After filing an insurance claim for a car accident, your insurer may recommend a specific body shop to complete your repairs. The company might even insist that you’re required to use its shop for it to cover your claim. Such high-pressure tactics can be confusing and stressful.
Can an insurance company force you to use their body shop? The answer is no, it can’t—and you likely have more choice than you think.
A preferred auto body shop is one that an insurer contracts with to receive services at lower rates, minimizing policy payouts. Insurance companies often try to save money by funneling claimants toward preferred shops, sometimes by falsely claiming you must use their preferred locations for your claim to be covered.
It’s important to understand your legal rights when choosing a body shop after a crash. Knowing what insurers are legally allowed to do, what signs to look for, and when to speak with an attorney will protect your rights during the claims process.
Do You Have To Use the Insurance Company's Body Shop?
No, you don’t have to use your insurer’s choice. You have the right to choose which body shop you use in all 50 states, including Ohio.
An insurance company can’t tell you where to take your car for repairs, but it can recommend a particular location. Many insurers use “preferred” or “direct repair” programs that identify partner shops in advance.
“Direct repair” programs, often called DRP, and “preferred” programs are similar to the concept of an in-network medical insurance provider. Body shops on your insurer’s DRP are those the company has contracted with to obtain services at a lower “in-network” price than you could get on your own. These shops may decrease labor prices and provide part discounts to offer your insurer a better deal.
However, the body shops listed on your insurer’s DRP are recommendations, not requirements. Insurance companies cannot legally deny claims solely because a claimant chose a “non-network” shop. Your company will generally still cover a valid claim for non-network repairs if the shop you choose meets its standards, which typically include certain certifications and licensing.
What Is Insurance Steering and How Does It Work?
The term “insurance steering” refers to when an insurer pressures or misleads claimants to use preferred vendors, including body shops. Common steering tactics include claiming that other shops will cause unnecessary delays, that the insurer’s recommendation is substantially cheaper than other options, or that the insurer won’t be able to guarantee other shops’ work on your vehicle.
The primary reasons insurers do this include cost control and preservation of existing contracts. Insurance companies contract with their preferred shops to receive discount repair services and part replacements in exchange for providing the shop with more customers. Receiving discounted services means an insurer has to pay less to satisfy a claim than it might for another shop.
Insurance steering is against the law in Ohio. If your insurer tries to illegally pressure you into using a specific repair shop, you can file a complaint with the Ohio Department of Insurance, or ODI. An attorney can handle communications with the insurer and the ODI to help you avoid illegal steering practices.
What Are the Pros and Cons of Using a Preferred Body Shop?
There are both positives and negatives to using an insurer’s preferred shop rather than choosing one yourself.
Pros of a Preferred Body Shop
- Convenience: Choosing one of your insurer’s preferred shops saves you the time and energy of hunting for one and securing repairs alone.
- Warranty: Your insurance company may offer lifetime warranties on services provided by its preferred shops that it does not offer for repairs performed elsewhere.
- Insurer Coordination: Your insurer will coordinate with its preferred shop to obtain your repair services, handle an initial quote, and negotiate labor and part costs, saving you work.
Cons of a Preferred Body Shop
- Possible Cost-Cutting: Your insurer has an incentive to cover repairs that cost as little as possible. Therefore, it may negotiate with its preferred shops to cut labor hours or use lower-quality parts than you could get elsewhere.
- Use of Non-OEM Parts: OEM, or Original Equipment Manufacturer, refers to parts made by the same manufacturers as those originally used to construct the car. Other parts, known as aftermarket parts, may be less compatible with your vehicle or more difficult to maintain later.
- Lack of Transparency: While coordination between a preferred shop and an insurer can be more convenient, it can also make you less involved in the repair process and less informed about what’s happening.
When debating whether to use your insurer’s preferred shop, consider convenience versus control over the quality of your vehicle repairs. This can be a particularly important issue in truck accidents and motorcycle accidents, both of which often involve severe vehicle damage.
Can Choosing Your Own Shop Affect Your Claim or Coverage?
Legally, insurers cannot deny your claim solely because you used a body shop other than their preferred location. Some policies may limit certain benefits, such as refusing to provide lifetime warranties for repairs performed at other shops. However, the insurance claim itself should still be valid.
Keep records of written cost estimates, repair documentation, and shop certifications. The insurer will use these to determine how much it will cover.
While choosing your own shop may partly impact how an individual claim is handled, it will not affect your overall insurance coverage. Ohio law requires all drivers to carry at least $25,000 in property damage coverage in case of an accident.
Know Your Rights Under Ohio Law
Under Ohio law, you have the right to choose your own repair shop and be free from high-pressure insurance tactics. The Ohio Department of Insurance is the state’s primary consumer protection agency for insurance complaints. Talk to an attorney about filing a complaint with the ODI and pursuing further legal action if necessary.
When To Speak to a Lawyer About Insurance Repair Disputes
There are a few red flags that indicate it’s time to speak to a lawyer about an insurance repair dispute.
When an insurer steers you toward a preferred body shop or threatens not to cover a claim unless you use a preferred shop, it might be time to call an attorney. Lowball estimates, refusal to cover OEM parts, and approval delays when using non-preferred shops are also issues you should bring to a lawyer’s attention.
An attorney can help protect your rights by negotiating with your insurer and guiding you through relevant reporting processes. If necessary, they can assist you with filing a lawsuit against the insurance company and represent you in court.
If You're Being Pressured by Your Insurance Company, Contact Gervelis Law Firm Today
You don’t have to use the body shop that the insurance company recommends. If your insurer is pressuring you to use its preferred shop, you have options. Contact us online or call (866) 792-2728 today for your free legal consultation.
