After nearly a decade of unwavering advocacy, Robert McDorman, founder of Auto Claim Specialists, and the Auto Body Association of Texas (ABAT) have claimed victory in a modern day David-versus-Goliath battle: the right to appraisal is now mandatory in every personal auto policy sold in Texas.
Robert McDorman.
Senate Bill 458, unanimously approved by both chambers of the 89th Texas Legislature, amends the Texas Insurance Code to guarantee consumers and insurers the ability to invoke independent appraisal whenever the amount of loss is in dispute. The law takes effect Sept. 1.
“SB 458 benefits all insured Texans and their families,” said McDorman. “When a dispute arises, no one will have to question an insurer’s version of liability. Either party may now demand an appraisal, ensuring an impartial resolution.”
A Long Road Paved by Persistence
The fight began in 2015 when State Farm quietly removed the appraisal clause from its Texas policies. Recognizing the jeopardy this posed to consumer safety and pocketbooks, McDorman launched a statewide campaign that included five formal meetings with the Texas Department of Insurance (TDI), eight committee appearances to educate lawmakers, and collaboration with ABAT, consumer-advocacy watchdog Texas Watch, and numerous public adjusters, law firms and lobbyists.
Despite bills stalling in the 2021 and 2023 sessions, McDorman’s data-driven testimony and growing grassroots support kept the issue alive. Momentum surged after TDI and the Office of Public Insurance Counsel (OPIC) each issued reports warning lawmakers that restrictions on appraisal “can adversely impact consumers” and leave policyholders “stuck in the middle of a dispute between insurer and provider.”
A Growing National Movement
Texas is not alone in championing this consumer protection. On May 29, New Jersey State Sen. Paul Moriarty introduced SB 4534, which would require every Garden State auto policy to preserve the right to appraisal. The proposal has already garnered support from the Alliance of Automotive Service Providers of New Jersey (AASP/NJ), whose president, Ken Miller, called the clause “one of the few tools available to consumers when they disagree with their insurer over the value of a loss.”
Similar efforts are underway or have recently advanced in Rhode Island, Oregon and Washington, part of a coast-to-coast push to level the playing field for policyholders.
Collision Day at the Capitol
On March 26, nearly 30 collision repair professionals, consumer advocates and public adjusters converged on Austin for ABAT’s Collision Day at the Capitol, delivering flyers and first-hand stories to legislators. ABAT President Burl Richards and Executive Director Jill Tuggle accompanied McDorman, while lobbyists Jacob Smith for ABAT and Drew Graham for Auto Claim Specialists shepherded SB 458 through committee hearings.
“The work our lobbyists have done has been nothing short of instrumental,” McDorman noted. “Their dogged determination, coupled with industry unity, got us to where we are today.”
Why the Right to Appraisal Matters
In today’s repair climate, an insurer might offer $7,000 to fix damage that actually costs $10,000 when done to OEM specifications. Without the appraisal clause, consumers faced an impossible choice: pay out of pocket or sue, often for less than the cost of litigation.
The Texas right to appraisal law restores balance by ensuring:
• Either party can invoke appraisal to resolve a loss-amount dispute.
• Independent appraisers determine the true cost based on OEM repair procedures.
• The process avoids costly courtroom battles and keeps unsafe vehicles off Texas roads.
“The collision industry will no longer have clients wondering who knows best how to repair a vehicle — an insurance carrier or a qualified repair professional,” McDorman said. “Independent appraisal keeps the focus where it belongs: Safe Repairs Save Lives.”
Powered by Grass-Roots Generosity
A pivotal moment came when Texas policyholder Joe Collins, after winning an appraisal dispute with State Farm, donated his entire settlement to fund the Mandatory Appraisal Rights Advocacy Trust. His altruism sparked a national GoFundMe movement, recruiting supporters from across the country.
“Many people helped us reach this day,” McDorman reflected. “But Joe’s gift lit the fuse. I’m gratified that the bill’s passage proves we were worthy stewards of his trust.”
With the Texas right to appraisal bill signed into law, Auto Claim Specialists and ABAT will work with TDI to refine guidelines and timing triggers, ensuring the new provisions function smoothly once they take effect this fall.
“We took on a giant and won for the people of Texas,” McDorman said. “Now, every driver can be confident their vehicle will be repaired safely and fully, and every shop can focus on doing the job right.”
Leona Scott