California Insurance Code & EthicsQuestion 45 of 158
After a covered auto collision, an insurer wants to suggest a specific auto body repair shop to the insured. Under the Auto Body Bill of Rights (§758.5), the insurer must:
a.Refuse to make any shop recommendation
b.Provide an oral and written disclosure that the insured may choose any shop
c.Pay only the lowest estimate available within 50 miles
d.Require the insured to use the suggested shop
Explanation
Insurance Code §758.5 prohibits steering and requires that when an insurer suggests a particular repair shop, it must inform the claimant in writing (and orally when face-to-face or by phone) that the claimant is not required to use that shop and may select any licensed shop of their choice.
Law Reference: Cal. Ins. Code §758.5Practice all 158 questions free — no signup required.
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