What is insurance steering?

Common steering tactics to watch for

Steering isn't usually blunt; it's packaged as 'helpful guidance.' The signals are consistent: the adjuster recommends a specific shop by name; they claim the repair will be 'faster' or 'warrantied' at that shop; they imply your rental car coverage runs out if you choose your own shop; they say they 'can't guarantee the repair' elsewhere; they direct your tow to a partner shop without asking you. Any of these is a flag. None of them are reasons you should change shops.

• "We recommend using one of our preferred shops. It'll be faster."
• "We can only guarantee the repair at a network shop."
• "Your rental car coverage may run out at a non-preferred shop."
• "The preferred shop will handle everything directly, no paperwork for you."
• "We can't approve the estimate from that shop until we inspect it ourselves."

Why insurers steer

Insurance companies enter 'direct repair program' (DRP) agreements with shops in exchange for discounted labor rates, part choices (aftermarket, used), and committed turnaround times. This saves the insurer money on every claim they send. Some DRP shops do excellent work; some cut corners to hit cycle-time targets. You have no way to know which from the recommendation alone. The point is: the recommendation is driven by the insurer's financial interest, not yours.

How to recognize when you're being steered

Pay attention to what the adjuster does when you name your chosen shop. A fair conversation: they note it, send the estimate paperwork, and you move on. A steering conversation: they repeat their recommendation, mention 'warranty' or 'speed' again, ask why you don't want to use their shop, or tell you they'll need to 'review' your shop's estimate more carefully. Recognize the pattern and stand your ground.

What to say to your insurance company

Keep it simple. 'I've chosen [shop name] for my repair. Please send the claim paperwork there.' If they push, repeat it. You don't owe them a justification. If the adjuster continues to steer, escalate: ask for a supervisor, or file a complaint with the Massachusetts Division of Insurance (617-521-7794). A supervisor usually resolves it; a complaint almost always does.

Why steered shops sometimes cut corners

DRP agreements typically require shops to hit aggressive cycle times and use specific (often cheaper) parts unless the shop successfully argues otherwise. Under that pressure, not every shop cuts corners, but many do: skipped pre-repair scans, aftermarket safety components, paint blends that don't fully cure, skipped ADAS calibrations. You can't tell from the outside. You can only protect yourself by choosing a shop that answers to you, not to the insurer.