Washington Senate Passes Right-to-Appraisal Auto Insurance Bill, Awaiting Governor's Approval

The Washington Senate passed Senate Bill 5721, granting policyholders the right to an appraisal to resolve disputes regarding the actual cash value and loss amount for damaged vehicles. The bill passed with a strong vote of 46-2 and is awaiting the governor's signature to become law. The legislation mandates that all automotive insurance policies issued or renewed on or after January 1, 2026, must include an appraisal provision.

The bill underwent amendments that removed a provision requiring insurance companies to reimburse policyholders for appraisal costs if the loss determined exceeded the insurer's adjusted amount by $500 or more.

The amendments aimed to address stakeholder concerns, balancing consumer protection with insurer interests. Industry groups, including collision repair associations, have expressed cautious optimism about the passage, viewing it as incremental progress in enhancing consumer rights in auto insurance claims.

Similar legislative efforts are underway in other states, such as Texas, indicating a broader industry and regulatory trend towards formalizing appraisal rights in automotive insurance claims dispute resolution.