Key takeaways
- Michigan law says insurers can’t unreasonably restrict you from using the repair shop you choose, for body work or for glass (MCL 500.2110b).
- Your insurer must tell you, before or when you file, whether it has agreements with any repair shops, and that you’re under no obligation to use one.
- Insurers only have to pay a reasonable amount. If your shop’s price is higher and the gap can’t be resolved, you could owe part of it.
- In an insurance-paid repair, you are the customer. The shop needs your authorization, and you’re entitled to a written estimate, an itemized final bill and your replaced parts.
- Supplements for hidden damage are normal. A good shop documents them and works them out with the adjuster.
It’s one of the first things a claims rep says after a crash: “We have a shop we work with. Want us to set that up?” It can sound like a requirement. In Michigan, it isn’t. Here’s what the law says, how insurer shop programs work, and how the repair actually moves forward when you choose your own shop.
What Michigan law says
Michigan’s Insurance Code addresses this directly. Under MCL 500.2110b:
- An auto insurance policy, an insurer, and its employees, agents and adjusters “shall not unreasonably restrict” you from using a particular person, place, shop or business for covered auto repair or auto glass repair or replacement.
- Before or when you file a claim, the insurer must disclose whether it has an agreement with any repair or replacement facility, and must tell you that you’re under no obligation to use a particular facility.
The same section recognizes that an insurer isn’t required to pay more than a reasonable amount for repairs and parts. Both halves matter, and we cover the second one below.
What a direct-repair program is
Michigan’s Department of Insurance and Financial Services (DIFS) explains that insurers often survey repair costs and refer customers to shops that meet the company’s cost and quality criteria. These are commonly called direct-repair programs, and DIFS says they work like preferred-provider arrangements. If you use a participating shop, the insurer may guarantee the repair will be done at no additional cost or to your satisfaction.
DIFS is just as clear that these programs should not restrict your choice of repair facility. Some people like having the insurer pick a shop. Others would rather choose a shop they already trust, or one with experience on their kind of car. Either is your call.
The catch: “a reasonable amount”
DIFS also notes that an insurer may use a different claim settlement process when you choose a shop outside its program. Its own example: if the insurer can have a car repaired at one of its program shops for $2,000 and an independent shop charges $4,000 for the same repair, the insurer may need to approve the extra amount, since it only has to pay a reasonable amount under your policy. The insurer may work with your shop to resolve the difference based on what a similar repair costs at other shops in the area. If the difference can’t be resolved, you’ll be told, and you may have to pay some or all of it.
In practice, most of this gets settled between the shop and the adjuster through the estimate and supplement process. Still, it’s fair to ask your shop up front whether it expects any gap between its estimate and the insurer’s, and to ask for any balance you’d owe in writing before work starts.
How a claim works with the shop you choose
- Tell your insurer where the car is going. When you report the claim, give them the shop’s name. You don’t need anyone’s permission to choose it.
- Get the car there. If it isn’t drivable, the shop can help arrange a tow. Cole Street Collision offers towing and rental car assistance.
- Estimate and inspection. The shop writes its own estimate. Michigan’s Department of State says a written estimate is required before repairs when the job will cost $50 or more. Your insurer will review the damage, either with an adjuster in person or from photos, and agree on the repair with the shop.
- You authorize the work. The Department of State says that in an insurance-paid repair, the customer is always the vehicle owner, not the insurance company. Unless you’ve signed an authorization letting your insurer contract for repairs, no work starts without your OK.
- Teardown and supplements. See below.
- Repair, final bill and pickup. You’re entitled to a detailed final bill and, if you ask, the parts that were replaced. Ask your insurer whether payment goes to you, the shop or both.
Supplements for hidden damage
The first estimate is written from what can be seen with the car intact. Once the bumper cover, lights or inner panels come off, technicians often find more: a bent reinforcement bar, cracked brackets, a damaged sensor or mounting points that have shifted. That additional damage goes to the insurer as a supplement, an addition to the original estimate.
A well-run supplement looks like this. The shop stops work on the affected area, photographs and documents what it found, and sends the supplement to the adjuster. The adjuster reviews it, and may reinspect the car, then approves it. You’re kept informed throughout. Supplements are a normal part of collision repair and don’t mean the first estimate was wrong.
Extra work needs your OK
Michigan’s Department of State says additional repairs beyond the original estimate require your specific authorization, written or oral. That holds even if you gave the insurer authorization to contract for repairs, unless that authorization specifically allows the insurer to approve additional work.
Questions to ask
Ask your insurer
- Do you have an agreement with any repair facility? (They must tell you.)
- Will you work with the shop I choose and pay it directly?
- What does my policy say about the parts used in repairs?
- Do I have rental reimbursement, and what are the daily and total limits?
Ask the shop
- Will you work directly with my adjuster, including on supplements?
- How will you keep me updated, and who is my contact?
- Do you expect any difference between your estimate and the insurer’s?
- What warranty do you give, and is it in writing?
If you run into trouble
If you’re being pushed toward a shop you didn’t choose, or coverage is being denied because of your choice of repair facility, start by asking your insurer for its position in writing. If that doesn’t resolve it, DIFS says to contact it. Its auto insurance line is 833-ASK-DIFS (833-275-3437), and you can file a complaint online at Michigan.gov/DIFScomplaints. Concerns about a repair shop itself go to the Michigan Department of State, which registers repair facilities.
How Cole Street Collision handles it
We handle every part of the insurance claim. We write a free estimate, work directly with your adjuster, document and submit supplements for hidden damage, and keep you in the loop. All of our work carries a lifetime warranty. If your insurer has suggested a shop and you’d rather come to us, just tell them where the car is going. For the full picture of how repairs get paid in Michigan, see Michigan mini-tort and collision coverage, explained.
Sources
- Michigan Legislature — MCL 500.2110b, Automobile repair or glass repair or replacement; unreasonable restriction prohibited; disclosure
- Michigan DIFS — Auto Repair Rights Under a Michigan Automobile Policy (FIS-PUB 0225)
- Michigan DIFS — Being Claim Smart
- Michigan DIFS — Auto Insurance Frequently Asked Questions
- Michigan DIFS — Contact DIFS
- Michigan Department of State — Repair Facilities FAQs
- Michigan Legislature — MCL 257.1332, Motor Vehicle Service and Repair Act: written estimate required
This guide is general information, not legal or insurance advice. Coverage depends on your policy — check with your insurer or Michigan’s Department of Insurance and Financial Services for your situation.