Ringing in the New Year with New Appraisal Rules

by Burl Richards, ABAT President

Although we’re now celebrating the arrival of 2026, ABAT is still celebrating last year’s legislative victory – which went into effect back in September and now mandates that all personal auto and homeowners insurance policies issued, delivered or renewed on January 1, 2026 and after must contain an appraisal provision!

That means that all new policies being written and any renewals from this point forward must include the Right to Appraisal, which is a huge win for shops and Texas drivers. One lingering question remains: will the rules established preserve the sanctity of the appraisal process? 

The Texas Department of Insurance (TDI) drafted rules late last year and solicited feedback which they received from several individuals and organizations. (Be sure to check out grecopublishing.com/txa1125coverstory to learn more.) ABAT also responded to TDI’s solicitation for public commentary by stressing the importance of independent appraisers being allowed to determine valuations without undue influence being exerted, and while we expressed the need for the rules to prevent either side from pushing their agenda, I think we all know that these pressures most often come from the other side of the table with insurance companies frequently informing independent appraisers that they won’t pay for certain items.

That type of influence cannot be permitted since it really compromises the spirit of the appraisal process, and ABAT remains hopeful that TDI will address this concern in the rules they adopt. By the time this issue reaches readers’ hands, the final adopted rules should be available on TDI’s website (tdi.texas.gov/rules/index.html), and I encourage everyone to keep an eye out for this update to remain educated on the best ways to help our customers. 

Education in this aspect and many others is vital to our businesses and their success, which is why ABAT has lots of training and networking events planned for 2026 (see the details on page 16, and be sure to mark your calendars)! I look forward to seeing everyone at our meetings across Texas and especially at the Texas Auto Body Trade Show in September. The only way our industry can grow and get stronger is by coming together to learn more, discover new ways to confront the challenges we face and continue developing our collision community in this great state. Together, we can achieve anything.

Lastly, I want to wish everybody a very happy and prosperous New Year…it’s going to be a great one!

Want more? Check out the January 2026 issue of Texas Automotive!