After an accident, you have enough to worry about without a difficult claims process. You want your car fixed correctly and quickly. Often, your insurance company will recommend a specific auto body shop, sometimes called a "network" or "direct repair program" (DRP) shop. While this recommendation can be helpful, you may feel pressured to use that shop exclusively. This practice, when it crosses the line from a suggestion to a requirement or threat, is known as “steering.” In Arkansas, the law protects your right to choose.
Fundamentally, you have the right to have your vehicle repaired at the shop of your choice. An insurer cannot legally make the payment of your claim conditional on you using a particular repair shop 1. This protection is a core part of Arkansas’s unfair claims settlement practices regulations. Steering can take several forms. An obvious example is an adjuster telling you the company will only pay for repairs if they are done at "Shop X." A more subtle, but equally illegal, tactic is threatening to slow down the claims process if you choose your own facility 2. An insurer cannot create unreasonable delays or burdens simply because you exercised your right to select a different repair shop 3.
These consumer protections are taken seriously. The issue of insurer influence over repairs has been a subject of legal and congressional review for decades 45. In Arkansas, steering is classified as an unfair practice, and insurers who engage in it face penalties. The Arkansas Insurance Commissioner can issue cease and desist orders and impose monetary fines for these violations. The penalties can be up to one thousand dollars ($1,000) for each act, with a potential aggregate penalty of up to fifty thousand dollars ($50,000) for multiple offenses 6. If you feel you are being unfairly pressured to use a specific shop, you have the right to file a formal complaint with the Arkansas Insurance Department, which investigates such allegations 7. This guide will help you understand the rules so you can confidently manage your auto repair claim.
General information, not legal advice.
Your fundamental right to choose a repair shop in Arkansas
After an accident, you may feel pressured by an insurance company to use a specific auto body shop. However, Arkansas law firmly protects your freedom to choose. The foundation of this protection is Ark. Code Ann. § 23-66-206(a)(16), which defines it as an unfair claims settlement practice for an insurer to require that repairs be made by a particular repair shop as a condition of payment 1. This means an insurance company cannot legally force you to use one of their "preferred" shops or refuse to pay for covered repairs simply because you selected a different, licensed facility. The choice belongs to you.
While an insurer is allowed to recommend shops, their actions cannot cross the line into coercion. The law is designed to prevent "steering," which can be both direct and subtle. For instance, an adjuster cannot state, "You must use our network shop to get the claim paid." It is also an illegal and unfair practice for them to threaten to slow down the claims process if you do not use one of their recommended facilities 2. Insurers are required to complete a claim investigation within 45 calendar days or provide a written explanation for any delay, a rule that prevents them from holding your claim hostage indefinitely 8.
The key phrase in the law is "as a condition of payment" 1. This does not mean the insurer must pay any price your chosen shop wants to charge. The insurance company is obligated to pay for the reasonable cost of repairs based on a competitive estimate. If your shop's estimate is higher, you may have to negotiate with the insurer or pay the difference. However, they cannot withhold payment entirely based on your shop choice. This consumer right is a critical aspect of managing your own claim and ensuring a quality repair 3.
This control extends to the parts used in the repair. If an estimate includes aftermarket or non-original equipment manufacturer (non-OEM) parts, the law requires a clear written disclosure. This notice, printed in at least 10-point type, must identify the parts and state that they are not from the original carmaker and that any warranty comes from the part's manufacturer or distributor, not the auto manufacturer 9 10. To ensure accountability, all non-OEM crash parts used in Arkansas must have the logo or name of their manufacturer permanently affixed to them 11.
General information, not legal advice.
What qualifies as illegal insurance steering?
Insurance steering happens when an insurer uses coercive, misleading, or intimidating tactics to get you to use their preferred auto body shop instead of the one you choose. While an insurer can recommend shops, they cross the line into illegal steering when they pressure you. Arkansas law defines several of these actions as unfair claims settlement practices.
One of the most direct examples of illegal steering is when an insurer requires you to use a particular repair shop as a condition for paying your claim 1. They cannot tell you that payment is dependent on your choice of facility. Another prohibited tactic is coercion. For instance, an adjuster cannot threaten to slow down or delay your claim if you decide against using a shop from their network 2. This is an unfair practice. Insurers are required to complete their claim investigation within 45 calendar days or provide you with a written explanation for any delay, so any intentional slowdown is a serious issue 8. The history of consumer protection in auto insurance demonstrates a long-standing effort to prevent such abuses by powerful companies 4 12.
Other illegal steering tactics can be more subtle. These might include an insurer telling you that your chosen shop's labor rates are too high and you will have to pay the difference, or suggesting that only their preferred shops guarantee the repair work. Remember, the repair shop itself guarantees its work, not the insurance company.
If an insurer engages in these prohibited practices, the Arkansas Insurance Commissioner has the authority to take action. The Commissioner can issue cease and desist orders and impose significant monetary penalties. Fines can be up to $1,000 for each violation, with potential aggregate penalties reaching up to $10,000 for general unfair practices or even $50,000 for specific unfair claims settlement violations 13 6. If you believe your insurer is illegally steering you, you can file a formal complaint with the Arkansas Insurance Department for investigation 7.
General information, not legal advice.
Rules for non-oem aftermarket parts
When your car is being repaired after an accident, the insurer may write an estimate that includes non-original equipment manufacturer (non-OEM) aftermarket parts. These are new parts that are not made by your vehicle’s original manufacturer. While using these parts is permissible, Arkansas law (Ark. Code Ann. § 23-66-501 et seq.) establishes strict rules to ensure you are fully informed.
First, any written estimate that specifies the use of non-OEM parts must clearly identify each of those parts 10. You should not have to guess which components are original and which are aftermarket. The estimate must also include a specific disclosure statement, printed in a font that is at least 10-point type, so it is easy to read 10. This disclosure must explicitly state two things. It must inform you that the parts are from a source other than the original vehicle manufacturer 9. It must also clarify that the warranty for these parts comes from their own manufacturer or distributor, not from the company that built your car 910. This is a critical piece of information if a part fails in the future 3.
The legal requirements do not stop with the paperwork. The regulations extend to the physical parts themselves. Under Arkansas law, every non-OEM aftermarket crash part used for repairs in the state must have the logo or name of its manufacturer permanently affixed or inscribed on the part itself 11. This permanent marking ensures accountability and allows for clear identification of the part’s origin, even years after the repair is done. These disclosure and marking laws are important consumer protections, arising from long-standing debates over part quality and insurer practices 5. They are designed to provide complete transparency, allowing you to know exactly what is being used to fix your vehicle.
General information, not legal advice.
The insurer's duties and claim timelines
After you report damage to your vehicle, the clock starts ticking for your insurance company. Arkansas law sets clear expectations for how and when your insurer must handle your claim. A primary duty is the timely investigation of your loss. An insurer must complete its investigation and make a decision on your claim within 45 calendar days after the claim is opened 8. This deadline is a critical consumer protection designed to prevent insurers from leaving you in limbo.
If the company cannot resolve the claim within that 45-day window, it is not allowed to simply ignore you. The insurer is required to send you a written notice explaining the specific reasons why more time is needed to complete its investigation 8. This requirement for written justification ensures transparency and holds the company accountable for any delays.
These timelines are directly related to anti-steering rules. An insurer is strictly prohibited from using delays as a weapon. For example, an adjuster cannot threaten to slow down the claims process as a way to pressure you into using a network or recommended repair shop 2. This type of threat is considered an illegal act of coercion and an unfair claims settlement practice 1, 2. The legal framework around these duties has been shaped over many years, with both legislative hearings and court cases reinforcing the need to protect vehicle owners during the claims process 12, 5.
Should an insurer fail to meet these obligations or engage in unfair practices, the Arkansas Insurance Department has enforcement authority. The Insurance Commissioner can order an insurer to stop its illegal actions and can impose monetary penalties of up to $1,000 per violation, which can accumulate to an aggregate penalty of $50,000 for broader patterns of misconduct 6. If you feel your insurer is not investigating your claim in good faith or is using intentional delays, you can file a formal complaint through the Arkansas Insurance Department's online portal 7. Documenting your interactions can be helpful in this process 3.
General information, not legal advice.
Penalties for insurer violations
Arkansas law protects your right to choose your own auto repair facility. When an insurer tries to take that choice away through steering, it is engaging in an illegal unfair claims settlement practice 1. The Arkansas Insurance Department, led by the Insurance Commissioner, is the state agency responsible for enforcing these consumer protection laws and holding insurance companies accountable for their actions.
Unfair practices are not always obvious. A violation can be as direct as the insurer requiring you to use a particular shop as a condition of payment 1. It can also be more subtle, such as an agent threatening to delay your claim's processing if you do not use one of their recommended shops 2. If you believe you are a victim of steering, you can trigger an investigation by filing a formal complaint with the Arkansas Insurance Department 7.
If an investigation confirms that an insurer has violated the law, the Insurance Commissioner has significant enforcement powers. The Commissioner can issue a cease and desist order, which is a legally binding command for the insurer to immediately stop the illegal practice 6. This action forces the company to correct its behavior, benefiting not only you but also other policyholders.
In addition to ordering a halt to the misconduct, the Commissioner can impose substantial monetary penalties. An insurer can be fined up to $1,000 for each individual act or violation of the rules governing unfair practices 6. This means that every single customer who was illegally steered could represent a separate fine for the company. When these violations are not just isolated mistakes but are frequent enough to show a general business practice, the fines can grow much larger. The law allows for an aggregate penalty of up to $50,000 to punish an insurer for a pattern of repeated misconduct 6. Keeping clear records of all your communications with the insurer can provide critical evidence for an investigation 3. These penalties exist to discourage insurers from breaking the law and to ensure they handle your claim fairly from start to finish.
General information, not legal advice.
The total loss exception: When is a car a 'salvage vehicle'?
Your right to choose a repair shop is fundamental, but it only applies if your vehicle is considered repairable. When the damage is severe, the conversation shifts away from repairs and toward a different outcome: the total loss settlement. In Arkansas, a specific financial threshold determines when a car is declared a "total loss," making the choice of a body shop a moot point.
The state has a clear definition for this situation. A vehicle is legally classified as a "salvage vehicle" if it sustains damage that is equal to or greater than 70% of its average retail value 14. This value is not what you paid for the car, but what it was worth on the market just before the crash. Insurers typically determine this figure using valuation guides and by analyzing sales of comparable vehicles in your local area. For example, if your car's average retail value was $20,000, and the professional repair estimate is $14,000 or more, the insurer must declare it a total loss 14.
Once this 70% threshold is met, the insurance claim changes. Instead of authorizing and paying for repairs, the insurer will pay you the vehicle’s pre-accident actual cash value, minus your deductible. The car will then be issued a salvage title. At this stage, your focus must pivot from overseeing repairs to ensuring you receive a fair settlement offer. The insurer is still obligated to complete its investigation promptly, which usually means within 45 calendar days, or provide a written explanation for any delay 8. To prepare for this negotiation, you should collect all documentation that proves your car’s worth, such as service records, receipts for new tires or upgrades, and photos showing its excellent condition before the accident 3. This evidence can be essential for justifying a higher valuation if the insurer's initial offer seems too low.
General information, not legal advice.
How to file an anti-steering complaint in Arkansas
If you believe your insurance company is illegally pressuring you to use a specific auto body shop, you can and should take formal action. Your primary recourse is to file a complaint with the Arkansas Insurance Department (AID), the state agency responsible for regulating insurers. The most efficient way to do this is by using the AID’s official online complaint form 7.
Before you begin, gather all your evidence. A well-documented complaint is more effective. Keep a log of every conversation with the insurer, noting the date, time, and representative’s name. Save all emails, text messages, and written documents. Your goal is to create a clear timeline of events. This documentation is especially important if an adjuster implied your claim would be delayed if you did not use their recommended shop, an act of coercion that is prohibited 2, 3. Remember, forcing you to use a particular shop as a condition for paying your claim is defined as an unfair claims settlement practice 1.
When you complete the online form, describe the events factually and chronologically. State exactly what was said or done that made you feel pressured. For example, “On March 15, 2026, the adjuster told me the insurer would not warranty the repairs unless I went to their preferred shop.” Also, examine any written estimate the insurer provided. If it includes non-original equipment manufacturer (non-OEM) parts, the estimate must clearly identify them and include a disclosure in at least 10-point type stating the warranty is provided by the part manufacturer, not the vehicle's original manufacturer 10. Failure to include this disclosure is another potential violation to add to your complaint.
After you submit your complaint, the AID will review it and notify the insurance company, requiring a response. The department has the power to investigate your allegations. If regulators determine the insurer has violated the law, they can issue a cease and desist order and impose financial penalties of up to $1,000 for each violation, with a potential aggregate penalty of up to $50,000 6. Filing a complaint not only helps resolve your issue but also helps protect other Arkansas consumers from similar practices.
General information, not legal advice.
Sources
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Requiring as a condition of payment of a claim that repairs must be made by a particular repair shop is defined as an unfair claims settlement practice. - https://www.justia.com/law/archived/arkansas/2016/title-23/subtitle-3/chapter-66/subchapter-2/section-23-66-206/
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Threatening to slow down the claims process if a claimant does not use a recommended shop is an unfair practice under the general prohibition against coercion. - https://law.justia.com/codes/arkansas/2016/title-23/subtitle-3/chapter-66/subchapter-2/section-23-66-206/
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Auto Accident Personal Injury Insurance Claim by Dan Baldyga (2002, AuthorHouse) - https://play.google.com/store/books/details?id=R8M3AgAAQBAJ
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Automobile Insurance Reform and Cost Savings: Hearings, Ninety-second Congress, First Session... by United States. Congress. Senate. Committee on Commerce (1971) - https://play.google.com/store/books/details?id=UxM3ZkDwTx8C
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Avery V. State Farm Mutual Automobile Insurance Company (2001) - https://play.google.com/store/books/details?id=IqmdYTKyGckC
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The Insurance Commissioner can issue cease and desist orders and/or impose monetary penalties up to $1,000 per violation (up to a $50,000 aggregate) for unfair claims settlement practices. - https://law.justia.com/codes/arkansas/2016/title-23/subtitle-3/chapter-66/subchapter-2/section-23-66-210/
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Consumers can file a formal complaint against an insurer for illegal steering practices by using the online complaint form provided by the Arkansas Insurance Department. - https://insurance.arkansas.gov/consumer-services/file-a-complaint/
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An insurer must complete its investigation of a claim within 45 calendar days of the claim being opened, or notify the insured why more time is needed. - https://propertyinsurancecoveragelaw.com/claims-handling-requirements-by-state-arkansas/
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When an estimate uses non-OEM parts, it must include a disclosure stating the parts are from a source other than the vehicle manufacturer and are warranted by their own manufacturer or distributor. - https://law.justia.com/codes/arkansas/2025/title-4/subtitle-7/chapter-90/subchapter-3/section-4-90-305/
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A written estimate using non-OEM aftermarket parts must clearly identify those parts and include a disclosure, in at least 10-point type, stating the parts are not from the original manufacturer and that any warranty is provided by the part manufacturer or distributor, not the auto manufacturer. - https://law.justia.com/codes/arkansas/2022/title-4/subtitle-7/chapter-90/subchapter-3/section-4-90-305/
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All non-OEM aftermarket crash parts sold or used in Arkansas must have the logo or name of its manufacturer permanently affixed or inscribed on the part. - https://law.justia.com/codes/arkansas/2022/title-4/subtitle-7/chapter-90/subchapter-3/section-4-90-304/
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Automobile Insurance Reform and Cost Savings, Hearings Before by United States. Congress. Senate. Commerce (1971) - https://play.google.com/store/books/details?id=zdNFAQAAMAAJ
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The Insurance Commissioner may order a monetary penalty of not more than one thousand dollars ($1,000) for each act or violation of unfair practices, not to exceed an aggregate penalty of ten thousand dollars ($10,000). - https://law.justia.com/codes/arkansas/2025/title-23/subtitle-3/chapter-66/subchapter-2/section-23-66-210/
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A vehicle is defined as a "salvage vehicle" if it sustains damage equal to or exceeding 70% of its average retail value. - https://law.justia.com/codes/arkansas/2022/title-27/subtitle-2/chapter-14/subchapter-23/section-27-14-2301/