WHEN INSURANCE IS INVOLVED
The customer chooses the shop. The policy controls coverage.
01
Your choice of repair facility
A California insurer cannot require you to use a specific automotive repair dealer. An insurer may recommend a shop only under the conditions permitted by Insurance Code section 758.5.
02
Authorization and payment are different
The customer authorizes repairs. The insurer decides coverage and payment under the policy. An insurer's estimate or inspection does not, by itself, authorize the shop to perform additional work.
03
Reasonable covered repair costs
When an insurance contract provides that the insurer may suggest or recommend a particular repair shop, and the customer instead chooses another shop, the insurer may not limit or discount reasonable repair costs based on what its chosen shop would have charged. Coverage, deductible, exclusions, and accepted trade standards still apply.
Auto Body Repair Consumer Bill of Rights
California's standardized Auto Body Repair Consumer Bill of Rights explains, among other protections, the right to select the auto body repair shop, receive an itemized written estimate and detailed invoice, be informed about towing, storage, and rental coverage, know where to report concerns, and obtain an independent repair estimate. An insurer issuing automobile liability or collision coverage must provide the notice at one of the times specified by California Code of Regulations, title 10, section 2695.85, with additional delivery requirements after a reported accident or loss and at renewal in specified cases.
Review the official consumer notice rule ↗
Inspection delays and third-party payment
For a first-party claim, when an insurer elects a physical inspection, the six-business-day period generally runs from notice of the claim or a supplemental-estimate request, assuming the vehicle is reasonably available. Different three- and six-business-day triggers apply when photographs or an estimate are initially requested instead of an inspection. For a third-party claim, the six-business-day period generally runs from the insurer's decision to inspect. When the insurer's payment amount is unknown, the customer remains responsible for contacting the insurer or other third-party payor about payment for repairs the customer authorizes. Globus Auto Repair can provide authorized repair documentation, but it does not decide policy coverage.
General California claim-handling timelines
15 days
Generally, acknowledge the claim, begin the investigation, provide necessary forms and reasonable assistance, and respond to claim communications no later than 15 calendar days after receipt.
40 days
Generally, accept or deny a claim no later than 40 calendar days after receiving proof of claim, subject to regulatory exceptions and lawful extensions. This 40-day rule does not govern automobile repair bills subject to Insurance Code section 560.
10 days — section 560
When Insurance Code section 560 applies, an insurer generally must issue payment to the repairer or joint payees within 10 days after receiving an itemized bill for insurer-authorized, satisfactorily completed repairs, provided the section's other conditions are met.
6 business days
The inspection period depends on whether the claim is first-party or third-party and whether the insurer elected inspection, photographs, or an estimate. Review the detailed rule before calculating a deadline.
For other accepted claims not governed by Insurance Code section 560, the general rule may require payment immediately and no later than 30 calendar days after settlement, subject to regulatory exceptions. These are general California fair-claims benchmarks, not automatic guarantees of coverage or payment. Policy terms, requested information, lawful extensions, and the facts of the claim can affect the process. Key legal references include California Code of Regulations, title 10, sections 2695.5, 2695.7, 2695.8, and 2695.85, and Insurance Code sections 560 and 758.5.
Customer or insured responsibilities
- Promptly report the loss and provide accurate information, requested claim documents, estimates, photographs, and other available proof.
- Reasonably cooperate with the insurer's investigation, inspections, and requests permitted by the policy and law.
- Read the policy, deductible, exclusions, rental limits, towing and storage coverage, and any deadlines.
- Take reasonable steps to avoid unnecessary additional loss or storage while preserving evidence and safety.
- Keep the insurer and shop informed and separately authorize the shop's repairs; insurer approval alone is not repair authorization.
Insurance-company duties
- Explain applicable benefits, coverage, time limits, and other policy provisions and provide reasonable claim assistance.
- Investigate and communicate fairly, provide required written explanations or status notices, and offer a fair settlement when coverage applies.
- Respect the customer's lawful choice of repair shop. If the customer accepts the insurer's recommended shop, the insurer must stand behind the repairs as required by Insurance Code section 758.5.
- Provide its repair estimate. If the customer's written estimate is higher, follow the regulatory options: pay the difference, identify on request a facility that will perform the repair for the insurer's estimate, or reasonably adjust the estimate and provide the line-item changes.
- Not require the claimant to supply replacement parts. If non-OEM crash parts are specified, comply with the applicable quality, identification, disclosure, modification-cost, and insurer-warranty requirements.
- Pay reasonable towing expenses when required, and pay reasonable accident- or stolen-recovery storage charges when the policy provides that coverage.
- Give reasonable notice before terminating covered storage payments. In a third-party claim, payment may be adjusted to reflect comparative fault.
- For a covered total loss, include applicable taxes, license and transfer fees and use a comparable-vehicle valuation as required by California rules.