Auto Insurance Appraisal Clause: Dispute a Total Loss Value
What Is an Appraisal Clause?
An appraisal clause is a provision found in many auto insurance policies that provides a formal process for resolving a disagreement over the value or amount of loss. If you believe your insurance company has undervalued your totaled vehicle, the appraisal clause may allow you to dispute the settlement amount without going to court.
Typically, you and the insurance company each select an independent appraiser. The two appraisers evaluate the vehicle and attempt to agree on the amount of loss. If they cannot agree, an impartial umpire may be brought in to resolve the valuation dispute.
How Do I Invoke My Appraisal Clause?
Start by reviewing your auto insurance policy to determine whether it contains an appraisal provision and what procedures it requires.
If appraisal is available, the process involves notifying the insurance company in writing that you are invoking your right to appraisal and selecting a qualified independent auto appraiser to represent your side of the valuation dispute.
Motor City Auto Appraisers can review your insurance company's total loss valuation and help determine whether invoking the appraisal clause may be appropriate.
Can I Dispute My Insurance Company's Total Loss Value?
Yes. If you believe your insurance company's valuation does not accurately reflect the actual cash value or fair market value of your vehicle, you can challenge the valuation.
Insurance valuation reports can contain incorrect comparable vehicles, missing options, inaccurate condition ratings, mileage adjustments or other factors that affect the settlement amount.
Depending on your policy, the auto insurance appraisal clause may provide a formal method for resolving the disagreement.
Who Pays the Appraisers?
Typically, each party pays the cost of the appraiser they select. If an umpire is required, the cost of the umpire is divided between the two parties.
However, appraisal provisions vary by insurance policy, so you should review the specific language in your policy to determine how appraisal and umpire fees are handled.
What Does an Umpire Do in the Appraisal Process?
An appraisal umpire is a neutral third party used when the vehicle owner's appraiser and the insurance company's appraiser cannot agree on the amount of loss.
The umpire reviews the valuation evidence presented by the appraisers and helps resolve the disagreement. The exact procedure and requirements for reaching a binding appraisal award depend on the language of the insurance policy and applicable law.
How Long Does the Auto Insurance Appraisal Process Take?
There is no universal timeframe. The length of the auto insurance appraisal process depends on the complexity of the claim, availability of the appraisers, amount of market research required, cooperation between the parties and whether an umpire becomes necessary.
Straightforward total loss disputes may be resolved relatively quickly, while complicated claims involving rare, modified, classic or high-value vehicles can require additional research and negotiation.
Can My Insurance Company Refuse Appraisal?
Whether an insurance company must participate in appraisal depends on the specific language of your insurance policy, applicable state law and the nature of the dispute.
Some policies contain appraisal provisions that allow disputes over the amount of loss to be submitted to appraisal, while other policies may contain different requirements, restrictions, or procedures.
Before invoking the appraisal clause, carefully review your policy's appraisal provision and make sure you follow its requirements.
Think Your Total Loss Settlement Is Too Low?
Before accepting your insurance company's total loss settlement, have the valuation reviewed by an experienced certified auto appraiser.
Auto Appraisal Network Detroit offers a complimentary, no-obligation vehicle valuation review within 48 hours to help determine whether your vehicle may have been undervalued.
If the insurance company's offer is too low and your policy provides an appraisal process, we can help you understand the next steps and represent you through the total loss appraisal clause process.
