Reviewed and approved by Samuel Corso, licensed Texas insurance agent.

Published September 2, 2026 · Updated October 1, 2026

Does car insurance pay you or the body shop in Texas?

When a car goes in for repair after a claim, it helps to know who the insurance payment is described as going to and which part of the bill is yours. This guide walks through what the Texas Department of Insurance (TDI) says about that.

The short version. On a collision claim against your own car insurance in Texas, the deductible example in TDI's Automobile insurance guide has the company subtract your deductible and pay you, and TDI's Steps to getting your home or car insurance claim paid says you owe that deductible to the body shop. TDI's pages don't say whether a check can be made out to the shop, so ask your insurer.

Here's what we'll cover: who the payment goes to, how the repair estimate can change, two limits TDI describes on repair payments, who picks the shop, what changes when the other driver's insurance is paying, and what to do if you disagree with the amount.

Who the money goes to

In TDI's deductible example for a collision claim on your own car insurance policy in Texas, the insurance company subtracts your deductible and pays you. TDI's Automobile insurance guide (last updated December 11, 2025) says you must pay a deductible for collision, comprehensive, and uninsured/underinsured motorist claims, and gives this example: "if you have a $1,500 collision claim and your policy has a $500 collision deductible, the insurance company will deduct $500 from your claim amount and pay you $1,000."

The other side of the transaction appears in TDI's Steps to getting your home or car insurance claim paid (last updated April 16, 2025): "The insurance company will subtract your deductible from your payment if you used your own insurance. You will owe that deductible to the contractor or body shop."

Read together, TDI's pages describe the deductible as owed to the shop when you use your own insurance.

Who the check is made out to. TDI's guide lists sending you a check within five business days after the company agrees to pay your claim among the steps for a claim with your own company. The TDI pages cited in this guide don't say whether a check can be made out to the shop, so ask your insurance company or adjuster before the work starts.

Shop paperwork. The claim steps page lists tips for choosing a contractor or shop, including not signing a contract with blank spaces, not paying in full upfront, and reading any agreement the body shop gives you.

If you have a loan on the car. According to TDI's guide, if you still owe money on your car, your lender will require you to have collision and comprehensive coverage. The TDI pages cited here don't cover how a lender affects car claim payments, so ask your insurance company how it will issue the payment. For home claims, the claim steps page says that if you have a loan on your house, the company will usually send the payment to your mortgage company. We cover that process in why is my mortgage company on my insurance claim check in Texas.

How the repair estimate can change

If damage to your car turns out to be worse than the adjuster first thought, TDI says you or the repair shop can talk to the adjuster about raising a car insurance repair estimate in Texas. The Automobile insurance guide says the adjuster will estimate the cost of repairs and the company will base its payment on that estimate, and then adds: "If the damage turns out to be worse than the adjuster originally thought, you or the repair shop can talk to the adjuster about raising the estimate."

TDI's Were you in a wreck? Tips for auto insurance claims (last updated September 24, 2025) describes the same step from the shop's side. If it costs more to repair your car, that page says, the body shop will give your insurance company a new estimate, and your company will pay for the extra repairs if it agrees with the estimate.

For you, this means the first estimate may not be the last one. Because TDI's guide names both you and the repair shop as people who can talk to the adjuster, you can follow up yourself if a revised estimate seems to have stalled.

The claim steps page also suggests getting estimates from more than one contractor or body shop, showing them the insurance company's estimate, and talking to your insurance company about any differences or other damage the shop found that the adjuster didn't.

Two limits TDI describes on repair payments

TDI's Automobile insurance guide describes two limits on what a car insurance company pays for repairs in Texas. One is tied to the value of the car and the other to the kind of parts used.

Value. Insurance companies will pay for repairs or replacement of your car only up to its actual cash value, according to the guide, which defines the term: "Actual cash value is the cost to replace your car, minus depreciation." The same guide says that if the cost to repair your car is close to its current value, the company might decide to total it.

Parts. On parts, the guide (last updated December 11, 2025) says: "The insurance company is only required to pay for parts of like kind and quality to those that were damaged." It adds that the company doesn't have to pay for original parts from the manufacturer.

If the parts used matter to you, you can ask the shop and your adjuster which parts the estimate is based on before repairs begin.

Who picks the shop

TDI's consumer pages describe the choice of body shop on a Texas car insurance claim as yours. In its Automobile insurance guide (last updated December 11, 2025), TDI says: "Some companies might give you a list of preferred repair shops, but they can't require you to use a shop on its list."

The wreck tips page puts it this way: your insurance company might give you a list of body shops, but you can take your car to any shop you choose. It also says to read any agreement the body shop gives you before you leave your car. For finding a shop, the claim steps page suggests asking friends and neighbors for references.

Should you use a shop on the insurer's list or your own? The TDI pages cited here don't recommend one over the other. If you are unsure what your policy says about repairs, ask your insurance company or agent, or call TDI at 800-252-3439.

Do body shops report to insurance? The TDI pages cited here don't describe body shops reporting to insurers. On claims history, the guide says most companies use the Comprehensive Loss Underwriting Exchange (CLUE) to learn your claims history. We cover that in do car insurance claims follow you in Texas.

When it's the other driver's insurance paying

When the claim is against another driver's insurance company rather than your own Texas car insurance policy, TDI describes a different deductible position and fewer options for you.

The deductible. TDI's Automobile insurance guide says: "You don't have to pay a deductible for claims against another driver's insurance company."

Whether they pay. TDI's Accident not your fault? Here's how to deal with the other driver's insurance (last updated April 24, 2025) is written for an accident you think the other driver caused. In that situation, it says, the other driver's insurance should pay for your car repairs, medical bills, and a rental car, but there's no guarantee they will pay. The page explains that you don't have a contract with the other driver's insurance, so you don't have the same options you would with your own company. If the other insurance says it won't pay you, the page suggests asking for the reason in detail and in writing.

Using your own policy instead. Your next option, according to the same TDI page, is to file a claim with your own car insurance, and if you have collision coverage, it will pay your repair costs. The guide says you must have collision coverage to do this, and that if you file a claim with your own company, you'll have to pay a deductible.

TDI's pages word what happens to that deductible differently. The other driver's insurance page says your insurance company will try to recover what it paid you from the other driver's insurance and, if it gets anything back, you might get your deductible reimbursed. The wreck tips page says your company will try to recover the money, including your deductible, from the other driver's insurance and give your deductible back.

The full walk-through is in how a car insurance claim works in Texas.

When the numbers don't agree

If you disagree with the amount of a car insurance claim payment in Texas, TDI's pages describe starting with your insurance company, with further options that include appraisal and a complaint to TDI.

The claim steps page says to call your insurance company or agent if you disagree with the amount of the claim payment, and to provide documentation to back up your position. A written second estimate from a shop is one kind of documentation you can bring to that conversation.

Appraisal, in the words of TDI's guide, is for disputes about the amount of your claim. In TDI's description, you and the insurance company each hire an appraiser, the two appraisers choose a third as umpire, and if the estimates differ the umpire's decision is binding on both you and the insurance company. The guide says you pay for your appraiser and half of the umpire's expenses. It also sets a limit: "You can use appraisal only for disputes with your insurance company." The guide adds that you can't use appraisal to resolve disputes with another person's insurance company.

On complaints, the same guide says you can complain to TDI, that the complaint must be in writing, and that TDI's ability to help might be limited. As an example, it says TDI can't decide who was at fault in an accident or determine damage amounts. TDI's pages list 800-252-3439 for questions.

What to do with this

These are steps you can take on a car repair claim in Texas, drawn from the points above.

• Ask how the payment will be issued. Ask your insurance company whether the payment goes to you or to the shop, and ask again if you have a car loan.
• Read the shop paperwork. Read any agreement before you leave the car, and don't sign a contract with blank spaces.
• Plan for the deductible. On a claim under your own policy, TDI's claim steps page says you owe the deductible to the contractor or body shop.
• Consider a second estimate. TDI's claim steps page suggests showing the shop the insurance company's estimate.
• Follow up on a revised estimate. If the damage turns out to be worse than the adjuster thought, TDI's guide says you or the repair shop can talk to the adjuster about raising the estimate.
• Pick a shop. TDI's wreck tips page says you can take your car to any shop you choose.
• Ask for the reason in writing. This applies if the other driver's insurance says it won't pay you.

Key facts

• TDI's Automobile insurance guide gives an example of a $1,500 collision claim under a policy with a $500 collision deductible, in which the insurance company deducts $500 and pays you $1,000.
• If you used your own insurance, the company subtracts your deductible from your payment and you owe that deductible to the contractor or body shop, according to TDI's Steps to getting your home or car insurance claim paid.
• The TDI guide says you must pay a deductible for collision, comprehensive, and uninsured/underinsured motorist claims, and that you don't have to pay a deductible for claims against another driver's insurance company.
• If it costs more to repair your car, the body shop will give your insurance company a new estimate, and your company will pay for the extra repairs if it agrees with the estimate, per TDI's Were you in a wreck? Tips for auto insurance claims.
• Insurance companies will pay for repairs or replacement of your car only up to its actual cash value, which the TDI guide defines as the cost to replace your car, minus depreciation.
• As of its December 11, 2025 update, the TDI guide says some companies might give you a list of preferred repair shops but can't require you to use a shop on the list, and that the company doesn't have to pay for original parts from the manufacturer.
• TDI's Accident not your fault? Here's how to deal with the other driver's insurance says that when you think the other driver caused the accident, the other driver's insurance should pay for your car repairs, medical bills, and a rental car, but there's no guarantee they will pay.
• Appraisal can be used only for disputes with your own insurance company, and you pay for your appraiser and half of the umpire's expenses, according to the TDI guide.

Sources: Texas Department of Insurance, Automobile insurance guide, Steps to getting your home or car insurance claim paid, Were you in a wreck? Tips for auto insurance claims, and Accident not your fault? Here's how to deal with the other driver's insurance. This page is general information and not legal advice.

Take the next step

TDI's Automobile insurance guide says the first page of your policy is the declaration page, with a summary of your coverages, dollar limits, and deductibles. For more on comparing policies, see how to compare auto insurance in Texas and what car insurance is required in Texas.

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