State Farm has filed in Texas to introduce a new mandatory Amendatory Endorsement 6125P for Business Car Policies, effective January 1, 2026. Submitted on August 22, 2025, the filing revises the physical damage coverage provisions—specifically the limit and loss settlement sections—to comply with S.B. No. 458. The endorsement standardizes how claims are settled, detailing options for repair or actual cash value and outlining the appraisal process for disputes.

The revisions clarify repair cost determinations, including use of prevailing competitive prices, labor rates, and paintless dent repair pricing. They also allow for new, used, recycled, or reconditioned parts—OEM or non-OEM—to return vehicles to pre-loss condition, while excluding post-repair value reduction from settlement calculations. A structured appraisal process involving two appraisers and a possible third umpire is introduced for disagreements.

Additional changes include updated transportation expense limits of $25 per day, capped at $750, and revised provisions for special equipment under replacement cost coverage.