For nearly a decade, Robert McDorman, founder of Auto Claim Specialists, tirelessly led the charge to persuade lawmakers of the importance of mandatory appraisal rights, and his hard work has finally paid off – Senate Bill 458 has been adopted into the Texas Insurance Code and made law.
Senate Bill 458 seeks to ensure that all Texas insurance policies “must contain an appraisal provision” and specifies that this appraisal provision “is intended to provide a type of dispute resolution process solely to determine the amount of loss when that amount is in dispute between the policyholder and the insurer.” It will go into effect on September 1. Read the full bill here.
The appraisal clause movement began in 2015 when State Farm removed the vital consumer protection from their Texas policies. McDorman organized meetings with the Texas Department of Insurance to alert them to the potential dangers that such an action presented to drivers and their roadways. Bills proposing mandatory appraisal rights were presented in the 2021 and 2023 sessions, but the sessions ended before a conclusive vote.
Senate Bill 458, the 2025 iteration of this legislative initiative, was fast-tracked through the process, obtaining unanimous approval from both the Senate and the House during every review. That’s a far cry from eight years ago when “legislators didn’t believe there was a need for mandatory appraisal rights,” McDorman said.
Legislators’ disinterest did not dissuade him from his mission. McDorman continued to beat the drum for mandatory appraisal, meeting with TDI five times and appearing before various legislative committees eight times to educate them on the impact of the Appraisal Clause.
The Auto Body Association of Texas supported McDorman, providing pecuniary support and volunteering time and energy to promote all three iterations of the proposed mandatory appraisal legislation. In addition to significant personal financial contributions, ABAT President Burl Richards joined McDorman in several meetings with TDI and appearances before legislative committees to express the significance of this undertaking.
Consumer advocacy watchdog Texas Watch also offered valuable support throughout the process through its efforts to generate public awareness, help educate legislators, and the compilation of Impact of Auto Appraisal report that demonstrated the monetary affect that Right to Appraisal typically has on claim settlements.
McDorman credits the passage of Senate Bill 458 to Joe Collins, whose experience with the appraisal process yielded a large settlement from State Farm. Collins donated his entire settlement to the fight for mandatory appraisal rights. His story inspired many others from across the country to contribute to a GoFundMe fundraiser, creating a national movement.
Countless others aided in achieving this victory for mandatory appraisal rights including other public adjusters, multiple law firms, and lobbyists that donated time, money, and energy to support the cause.
“We went up against really big odds; the insurance industry has deep pockets which enables them to walk all over people most of the time,” McDorman said. “Often, that happens because we are afraid to fight them; we’re afraid to lose. But when you’re doing the right thing for the right reason, it’s worthwhile to keep going, to continue the fight to make a difference. That’s what we did, and our efforts paid off – this was the people’s fight…and the people fought and won!”
Additional Reading: AASP/NJ Backs State Right to Appraisal Bill
