RTA Is Coming – and Why This Column Is in New Hands
by Justin Petty Petty Details, LLC
Dear Readers,
Before I get to this month’s question, I want to start with a heartfelt note of appreciation and respect for my colleague, Robert L. McDorman.
Many of you know Robert through this “Ask The Expert” column and through his tireless work championing appraisal rights for Texas consumers and collision professionals. Robert has decided to pass the baton to me so this editorial can continue without placing an additional burden on the litigation work that now demands so much of his time. As Robert explained to me, he is increasingly pulled into active lawsuits where his published analysis can be cherry-picked or twisted by opposing counsel during depositions or trials. Rather than allow that risk to complicate the cases where he is fighting for fairness, he made the wise and selfless choice to step back from the column and focus on the legal battles that need him most.
I want to be very clear: Robert’s decision is not a retreat from the cause – it’s a strategic step deeper into it. He has carried this torch with integrity, patience and courage for years, and I’m grateful for his mentorship and trust. The foundation he built in this column helped bring Texas to the threshold we are standing on today: mandatory Right to Appraisal (RTA) for motor vehicle repair and total loss disputes. Last month’s article summarized the status of SB 458 taking effect and the ongoing Texas Department of Insurance rulemaking phase.
So with respect to Robert and a sincere commitment to the readership, I’ll do my best to continue the straight-talk, consumer-first approach you’ve come to expect here. Let’s get into this month’s question.
Dear Mr. Petty,
I operate a collision center in Central Texas. We’re already hearing from customers that carriers are telling them, “Appraisal isn’t ready yet,” or “That new RTA law doesn’t apply to repair procedure disputes.” Some adjusters are also saying the shop has no standing in appraisal and that it’s only for total losses.
My questions are:
1. When the RTA requirement becomes mandatory for policies issued or renewed after January 1, 2026, will it cover repair procedure and supplement disputes the same way it covers total loss disputes?
2. What should a shop do when a carrier short-pays and the customer wants to invoke appraisal?
3. How do we protect the customer from getting stalled out by the “rules aren’t final yet” excuse?
Thank you,
A Central Texas Collision Center Owner
Thank you for the question – and you’re not imagining things. What you’re hearing from some carriers right now is exactly what typically happens when a new mandatory consumer protection law is moving into enforceable rules. There is always a period where some insurers test the boundaries and try to preserve old habits. That is why consumer and shop education will be so critical over the next several months.
Let’s take your questions in order.
1. Does mandatory RTA apply to repair procedure disputes and supplements?
Yes. The intent of SB 458 is not limited to total loss. It mandates an appraisal process for both repair and total loss disputes between insurer and policyholder. Robert addressed this directly last month, confirming that with SB 458, every Texas motor vehicle policy must contain a binding RTA process for repair and total loss disagreements.
Put simply: if the dispute is about the amount of loss – whether that loss is a total-loss valuation or the cost to properly and safely repair the vehicle – appraisal is the designated remedy.
Carriers may try to re-label a repair dispute as a “coverage issue” to avoid appraisal. But a disagreement over what it takes to return the vehicle to pre-loss condition is a loss-amount dispute, not a coverage dispute. When OEM procedures, calibrations, structural operations or safety-related steps are omitted or underpaid, that is precisely the kind of under-indemnification the Appraisal Clause is meant to correct.
2. What should a shop do when a carrier short-pays and the customer wants to invoke appraisal?
First, remember who invokes appraisal: the policyholder. Shops don’t “stand in the shoes” of the insured unless they have a valid assignment of rights that fits within Texas law, and sometimes even that remedy is not available. So, your role is to support and document, not to substitute. Here’s the practical playbook:
● Document the dispute clearly and professionally.
Provide the customer with a clean, itemized blueprint/repair plan showing what operations are required and why (OEM position statements, scanning/calibration requirements, procedures, safety documentation, etc.).
● Make the gap simple for the customer to understand.
A short summary helps: “At this point, the carrier has refused to pay for X, Y, Z operations required by the manufacturer; and without them, the vehicle cannot be safely restored.”
● Advise the customer of their Right to Appraisal.
You’re not giving legal advice by pointing them to their policy remedy. Tell them appraisal exists to resolve exactly this kind of dispute, and that it is binding once invoked properly under the policy.
● Encourage the customer to seek an experienced appraiser.
They can hire a qualified independent appraiser to represent their side of the loss. This is where professionals who understand repair procedure disputes matter. Unfortunately, many employees of insurance companies have not been trained on proper repair procedures and are trained to believe that certain required procedures are not actually required.
● Stay in your lane, but stay helpful.
You can continue repairing if the customer authorizes, or you can pause depending on their decision – but avoid becoming the messenger in a carrier-insured conflict. Your power is in the repair facts.
Appraisal exists to remove the biased, non-technical decision-makers from the loss-amount dispute and put it into the hands of qualified industry professionals. That is the spirit of the process and why SB 458 is such a shift for Texas.
3. How do we respond to the “rules aren’t final yet” stall tactic?
This is the most important issue right now, and it’s where carriers will try to buy time. A few key points:
● The law is in effect.
SB 458 became effective September 1, 2025. Policies issued or renewed on or after January 1, 2026 must include mandatory RTA language.
● Rulemaking doesn’t suspend rights.
The Texas Department of Insurance is working through appraiser/umpire qualification criteria and timelines. But the statute’s purpose and direction are already set. In other words, carriers don’t get to pretend appraisal is optional just because they don’t like the coming rules!
● Your customer should use writing, not phone calls.
When the customer invokes appraisal, it should be in writing. A simple certified letter or email that states:
“I am invoking my Right to Appraisal under my policy due to a dispute over the amount of loss.”
That single sentence matters. It frames the dispute correctly and makes any refusal look exactly like what it is.
● Delay is a refusal in slow motion.
If a carrier responds with “not ready,” “not applicable” or “we’ll get back to you,” that is effectively a denial of process. Once the rules are finalized, stalls like that will have consequences. Robert noted last month that stronger penalties for rule violations will make appraisal fairer and more efficient.
● Don’t let them redefine the dispute.
Carriers may try to shift the conversation to “shop choice,” “negotiation” or “we don’t pay for that.” The response stays the same:
“This is a dispute over loss amount and repair scope. Appraisal is the policy remedy.”
Closing Thoughts
Central Texas shops — and really every Texas shop — are entering a new era. Mandatory RTA is a structural correction to years of systemic under-indemnification on repair and total loss claims. If we educate consumers on how and when to invoke appraisal, the market will start to normalize around safe, proper repairs instead of carrier-driven shortcuts.
Robert McDorman helped get us to this doorstep. My goal is to help you walk through it with clarity and confidence.
If you have follow-up questions, keep sending them in. The more real-world scenarios we put into print, the harder it becomes for anyone to mislead Texas policyholders about their rights.
Sincerely,
Justin Petty
Petty Details, LLC
Want more? Check out the January 2026 issue of Texas Automotive!