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Bill

Bill

S 2157

Requires automobile insurers to include appraisal provisions in insurance policies.

2026-2027 Regular Session Introduced by Paul Moriarty

New Jersey requires auto insurers to include appraisal provisions in policies, enabling neutral third-party dispute resolution over vehicle damage valuations instead of litigation.

Introduced in the Senate, Referred to Senate Commerce Committee
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WeVote Research Nonpartisan
Bill Summary · S 2157

Legislative bill overview

S 2157 mandates that all automobile insurance policies sold in New Jersey include appraisal provisions—mechanisms that allow policyholders and insurers to resolve disputes over vehicle damage valuations through a neutral third party rather than litigation. This creates a standardized dispute resolution process for disagreements about repair costs or vehicle value after accidents.

Why is this important

Vehicle damage disputes are common in insurance claims, and without appraisal provisions, disagreements can lead to costly litigation that delays claim resolution for accident victims. This bill aims to streamline claims processing and provide faster, less expensive resolution for both insurers and policyholders, particularly benefiting those who cannot afford prolonged legal battles over damage assessments.

Potential points of contention

  • Cost implications: Insurers may argue the requirement increases administrative costs, potentially leading to higher premiums for consumers, though proponents counter that faster resolution reduces overall claims expenses
  • Appraisal neutrality concerns: Questions about whether appraisers are truly neutral, who selects them, and whether the process adequately protects consumers unfamiliar with vehicle valuation standards
  • Scope ambiguity: Unclear whether the mandate applies to all damage disputes or only specific types (e.g., total loss valuations versus repair estimates), and whether existing optional appraisal clauses satisfy the requirement

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

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