You aren’t legally obligated to use the car repair shop your insurance company recommends, but doing so might be in your best interest, since it can make for a more streamlined process. With preferred body shops, the shop and the insurance company are in direct communication with each other. The work that these shops do is guaranteed by the insurance company, the repair estimate gets sent directly to the insurance company’s appraiser, and no additional estimates are required. Insurance companies approve certain shops because they have a reputation for honest work, have competitive pricing, comply with all regulations, and their procedures and equipment are approved by the industry. That said, it’s important to understand that using a preferred vendor also means that your insurance company gets a lot of say in how your car is repaired. So if, for example, there are other repairs you would like done that don’t fall under the insured damage, you’re going to need to negotiate with the shop yourself on a quote for those repairs, and you’ll need to pay out of pocket for them as well.