Leveling the Playing Field: Right to Appraisal (RTA) Empowers Consumers

by Chasidy Rae Sisk

While it may come as no surprise to body shop owners who deal with insurance companies every day, many consumers may be shocked when their carrier offers a significantly lower settlement to cover the cost of repairs after an accident. Instead of fully indemnifying them for the amount of loss, insurers employ tactics designed to increase insurer profits at the expense of their policyholders. 

Of course, in this situation, consumers can turn to small claims court to sue their insurer for the difference, but litigation is expensive, time-consuming and overwhelming. Fortunately, there’s a better way! Many auto insurance policies contain the Right to Appraisal (RTA), ensuring policyholders receive what is due to them without the headache of hiring an attorney and pursuing the matter in court; however, in an effort to protect their bottom line, several insurers in New Jersey have already removed this vital protection from their policies.

In an effort to protect Garden State drivers, AASP/NJ stands behind Senate Bill 4534, proposed legislation that would require all automotive insurance policies issued in New Jersey to include the Appraisal Clause, providing policyholders with the means for a fair appraisal and adequate indemnification.

“RTA is one of the only tools a consumer has to challenge an unfair settlement,” AASP/NJ President Ken Miller says. “Insurers have been actively removing this clause from policies, leaving vehicle owners with no way to dispute lowball offers. This legislation would guarantee every New Jersey policyholder access to a fair, third-party dispute process. It ensures they’re able to recover what they’re rightfully owed after a loss.”

“The Appraisal Clause empowers vehicle owners to dispute insurance claim settlements that they believe are unfair – particularly concerning repair costs and diminished value,” adds AASP/NJ Past President and Collision Chairman Jerry McNee. “Currently, many New Jersey auto insurance policies either limit or exclude RTA, leaving consumers without a neutral third-party process to resolve disagreements over repair valuations by restoring balance in claims negotiations and giving policyholders a fair mechanism to challenge uneducated, undervalued settlements. In turn, that ensures that their vehicle is repaired to manufacturer standards, not just to an insurer’s cost benchmark and will improve long-term vehicle value and safety post-repair.”

AASP/NJ Board member Dean Massimini agrees. “It’s about giving the vehicle owner a fair shot. A lot of insurance companies have a ‘take it or leave it’ attitude that focuses more on cost than on proper repairs, which leaves consumers being improperly reimbursed. There’s a lot of pressure to go to a network shop that will do things the way the insurer wants it done, to save money, and the Appraisal Clause gives consumers an avenue to ensure they’re being treated fairly.” (More information about the importance of RTA is available at grecopublishing.com/txa0225coverstory.)

Although the vehicle owner must be the one who invokes the RTA, shops often view this as a helpful tool because it can reduce customer out-of-pocket costs and reduce customer tensions and stress in an already stressful situation. Shops also like the appraisal process because it vindicates and supports the shop’s stance all along that the insurer’s offer was undervalued, since every outcome ends with additional payments to the consumer. “Shops should be repairing cars correctly, no matter who pays the bill,” Massimini insists. “But none of us feel good when a customer is left holding the bag for a couple thousand dollars in safe and proper repairs that insurers want to argue over. RTA empowers consumers to collect what they’re owed.”

McNee believes it will empower collision repair professionals “to advocate for quality repairs without fear of economic retribution from insurers and encourage better adherence to OEM procedures, improving liability protection and vehicle safety outcomes. Mandatory RTA also potentially reduces the prevalence of ‘steering’ practices, where consumers are pushed toward insurer-preferred shops.”

“My hope is that passing RTA legislation will help ensure vehicles get repaired properly by holding insurers accountable for underpayment,” Miller weighs in. “We are hopeful that this will bring fairness, transparency and integrity back into the claims process.”

“This legislation is crucial because it helps ensure fair compensation based on OEM-recommended repair procedures rather than lowest-cost estimates along with an increased diminished value,” McNee elaborates. “It protects shops from pressure to perform substandard repairs due to insurer underpayment and restores a level playing field in a marketplace where carriers can otherwise dictate pricing and procedures without recourse. Associations like AASP/NJ see RTA as an essential tool to protect shop integrity and customer safety.”

AASP/NJ isn’t the first industry organization to fight for mandatory appraisal rights; legislation requiring policies to include RTA have appeared across the country. And a handful of battles have already been won. Rhode Island, Alaska, Washington and – most recently – Texas have all implemented RTA legislation (read about Texas’ victory at grecopublishing.com/txa0725abatfeature), while other states are still fighting the good fight for consumers.

“It’s a nationwide issue,” Massimini laments, expressing concern about “how insurers were ever able to write it out of their policies. Today’s vehicles are very complex, and the way we fix cars now is completely different than it was 20 years ago…and it’s changing almost daily. Shops want to do the right thing, but when carriers refuse to pay for necessary procedures, many consumers are left with their backs against the wall.”

Currently, only a handful of insurance carriers exclude RTA from their policies, but Miller suspects “others are trying to remove it also. In addition, we know that many major insurers are restricted access to the Appraisal Clause or are making the process extremely long and cumbersome. It’s a growing trend and one that clearly harms consumers.”

According to McNee, “Anecdotal evidence and surveys from industry organizations suggest a significant number of major insurers in New Jersey either exclude the Appraisal Clause altogether, restrict it only to total losses or place procedural barriers that make it functionally inaccessible. As more claims disputes arise from insurer-set limitations, the absence of RTA has become a flashpoint for consumer dissatisfaction and repair disputes.”

SB 4534, introduced to the 221st Legislature by Senator Paul Moriarty (D-District 4) in May, seeks to require “automobile insurers to include appraisal provisions in insurance policies. 

“Under the bill, every automobile insurer authorized to write automobile insurance policies in the State must ensure that each policy issued, executed, renewed, or delivered to a consumer contain a provision allowing for an appraisal of the value of a loss reported in a claim if the policyholder or insurer disagree on: (1) the actual cash value or amount of a loss, including the repairable and total loss amount, of an automobile reported on a claim; or (2) the offer of settlement to a third-party liability claim.”

After invoking the Appraisal Clause, competent and disinterested appraisers will be selected by both the insurer and policyholder to appraise the loss, and if they fail to come to an agreement on value, an umpire will be chosen to make a final determination. (Read the bill in its entirety at bit.ly/SB4534.)

SB 4534 was referred to the Senate Commerce Committee prior to the legislature’s summer recess, which is expected to last until November. When the session resumes, “the RTA bill will likely move through committee hearings before being brought to the New Jersey Legislature for debate and vote,” McNee explains. In the meantime, “industry groups are lobbying lawmakers and building bipartisan support. Advocacy campaigns are focusing on consumer rights, transparency and safety as key messaging points.”

During the current break, many legislators will be taking time to determine their priorities for the remainder of the session, so this is an ideal time to put mandatory RTA on their radars! So, how can body shops and New Jersey consumers demonstrate the importance of RTA to their representatives?

“Reach out to your legislators and urge them to support Senate Bill 4534,” Miller suggests. “Share your stories. Whether you’re a shop owner or a consumer, your voice matters. AASP/NJ is also working on tools to make it easier to take action – stay tuned and get involved.”

Massimini agrees that it’s imperative that support for RTA be heard by legislators because “the insurance industry obviously is not going to be supportive, and they have deep pockets and a lot of resources. Shops need to speak up for their customers, but they should also be educating their customers about this vital policy protection and encouraging consumers to advocate for themselves. The more that legislators hear about how RTA benefits their constituents, the more likely they are to support this legislation.”

McNee encourages industry professionals to contact their legislators, share stories about claims disputes and participate in association-led advocacy events. “Consumers can write to their state representatives, sign petitions and share their own claims experiences publicly or with advocacy groups like AASP/NJ. Both groups can stay informed through newsletters, by attending public hearings and by amplifying messaging on social media using organized campaign hashtags and media kits. 

“RTA legislation is a critical step toward restoring fairness and transparency in New Jersey’s auto insurance landscape,” he continues. “As more insurers remove or restrict Appraisal Clauses, consumers are left with few options to dispute undervalued claims. RTA would re-establish a neutral, third-party dispute process, empowering consumers and ensuring body shops are compensated for performing safe, OEM-compliant repairs.”

While RTA focuses on ensuring fair compensation, “it isn’t just about dollars and cents,” McNee stresses. “It’s about restoring a consumer’s voice in the repair process and ensuring every vehicle is repaired safely and correctly. Without it, insurance companies hold all the cards. This legislation gives power back to policyholders and protects the integrity of our industry.”

Based on what other states have gone through in the fight for mandatory appraisal rights, Massimini acknowledges that this is “just the beginning of the road and could very well be a long, drawn-out process to level the playing field for consumers. But the engine is running, so now we just need to put it in drive and start a movement!”

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