Auto Insurance Showdown: Are Your Rights to Appraisal Disappearing?
Car accidents are stressful, and the aftermath can be a battleground. As a key consumer protection faces potential erosion, here’s a look at how your right to challenge your insurance company is changing.
Car insurance policies often include a clause that grants policyholders the right to an appraisal, a process allowing a neutral third party to assess the cost of repairs when the repair shop and the insurer disagree. However, this crucial protection is under fire, with some insurance companies quietly removing it from policies.
The Right to Appraisal: A Consumer’s Shield
The "right to appraisal," or RTA, empowers consumers. When an insurance company and a repair shop clash over repair costs after a collision, the policyholder can invoke this clause, requesting a neutral third-party appraisal to resolve the dispute. This is a critical tool, especially as the cost and complexity of vehicle repairs rise. Learn more about car insurance coverage.
Andrew Batenhorst, a California body shop manager, states that the right to appraisal is vital. "disagreements are going to happen," he says. "But there should be mechanisms in the policy that allow for an independent party to be able to mediate these types of situations."
Invoking the right to appraisal often shields consumers from hefty out-of-pocket expenses for repairs. "More often than not," Batenhorst notes, "when I have used right to appraisal successfully, the insurance company is then forced to pay fairly for how the car should be fixed. And it works.”
Why the Pushback from Insurers?
While it benefits consumers, the insurance industry isn’t always enthusiastic about the right to appraisal. A senior official states, "Most people don’t know, but most of the big companies are actively working on trying to remove the clause in the policy that affords the right to appraisal.”
Insurers are concerned that the costs associated with appraisals could increase operating expenses and, consequently, the cost of coverage. Brandon Vick,regional VP for the Pacific northwest at the National Association of Mutual Insurance Companies (NAMIC),echoes these concerns.
States Take action
To counter this trend, several states are taking action. In May 2025, Texas passed Senate Bill 458 and Washington passed Senate Bill 5721, mandating that insurance companies operating within the state include an appraisal clause in all auto policies.
how Does the Right to Appraisal Work?
The appraisal clause, also known as RTA, is typically found in the physical damage section of your car insurance policy. If you and your insurer disagree on the cost of repairs after a crash, you can trigger the appraisal process.
The process typically involves:
- Each party appointing an appraiser within 30 days.
- If the appraisers disagree, they select a qualified umpire.
- If the appraisers can’t agree on an umpire within 15 days, the case may go to court.
- Each party covers their appraiser’s fees; other fees are split.
Insurance lobbyists warn that mandating the right to appraisal could increase car insurance costs. However, data from Rhode Island, which enacted a right-to-appraisal law in 2023, suggests a more nuanced picture.
While premiums have risen in Rhode Island since the law took effect, the increase was less than the national average, indicating that market forces play a more significant role. Review state-by-state insurance premiums.
The Fine Print Matters: Protecting your Rights
To safeguard your right to appraisal, take the following steps:
- Review your policy: understand the terms and conditions, especially regarding payment for appraisals.
- Shop around: Consider different insurers, comparing how they handle claims.
- Weigh the costs and benefits: Assess the potential gains of an appraisal against associated costs.
- Stay informed: keep an eye on auto repair legislation in your state.
The right to appraisal is a vital consumer protection. It is indeed essential to understand your policy and the evolving legal landscape to ensure fair treatment in the event of a car accident.
While the “right to appraisal” is a important tool, it’s crucial to understand the wider landscape of auto insurance claims disputes.The appraisal process, as outlined above, isn’t the only recourse available to policyholders who find themselves at odds with their insurance companies. Knowing your options can empower you to advocate for a fair settlement.
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