Committee hears hours of testimony on bill to require appraisal rights in auto policies

Members of the Consumer Protection & Business Committee on April 1 heard extensive public testimony on Engrossed Senate Bill 57-21, which would require most auto insurance policies effective Jan. 1, 2026, to include a right to an appraisal to resolve disputes over vehicle value or loss amounts.

Megan Mulvihill, staff to the committee, summarized the bill and differences from the House companion. She said the bill would allow either party to demand an appraisal no earlier than 10 days after the insurer receives notice of the claim; each party then has 10 days to select a competent, disinterested appraiser. If the appraisers disagree, they must appoint an umpire; if no umpire is chosen within 15 days, either appraiser may ask the insurance commissioner to identify a registered umpire. Mulvihill noted the Senate version requires the appraisers to make their appraisals within 30 calendar days and allows additional time only with documented reasons. The bill also requires each party to pay its own appraisal expense and to share the umpire cost, with the insurer reimbursing appraisal costs if the appraisal result exceeds the insurer's prior adjustment by $500 or more.

David Ford of the Office of the Insurance Commissioner testified in “strong support” and described the bill as “a good consumer protection bill” that would give consumers a dispute-resolution path that does not require hiring an attorney or contacting the regulator. He said delays in valuation disputes can leave consumers without a vehicle and facing rental or storage fees.

Industry and trade witnesses offered mixed views. Rose Gunderson of the Washington Retail Association said she supported the bill as a consumer protection measure, but urged attention to timelines to limit the length shops must hold vehicles. Justin Lewis, president of Washington Independent Collision Repairs Association/Accurate Auto Body, said delays and low estimates can force consumers to pay out of pocket for safe repairs and argued appraisal access helps ensure repairs are done to manufacturer standards. Jeff Butler, a public insurance adjuster, testified that current law requires insurers to conduct competent investigations but that small underpayments are often uneconomic to pursue in court; he said a streamlined appraisal process would improve enforcement.

Multiple individuals who described personal experience with low valuations and long delays urged passage. Patrick Schallert and John Baer recounted months-long disputes and underpayments; Laura Jo Hatchthorpe and Noor Hiyob said they had been significantly underpaid on total-loss settlements and cited concerns about nonlocal comparable vehicles being used in valuation (Noor referred to “Washington regulation 284.30.391” when describing comparable-vehicle requirements).

Committee members set a two-hour limit on public testimony and closed the public hearing after receiving testimony and written sign-ins. The committee recessed for caucus after the hearing; no executive action (a committee vote on the bill) is recorded in the transcript.