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Bill

DH

Bill

A 6106

Requires automobile insurers to include appraisal provisions in insurance policies.

2024-2025 Regular Session Introduced by Dan Hutchison and 1 co-sponsor

New Jersey law would require all auto insurers to include appraisal provisions in policies, standardizing dispute resolution for damage valuation disagreements.

Introduced in the Assembly, Referred to Assembly Financial Institutions and Insurance Committee
#insurance #motorvehicl
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Bill Summary · A 6106

Legislative bill overview

Bill A 6106 mandates that all automobile insurance policies sold in New Jersey must include appraisal provisions—a dispute resolution mechanism allowing policyholders and insurers to resolve disagreements over vehicle damage valuations through a neutral third party. This requirement standardizes a process that currently may or may not be available depending on the insurer and policy terms.

Why is this important

When policyholders and insurers disagree on repair costs or vehicle value after an accident, the appraisal process offers an alternative to litigation that is typically faster and less expensive. Requiring this provision protects consumers by guaranteeing access to this mechanism and reducing barriers to fair claim settlements, while also potentially reducing litigation costs for insurers.

Potential points of contention

  • Cost implications: Insurers may argue that mandating appraisal provisions increases administrative costs, which could be passed to consumers through higher premiums
  • Scope ambiguity: Unclear whether appraisal applies to all damage disputes or only specific types (collision vs. comprehensive claims, total loss vs. partial damage)
  • Industry practice: Many insurers already include appraisal provisions voluntarily; opponents may question whether legislation is necessary or if it creates redundant requirements

Compiled from official sources — confirm details with the bill’s official record.

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