OLYMPIA – Legislation requiring auto insurance policies to have a right to appraisal provision, so insurers and consumers can reach a fair and timely agreement on the cost of a damaged vehicle’s losses was signed into law Tuesday.
Senate Bill 5721, sponsored by Sen. Derek Stanford (D-Bothell), provides an unbiased way to resolve disputes, allowing consumers and insurers to avoid costly litigation. Under the legislation, the consumer or insurer can request an appraiser if they can’t agree on the amount of damage or what the damaged car is worth.
“As an insurance customer, I want to know I will be treated fairly when I make an insurance claim,” Stanford said. “Over the past few years, more insurance estimates are being written by someone merely looking at a picture. Unfortunately, this means customers sometimes face repair bills that far exceed the amount insurance companies offer as payment.”
According to the Office of the Insurance Commissioner, Washington has seen a historic rise in auto insurance complaints, with 88% related to valuation disputes and claims handling disagreements.
“I want to thank Sen. Stanford for his effort to get this bill passed,” said Insurance Commissioner Patty Kuderer. “Consumers deserve to have a clear and fair process to follow when there’s a disagreement about their vehicle’s value or the costs to repair it. I’m grateful to the senator for his leadership on this issue that’s important to so many policyholders.”
Rep. Strom Peterson, (D-Edmonds), sponsored the bill’s House version.
“Families need their vehicles to get to work, school events, medical appointments and to shop for basic needs. Insurance companies have agreed to pay for repairs when a car is damaged, and they should be held accountable,” said Peterson. “This legislation will provide consumers with a manageable path forward to make sure that they are receiving the coverage they paid for.”
The new law will affect auto insurance policies issued or renewed on or after Jan. 1, 2026.
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