Washington sets new insurer claims-handling rules for auto damage claims

What changed

Washington’s amended unfair claims settlement practices rules for motor vehicle claims take effect Oct. 18, 2026. The official WAC record lists the amendments under WSR 26-17-089, filed Aug. 18, 2026. The authoritative record is here: https://app.leg.wa.gov/wac/default.aspx?cite=284-30&full=true

The rule applies to insurers and insurance policies or contracts. The motor vehicle claims section, WAC 284-30-390, frames the listed conduct as unfair acts or practices by the insurer. The supplied text does not make collision repair facilities the regulated party.

For collision claims, the amended rule requires insurers to make a good-faith effort to inspect the damaged vehicle and reasonably communicate with the claimant and the claimant’s chosen repair facility about the damage and needed repairs.

The rule bars insurers from making photo-only evaluation a condition of coverage. If a claimant used virtual inspection and there is a dispute over the amount of loss, the insurer must accept a request for an in-person inspection and conduct it within five business days, or another time agreed to by the claimant.

If an insurer cannot document damage from photographs submitted by the claimant or repair facility, the insurer must make reasonable efforts to request more documentation before rejecting coverage for that submitted damage.

For supplemental damage estimates and final invoices, the insurer must respond in writing to both the claimant and the claimant’s repair facility within five business days of receipt. If the insurer rejects damage, the written response must state covered amounts and explain or cite policy language for the rejection.

The amended rule also says insurers may not require claimants or claimant-chosen repair facilities to use only an internet-based application to submit claim information. Insurers must allow submission by email, postal mail, fax, or in-person delivery.

When requested by the claimant, insurers must include the claimant in communications with the claimant’s repair facility about original or supplemental repair estimates or changes to covered items. Insurers also must give first-party claimants a clear written explanation of how storage and towing fees are covered under the policy within five business days of claim notification.

What it means for the shop

The supplied Washington rule text does not impose a direct shop licensing duty on collision repair facilities.

The rule does create specific insurer-response standards that shops can track when working a customer’s insurance claim.

The most practical change is timing. If a shop submits a supplement or final invoice to an insurer on a Washington motor vehicle claim, the amended rule requires a written insurer response to both the customer and the customer’s repair facility within five business days of receipt.

Shops should preserve dated proof of what they sent and when they sent it, especially for supplements, final invoices, photos, and documentation of additional loss-related damage. The rule requires insurers to consider additional loss-related damage discovered by the claimant or the claimant’s repair facility after the insurer assesses the damage or during repairs.

If an insurer pays less than the estimate from the claimant’s chosen repair facility, the amended rule requires the insurer to promptly and fully disclose all reasons, including a reasonable explanation of cited policy provisions, and document the claim file.

The rule also gives shops an answer when a carrier tries to force all claim submissions through one portal or app. Starting Oct. 18, 2026, insurers must allow email, postal mail, fax, or in-person delivery instead of requiring only an internet-based application.

What to watch

The same Washington rule package also amends total-loss standards in WAC 284-30-391. Unless the claimant and insurer agree on value, insurers must settle total losses by replacement vehicle, cash settlement based on actual cash value, or policy appraisal where applicable. The official section is here: https://app.leg.wa.gov/wac/default.aspx?cite=284-30-391

For total-loss appraisals after Oct. 18, 2026, the insurer must advise its appraiser of the total-loss calculations in WAC 284-30-391 and may not consider a valuation that does not comply with that section when applying an appraisal award to the policy.

The supplied Washington text does not provide penalty details. It also does not verify the separate Massachusetts appraiser licensing, Illinois right-to-appraisal, Rhode Island total-loss threshold, or California glass, airbag, tire, storage, or towing items identified in the trade-publication lead. Those items need official state records before shops should treat them as confirmed compliance changes.