Texas Insurance Laws: Your Legal Right to Choose Your Own Repair Shop

Intro

After an accident, one of the first calls you’ll likely make is to your insurance provider. During that call, you might be told that you “must” go to a specific “preferred” or “in-network” shop to ensure your claim is paid. In Texas, however, this practice—often called “steering”—is strictly regulated. Under the Texas Insurance Code, you have the absolute legal right to select the repair facility of your choice. Understanding these protections is the key to ensuring your vehicle is restored to factory safety standards rather than just the lowest bidder’s standards.

The Law Against “Insurance Steering”

Texas law (specifically Texas Insurance Code § 1952.301) prohibits insurance companies from requiring you to use a particular repair shop. While an insurer can provide a list of “preferred” shops, they cannot force you to use them, nor can they intimidate or coerce you into changing your mind. These preferred shops often have “Direct Repair Programs” (DRP) where they agree to lower labor rates and use alternative parts in exchange for a steady stream of referrals from the insurance company. By choosing your own independent shop, you ensure that the technician’s primary loyalty is to you and your safety, not the insurance company’s bottom line.

Common Steering Tactics to Watch For

Insurers often use carefully worded scripts to discourage you from picking your own shop. You may hear phrases like, “We can’t guarantee the repairs if you go outside our network,” or “Your claim will take much longer if you don’t use our shop.” It is important to know that the insurance company doesn’t actually guarantee repairs anyway—the repair shop does. A reputable independent shop will offer its own lifetime warranty on workmanship. Additionally, Texas law requires insurers to process claims promptly regardless of where the vehicle is located, so “delays” are often an empty threat used to nudge you toward their preferred vendor.

Reasonable Costs and “OEM” Parts

While you have the right to choose your shop, there is a small catch: the insurance company is only required to pay a “reasonable amount” for repairs. If your chosen shop charges $150 per hour and the market rate in your area is $60, you may be responsible for the difference. Furthermore, Texas law allows you to specify the parts used for your repair. If you want Original Equipment Manufacturer (OEM) parts instead of cheaper aftermarket or salvaged parts, you have the right to request them. However, depending on your specific policy language, the insurer might only cover the cost of the cheaper parts, leaving you to pay the “markup” for the brand-name components.

Conclusion

Your car is likely one of your most valuable assets, and how it is repaired after an accident affects its safety, structural integrity, and resale value. Don’t let an insurance adjuster dictate the quality of your repair. Exercise your rights under Texas law: pick the shop you trust, ask for a detailed estimate, and remember that you are the customer—not the insurance company.

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Frequently Asked Questions

Do I need to get three separate estimates?

No. In Texas, you are not legally required to get multiple estimates. You only need one estimate from the shop you intend to use. If the insurance company disagrees with that estimate, they can send their own adjuster to inspect the vehicle at that shop.

Can the insurance company refuse to pay if I don’t use their shop?

Absolutely not. As long as the repair costs are “reasonable” and the damage is covered under your policy, they must pay for the repairs at the facility of your choice.

What should I do if I feel I’m being pressured or “steered”?

If an adjuster is being aggressive or threatening to withhold benefits, you can remind them of your rights under the Texas Insurance Code. If the behavior continues, you can file a formal complaint with the Texas Department of Insurance (TDI).