illegal for the insurer to:
- Suggest or recommend a shop in a way that could influence the consumer (with one exception, they can recommend a shop if you ask for one, but they must disclose that you have the right to choose any shop).
- Engage in any act or practice that intimidates, coerces, threatens, or unfairly influences the consumer’s choice of repair shop.
- Limit or discount the amount of the loss based on which shop you choose, as long as the alternate shop’s estimate is reasonable.
The full text is at California Insurance Code §758.5.
Why Insurance Companies Have “Preferred Shops” (And Why You Might Not Want Them)
Insurance companies create Direct Repair Programs (DRPs). Shops join DRPs to get a steady stream of work from the insurer. In exchange, the shop agrees to:
- Lower labor rates than industry standard
- Use aftermarket or used parts when possible (cheaper for the insurer)
- Hit specific cycle-time targets (often pushing shops to rush work)
- Limit how much they push back on the insurer’s estimate
Some DRP shops do excellent work, being on the list isn’t automatically bad. But the incentives are misaligned: the DRP shop’s biggest customer isn’t you, it’s the insurance company. A non-DRP shop’s biggest customer is you. They have no obligation to the insurer, and they push back when the carrier underscopes the damage. That’s a structural difference in incentives.
How Insurers “Steer”, Even Though It’s Illegal
Most insurers don’t outright refuse to let you choose a shop. They use softer language, “we can guarantee the work at our preferred shop,” “our network shops have a fast-track process,” “if you use a non-preferred shop, the process takes longer.” All of that is misleading, and most of it veers into illegal territory under §758.5.
What to Say When the Insurance Adjuster Pushes You
- State your choice. "I appreciate the recommendation. I've chosen Executive Auto Body & Paint for the repair. Please send the assignment to them."
- Don't argue or justify. California law is on your side. The adjuster will then send your claim assignment to the shop you chose.
- If they push back, ask for it in writing. If the adjuster implies your costs will be higher, ask them to put it in writing, they won't, because §758.5 makes it illegal.
That’s it. The adjuster will send your claim assignment to the shop you chose.
If You Suspect Illegal Steering
Report it to the California Department of Insurance:
- Phone: 1-800-927-4357
- Online: insurance.ca.gov
The CDI takes §758.5 violations seriously and investigates them.
The Bottom Line
You have the right to choose your own body shop in California. The shop your insurance recommends might be fine, but it’s working under different incentives than a shop that works directly for you. Choose the shop with the warranty, the reviews, and the people you trust.
In the AV? We work with every insurance company, and we work for you, not them.
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