The Appraisal Clause: Your Most Powerful Total-Loss Tool

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.

The mechanics are similar across most policies, but always read your specific policy language first.

• 1. You or the insurer demands appraisal in writing.
• 2. Each side names a 'competent and disinterested' appraiser within the policy-specified time (usually 20-30 days - may vary - check your policy).
• 3. If the two appraisers are unable to agree on a value, they can select an umpire. If they cannot agree on an umpire, a court with jurisdiction appoints one.
• 4. Each appraiser independently determines the vehicle's ACV.
• 5. If the two appraisers agree, that's the binding value. If the two appraisers are unable to agree, the umpire may determine the value.
• 6. Each side pays their own appraiser; the umpire's fee, only if necessary, is split 50/50.
• 7. The insurer pays the binding value (minus deductible).

Once you know there is an evidence based case that your vehicle is under valued. We can help with this. Consider a free consultation with Second Appraisal.

We charge a flat fee of $500. If we can't improve the offer, you pay nothing. The Umpire's fee, which may be $300 to $800, is split 50/50.

Generally no. The appraisal clause is part of YOUR policy with YOUR insurer. If you're filing against the at-fault driver's insurance (a third-party claim), you don't have contractual rights with that carrier. However, you can often switch to a first-party claim under your own policy and let your insurer pursue subrogation.