This bill introduces a new section to chapter 48.18 RCW aimed at enhancing consumer protections for automobile insurance coverage. Effective January 1, 2026, all automobile insurance policies that include first-party coverage for physical damage must incorporate a provision allowing for an appraisal process to resolve disputes over the actual cash value and amount of loss for damaged vehicles. The appraisal clause must contain specific language detailing the process, including the selection of appraisers, the appointment of an umpire if necessary, and the responsibilities of each party regarding appraisal expenses. Notably, if the appraisal determines a loss amount that exceeds the insurer's prior adjustment by $500 or more, the insurer is required to reimburse the policyholder for appraisal costs.

Additionally, the bill stipulates that neither party can demand an appraisal until 10 days after the insurer has received notification of the claim. It also provides definitions for key terms such as "appraiser," "competent," "disinterested," and "umpire" to clarify the roles and qualifications involved in the appraisal process. The commissioner is granted the authority to adopt rules necessary for the implementation of this new section.