Massachusetts Issues Advisory on Auto Damage Appraisal Timeframes

The Massachusetts Auto Damage Appraiser Licensing Board (ADALB) has issued a new advisory ruling reinforcing state-mandated timeframes for auto damage appraisals. Under current regulations, original appraisals must be submitted within five business days, supplemental appraisals within three business days, and expedited supplemental appraisals within two business days. This advisory aims to reduce delays that have impacted collision repair timelines.

Board members emphasized that repair shops hold possessory liens on vehicles, meaning vehicles should not be released until appraisal supplements are approved and payment arrangements clarified. This protects the shops from potential financial losses and underscores the importance of adhering to the appraisal process timelines.

The advisory allows for reasonable time extensions in cases of unavoidable delays such as severe illness, extreme weather, or lack of cooperation from involved parties. ADALB representatives noted improvements in insurance companies’ appraisal turnaround times but stressed ongoing issues with compliance.

The Alliance of Automotive Service Providers of Massachusetts (AASP-MA) highlighted the advisory ruling as a tool to hold appraisers accountable. The AASP-MA urges repair shops to enforce these timeframes strictly and to report habitual non-compliance to the state's Department of Insurance and ADALB to trigger enforcement actions. Pending legislation may move ADALB oversight to the Division of Occupational Licensure to enhance regulatory enforcement.

Historically, appraisal delays have prolonged vehicle repair durations, an issue exacerbated by some national insurers’ unfamiliarity with Massachusetts regulations. The advisory ruling reiterates existing regulatory requirements under 212 CMR 2.0, with non-compliance potentially leading to state-imposed fines and penalties.

This advisory ruling serves as a reminder and enforcement mechanism to improve efficiency in claims processing and repair cycles, reinforcing regulatory compliance and protecting both collision repairers and vehicle owners within Massachusetts. The industry’s focus remains on timely appraisals to reduce operational disruptions and financial risk.