When your body shop and insurer disagree, who wins?

If you’re like most drivers, it’s natural to assume that if your vehicle is damaged but covered by insurance, the road ahead is easy: Just file a claim, drop off your car, and pick it up once it’s fixed. But the reality is trickier. Your insurer and the body shop may not agree on how the repairs should be done or how much they’ll cover. This disparity could lead to frustrating delays, higher out-of-pocket costs, and running out of rental car coverage while your banged-up vehicle sits in limbo.

Consider that nearly two in three auto repair shops recently surveyed report that carriers have regularly rejected their repair plans (with 818 estimates denied) and instead required shops to use the carrier’s estimate to submit additional damage.

TheZebra.com explains how the repair process actually works, what your repair rights as the policyholder are, what the difference between OEM and aftermarket parts are, when a supplemental claim is needed, and how to protect yourself financially.

Why Your Carrier’s Estimate and Your Shop’s Estimate Rarely Match

When a damaged car needs fixing, your insurer usually conducts an initial assessment based on visible harm, photographs, repair estimates, and policy coverage. Meanwhile, the chosen repair shop evaluates the vehicle with an emphasis on the actual repair process and may uncover additional damage once parts are removed and repairs begin.

“As a result, estimates between them often differ because they are prepared at different stages and with different objectives,” says Janet Ruiz, director of Strategic Communication for the Insurance Information Institute.

But a gap between these estimates doesn’t automatically mean your carrier is trying to underpay or the shop is attempting to overcharge.

“The insurer’s estimate serves as an initial assessment of covered damage, while the body shop’s estimate reflects the work necessary to restore the vehicle,” Ruiz continues.

Also, keep in mind that labor rates, parts choices, and scope of damage will often vary between these two parties, along with the cost of doing business in a given area, as well as employee wages, overhead costs, and real estate, taxes, and insurance expenses incurred by the shop.

“Long Island, New York, is one example of a higher-cost market. There, local shops often charge more for parts and labor than shops in lower-cost areas, just because it reflects their costs. Add in the effects of tariffs and inflation, and it’s easy to see why the same repair can cost very differently depending on where you live,” Beth Swanson, insurance analyst with The Zebra, notes.

The Preferred Shop Network, Explained

Many insurance companies recommend a particular shop within their network, commonly called a direct repair program (DRP). This network includes facilities that have agreed to specific quality standards, pricing arrangements, and customer service commitments. If you choose a partnering DRP facility, the benefits can include guaranteed workmanship, faster claims processing, simplified communication between the insurer and shop, and/or a lifetime warranty.

“But consumers are usually entitled to select their own repair shops, even though an insurance company can still challenge fees from a shop outside its network if it thinks these fees are unreasonable,” says personal injury attorney William Holland.

Picking an independent facility could give you more control over the repair, particularly if you want an OEM-certified shop or a local business you already trust.

OEM Vs. Aftermarket Parts: What’s Actually in Your Policy

OEM parts — made by or for your auto’s original manufacturer or its suppliers — are typically preferred over aftermarket parts, which are replacement components made by third parties. OEM parts commonly provide a more predictable fit, finish, and compatibility because they were designed for that particular vehicle, while aftermarket quality can vary.

“Most standard insurance policies promise to return the vehicle to its pre-accident condition using parts of like kind and quality, but they don’t always promise new OEM parts,” says Patrick Peterson, lead automotive analyst at GoodCar.com. “Acceptable aftermarket parts may cost less, particularly when repairing an older vehicle, so insurers often use them to control claim costs.”

In most states, the carrier or shop is required to disclose in writing on the estimate if non-OEM parts were used.

If you prefer OEM parts, you may be able to purchase an OEM endorsement from your carrier.

“This is an additional coverage that may pay for OEM replacement parts under specified circumstances,” Ruiz says. “Regulations regarding the disclosure and use of aftermarket parts vary among states, so you should carefully review both your policy and applicable state requirements.”

Why You Might Need a Supplement

If your shop discovers additional accident-related damage, it may submit a supplemental claim to your carrier’s adjuster and request additional payment. This supplement typically includes photographs, measurements, scan results, part invoices, and manufacturer repair procedures—usually for something not seen initially or an issue larger than expected. Your insurer will review the information and may approve, negotiate, or deny individual items in the claim.

Supplemental claims are a routine part of the repair process and help ensure all covered damage is properly addressed.

What Tariffs Are Doing to Repair Costs Right Now

Current tariffs across the globe represent a big factor in auto repair costs. So far, drivers haven’t felt the full impact because many shops and companies stocked up on parts before the tariffs hit, and some businesses absorbed the extra costs themselves. But this consumer cushion won’t last forever; The American Academy of Actuaries forecasts that tariffs will raise claim costs and push premiums even higher than the current median annual cost of $2,079.

“Consider that a large share of auto parts are imported (around 44% per some estimates)  and tariff rates vary by country of origin, anywhere from 0% to 27.5%. This puts a huge burden on auto parts manufacturers in the U.S., who are bringing in the materials from out of the country,” Swanson adds. “That cost, of course, trickles down to the consumers and insurers paying for repairs.”

What You Can Do if the Process Feels Unfair

To ensure your damaged car is properly repaired and your carrier and body shop are treating you right, follow these best practices suggested by the pros:

• Request full estimates from both parties. “Ask for complete, itemized copies of the insurer’s estimate and the body shop’s repair plan. Don’t look only at the final totals: Compare the labor rate, labor hours, parts, paint materials, scans, calibrations, alignments, and other procedures line by line,” Peterson recommends. “If you find a difference, ask why this item was reduced or removed and request the answer in writing. You should be able to understand whether the disagreement involves coverage, labor cost, part type, repair method, previous damage, or missing documentation.”
• Insist on OEM parts, if preferred. Inquire about available OEM endorsements and applicable policy provisions. You may be able to pay the difference if it's an important preference, but not covered.
• Check any depreciation or betterment deduction carefully. “Your carrier may apply what’s called a betterment charge when a new part replaces a worn part and measurably improves the vehicle, such as replacing a heavily worn tire with a new tire, leaving you responsible for part of the cost,” Peterson says. “And the insurer should explain which part was reduced, how it calculated the deduction, and what evidence supports it.”
• Keep records of everything. “Maintain original or copies of records of all communications, photographs, and repair documentation,” advises Ruiz.
• Dispute matters if necessary. “Ask for a claim review, escalate concerns with your insurance company, and consider contacting your state insurance department for guidance,” Ruiz adds.

This story was produced by TheZebra.com and reviewed and distributed by Stacker.