Texas Consumers at Risk: TDI’s Proposed Appraisal Rules Threaten to Undo Hard-Won Protections in Auto Insurance Claims

The Texas Department of Insurance (TDI) recently held a public hearing on proposed rules meant to implement Senate Bill 458, the landmark 2025 legislation that finally made the “right to appraisal” mandatory in Texas auto insurance policies. On paper, SB 458 was a major victory for consumers and the collision repair industry. It closed loopholes that had let insurers lowball claims for years, forcing policyholders to either accept inadequate offers or endure costly litigation. For the first time, either party could demand a binding appraisal by qualified, independent professionals—leveling the playing field and ensuring safer, more complete repairs without forcing drivers to pay out of pocket beyond their deductible. Yet the rules TDI has now proposed risk turning that hard-fought statutory victory into a hollow promise. At the heart of the opposition stands Robert McDorman, owner of Auto Claims Specialists and a longtime advocate for fair claims practices. McDorman has emerged as a leading voice against the current draft rules, testifying at the hearing and submitting detailed public comments. His core warning is clear and urgent: without stronger accountability measures, the proposed framework will effectively negate the very consumer protections SB 458 was designed to deliver. Under the pre-SB 458 system, insurers routinely removed appraisal rights from policy forms or made the process so cumbersome that consumers had almost no practical recourse. As McDorman has repeatedly documented through his work with policyholders and repair facilities, this led to rampant “under-indemnification”—estimates that deliberately overlooked critical safety repairs, OEM procedures, and supplemental damage. Policyholders ended up paying thousands out of pocket or driving vehicles that were never properly restored to pre-loss condition. SB 458 was passed precisely to stop those tactics by requiring a mandatory, binding appraisal process handled by experienced industry professionals rather than insurer-friendly adjusters. The proposed TDI rules, however, fall short in critical areas that could allow those same insurer tactics to persist:

•Lack of true independence and accountability McDorman has stressed the need for judicial umpires and enforceable ethics standards, warning that without them insurers could steer the process toward appraisers they routinely work with, controlling outcomes behind the scenes.

•Insufficient timelines and enforcement

Weak deadlines and minimal penalties create opportunities for delay and gamesmanship—precisely the problems SB 458 sought to eliminate.

•Failure to protect the consumer’s ability to invoke appraisal effectively

Without robust notice requirements, clear qualifications, and meaningful consequences for rule violations, the process risks becoming another bureaucratic hurdle rather than the consumer safeguard the Legislature intended.

McDorman’s message is straightforward: “We need some accountability in these rules… if the rules are broken… There needs to be some ethics.” He and other industry leaders, including the Auto Body Association of Texas and consumer groups like Texas Watch, have consistently argued that the current draft does not go far enough to honor the spirit—or the letter—of SB 458.The stakes are real for Texas families. When appraisal works as intended, it routinely delivers thousands of additional dollars in fair settlements—money that goes toward proper repairs instead of insurer profits. Data presented during the legislative process and at the hearing showed appraisal awards frequently exceeding initial insurer offers by $2,100 to $5,900 or more. Weak rules that allow insurers to maintain de facto control would send consumers right back to the same underpaid, unsafe-repair cycle the statute was written to end. Robert McDorman and Auto Claims Specialists have been at the forefront of this fight for years—first helping secure the passage of SB 458, and now refusing to let implementation rules water it down. Their leadership underscores a simple truth: Texas statutes gave consumers powerful new rights, but those rights will only matter if TDI adopts rules with real teeth. The public comment period is open, and the collision repair community, consumer advocates, and everyday Texans still have time to make their voices heard. Stronger rules—with clear accountability, independent umpires, meaningful deadlines, and real penalties—are not optional; they are essential to making the Legislature’s promise to Texas consumers a reality rather than an empty statute. Texas deserves better than rules that look good on paper but leave families and repair shops fighting the same old battles. TDI must listen to leaders like Robert McDorman and strengthen the proposed rules before they undermine the very law they are supposed to enforce.