Can My Insurance Tell Me Where to Fix My Car? (No — Here’s the California Law)

No, your insurance company cannot require you to use their preferred body shop in California. Here’s the exact law, the exception, and what to say.

No. In California, your insurance company cannot require you to use any specific body shop. California Insurance Code Section 758.5 states clearly that “no insurer shall require that an automobile be repaired at a specific automotive repair dealer.” The insurance company can recommend shops, but the choice belongs to you.

That’s the short answer. The full answer involves what insurers can legally do, what they can’t, and what to say when an adjuster pressures you toward a “preferred” shop. The five-minute version follows.

What California Insurance Code Section 758.5 Actually Says

The core of California’s anti-steering law sits in a single sentence: insurers cannot require automobile repairs at a specific shop. That sentence has been on the books since 2003, when Senate Bill 551 first codified it. In 2009, AB 1200 modified the rules. On January 1, 2017, new regulations from the California Department of Insurance took effect, requiring insurers to fully comply by March 12, 2017.

The 2017 regulations expanded the prohibition. Insurers cannot:

• Require a specific repair shop
• Use false, deceptive, or misleading statements to influence shop selection
• Delay claim processing as a way to pressure shop selection
• Require unreasonable travel for repair estimates
• Continue suggesting other shops after you’ve chosen one

The phrase “false, deceptive, or misleading” is the critical part. Outright commands like “you must use this shop” are rare. What’s common is suggestion, urgency, and implied consequences — and under California law, those count as steering when they push you toward a specific shop.

What Insurance Companies CAN Do

The law allows insurers to recommend shops in specific circumstances. Specifically:

• If you ask for a referral, the insurer can provide one
• If they provide a recommendation, they must also inform you in writing of your right to choose your own shop
• They can describe the benefits of their Direct Repair Program network (faster intake, streamlined paperwork)
• They can decline to pay for repair costs they consider unreasonable, regardless of which shop you choose

That last point is sometimes used as a pressure lever. An adjuster may tell you that the insurance company will “only pay up to” a certain amount, with the implication that you’ll be on the hook for the rest if you choose a non-preferred shop. The reality is more nuanced: the insurer is obligated to pay the reasonable cost of repair, and disputes over reasonable cost are resolved through the supplement process, not by forcing you to use a specific shop.

What Insurance Companies CAN’T Do

• Require you to use a specific shop as a condition of coverage
• Tell you your claim will be denied if you choose your own shop
• Disparage a specific shop with vague, undocumented claims
• Promise that “only” their preferred shops can guarantee the work
• Threaten warranty consequences for using a non-network shop
• Continue recommending other shops after you’ve made your choice

Any of these crosses the legal line under California Insurance Code Section 758.5 and the 2017 anti-steering regulations.

What to Say When an Adjuster Pressures You

Most steering attempts involve specific phrases. Here are the responses that end them.

If they say: “We can’t guarantee the work unless you use one of our preferred shops.”

You say: “California Insurance Code Section 758.5 gives me the right to choose any licensed shop. My chosen shop provides a written warranty on all repairs. Please proceed with the claim.”

If they say: “Going to a non-preferred shop will delay your claim significantly.”

You say: “Please put in writing today the specific delay you’re describing, including the section of my policy that authorizes it.”

If they say: “You’ll have to pay the difference between our estimate and the shop’s estimate.”

You say: “My shop will submit a supplement with documentation. Please confirm your supplement review process.”

If they say: “We’ve had problems with that shop before.”

You say: “What specifically were the issues? Can you provide that in writing?”

In our experience, simply citing the code section by number changes the tone of the conversation. Adjusters know the law. They rely on most consumers not knowing it.

The One Real Exception

There is one narrow exception to your right to choose any shop. If your vehicle is leased or financed, the lender or leasing company may have specific repair requirements written into your contract. Some lessors require collision repairs to be performed at manufacturer-certified shops to preserve the lease return value. This isn’t an insurance requirement; it’s a contractual requirement with your finance or lease company.

Check your lease or financing paperwork. If it specifies repair requirements, those still don’t entitle the insurance company to choose the shop for you — but they do narrow your range of options to shops that meet the lessor’s standards.

How to File a Steering Complaint

If an insurance company violates California Insurance Code Section 758.5 — and you have documented the conversation — you can file a complaint with the California Department of Insurance at (800) 927-4357 or online at insurance.ca.gov. The intake form is called a “Request for Assistance” and typically gets acknowledged within 10 business days.

Most consumers don’t file complaints because they don’t realize they have grounds to. Pattern data drives the biggest enforcement actions, so your documented complaint contributes even if no individual fine results.

For deeper coverage of how the complaint process works and how to push back against steering, see our detailed guide on California’s Auto Body Repair Consumer Bill of Rights.

The Short Version

You can choose any licensed body shop in California, regardless of what your insurance company recommends. Section 758.5 is the law. The 2017 anti-steering regulations expanded its protections. The complaint process at the California Department of Insurance is accessible. The information asymmetry that lets steering succeed — most consumers not knowing the law exists — is the only thing the insurance industry is counting on.

Save these phone numbers: California Department of Insurance, (800) 927-4357. Bureau of Automotive Repair, (866) 799-3811. Most adjuster steering conversations end quickly when the consumer mentions either one.

Lakeside Auto Center has been in business in Toluca Lake for over a year and a half. We’re an independent I-CAR Gold Class and Platinum certified shop, and we’re not affiliated with any insurance Direct Repair Program by choice. If you’re being pressured into using a shop you didn’t choose, you have more leverage than the insurance company wants you to know about.