First-Party Claim

A Third-Party Claim is a claim you file against the at-fault driver's insurance policy. You don't pay a deductible, but you also don't have policy rights with that carrier — including the appraisal clause — which can make negotiation harder.

An Appraisal Clause is a provision in most US auto insurance policies that lets either you or the insurer demand an independent appraisal when you disagree on the value of a totaled vehicle. 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. The resulting valuation from any two appraisers and/or the umpire is binding.