Following in the footsteps of fellow collision repair associations across the U.S., the Alliance of Automotive Service Providers of New Jersey supports 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. In May, AASP/NJ hosted a general membership meeting to educate the collision repair community about the Right to Appraisal 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.
“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,” said AASP/NJ President Ken Miller. “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.”
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,” said AASP/NJ Board Member Dean Massimini of Autotech Collision.
For more information on AASP/NJ, visit its website here.
