You Have The Right To Choose Where To Go For Vehicle Maintenance And Repairs After A Collision.

The California Insurance Code Section 758.5 is a consumer protection law that prohibits insurance companies from requiring their policyholders to repair their vehicles in a particular body shop. The law was enacted to safeguard the rights of vehicle owners and allow them the freedom to choose the best and most reliable body shop for their vehicle repairs

Prior to the enactment of California Insurance Code Section 758.5, policyholders were often required to have their vehicle repaired in a specific auto body shop in order to avail insurance benefits or receive full reimbursement for the repairs. Insurance companies would tie the payment of benefits or the reimbursement to the choice of an auto body shop recommended by them. This practice was often detrimental to the interests of the policyholders as they were restricted from selecting the best repair facility and were sometimes directed to substandard shops.

Section 758.5 of the California Insurance Code clearly states that no insurance company shall require that an insured have repairs made to their vehicle in any particular shop or location. This means that the policyholder has the complete autonomy to choose any licensed repair facility or shop for their vehicle repairs. The law also prohibits an insurance company from suggesting or recommending a particular shop when the policyholder makes a claim for the repair of their vehicle.

The enactment of the California Insurance Code Section 758.5 was a significant development in the consumer protection laws for vehicle owners in the state. The law provides the necessary protection and autonomy for policyholders to make informed decisions about their vehicle repairs and ensures that they are not misled or directed to substandard repair facilities. The law has helped to enhance competition among auto body shops and repair facilities, resulting in better quality repairs at more competitive prices. The law has also helped to streamline the claims process, reducing disputes between policyholders and insurance companies.

In conclusion, the California Insurance Code Section 758.5 is a critical consumer protection law that has had a significant impact on the auto insurance industry in California. The law protects the interests of policyholders and ensures that they have the autonomy to choose the best repair facility for their vehicle repairs. The law has improved competition, resulting in better quality repairs and more affordable prices. It is essential that policyholders are aware of their rights under the law and take full advantage of the protection it provides. Insurance companies should also abide by the law and avoid any attempts to direct policyholders to specific repair facilities.

Eduard Braun, ESQ

Law Office of Eduard Braun, P.C.

877-533-4529