What is “Steering” when it comes to Auto Insurance Claims?

Steering is when an Insurance carrier requires a claimant to use a specific shop or an in-network collision repair shop also referred to as DRP (Direct Repair Program).

Why do Insurers Recommend DRP Shops?

This is widely considered as a cost-saving scheme to counter-weight unscrupulous collision repair facilities and the monopolization of car makers in providing OEM parts. 

Collision Repair Industry Financial Stats:

  • CAPA (Certified Aftermarket Parts) represent only about 25% of the total cosmetic crash parts market
  • OEM Parts cost 62% more than CAPA parts
  • 20 to 30% of collision repair labor is for sheet metal
  • Each year there are 25 million auto claims in the US
  • OEM crash part sales are about $49 billion per year
  • Increasing CAPA market share to 50% will reduce premiums by $109 per year
  • Most sheet-metal and cosmetic CAPA parts are indistinguishable from OEM

With this kind of money on the table, the OEM industry as well as non-DRP shops lobbied many states to enact anti-steering laws. 

Should I Repair my Vehicle at a DRP Shop?

Yes, as long as you’re made aware of all the parts replaced and given the option to upgrade to OEM if you so desire. Also, since DRP shops are recommended by insurers, you will have the added benefit of a nationwide warranty on those repairs. Using a private collision shop will eliminate your ability to negotiate future repairs with the carrier.

List of States with Anti-Steering Laws 

State  Restrictive Anti-Steering Laws & Regulations   No Specific Restriction 
ALABAMA
Ala. Admin. Code r. 482-1-125-.08		   ✓
ALASKA
Alaska Admin. Code tit. 3, § 26.080		   ✓
ARKANSAS
Ark. Reg. r 054 00 043		 ✓  
ARIZONA
Ariz. Rev. Stat. § 20-469
Ariz. Admin. Code R20-6-801 Ariz. Regulatory Bulletin 2003-9		 ✓  
CALIFORNIA
Cal. Ins. Code § 758.5
Cal. Code Regs. tit.10 § 2695.8		 ✓  
COLORADO
Colo. Rev. Stat. § 10-4-120; Colo. Rev. Stat. § 10-4-613		 ✓  
CONNECTICUT
Conn. Gen. Stat. § 38a-354; Conn. Gen. Stat. § 14-65f		 ✓  
DELAWARE
Del. Code Ann. tit. 18  § 3916		 ✓  
FLORIDA
Fla. Stat. Ann. § 626.9743		   ✓
GEORGIA
Ga. Code Ann. § 33-34-6		 ✓  
HAWAII
Haw. Rev. Stat. § 431:10C-313.5		   ✓
IDAHO
No statutory or regulatory provision		   ✓
ILLINOIS
215 Ill. Comp. Stat.§ 5/143.30 IL Bulletin 93-13 (11/04/1993) Ill. Admin. Code tit. 50 § 919.80		 ✓  
INDIANA
No statutory or regulatory provision		   ✓
IOWA
Iowa Bulletin 91-8 (11/01/1991)		   ✓
KANSAS
Kan. Sess. Laws. 40-2,155
KS Bulletin 1994-13 (06/29/1994)		 ✓  
KENTUCKY
Ky. Rev. Stat. Ann. § 304.9-470 806 Ky. Admin. Regs. § 12:095		 ✓  
LOUISIANA
La. Rev. Stat. Ann. §. 22:1892; La. Rev. Stat. Ann. §  22:1966; La Directive 117 (02/02/1994)		 ✓  
MAINE
Me. Rev. Stat. Ann. tit.  24-A § 2164-C Bulletin 171 (09/19/1990)
Bulletin 284 (10/14/1998)
Bulletin 336 (08/22/2005)		 ✓  
MARYLAND
Md. Ann. Code Ins.  § 10-503 MD Notice 4-29-94 (04/29/1994)		 ✓  
MASSACHUSETTS
Mass. Regs. Code tit. 211 § 56.05 Mass. Regs. Code tit. 211 § 123.06 Mass. Bulletin B-94-03 (04/15/1994) Mass. Bulletin B-97-02 (04/29/1997)		   ✓
MICHIGAN
Mich. Comp. Laws § 500.2110b		 ✓  
MINNESOTA
Minn. Stat. § 72A.201
Minn. Bulletin 99-1 (05/04/1999)		 ✓  
MISSISSIPPI
Miss. Code Ann. § 83-11-501 Miss. Bulletin 98-7 (08/27/1998)		 ✓  
MISSOURI
Mo. Code Regs. Ann. tit. 20 § 100-1.050		   ✓
MONTANA
Mont. Code Ann. § 33-18-221 Mont. Code Ann. § 33-18-224		 ✓  
NEBRASKA
Neb. Admin. Code Ch. 60 § 009		   ✓
NEVADA
Nev. Admin. Code  686A.680		   ✓
NEW HAMPSHIRE
N.H. Rev. Stat. Ann. § 417:4
N. H. Code Admin. R. Ann. INS 1002.17
N.H. Bulletin 99-014-AB		 ✓  
NEW JERSEY
N.J. Stat. Ann. § 17:33B-36.1
N.J. Admin. Code § 11:2-17.10		 ✓  
NEW MEXICO
No statutory or regulatory provision		   ✓
NEW YORK
N.Y. Ins. Law  § 2610
11 N.Y. Comp. Codes R. & Regs. 216.7
N.Y. General Counsel Opinion 3-6-2002
N.Y. Circular Letter 2000-16 (05/10/2000)		 ✓  
NORTH CAROLINA
N. C. Gen. Stat.  § 58-3-180; N,C. Gen. Stat. § 58-33-76		 ✓  
NORTH DAKOTA
N.D. Bulletin 83-2 (01/19/83)		 ✓  
OHIO
Ohio Admin. Code § 3901-1-54		 ✓  
OKLAHOMA
Okla. Stat. tit. 36 § 1250.8
Okla. Admin. Code § 365:15-3-8		 ✓  
OREGON
Or. Rev. Stat. § 746.280		 ✓  
PENNSYLVANIA
31 Pa. Code § 146.8
31 Pa. Code § 62.3		 ✓  
RHODE ISLAND
R.I. Gen. Laws § 27-9.1-4
R.I. Gen. Laws  § 27-29-4
R.I. Code R.  02 030 073
R.I. Bulletin 2004-2 (Amended) (01/07/2005)		 ✓  
SOUTH CAROLINA
S.C. Bulletin 3-2005 (12/16/2005) S.C. Bulletin 1-94 (01/11/1994)		 ✓  
SOUTH DAKOTA
S.D. Codified Laws  § 58-33-67
S.D. Codified Laws § 58-12-17
S.D. Codified Laws § 58-33-72		 ✓  
TENNESSEE
Tenn. Code Ann.  § 56-8-105		   ✓
TEXAS
Tex. Ins. Code Ann. § 1952.301 Tex. Ins. Code Ann. § 1952.303 28 Tex. Admin. Code § 5.501		 ✓  
UTAH
Utah Admin. Code R. 590-190		   ✓
VERMONT
Vt. Code R. 21 020 008		   ✓
VIRGINIA
14 Va. Admin. Code 5-400-80		   ✓
WASHINGTON
Wash. Admin. Code § 284-30-390 Wash. Admin. Code § 284-30-3902 Wash. Admin. Code § 284-30-3903		 ✓  
WEST VIRGINIA
W. Va. Code Ann. § 33-6D-1
W. Va. Code Ann. § 33-6D-3 W. Va. Code St. R. § 114-14-7		 ✓  
WISCONSIN
Wis. Stat. Ann. § 632.37 Wis. Admin. Code §  6.08		 ✓  
WYOMING
No statutory or regulatory provision