AASP/NJ Members Gain RTA, Policyholder Rights Knowledge at General Meeting

by Alana Quartuccio

Knowledge is power. And in this often-contested collision repair world plagued by flame throwing third-party payers, auto body professionals need to be cognizant of every law and regulation out there to stay alive in the game. 

AASP/NJ recently hosted a membership meeting featuring attorney Thomas J. Cherichello of the Thomas J. Cherichello Law Firm to help shops gain an understanding about Right to Appraisal (RTA) and policyholder rights.

Cherichello was joined by AASP/NJ President Ken Miller, AASP/NJ Executive Director Charles Bryant and AASP/NJ Collision Chairman/Immediate Past President Jerry McNee in an open forum styled discussion that took on the challenges associated with the uneven playing field between body shops and insurance companies. 

“Shops almost need an attorney on staff these days,” Cherichello emphasized the hardships shops have to contend with. “You need to protect yourself.” 

One form of protection lies in repair contracts or authorization forms. “A signed contract is a powerful thing,” cited Miller, adding that it allows the customer – the policyholder – to show what needs to be done to their insurance company and ask them “why won’t you pay for this?” Miller stressed the necessity of obtaining the authorization to work on someone’s vehicle by way of a repair contract, which also protects the shop. 

Cherichello provided a thorough overview of when and how to go about invoking the Appraisal Clause, which has “been in insurance contracts for probably 80 years.” If there is a disagreement on the cost of repair, the policy holder has the option to invoke the Appraisal Clause. Both sides pick their own appraiser, and if those appraisers can’t reach an agreement, an umpire is called in for a fee split by both parties. The final agreement is binding. He cited it can be a quick and effective process.

When it works, it works. “You can get what you need, but it has to be worth it.” And perhaps because it typically works, some insurance companies are trying to change things up by excluding the RTA from their policies, Cherichello pointed out.

“As a collision repair professional writing proper repairs, [I ask] what gives the insurance company the right to come in and re-engineer the structure of that vehicle by not paying for items that are needed,” McNee questioned. “That is where the RTA comes in. I like it because it pulls it away from my shop and goes to two unbiased appraisers. If they agree, it’s binding, and the insurance company cuts the check.” 

Discussion also addressed issues independent body shops have to contend with involving Section 64 of the New Jersey Automobile Cost Reduction Act, which states “that if an insurer has financial arrangements with one or more repair shops, its insureds can still select a shop that is not part of the insurer’s network, as long as the out-of-network shop agrees to the same terms and conditions from the insurer.” The challenge is that shops find that insurance companies won’t come forward with what those “same terms and conditions” actually entail. 

“You can likely get the colonel’s recipe at KFC easier than getting any insurance company to give you their DRP agreement,” Cherichello quipped. 

Bryant has put together a defense kit that Cherichello said is “on point. No lawyer could word it better,” which is available to member shops in need. “You need to demand that you get the same terms and conditions as the DRP shops,” stressed Bryant. 

“Standing up for what is right is key, but make sure you do things professionally,” advised McNee. 

Miller and McNee stressed the importance of educating and involving the customer in the process. “Engage them up front and get them involved,” McNee stated, stressing that one should really take the time to examine insurance policies. 

AASP/NJ leaders informed attendees about the association’s Legal Fund which is there to help member shops fight for what is right in a legal forum. If an AASP/NJ member is faced with a legal battle they can bring it to the attention of the Board and they will decide if it’s something the Legal Fund can support. “I don’t think we’ve turned anyone down yet,” said Miller. 

“We’ve got to support each other, we’re not competition,” McNee reinforced. Getting involved with the association and coming together for the betterment of the collision industry really is a key in fighting for positive change. 

“The more you get involved, the more your business will grow. I guarantee it,” encouraged Miller. 

Want more? Check out the June 2025 issue of New Jersey Automotive!