Our team at Paragon Independent Insurance Agency is closely monitoring the latest changes to Texas law that may affect your auto insurance policy. The newest law change aims to bring fairness in determining loss with Plano, TX auto insurance claims when your car needs repair.
What Is the Mandatory Right to Appraisal?
Senate Bill 458 became law on June 20 and takes effect on September 1. The bill mandates all auto insurance carriers to include an appraisal provision. This provision offers a third-party, independent, and neutral option to determine the amount of loss when the insurer and policyholder cannot agree on a number.
Previously, policyholders had no choice but to accept the amount provided by insurers, even if it was low or unfair. To recoup the difference for auto repairs, they had to sue or pay out of pocket. This new law gives policyholders and insurers the option to settle loss claims using an independent source that relies solely on evidence, resolving disputes and avoiding courtroom battles.
Why Does the Law Exist?
State Farm quietly removed the appraisal provision from their auto insurance policies in 2015, and only a few people noticed. Robert McDorman, founder of Auto Claim Specialists, along with his team and the Auto Body Association of Texas, led by executive director Jill Tuggle, discovered the change. Recognizing the risks associated with this move, McDorman launched a statewide campaign that lasted ten years, garnering support along the way.
When Joe Collins sued State Farm for appraisal and won, he donated his winnings to the Mandatory Appraisal Rights Advocacy Trust. This gained attention and pushed the movement forward. After being dismissed twice in the Texas House and Senate, the bill passed unanimously on the third attempt and was fast-tracked into law.
At Paragon Independent Insurance Agency, we stand by the Mandatory Right to Appraisal law because we believe in fairness and accuracy. We are updating Plano, TX auto insurance policies to reflect this change. For more information on auto insurance or the mandatory r
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