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You have the right to choose any licensed repair shop. Some insurance companies have direct repair or referral programs where consumers are directed or encouraged to use only specific shops. You may be told that any other shop you select is not on their list of "approved" shops, or that they cannot warranty the work at the shop you selected. This practice is called "Steering." What they don't tell you is that those direct repair or referral shops are frequently required by the insurance company to use non-original parts or other cost-cutting procedures designed to save money for the insurance company. The non-original parts and other cost-cutting procedures may not truly restore the safety, appearance, and value of your car to pre-accident condition, and may also jeopardize the factory warranty. It's still YOUR choice, and you can choose your own shop; one that will use the parts and procedures necessary to properly restore your car to pre-accident condition to the best of human ability. In New Jersey, no insurance company can legally require you to use a particular shop for estimates or for repairs. The insurance company is required by state regulations to promptly begin good faith negotiations with any licensed shop you select. If the damage is covered by insurance, you are entitled to have your car restored to pre-accident condition or to be compensated for the actual cash value of your car just prior to the accident. If a deductible or betterment applies, your insurance settlement will be reduced by that amount. If you, or your chosen repair shop, cannot agree with the insurance company on the amount of the loss to your car, the insurer may try to "steer" you to one of their "approved" shops. You do not have to accept their recommendation! Most insurance policies contain a provision called the appraisal clause, which addresses this difference and provides a means of resolving the dispute. See our Frequently Asked Questions page for an explanation of the appraisal clause and how it works. You should select a shop that's qualified to restore your car to it's true pre-accident condition, to the best of human ability; a shop that will negotiate with your insurance company if necessary to be sure all needed repairs are included in your claim. If your vehicle is leased, be sure to read your lease agreement carefully as it may contain information you need to consider in selecting a repair shop. For information about what to look for in selecting a qualified repair shop, see Choosing a Qualified Repair Shop. GOLDCAR HOME | CONSUMER INFO | SHOP LOCATOR | CONSUMER BOARD
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