Insurance Steering in California: Your Auto Body Repair Bill of Rights, Explained
California Auto Body Repair Consumer Bill of Rights document next to a vehicle damage claim file
California’s Auto Body Repair Consumer Bill of Rights is one of the most consumer-protective documents in any state — and one of the least read.
Every California auto insurance customer is legally entitled to receive a document called the Auto Body Repair Consumer Bill of Rights. It’s required by California Insurance Code Section 1874.85. It’s supposed to be delivered at the time of policy application, at policy issuance, or after a claim is filed. The form’s exact language is set by the California Department of Insurance.
Most California drivers have never seen it.
That’s not an accident. It’s buried in policy paperwork. It’s printed in 10-point type. It’s never highlighted in an email. And it’s the document that, if a consumer reads it before their first accident, costs the insurance industry money every time they try to direct that consumer to a Direct Repair Program shop. This article exists because the law that should be doing the protecting can’t do its job if no one knows it exists.
What follows is the plain-language version, the legal citations behind it, and a practical guide to using it the moment an adjuster starts to steer.
The Document Your Insurance Company Doesn’t Want You to Read
The California legislature created the Auto Body Repair Consumer Bill of Rights in response to a long pattern of insurance practices that limited consumer choice after an accident. The legislative history traces back to Senate Bill 551 in 2003, which established the original anti-steering protections. Subsequent amendments — including AB 1200 in 2009 and the 2017 California Department of Insurance regulations — strengthened the framework into one of the most consumer-protective auto insurance regulatory structures in the United States.
The Bill of Rights itself isn’t a single piece of legislation. It’s a required disclosure form developed by the California Department of Insurance and codified into the Insurance Code at Section 1874.85. Insurance companies must distribute the form. The form’s language is set; insurers can use their own letterhead but cannot rewrite the substance.
The frustration shared by consumer-advocacy groups, independent body shops, and the California Department of Insurance is that knowing about a right and being able to exercise it are different things. The Bill of Rights protects consumers in theory. In practice, it protects only the consumers who know it exists and know how to invoke it.
That’s the gap this article tries to close.
What Insurance Steering Actually Is (the Legal Definition)
Insurance steering is the practice of pressuring, misleading, or coercing an insurance claimant into using a specific repair facility — typically one with a Direct Repair Program contract with the insurer. The legal definition is anchored in California Insurance Code Section 758.5, which states:
“No insurer shall require that an automobile be repaired at a specific automotive repair dealer.”
That single sentence, layered with the regulations the California Department of Insurance issued in December 2016 (effective January 1, 2017, with full compliance required by March 12, 2017), forms the foundation of California’s anti-steering framework. The 2017 regulations expanded the definition of prohibited steering to include:
Communicating false, deceptive, or misleading information to a claimant about repair shop options
Advising a claimant that an inspection will occur at a date later than the regulations require
Requiring a claimant to travel an unreasonable distance to obtain a repair estimate
Continuing to suggest a different shop after the claimant has selected one
The phrase “false, deceptive, or misleading” carries weight. Many of the steering tactics consumers experience aren’t outright lies. They’re suggestion, implication, and exploitation of information asymmetry — and under California law, those count too.
The history that explains why the law exists
Direct Repair Programs began proliferating in the 1990s. Insurance carriers built networks of body shops that agreed to contractual labor rates, parts sourcing hierarchies (used parts first, then aftermarket, then OEM only when other options weren’t available), and turnaround commitments. In exchange, the shops received a steady flow of customer referrals.
The structural problem is that DRP shops have two customers: the insurance company that drives volume, and the vehicle owner who actually owns the car. When those two customers’ interests diverge — for example, when proper repair requires an expensive supplement the insurer doesn’t want to pay — the financial pressure on a DRP shop is to side with the company writing the bigger contracts.
California’s anti-steering law isn’t anti-DRP. It’s pro-choice. The legislature concluded that drivers should be able to choose any licensed shop, with or without a DRP relationship, and that insurance companies shouldn’t be able to override that choice through pressure or deception.
California Insurance Code book open to Section 1874.85 Auto Body Repair Consumer Bill of Rights
Section 1874.85 of the California Insurance Code codifies your six core rights as an auto body repair customer.
Your Six Rights Under California Insurance Code §1874.85
The Bill of Rights enumerates six rights every California auto insurance consumer has after a claim. Here’s what each one means in practice.
Right 1: To select the auto body repair shop to repair your vehicle
An insurance company cannot require you to use any specific shop. They can recommend, but the choice is yours. Once you’ve selected a shop, the insurer is prohibited from continuing to suggest alternatives.
This is the foundational right. Every other right exists to make this one functional.
Right 2: To an itemized written estimate
Before any repair work begins, you’re entitled to a written estimate that itemizes parts and labor with a total price. The estimate must identify all parts as new, used, aftermarket, reconditioned, or rebuilt.
This requirement matters because it forces transparency about parts decisions. If a shop is going to install an aftermarket bumper or a used fender, you’ll see it in writing before they install it. Many parts disputes get resolved at the estimate stage simply because the consumer can read what’s about to happen.
Right 3: To a detailed invoice upon completion
When the repair is done, you receive an itemized invoice that matches the estimate. If anything changed during the repair — a supplemental part, a labor adjustment — the invoice must explain it.
The invoice is also the document you’ll need if you ever pursue a diminished value claim, dispute the repair quality, or sell the vehicle and need to disclose accident history.
Right 4: To seek and obtain an independent repair estimate
You can take your vehicle to any registered auto body shop in California for an independent estimate, even while pursuing an insurance claim. The insurance company’s estimate is not the final word on repair cost.
This right is the consumer’s primary leverage against insurer-driven cost containment. When an adjuster’s estimate seems low, you can get a second opinion from an independent shop, and that estimate becomes admissible evidence if the dispute escalates.
Right 5: To be notified about non-OEM parts
If the insurance company authorizes the use of aftermarket, used, or reconditioned parts, you must be notified in writing. California Insurance Code Section 1874.87 also requires that non-OEM parts must be equal to OEM parts in safety and performance, and must come with a written warranty.
This right exists because aftermarket parts decisions have safety implications most consumers don’t think about until something goes wrong. ADAS sensors, structural panels, airbag housings — these are not parts where “good enough” is good enough.
Right 6: To file a complaint if any of these rights are violated
If your insurance company or auto body shop fails to honor any of these rights, you can file a complaint. Two state agencies have jurisdiction:
California Department of Insurance (CDI): Handles complaints about how your insurance company handles the claim. Phone: (800) 927-4357. Website: insurance.ca.gov.
Bureau of Automotive Repair (BAR): Handles complaints about the quality of work performed by a body shop. Phone: (866) 799-3811. Website: autorepair.ca.gov.
The complaint process is more accessible than most consumers realize. We’ll walk through it in detail below.
The Five Most Common Steering Phrases and Your Legal Responses
Steering rarely happens through obvious commands like “you must use this shop.” It happens through suggestion, urgency, and tactical framing. Here are the five most common phrases adjusters use and the legal-grade response that ends each one.
Phrase 1: “We can’t guarantee the work unless you use one of our preferred shops.”
Why it’s wrong: Insurance companies don’t warranty repair work in any meaningful sense. Body shops do. A DRP shop’s warranty isn’t legally tied to insurance company endorsement; it’s the shop’s own commitment.
Your response: “I understand your recommendation. California Insurance Code Section 758.5 gives me the right to choose any licensed shop, and my chosen shop provides a written warranty on all repairs. Please proceed with the claim.”
Quoting the code section directly typically ends the conversation. Adjusters know the law; they just rely on most consumers not knowing it.
Phrase 2: “Going to a non-preferred shop will significantly delay your claim.”
Why it’s wrong: Under the 2017 CDI regulations, insurers cannot use processing delays as a steering mechanism. Claims process through the same internal pipeline regardless of which shop performs the repair.
Your response: “Please put in writing today the specific delay you’re describing, including the section of my policy that authorizes it. I’d like to review it before proceeding.”
The written request usually ends the delay narrative immediately. There is no such authorization in any standard California auto insurance policy.
Phrase 3: “You’ll have to pay the difference between our estimate and the shop’s estimate out of pocket.”
Why it’s wrong: This conflates two separate concepts. The insurer is obligated to pay the reasonable cost of repair to restore the vehicle to pre-accident condition. If their initial estimate is below the actual repair cost, the difference is resolved through a supplement — not by the consumer paying out of pocket. The “pay the difference” framing only applies when a customer specifically requests upgrades the insurer isn’t obligated to provide (like OEM parts on a vehicle whose policy doesn’t include an OEM endorsement, in some cases).
Your response: “My shop will submit a supplement with documentation of any additional repair needs. Please confirm your supplement review process and standard turnaround time. I’m not paying out of pocket for the difference between two estimates of the same repair.”
Phrase 4: “We’ve had problems with that shop before.”
Why it’s wrong: Vague disparagement of a specific shop with no documented evidence is a classic steering tactic. Often the adjuster has never personally interacted with the shop. If real problems existed, the insurer would document them in writing.
Your response: “What specifically were the issues, and when did they occur? I’d like to take that into consideration. Can you provide that in writing?”
The request for documented specifics almost always ends the disparagement. If the adjuster does provide specifics, you can verify them with the shop directly. Most of the time, no specifics exist.
Phrase 5: “Our preferred shops offer lifetime warranties that other shops don’t.”
Why it’s wrong: Suggests that warranty coverage is uniquely available through DRP shops. It isn’t. Independent shops with I-CAR Gold Class and Platinum certifications routinely offer lifetime warranties on workmanship that match or exceed DRP shop warranties.
Your response: “My shop offers a written lifetime warranty on workmanship. I’ll provide a copy when I receive it.”
Variations to watch for
The five phrases above cover most steering attempts, but variations are common:
“We can dispatch a tow truck immediately to our preferred shop.” (Implies that using your shop will leave you without a tow.)
“Their estimate is higher because they’re trying to overcharge us.” (Disparages the shop’s pricing without acknowledging that initial adjuster estimates routinely miss 20% to 40% of actual repair costs.)
“You can always check our online list of approved shops in your area.” (Frames non-DRP shops as unapproved.)
“They aren’t certified to work on your vehicle.” (Often false. I-CAR certification is the industry standard, and most independent shops have specific manufacturer certifications.)
If any of these phrases appears in an adjuster conversation, document the call: date, time, adjuster’s name, exact wording. That documentation is the foundation of any later complaint.
What §1874.87 Says About Non-OEM Parts (and Why It Matters)
California Insurance Code Section 1874.87 is the parts disclosure law. It’s separate from the Bill of Rights but works hand-in-hand with it. The law requires that:
Any non-OEM parts authorized by an insurer must be of like kind and quality to OEM parts in safety and performance
Non-OEM parts must come with a written warranty
The consumer must be informed in writing when non-OEM parts are used in their repair
The phrase “like kind and quality” is the source of most parts disputes in California collision repair. Insurance companies and aftermarket parts manufacturers interpret it generously. Body shops and OEM manufacturers interpret it conservatively. The consumer is caught in the middle.
What this means in practice: if an insurer specifies an aftermarket part, you have the right to (a) receive written disclosure of that specification, (b) verify that the part comes with a written warranty, and (c) request OEM substitution through a supplement, particularly for any part with safety, structural, or ADAS implications.
For deeper coverage of OEM versus aftermarket parts, including specific situations where OEM is non-negotiable, see our pillar guide on the topic.
How to File a Steering Complaint with CDI (Step by Step)
If an adjuster has steered you in violation of California Insurance Code Section 758.5 or the 2017 anti-steering regulations, the California Department of Insurance has jurisdiction. Here’s how to file.
Step 1: Document the violation
Before contacting CDI, write down everything you can remember about the steering interaction:
Date and time of the conversation
Adjuster’s full name and any direct phone number or email
Insurance company and claim number
Exact phrases used (verbatim if possible)
Your response and what happened next
Any subsequent contact attempting to redirect you
If you have call recordings (legal in California with two-party consent), save them. If the adjuster sent emails or text messages, save those too.
Step 2: Submit the Request for Assistance form
CDI accepts complaints through its Consumer Services Division. The intake form is called a “Request for Assistance” and can be filed:
Online at insurance.ca.gov (search for “file a complaint”)
By phone at (800) 927-4357
By mail to the Los Angeles regional office at 300 South Spring Street, Los Angeles, CA 90013
Online submission is fastest. The form asks for your contact information, the insurance company’s information, your claim number, and a narrative description of what happened. Attach your documentation.
Step 3: Cooperate with the investigation
CDI typically acknowledges receipt within 10 business days. The agency then contacts the insurance company to request a response. The investigation timeline varies depending on complexity, but most complaints reach a resolution or status update within 30 to 60 days.
You may be asked to provide additional information, recordings, or clarification. Cooperate fully and promptly.
Step 4: Receive CDI’s determination
At the end of the investigation, CDI issues a determination. Outcomes vary:
The insurer is found in compliance, and no further action is taken
The insurer is found to have violated regulations, and CDI requires corrective action (often including written commitments not to repeat the practice)
The insurer is referred for enforcement action, which can include fines
The investigation reveals a pattern, prompting a broader market conduct exam of the insurer
Even if your individual complaint doesn’t result in a fine, your documented complaint contributes to the pattern data CDI uses for systemic enforcement. Steering tends to be a pattern problem, and pattern data drives the biggest regulatory actions.
What Happens After You File a Complaint
From the moment a CDI complaint is filed and the insurance company is notified, the dynamic of your claim changes.
Insurance companies are required to respond to CDI inquiries within specific timeframes. The adjusters and claim supervisors who handle your file know that a complaint creates regulatory scrutiny. In our experience, claims with active CDI complaints tend to be processed more carefully, with more documentation, fewer steering attempts, and more cooperative supplement reviews.
This isn’t because the insurance company suddenly becomes generous. It’s because their internal compliance teams want to demonstrate the file is being handled correctly to avoid further regulatory action.
The complaint process does not delay your repair. You can continue working with your chosen shop while the complaint is investigated. CDI investigations operate in parallel to claim processing.
What the complaint does is establish a paper trail. If your case escalates — to litigation, to small claims, to additional regulatory action — that paper trail becomes evidence.
The Steering Tactics That Are Still Legal (and How to Recognize Them)
Not every form of steering violates California law. Some tactics fall into a gray zone that the legislature hasn’t fully addressed. Recognizing these tactics protects you even when no law is being broken.
The tow truck arrangement
When you call your insurance company first after an accident, the adjuster may offer to dispatch a tow truck. The tow company often has standing relationships with DRP shops in the area, and the default destination may be one of those shops.
This isn’t strictly illegal — you can redirect the tow at any time. But the practical effect is that your car ends up at a DRP facility before you’ve made any conscious decision about where to repair it. Once your vehicle is on a DRP shop’s lot, moving it requires you to authorize a second tow, which the insurance company may resist paying for.
The fix: specify your chosen shop when you authorize any tow. If the tow company isn’t familiar with your shop, give them the address. If the insurer pushes back, remind them you’ve selected your shop under Section 758.5.
The online claim portal
Many insurance companies have moved claim intake to mobile apps and web portals. These portals often present “preferred shop” lists prominently and require additional clicks to enter a non-network shop. The friction is intentional. Most consumers default to the easiest option.
The fix: type in your chosen shop’s name and address rather than selecting from the network list. If the portal won’t accept a non-network shop, call the claim line and report the shop selection by phone.
The email “list of options”
Some adjusters email customers a list of “approved shops in your area” without ever explicitly recommending one. The list-with-no-recommendation is technically not steering, but the effect is the same: it frames the network as the default choice.
The fix: respond by email stating the name and address of the shop handling your repair. Email creates a written record that you’ve selected a shop, which forecloses any future suggestion that the network options should be reconsidered.
The “for your convenience” framing
“For your convenience, we can have your vehicle taken to ShopCo, which is located just three miles from your home.” This phrasing isn’t illegal because no pressure or misleading information is involved. But “convenience” is doing a lot of work in that sentence. The convenience benefits the insurance company at least as much as the customer.
The fix: respond with “Thank you, but I’ve already arranged for the repair at [your shop]. Please process the claim with that shop.”
How to Stop Steering Before It Happens
The most effective protection against steering is preparation. By the time you’re on the phone with an adjuster, your options have already narrowed. Here’s how to set yourself up before you ever need to make the call.
Identify your shop now
Choose your collision shop before you need one. Visit, walk the shop, ask the questions in our guide on choosing a body shop. The right time to evaluate a shop is when you’re calm and have options — not when you’re standing on a freeway shoulder after a wreck.
Save the right phone numbers
In your phone contacts, save:
Your chosen body shop’s main number
California Department of Insurance: (800) 927-4357
Bureau of Automotive Repair: (866) 799-3811
Your insurance company’s claim line (not the agent’s number — the actual 24-hour claim line)
Know your policy
Pull your insurance policy now and look for two things:
Does your policy include an OEM endorsement, or any provision about parts selection? Most don’t, but knowing matters.
What is your rental car coverage? If you don’t have rental coverage, identify a shop (like Lakeside) that provides a complimentary loaner.
Read the Bill of Rights once
Request the Auto Body Repair Consumer Bill of Rights from your insurance company. They’re required to provide it. If they can’t immediately, the California Department of Insurance publishes the standardized text on its website.
Read it once. The whole document is short. Knowing the six rights enumerated in Section 1874.85 means that the next time an adjuster tries to dance around them, you’ll recognize the choreography.
Have one short script ready
When you call to open a claim, the conversation should be brief and factual:
Provide your policy number and basic accident details
Tell the adjuster: “I’m using [your shop] for the repair. Please process the claim with them.”
End the call when the adjuster says they’ll be in touch
That’s it. Anything more than this, and you’re exposing yourself to steering attempts that wouldn’t have happened if you’d ended the call.
Lakeside Auto Center has been in business in Toluca Lake for over a year and a half. We’re an independent collision shop with I-CAR Gold Class and Platinum certifications, an in-house ADAS calibration capability, and a deliberate decision not to enter any insurance company’s Direct Repair Program. Our position is that the law has been on the consumer’s side since 2003. The work has been making sure consumers know it.
Independent auto body technician walking a customer through a written repair estimate
A written, itemized estimate is one of your six rights under California Insurance Code Section 1874.85.
Frequently Asked Questions
Is insurance steering illegal in California?
Yes. California Insurance Code Section 758.5 prohibits insurers from requiring repairs at a specific shop, and the 2017 California Department of Insurance anti-steering regulations expanded the prohibition to include false, deceptive, or misleading statements that influence shop selection. Violations can be reported to the CDI at (800) 927-4357.
What is the California Auto Body Repair Consumer Bill of Rights?
The Auto Body Repair Consumer Bill of Rights is a required disclosure under California Insurance Code Section 1874.85. It enumerates six rights every California auto insurance customer has after a claim, including the right to choose the repair shop, the right to a written estimate, the right to disclosure of non-OEM parts, and the right to file a complaint. Insurance companies are legally required to provide it to policyholders.
Can my insurance company require me to use their preferred body shop?
No. California Insurance Code Section 758.5 explicitly prohibits insurers from requiring repairs at a specific shop. They can recommend, but the choice is yours. Once you’ve selected a shop, the insurer cannot continue to suggest alternatives.
How do I file a complaint about insurance steering in California?
Complaints are filed with the California Department of Insurance Consumer Services Division at (800) 927-4357 or online at insurance.ca.gov. The form is called a “Request for Assistance.” Document the date, time, adjuster’s name, and exact statements made, then submit with any supporting evidence. CDI typically acknowledges complaints within 10 business days.
What is a Direct Repair Program (DRP) shop?
A Direct Repair Program shop is an auto body shop that has a contractual relationship with an insurance company. In exchange for customer referrals, the shop agrees to specific labor rates, parts sourcing hierarchies (often used or aftermarket parts before OEM), and turnaround commitments. DRP shops aren’t inherently bad, but their financial incentives align them with the insurance company more than with the individual customer.
What does California Insurance Code Section 1874.87 require?
Section 1874.87 requires that any non-OEM (aftermarket, used, or reconditioned) parts authorized by an insurer must be of like kind and quality to OEM parts in safety and performance, must come with a written warranty, and must be disclosed to the consumer in writing. The consumer has the right to know what kind of parts are being installed before the repair begins.
Will filing a CDI complaint delay my car repair?
No. The complaint process operates in parallel to claim processing. You can continue working with your chosen body shop while the California Department of Insurance investigates. Insurance companies are required to respond to CDI inquiries within specific timeframes, and in our experience, claims with active complaints are often processed more carefully.
Does the body shop or my insurance company warranty the repair?
The body shop warranties the repair work itself. Most reputable independent shops, including those with I-CAR Gold Class and Platinum certifications, offer lifetime warranties on workmanship. The insurance company doesn’t warranty repairs in any meaningful sense, despite what some adjusters imply when steering customers toward DRP shops.
