After more than six years of advocating, a bill to make it mandatory that auto and home insurance policies include an appraisal clause has unanimously passed in the Texas House.

SB 458 states the appraisal provision “is intended to provide a type of dispute resolution process solely to determine the amount of loss when that amount is in dispute between the policyholder and the insurer.”

Generally, the mandatory appraisal bills seek to:

• • Require an appraisal procedure in all personal auto insurance policies
  • Allow appraisal requests by an insurance company or insured person within a certain amount of time
  • Require the vehicle owner and insurance company to appoint competent appraisers

The insurance commissioner would consider the qualifications and selection of appraisers and umpires for appraisals, according to the bill.

Third and final reading of SB 458 was held on Tuesday, after the second reading on Monday. Both votes were unanimous.

Prior to passage, the bill was amended to specifically include the term “appraisal clause” and to push back the effective date from Sept. 1, 2025, to Jan. 1, 2026.

On Monday, the sponsor of the House companion to SB 458, Rep. Jay Dean (R-District 7), told the House, “The right to home and auto appraisal has been a policy issue that has been worked on and negotiated for years. SB 458 preserves the right to an appraisal provision in home and auto insurance policies. This bill is good for Texas consumers and predictable for Texas insurers.”

Auto Body Association of Texas (ABAT) Executive Director Jill Tuggle told Repairer Driven News Tuesday that the association is very excited about the bill’s passage in the House.

“We have a lot of confidence in this bill, and this is certainly the most progress we have ever made,” she said. “I am very hopeful that ABAT will be hosting a celebration this year!”

ABAT President Burl Richards added, “It was a unanimous vote, so excited! I remember like it was yesterday, after leaving the meeting with TDI, I said we have to get legislation passed to make it mandatory, or every insurance company will try to take it out of their policy, like State Farm did. This feels good! We do have one hurdle, but that should be a no-brainer.”

Robert McDorman, general manager of Auto Claim Specialists and longtime right-to-appraisal advocate, commended lawmakers for “looking after the citizens of Texas to help ensure our safe roadways.”

He added, “Safe repairs save lives!”

Now, the bill will go back before the Senate for a final vote, and if passed, on to Gov. Greg Abbott to be signed into law.

Images

Featured image: Rep. Jay Dean (R-District 7) speaks to the House on SB 458 on May 19, 2025 (Live video screenshot)