Your Car, Your Choice: Understanding Illinois' Anti-Steering Law

After a car accident, your first call is often to your insurance company. The claims adjuster is helpful and efficient, but then they strongly suggest, or even try to schedule, your repairs at a specific body shop. They might call it a "preferred" or "network" facility, promising a faster, smoother process if you go there. This common practice is known as steering. It occurs when an insurance company attempts to influence your choice of a repair shop, often directing you to a facility where they have a pre-existing financial arrangement ¹.

While the insurer's suggestion might seem like a helpful shortcut, you are not obligated to take it. In Illinois, you have the legal right to have your vehicle repaired at any shop you choose. This consumer protection is rooted in anti-steering laws. These regulations are designed to prevent insurers from unfairly limiting your options or coercing you into using a shop that might prioritize the insurer's cost savings over the quality of your repair. The tension between insurer cost control and consumer choice has been a subject of federal review for over half a century ²³.

The practice of steering is not a new concern. Major legal battles, such as the landmark Avery v. State Farm Mutual Automobile Insurance Company case, have scrutinized the relationships between large insurers and their networks of parts suppliers and repair facilities ⁴. These issues led to the development of regulations at the state level. Many of these rules are based on model regulations created by the National Association of Insurance Commissioners (NAIC). Illinois administrative code specifies that an insurance company shall not require an insured or claimant to travel unreasonably to obtain a repair estimate or to have the vehicle repaired at a specific repair shop recommended by the company. ⁵. An insurer can recommend shops, but they cannot force you to use one. Understanding this distinction is the first step in managing your car's repair process and protecting your rights as a policyholder in 2026.

This article provides general information and is not legal advice.

Your fundamental right to choose a repair shop in Illinois

In Illinois, the law gives you the sole authority to choose where your vehicle gets fixed. After an accident, your insurance company cannot force you to use a specific repair shop. This is a core consumer protection. While your insurer can suggest shops, often from their own "direct repair program" (DRP) network, the final decision is yours alone. You are the one who authorizes repairs on your vehicle.

This protection exists because of a long history of debate over insurer practices and their cost-saving measures ²³. Insurers create networks of preferred shops to control costs and streamline the claims process. This can be efficient for all parties. However, this efficiency cannot come at the expense of your right to choose a facility you trust with the safety and quality of your repair. The tension between insurer cost control and consumer choice has been the subject of significant legal challenges and court cases over the years ⁴. The principle is simple: your insurer’s obligation is to cover the cost of a proper repair, not to dictate who performs the work.

When you file a claim, you will likely be offered a list of network shops. The insurer might even offer incentives, such as a lifetime guarantee on work performed at these locations. You can accept this offer, but you are not required to do so. You are always free to get an estimate from and authorize repairs at any licensed repair facility you select. Consumer advocates have long advised vehicle owners to be assertive in managing their own claims and repair choices ¹. This right is so fundamental that regulations, often based on national models, prevent insurers from placing unreasonable burdens on you if you choose your own shop. For example, an insurer cannot require you to travel an excessive distance just to get an estimate from one of their preferred facilities as a tactic to influence your decision ⁵. You select the shop, you authorize the repairs, and the insurance company is responsible for the reasonable cost of restoring your vehicle to its pre-accident condition, wherever that work is done.

This article provides general information and is not legal advice.

What is 'insurance steering' and why is it regulated?

"Insurance steering" is the term for when an insurer pressures or coerces you into using a body shop from their preferred network instead of one you choose yourself. While an insurer can suggest shops, they cross the line into illegal steering when they use tactics to make you feel like you have no other real option.

The motivation for insurers is almost always financial. Insurance companies create "direct repair programs" (DRPs) with a network of auto body shops. In exchange for a steady stream of business, these shops agree to give the insurer discounts on labor, parts, and materials. This relationship is designed to lower the insurer's claim costs. This practice and its effect on repair quality have been a subject of concern for a very long time. Congressional hearings as far back as 1971 examined how insurance industry claim settlement practices were impacting consumers and the auto repair market ²³.

The problem for you, the vehicle owner, is that the shop's primary loyalty can shift from you to the insurer who provides a large volume of their work. This creates a potential conflict of interest. A shop might be pressured to cut corners, use cheaper aftermarket parts, or overlook necessary procedures to stay within the insurer's cost targets ¹. The infamous Avery v. State Farm case, though focused on non-original parts, highlighted the widespread issues that can arise when an insurer's cost-saving policies dictate repair standards ⁴.

Because of this long history of complaints, states like Illinois have established anti-steering laws. These regulations were created to protect your right to choose a repair facility. They prohibit insurers from using intimidation or creating unreasonable delays if you select a non-program shop. For example, an adjuster cannot state that the insurer will not guarantee the repairs if you use your own shop; the repair facility itself provides the warranty on their work. Similarly, they cannot make the claims process intentionally difficult just to wear you down ¹. These laws ensure the focus remains on a safe and proper repair, not just on the insurer's bottom line.

This article provides general information and is not legal advice.

The Illinois law explained: 215 ILCS 5/155.29

The foundation of your rights in Illinois is a specific law: Section 155.29 of the Illinois Insurance Code (215 ILCS 5/155.29). This statute was created to prevent insurance companies from unfairly controlling your repair choices. Its primary purpose is to ensure you, the vehicle owner, have the final say on where your car is repaired after a loss.

The law is very direct. It states that an insurance company cannot require you to have your vehicle repaired at a particular shop. To make sure you know this, the statute mandates that your insurer must inform you, in writing, that you have the right to select the repair facility of your choice. This disclosure is a critical protection for you. The need for such clear consumer protections in automobile insurance has been a topic of discussion for a very long time, even leading to congressional hearings decades ago ².

This law specifically targets coercive tactics known as "steering." Under Section 155.29, an insurer is prohibited from suggesting that your claim will be delayed or that you will face difficulties if you do not use one of their recommended shops ¹. They cannot state or imply that the insurer will pay less if you go to a shop outside their network. The practice of using non-original parts and its effect on repair quality was central to major litigation, reinforcing the need for laws that protect the consumer's right to a proper repair, not just a cheap one ⁴.

While an insurer cannot force you, they are permitted to recommend shops from their direct repair program. They can also offer factual information or potential benefits of using one of those shops, like a lifetime warranty on the repairs (which is honored by the shop, not the insurer). However, the choice must ultimately be yours. The regulations that inform Illinois law also establish a standard of reasonableness, stating an insurer cannot require you to travel an unreasonable distance to obtain a repair estimate from one of their preferred shops ⁵. This prevents them from making it inconvenient for you to use your rights.

This article provides general information and is not legal advice.

Insurer recommendations vs. illegal requirements

The line between a helpful suggestion and illegal steering can feel blurry after an accident. An insurer is allowed to recommend a shop from its network. They can also explain potential benefits, like a lifetime warranty on repairs offered by that shop. However, the final choice must remain yours. The challenge is recognizing when a recommendation crosses into coercion.

Illegal pressure can take several forms. Be alert if an adjuster says things like:

• "If you use your own shop, we won't pay for any difference in the labor rate."
• "We can't guarantee the repairs if you go to a non-preferred shop."
• "Your claim will be processed much faster if you just use our network shop."
• "We've had problems with that shop you chose."

These statements are designed to steer you away from your choice through intimidation or by creating the impression of future problems. This kind of pressure has been a subject of regulatory concern for over fifty years ²³. An insurer cannot intentionally delay your claim or refuse to work with your chosen shop simply because it is not in their network. They are still obligated to pay the reasonable costs of repair.

This principle extends to the estimate process. While the previous section noted that an insurer cannot make you travel an unreasonable distance for an estimate, this rule is part of a larger pattern of preventing coercion ⁵. Forcing you to drive two hours to their "approved" estimator's location, for example, is a tactic to make using your own local shop so inconvenient that you give up. The goal of the law is to make your right to choose a practical reality, not just a theoretical option. Some adjusters are trained to control the claim from the beginning, and a firm suggestion to use a network shop is one way they do it ¹. Landmark legal cases have also highlighted the power imbalance between large insurers and individual consumers, reinforcing the need for clear consumer protections ⁴. If you feel pressured, state your choice of shop clearly and document the conversation.

This article provides general information and is not legal advice.

Understanding your rights on aftermarket and non-OEM parts

Beyond choosing the shop, you also have rights regarding the parts used for your repair. After an accident, an insurer's primary goal is often to control costs, and one common way they do this is by specifying non-original equipment manufacturer (non-OEM), or "aftermarket," parts on the repair estimate. This practice has been a source of conflict for many years, with hearings on auto insurance reform dating back to the 1970s examining the balance between cost savings and consumer rights ²³.

In Illinois, the law provides you with two key protections. First, if an insurer's estimate includes any non-OEM parts, those parts must be clearly identified. The insurer cannot hide them in technical jargon. Second, and most critical, the repair shop cannot use these non-OEM parts without your express written consent on the repair order. This gives you direct control over the repair.

The importance of this consent is reinforced by the history of major litigation in this area. The landmark Illinois class-action lawsuit, Avery v. State Farm Mutual Automobile Insurance Company, was fought over this very issue ⁴. The case centered on claims that the insurer systematically specified non-OEM crash parts that were alleged to be inferior in quality, fit, and finish to original parts, diminishing vehicle value without the policyholders' consent. The initial billion-dollar verdict highlighted the serious financial and safety implications for consumers ⁴.

This legal history is why your rights are now codified. Your right to consent is not a minor detail; it is a powerful tool established to prevent your vehicle from being repaired with parts you did not agree to. When you review your estimate, look for terms like "aftermarket," "A/M," "quality replacement," or "QRP." If you see them, the insurer is proposing to use non-original parts. You have the right to reject them. While this may lead to a conversation about who pays the price difference for more expensive OEM parts, the decision to install them cannot be made without your approval.

This article provides general information and is not legal advice.

What to do when your shop's estimate is higher than the insurer's

It is very common for your body shop’s initial estimate to be higher than the insurance company's. Do not be alarmed. The insurer’s first offer is a starting point, not the final word. The difference in price initiates a standard industry process, often called a "supplement," where your shop and the insurer negotiate the final repair cost.

Your chosen repair shop acts as your advocate during this phase. Their estimator will submit their detailed repair plan to the insurance adjuster, justifying each procedure and cost. If the insurer's estimate specified cheaper, non-original parts, your shop will explain why original manufacturer (OEM) parts are necessary for a safe and proper repair, a point reinforced by legal precedent concerning part quality ⁴. This negotiation is a professional, line-by-line discussion. It often involves the shop providing additional photos of hidden damage found only after disassembly or explaining why a specific repair technique is required to meet manufacturer standards. This back-and-forth over costs and methods has been a central part of automobile insurance for over half a century ², ³.

The insurance company is obligated to pay the reasonable costs to restore your vehicle to its pre-accident condition. While they can dispute charges they believe are unreasonable, they cannot refuse to negotiate in good faith. You have authorized your shop to perform the repairs, and they, in turn, are authorized to negotiate payment with the insurer on your behalf ¹. The insurer may send their own appraiser to inspect the vehicle at your shop, which is a normal step. However, they cannot require you to drive your car an unreasonable distance for an inspection at one of their network facilities ⁵.

In the vast majority of cases, the shop and the insurer will arrive at an agreed-upon price. The shop then completes the work and bills the insurer directly for the approved amount, leaving you responsible only for your deductible.

This article provides general information and is not legal advice.

How to report illegal steering in Illinois

If the claims process breaks down and you believe your insurer is illegally steering you, you can take formal action. Illinois law protects your right to choose your repair facility, a principle rooted in consumer protection advocacy dating back to the 1970s ²³. The Illinois Department of Insurance (IDOI) oversees insurers and investigates consumer complaints. Filing a formal complaint is a serious step that can hold your insurer accountable.

Here is a step-by-step guide to reporting a potential violation.

1. Gather your documentation. Your complaint is strongest when supported by clear evidence. Before contacting the IDOI, organize all relevant documents and information. This should include the adjuster's name, your claim number, and dates of conversations. Keep detailed notes of what was said, particularly any statements suggesting the insurer would not fully honor the claim unless you used their preferred shop. Collect any emails or letters from the insurer. This documentation is critical for creating a timeline and proving that the insurer’s actions went beyond simple negotiation ¹. Evidence of this nature was central to consumer-rights cases like Avery v. State Farm ⁴.

2. Prepare to file with the IDOI. The IDOI is the primary enforcement body. You can file a complaint with their Consumer Services Section online, by mail, or by fax. In your complaint, you will need to provide a concise summary of the issue. Explain how the insurer tried to influence your choice. For example, did they tell you that payment would be delayed? Did they state they would not guarantee the repairs from your chosen shop? Did they require you to drive an unreasonable distance, such as more than 20 miles from your location, to get an estimate from their network shop ⁵? Be specific and stick to the facts.

3. Submit the complaint and await a response. After you file, the IDOI will review your complaint and forward it to the insurance company, requiring a response within 21 days. The insurer must provide their side of the story directly to the IDOI. An investigator from the department will then analyze the complaint and the insurer's response to determine if any insurance laws or regulations were violated. While this process unfolds, you should continue communicating with your chosen repair shop. Filing a complaint does not halt the repair process, though it may influence how the insurer proceeds with payment negotiations ¹.

This article provides general information and is not legal advice.

Sources

1. Auto Accident Personal Injury Insurance Claim by Dan Baldyga (2002, AuthorHouse) - https://play.google.com/store/books/details?id=R8M3AgAAQBAJ

2. 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

3. Automobile Insurance Reform and Cost Savings, Hearings Before by United States. Congress. Senate. Commerce (1971) - https://play.google.com/store/books/details?id=zdNFAQAAMAAJ

4. Avery V. State Farm Mutual Automobile Insurance Company (2001) - https://play.google.com/store/books/details?id=IqmdYTKyGckC

5. Illinois Administrative Code, Title 50, Section 919.80 - https://www.ilga.gov/commission/jcar/admincode/050/050009190000800R.html