6.9.25 – Following in the footsteps of fellow collision repair associations across the US, the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) has expressed their support in favor of proposed legislation in the Garden State that would require all automobile insurers to include a provision in their policy to allow for a fair appraisal.
SB 4534 was introduced in the New Jersey State Senate by Sen. Paul Moriarty (D-District 4) and has been referred to the Senate Commerce Committee to await next steps.
AASP/NJ has been vocal about this consumer right, which allows policyholders the option to an appraisal if they are in disagreement with their insurer on the cost of repairs. Last month, AASP/NJ hosted a general membership meeting to educate the collision repair community about the Right to Appraisal (RTA) with Attorney Thomas J. Cherichello. Members learned that invoking RTA involves both parties bringing in their own appraiser to assess. If they can’t reach an agreement, a third party umpire is brought in. The final agreement is binding.
“The Right to Appraisal (RTA) is one of the few tools available to consumers when they disagree with their insurer over the value of a loss,” states AASP/NJ President Ken Miller (821 Collision; North Haledon, NJ). “In recent years, insurers have increasingly sought to reduce claim costs. At the same time, insurers have been removing the appraisal clause from their policies or deploying tactics to discourage its use. These actions leave consumers with little recourse and place them at a significant disadvantage during the claims process. This critical consumer protection ensures that policyholders have a fair and independent process to resolve disputes over claim settlements. This legislation will restore balance by guaranteeing every New Jersey driver the right to invoke an appraisal process when disputes arise, regardless of which insurer they choose.”
AASP/NJ Board member Dean Massimini (Autotech Collision; Sewell, NJ) is hopeful this legislation will end the “take it or leave it” situation customers are in when dealing with insurance companies who have removed the clause from their policies, for example. “Everyone should have the opportunity, just like with homeowners’ policies, to have a public adjustor come out and assess the situation.” He says policy holders have been taken advantage of for far too long and “this will hopefully give them a leg up by giving them an even playing field.”
The New Jersey bill is another example that collision repairers are not alone in dealing with this issue, as states including Texas, Rhode Island, Oregon and Washington have all sought similar actions. “We all want to see consumers be protected and not be taken advantage of,” adds Massimini.
For more information on AASP/NJ, visit aaspnj.org.
