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Committee hears workers, insurers and repair shops on bill to create appraisal right in auto claims
Summary
The Senate Financial Services and Trade Committee heard testimony on SB 5,721, which would give policyholders a statutory right to appraisal in first‑party auto physical‑damage claims and spell out appraisal procedures, timelines and cost‑shifting rules.
OLYMPIA — The Senate Financial Services and Trade Committee heard testimony on SB 5,721, a bill that would create a statutory right to appraisal for first‑party physical‑damage auto insurance claims issued or renewed in 2026 and later.
Committee staff briefed members that the bill would establish time frames to invoke appraisal, require appraisers and umpires to be competent and disinterested, set a process when the two appraisers cannot agree, and require the Office of the Insurance Commissioner to register umpires and identify one if the parties cannot. The bill would make each party responsible for their appraisal costs but contains a cost‑shifting provision: if the appraisal award is at least $500 greater than the insurer’s pre‑appraisal adjusted amount, the insurer must reimburse the policyholder for appraisal costs, reasonable attorney fees and other necessary costs.
Senator Steve Stanford, the bill’s prime sponsor, said the measure aims to give consumers “a fair appraisal of the damages and a fair settlement of the claim,” noting an uptick in complaints tied to virtual or photo‑only estimates.
The Office of the Insurance Commissioner, represented by David Fort, testified in strong support. Fort said the right to appraisal would give consumers a dispute‑resolution pathway that doesn’t require litigation or hiring an attorney.
Collision repair businesses, independent appraisers and trade associations testified in support, saying insurers’ photo‑based or out‑of‑state estimates often understate repair costs. Micah Strom, a collision shop owner, said estimates can be “50% to 75% less” than a shop’s in‑person estimate and that modern vehicles with advanced driver‑assisted systems require accurate repairs. Jeff Butler, a licensed public insurance adjuster, and Justin Lewis, president of the Washington Independent Collision Repairers Association, urged passage and said unfair initial insurer estimates have forced consumers to pay out‑of‑pocket to ensure safe repairs.
Consumer advocates and a longtime insurance litigator, Pat LaPlay of the Washington State Association for Justice, also supported the bill, describing the proposed standards for appraisers and the $500 remedial provision as consumer protections.
Insurer trade groups opposed or expressed concern. Kenton Bridal of the Northwest Insurance Council and Chris Tefft of the American Property Casualty Insurance Association said many insurers already include appraisal clauses and warned that mandating a uniform appraisal process could increase disputes, slow repairs and raise costs. They also questioned provisions that would involve the insurance commissioner in umpire selection and the bill’s cost‑shifting to insurers when the appraisal award exceeds the insurer’s amount by $500.
No committee vote was taken at the hearing. Supporters urged the committee to move the bill forward; opponents asked for language changes limiting commissioner involvement and the one‑size‑fits‑all mandate.
