Appraisal Clause
Most auto policies include an appraisal clause that lets either party demand an appraisal when you can't agree on the vehicle's actual cash value. Your policy's own clause sets the terms. When invoked, you and the insurer each select a competent independent appraiser, and typically those two appraisers will agree to a new actual cash value. In the event those two appraisers are unable to agree on a value, the two appraisers can select an Umpire to break ties. Typically, you will split the cost of the third appraiser/umpire with the insurance carrier 50/50. In the event that the two appraisers are unable to agree on an umpire, the insured or the insurance carrier can petition a court with jurisdiction to select one. This rarely happens, but the chance isn't zero. A decision agreed to by two of the three sets the amount, as your policy's clause provides.
More detail
- The procedural details vary from policy to policy, such as how the demand is made and any deadlines. Your policy's own clause sets the terms.
- Costs are typically split: each party pays their own appraiser, and the umpire's fee (only if necessary) is split 50/50.
- An appraisal-clause award sets the actual cash value, as your policy's clause provides. It does NOT decide coverage or liability questions.
Related terms
Free review first
Need help with a real total-loss claim?
Your consultation and offer review are free. The Appointed Appraiser Service is $495. It includes the Appraisal Research, our appointment as your appraiser under the appraisal clause of your policy, if it has one, determining the amount of loss with your insurer's appraiser, and the appraisal award letter.
At least $1,000 more, or your fee is waived. This applies once we accept your consultation and serve as your appraiser. The starting point is your insurer's offer on the day we accept. If the appraisal award, or a higher offer your insurer makes instead, is less than $1,000 above it, we waive our $495 Appointed Appraiser Service fee. If an umpire is needed, the umpire's fee is separate. We pre-authorize your card only after we accept your consultation, so there's no upfront payment.
Results vary. See terms.