California Insurance Code & EthicsQuestion 45 of 474
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.Provide an oral and written disclosure that the insured may choose any shop
b.Require the insured to obtain at least three competing written estimates before any repair payment is issued
c.Refuse to make any shop recommendation
d.Obtain the written consent of the Department of Insurance before recommending any particular repair facility
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 §758.5This topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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