After an accident, the last thing you want is a difficult claims process. Your focus should be on getting your vehicle repaired correctly and safely. However, you might find your insurance company has strong opinions about where you should get that repair work done. This practice, often called "steering," is when an insurer attempts to direct you to one of their preferred auto body shops. Insurers develop these networks to control costs, sometimes by negotiating lower labor rates or dictating the use of specific parts, a point of contention that has been debated for decades 1, 2, 3.
While an insurer’s suggestion might seem helpful, it can feel like pressure. You might be told that using a non-network shop could lead to delays or that the insurer will only pay what their preferred shop would have charged. This can leave you feeling like you have no real choice in the matter.
In North Dakota, the law is explicitly on your side. You have the fundamental right to have your vehicle repaired at any shop you choose. State law is very clear on this point. Under California Insurance Code § 758.5, an insurer is prohibited from suggesting or recommending a specific automotive repair dealer unless the claimant has been informed in writing of the right to select their own repair facility. 4. This is not just a courtesy; it is a required disclosure under North Dakota Century Code § 26.1-04-03(19)(b). You are in control of this decision, a key aspect of managing your own claim successfully 5.
An insurer cannot force you to use their preferred shop, nor can they create unreasonable burdens if you choose your own facility. For example, if your insurer insists on getting multiple repair estimates before approving the work, know your rights. North Dakota administrative rules state that if an insurer "requires that more than one estimate be obtained," the insurer is responsible for paying any additional costs incurred in getting those extra estimates 6. Knowing these rules helps you stand your ground and ensure your vehicle is repaired where you, not the insurance company, feel most comfortable.
General information, not legal advice.
Your legal right to choose a repair shop in North Dakota
After an accident, one of the most important decisions is who will repair your vehicle. In North Dakota, the law is clear: that choice belongs to you, not your insurance company. This consumer protection is your primary defense against an insurer steering you toward a shop that serves its interests over yours.
The foundation of your right is North Dakota Century Code § 26.1-04-03(19)(b) 4. This statute explicitly states that if an insurer suggests a particular repair shop, it must simultaneously inform you that your motor vehicle may be repaired at any shop of your choice. The insurer’s recommendation of a "preferred" or "network" shop is legally only a suggestion. You are not obligated to use it. This law prevents an insurer from presenting its preferred shop as your only option.
The practice of pressuring claimants to use a specific shop is known as steering. Concerns about insurers directing repair work to control costs, potentially at the expense of quality, are not new. These issues were debated in congressional hearings on automobile insurance reform more than fifty years ago 12. State laws like North Dakota's were enacted to protect consumer freedom and promote fair competition among repair facilities. Major legal battles, like the notable Avery v. State Farm case, have centered on insurer practices related to repairs, demonstrating how serious these disputes can become 3.
You have the legal standing to select a repair facility based on your own judgment, whether it is a trusted local mechanic or a dealership’s collision center. As a practical matter, choosing a shop where you have confidence in the quality of work is a key part of managing your own claim 5. An insurer cannot legally delay your claim or refuse to pay a fair and reasonable price for repairs because you exercised your right to choose. If an adjuster strongly pushes a particular shop, you can firmly and politely remind them of the legal requirement in § 26.1-04-03(19)(b) to inform you of your right to choose any shop 4.
General information, not legal advice.
What an insurer can and cannot do
Illegal steering is not always a direct command. It often involves subtle language or tactics designed to make you feel that choosing your own shop will be difficult, expensive, or slow. For example, an adjuster might imply that repairs at a non-preferred shop will take longer to approve or that the insurer will not warranty the repairs. While an insurer does not warranty any shop's work (the warranty comes from the repair facility), phrasing this in a discouraging way can be a form of steering.
The law in North Dakota is specific to prevent this. Under state statute, an insurer is allowed to suggest or recommend a particular repair shop. However, if they do, they have a legal obligation to immediately follow that suggestion by informing you that your vehicle can be repaired at any shop of your choice 4. This is not optional. They cannot mention their "preferred shop" without also reminding you of your right. This has been a long-standing point of contention in the insurance industry, with congressional hearings on auto insurance practices dating back decades 1, 2.
Insurers often have contracts with specific shops in what is called a direct repair program (DRP). These relationships between insurers and repair facilities have been the subject of legal action for many years 3. While there is nothing illegal about these programs, an insurer cannot pressure you to use a DRP shop or create unreasonable burdens if you choose not to. For instance, an insurer may ask you to get multiple repair estimates. If your insurer requires more than one, North Dakota regulations state the insurer must pay for any additional costs associated with obtaining those extra estimates 6. Knowing these specific rules helps you retain control over your claim and your vehicle's repair 5.
General information, not legal advice.
The repair estimate process and who pays
After a collision, the first step toward getting your car fixed is determining the extent of the damage. This is done through a repair estimate, which is a detailed document outlining the necessary parts, labor, and costs. You have the right to get this initial estimate from any repair facility you choose 4. This shop's estimate serves as the starting point for negotiations with your insurance company. The entire claims process is structured by regulations that have developed over many years to protect consumers during these exact situations 1, 2.
Once you submit the estimate, the insurer will review it. An adjuster may inspect the vehicle personally to write their own estimate, or they may work directly from the one provided by your shop. The insurer’s goal is to agree upon a fair and reasonable cost for the necessary repairs.
In some cases, an insurer might question the initial estimate’s cost or scope. They may ask you to get one or more additional estimates from other shops as a comparison. Here, North Dakota law provides a specific consumer protection. According to the North Dakota Administrative Code, if your insurer requires you to obtain more than one repair estimate, the insurer is responsible for any additional costs incurred to get those estimates 6.
This rule, found specifically in NDAC § 45-06-02-08(6)(a), is direct and important. If a second or third shop charges a fee for the time and labor to write a detailed estimate, your insurer must pay that fee 6. You should not have to pay out of pocket for a procedure the insurer mandates. To ensure this goes smoothly, it is a good practice to get the insurer’s requirement for more estimates in writing, for example in an email. This creates a clear record and helps you manage the claim effectively 5. You can then ask the adjuster how they will handle the payment, whether through reimbursement to you or by paying the shop directly. This regulation prevents an insurer from creating a financial burden that might indirectly pressure you away from your chosen shop and toward one they prefer.
General information, not legal advice.
Aftermarket parts: disclosure and your rights
When you receive a repair estimate, it is more than just a total cost. It is a line-by-line list of the specific parts the insurer expects the shop to use. Understanding the difference between these parts is essential to protecting your vehicle’s value and safety.
Original Equipment Manufacturer (OEM) parts are made by or for your vehicle’s manufacturer. They are identical to the parts that were on your car when it left the factory. In contrast, aftermarket parts are made by third-party companies. While they are designed to fit and function like OEM parts, their quality, materials, and fit can vary significantly.
Insurers often specify aftermarket parts in an estimate because they are typically less expensive. This practice of using non-OEM parts to control claim costs has been a point of contention between consumers and insurers for over half a century 1, 2. It led to major legal battles, such as the class-action lawsuit Avery v. State Farm Mutual Automobile Insurance Company, which centered on whether certain aftermarket parts were truly of "like kind and quality" as the original factory parts 3.
This issue is directly related to steering. North Dakota law firmly states that you have the right to have your vehicle repaired at any shop you choose 4. However, an insurer can indirectly influence your decision through the parts specified on their estimate. If an insurer writes an estimate based on the lower cost of aftermarket parts, and your chosen shop insists on using superior OEM parts for a proper repair, there will be a price difference. The insurer may only agree to pay the amount specified for the aftermarket part, leaving you to cover the rest. This financial pressure can make you feel that you have no option but to go to a shop that will use the cheaper parts, which may be one of the insurer's preferred providers.
You must be your own advocate. Scrutinize the estimate from the insurer and have your chosen repair professional review it with you 5. If you see non-OEM parts listed, ask the adjuster why they were specified and discuss the potential impact on your vehicle's safety, function, and warranty. Understanding the parts list is a critical step in ensuring a quality repair and exercising your right to use the shop you trust.
General information, not legal advice.
What if the insurer's estimate is lower than your shop's?
It is very common for an insurer’s initial estimate to be lower than the one from your chosen body shop. Do not be alarmed. This initial offer is just a starting point, not the final amount the insurer will pay. The difference in price almost always comes down to one thing: the insurer’s first estimate is incomplete.
An insurer’s appraiser often writes an estimate based only on visible damage, sometimes from photos you submitted. They cannot see bent frame components, cracked brackets, or damaged wiring harnesses hidden behind a bumper or fender. A professional repair facility, on the other hand, writes its estimate with the knowledge that hidden damage is likely. The real work begins when your shop disassembles the damaged area of your vehicle.
This is when the supplement process starts. As your technicians uncover additional damage, they will document it with photos and detailed notes. They then create a "supplemental" estimate for the extra parts and labor hours required to perform a safe and proper repair. This supplement is sent to the insurance company for review and approval. Your shop and the insurance adjuster will communicate directly to agree on the final repair plan. This negotiation is a standard, routine part of the collision repair industry and has been a subject of discussion for decades 1 2. The final agreed-upon price, not the preliminary estimate, is what the insurer is obligated to pay.
This process highlights why your right to choose your repairer is so valuable 4. The shop you select works for you. They are your expert advocate in negotiating with the insurer to ensure your vehicle is returned to its pre-accident condition using correct procedures 3. While you should always review estimates, your shop will manage the supplement negotiations 5. Should the insurer dispute the costs and demand another opinion, remember that in North Dakota, if an insurer requires more than one estimate, they are responsible for the cost of obtaining those additional estimates 6.
General information, not legal advice.
How to file a complaint for illegal steering
If you feel an insurer is violating your rights by pressuring you to use a specific repair facility, you can take formal action. The North Dakota Insurance Department is responsible for investigating these practices, known as illegal steering. Filing a complaint is a structured process that holds insurers accountable for their legal obligations.
First, gather all relevant documentation. Meticulous record keeping is your strongest tool 5. Collect any emails, letters, or written communications from the insurer regarding repair shops. If your interactions were over the phone, use your notes that list the date, time, person you spoke with, and a summary of what was said. Did the adjuster or agent suggest their "preferred" shop without also telling you that you have the final say? This detail is very important, as North Dakota law requires the insurer to explicitly inform you that your vehicle may be repaired at any shop of your choice 4.
Next, you will need to submit a formal complaint to the North Dakota Insurance Department. You can typically do this through an online form on their website or by requesting a paper form. Be prepared to provide your personal information, your policy number, and the name of the insurance company.
When you describe the incident, be as factual and specific as possible. Write a clear, chronological account of the events. State exactly how and when the insurer tried to influence your decision. For example, "On May 15, 2026, adjuster Jane Doe told me that the claim would go faster if I used XYZ Collision, but she did not inform me I could go to my own shop as required by N.D.C.C. § 26.1-04-03(19)(b)." Attach copies (never originals) of your supporting documents to the complaint.
After you file, the Department will review your complaint and forward it to the insurance company for a response. This process creates an official record and brings regulatory oversight to your situation. While it may not directly resolve a dispute over repair costs, it is a critical step in enforcing consumer protection laws that have been debated and refined for decades 1, 2. Documenting these steering attempts helps regulators identify patterns that can affect many policyholders, sometimes leading to major enforcement actions 3.
General information, not legal advice.
Sources
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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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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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Avery V. State Farm Mutual Automobile Insurance Company (2001) - https://play.google.com/store/books/details?id=IqmdYTKyGckC
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California Legislature, California Insurance Code § 758.5 - https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=758.5.&lawCode=INS
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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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North Dakota Administrative Code § 45-06-02-08(6)(b), 2023 - https://www.ndlegis.gov/information/acdata/pdf/45-06-02.pdf