The Washington House Committee on Consumer Protection and Business did not discuss or vote on a right-to-appraisal bill Friday, the last day the committee could pass it to the House Rules Committee, ultimately killing the bill. 

The bill would require insurance policies to include a provision that gives policyholders the right to an appraisal to resolve disputes about the actual cash value and amount of loss on a damaged vehicle. 

HB1645 was introduced Jan. 28 and referred to the Consumer Protection and Business Committee.

The state’s Senate Business, Financial Services and Trade Committee passed a companion bill without any amendments Thursday. The bill, SB5721, was sent to the Rules Committee. If it successfully moves through the Rules Committee it will be sent to the Senate floor. If approved in the Senate it would be passed to a House committee. 

Earlier this month, Justin Lewis, president of the Washington Independent Collision Repair Association (WICRA), said 42 of his members attended a public hearing held by the House Committee on Consumer Protection and Business. 

“Right now insurance companies are underpaying our customers repair plans and they’re forcing families who thought they had full coverage to have an additional expense to make their vehicles safe again,” Lewis said during the hearing. “Adjusters who, a lot of times have never seen the car in person are low-balling payments and leaving hardworking consumers to cover the difference. Meanwhile, for us, the cost of labor, materials, equipment has skyrocketed. Repair shops have a duty to pay our skilled technicians a living wage but also to ensure a safe vehicle for our customers back on the road.”

Repair shops are forced to pass the cost of insurance short-payments on to their consumers or risk going out of business, Lewis said. 

“The insurance companies are claiming that this might raise rates but if you look at the numbers, repair costs only increased 1.3% last year and insurance increased 11%,” Lewis said. 

Lewis said that if an insurance company is acting in good faith, they shouldn’t be afraid of the bill passing and affecting them.

The Washington Office of the Insurance Commissioner (OIC), repair shops, appraisers, consumers, and the Washington State Association for Justice all testified in support of the bill. 

Multiple insurance groups spoke against the bill. 

Kenton Brine, president of the Northwest Insurance Council, said the bill creates an incentive for higher costs on the repair side at no risk for the auto repair facility. He said all the risk lands on the insurer and could increase the costs of repairs over time.

A representative with the American Property Casualty Insurance Association (APCIA) noted an issue with the bill giving authority to the insurance commissioner to determine if an auto policy meets the bill’s standards.

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Feature Photo: Jeff Butler, a public and independent adjuster who owns Collision Consulting of Washington, and Justin Lewis, president of the Washington Independent Collision Repair Association (WICRA), testify during the Washington House Committee on Consumer Protection and Business public hearing Feb. 12.