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 to resolve disputes over the actual cash value and amount of loss for damaged vehicles. The appraisal clause must contain specific language that allows either party to request an appraisal if they cannot agree on the loss amount. Each party will select a competent and disinterested appraiser, and if they cannot agree on the findings, an umpire will be appointed to resolve the differences. The appraisers are required to complete their appraisals within 30 days, and the costs of the appraisal and umpire will be shared equally between the parties.

Additionally, the bill defines key terms related to the appraisal process, including "appraiser," "competent," "disinterested," and "umpire." It also grants the commissioner the authority to adopt necessary rules for implementing this section. This legislation aims to enhance consumer protections in automobile insurance by providing a clear and structured process for resolving disputes over claims.