Illinois governor signs right to appraisal bill, AASPI calls it ‘major legislative victory’

The Alliance of Automotive Service Providers of Illinois (AASPI) is celebrating what it calls “a major legislative victory for Illinois motorists and the collision repair industry” — the signing of Illinois House Bill 4160, making the right to appraisal mandatory, effective July 1, 2027.

Gov. JB Pritzker signed the bill into law on Aug. 7, creating Public Act 104-0767.

Beginning next year, auto insurance policies issued, renewed, or delivered in Illinois that include first-party physical damage coverage must include a provision for the right to appraisal.

“The new law provides Illinois consumers with an important process for resolving disputes involving the amount of loss on an automobile insurance claim,” an AASPI press release states. “When there is disagreement regarding the amount of a covered loss, an insured will be able to invoke the appraisal process at the insured’s sole discretion without first obtaining the insurance company’s consent.”

AASPI adds: “This is an important victory for Illinois consumers, collision repair businesses and the entire motoring public. ‘Right to Appraisal’ provides consumers with an independent process for resolving disagreements over the amount of a loss instead of leaving the insurer as the only party determining what that loss should be.”

The passage of HB 4160 is the result of years of persistence, education, advocacy, and involvement by AASPI’s leadership and members, according to the release.

“Throughout the legislative process, AASPI members helped educate lawmakers about the challenges collision repair facilities and their customers encounter when disagreements arise over repair costs, vehicle values, and the amount necessary to properly repair a vehicle,” AASPI states. “Members participated in meetings, communicated with legislators, supported AASPI’s government affairs initiatives, and responded when the association needed the collision repair industry to make its voice heard.”

AASPI also recognizes its government relations firm, Morrill & Fiedler, for its “outstanding work in helping guide HB 4160 through the Illinois legislative process.” It also recognized bill sponsor Rep. Tracy Katz Muhl and chief co-sponsor Rep. Jeff Keicher, as well as Senate sponsor Sen. Julie A. Morrison and co-sponsors who AASPI says helped build support for the bill.

“This legislation demonstrates exactly why having a strong state association is so important,” AASPI said. “One collision repair business can raise an issue, but when our industry works collectively through AASPI, we have the opportunity to create meaningful change. Every member who supported this effort shares in this accomplishment.”

HB 4160 passed the House unanimously. That vote concurred with a final Senate amendment.

How ‘Right to Appraisal’ will work

Under Public Act 104-0767, AASPI says qualifying auto insurance policies will allow the insured and insurer to invoke appraisal when a dispute exists regarding the amount of loss.

Much like other states that mandate the right to appraisal, including Washington and Texas, when appraisal is invoked:

• • “Each party selects a competent and disinterested appraiser.
  • “The appraisers independently evaluate the disputed loss.
  • “If the two appraisers can’t reach an agreement, an independent umpire may be selected.
  • “Agreement between both appraisers, or between one appraiser and an umpire, establishes a binding determination of the amount of loss.”

“Importantly, the law specifically provides that an insured may invoke appraisal in the insured’s sole discretion without requiring the insurance company’s consent or agreement,” the release states. “For Illinois vehicle owners, this provides an important option when they believe the amount offered by an insurance company does not accurately reflect the cost of repairing their vehicle or its actual cash value.”

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