The bill introduces a new section to chapter 48.18 RCW, mandating that all automobile insurance policies with first-party coverage for physical damage, issued or renewed after January 1, 2026, must include an appraisal provision. This provision allows either the insurer or the insured to request an appraisal to resolve disputes regarding the actual cash value and amount of loss for damaged vehicles. The language of the appraisal clause is specified in the bill, ensuring it is at least as favorable to the insured as the provided example. The process includes selecting appraisers, potentially appointing an umpire if the appraisers cannot agree, and stipulates timelines for appraisals and extensions.

Additionally, the bill defines key terms related to the appraisal process, such as "appraiser," "competent," "disinterested," and "umpire," to clarify the roles and qualifications of individuals involved. The commissioner is granted the authority to adopt necessary rules for implementing this section, enhancing consumer protections in automobile insurance coverage by providing a structured method for resolving disputes over claims.