SecondAppraisal
Colorado Total Loss Appraisal

Colorado total-loss appraisal: how the appraisal clause works

In Colorado, your auto policy's appraisal clause gives you the right to appoint SecondAppraisal as your independent appraiser in a total-loss dispute.

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Colorado Total-Loss Threshold
100% of pre-loss value
Appraisal Clause
Available in most policies
Fair Claims Settlement Practices
C.R.S. § 10-3-1104(1)(h); 3 CCR 702-5-2-15; C.R.S. §§ 10-3-1115, 10-3-1116
Appraiser Licensing
Review appointment requirements
Official source
leg.colorado.gov ↗

Key takeaway

Under Colorado's § 10-3-1115/1116 statutory bad-faith remedy, an insurer that delays or denies payment "without a reasonable basis" owes two times the covered benefit plus attorney fees, and 3 CCR 702-5-2-15 makes the documentation gaps that produce those denials administratively enforceable on their own.

How SecondAppraisal helps

  • •Free appraisal consultation — we review your offer before you commit.
  • •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.
  • •Average increase: $3,648 over the insurer's first offer (from customers across our services whose consultations finished with a settlement on file, before our fee; past results, not a promise or prediction).
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How a total loss works in Colorado

Insurance carriers in Colorado use the Total Loss Threshold (TLT) method. When the cost to repair your vehicle reaches 100% of its pre-loss actual cash value (ACV), your insurer will declare your vehicle a total loss rather than authorize the repair. From that point, the dispute shifts from "will they fix it?" to "how much will they pay?"

Your appraisal-clause rights in Colorado

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.

Recent outcomes near Colorado

Another successful outcome in Illinois

Insurance company’s first offer
$29,400
Increase over the offer
+$9,400
Total settlement
$38,800

Figures rounded to the nearest $100

That's this customer's result, before our fee. Our typical customer's increase over the insurer's first offer was $3,260; our average was $3,648.

From customers across our services whose consultations finished with a settlement on file, before our fee. Past results, not a promise or prediction.

Total-loss help in Illinois

Your Colorado rights at a glance

Right 1

Statutory remedy of two times the covered benefit, with attorney fees and court costs

Under C.R.S. §§ 10-3-1115 and 10-3-1116, a Colorado policyholder may sue an insurer that delays or denies payment of benefits without a reasonable basis and recover two times the covered benefit plus reasonable attorney fees and costs. This is a direct statutory remedy, and § 10-3-1116(4) makes it an addition to, not a limit on, the other actions available by statute or common law, including common-law bad faith.

Right 2

Right to a documented credible-source valuation

3 CCR 702-5-2-15 § 5(A)(2) requires the insurer's claim file to include the credible source used for valuation by vendor name and the methodology for determining the amount of the loss, plus documentation that the valuation considered classic status, unique finishes, mileage, and special accessories. If the file is missing those particulars, the regulation is on your side.

Right 3

Choosing a competent independent appraiser

Your policy's appraisal clause lets you choose a competent, independent appraiser with relevant vehicle-valuation experience.

Colorado Total Loss Framework — C.R.S. § 10-3-1104(1)(h) + 3 CCR 702-5-2-15

Three layers protect Colorado policyholders: the Unfair Claim Settlement Practices Act at C.R.S. § 10-3-1104(1)(h), the vehicle-valuation regulation at 3 CCR 702-5-2-15, and — critically — the private right of action at C.R.S. §§ 10-3-1115/1116 that lets a first-party claimant sue directly and recover two times the covered benefit plus reasonable attorney fees and court costs when an insurer delays or denies payment of a covered benefit "without a reasonable basis for that action." 3 CCR 702-5-2-15 specifically requires insurers to maintain written total-loss procedures, name the valuation vendor and methodology in the claim file, and document that the valuation considered unique characteristics such as classic status, unique finishes, mileage, and special accessories.

Colorado regulates first-party automobile total losses through three layered authorities: the Unfair Claim Settlement Practices Act at C.R.S. § 10-3-1104(1)(h), the private-right-of-action provisions at C.R.S. §§ 10-3-1115 and 10-3-1116, and the Division of Insurance's vehicle-valuation regulation at 3 CCR 702-5-2-15 (Regulation 5-2-15, Concerning Consumer Protection for Vehicle Valuation and Rental Reimbursement). Under C.R.S. § 10-3-1104(1)(h), it is an unfair claim settlement practice to commit or perform, "either in willful violation of this part 11 or with such frequency as to indicate a tendency to engage in a general business practice," any of a list of acts that includes: (IV) refusing to pay claims without conducting a reasonable investigation based upon all available information; (VI) not attempting in good faith to effectuate prompt, fair, and equitable settlements of claims in which liability has become reasonably clear; (VII) compelling insureds to institute litigation to recover amounts due by offering substantially less than the amounts ultimately recovered; and (XIV) failing to promptly provide a reasonable explanation of the basis in the policy for denial of a claim or for the offer of a compromise settlement. 3 CCR 702-5-2-15 specifically governs total loss claims, with the operative provisions at Section 5(A): § 5(A)(1) — The insurer shall develop and maintain written procedures that will be consistently used when determining the value of a vehicle declared a total loss. § 5(A)(2) — Claims files shall include the credible source used for valuation by vendor name and the methodology for determining the amount of the loss. Claims files shall document that the valuation considered unique characteristics of a total loss vehicle, such as classic status, unique finishes, mileage, and/or special accessories. Failure to comply with this regulation constitutes an unfair or deceptive act or practice in the business of insurance. C.R.S. §§ 10-3-1115 and 10-3-1116 give a first-party claimant a direct private right of action when an insurer unreasonably delays or denies payment of a claim for benefits; under § 10-3-1115(2), a delay or denial is unreasonable if the insurer "delayed or denied authorizing payment of a covered benefit without a reasonable basis for that action." A successful claimant may recover two times the covered benefit plus reasonable attorney fees and court costs (§ 10-3-1116(1)).
As of May 21, 2026
Excerpt — full statute at official source.

Common things to look for in Colorado

Recognize these scenarios in your offer letter or comparable report — and what an owner can ask for.

Scenario

Lowest-of-multiple-sources gamesmanship

What an owner can ask for

3 CCR 702-5-2-15 § 5(A)(1) requires the insurer to develop and maintain written procedures that will be consistently used when valuing a total-loss vehicle, and § 5(A)(2) requires the claim file to name the credible valuation source by vendor and the methodology. If the insurer pulled values from several sources, demand the written procedure and the file's credible-source documentation.

Scenario

No documentation of unique characteristics like upgraded trims, low mileage, or service history

What an owner can ask for

3 CCR 702-5-2-15 § 5(A)(2) is explicit: the claim file must document that the valuation considered the vehicle's unique characteristics, such as classic status, unique finishes, mileage, and special accessories. Ask for the file's documentation of how your vehicle's specific features were considered.

Scenario

'Take it or sue us' lowballs

What an owner can ask for

C.R.S. § 10-3-1104(1)(h)(VII) lists 'compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by such insureds' among the unfair claim settlement practices, when committed in willful violation of part 11 or with such frequency as to indicate a tendency to engage in a general business practice. Combined with the §§ 10-3-1115/1116 remedy of two times the covered benefit plus fees, the math favors making a documented, defensible counter-offer rather than capitulating.

Colorado Department of Insurance

If you believe your insurer is acting in bad faith, you can file a complaint with Colorado Division of Insurance — Consumer Services (DORA) at 303-894-7490 — doi.colorado.gov ↗.

Relevant Colorado precedent

In Schultz v. GEICO Casualty Co., 2018 CO 87, 429 P.3d 844, the court held that an insurer's decision to deny benefits must be evaluated according to the information it had before it at the time of the denial. The statutory remedy at C.R.S. §§ 10-3-1115 and 10-3-1116 — two times the covered benefit plus attorney fees and court costs when an insurer delays or denies payment "without a reasonable basis" — is, under § 10-3-1116(4), in addition to the other actions available by statute or common law. Vaccaro v. American Family Insurance Group, 2012 COA 9M, 275 P.3d 750, held that a claim's being "fairly debatable" in a first-party common-law bad-faith claim does not establish, as a matter of law, that an insurer's delay or denial was reasonable under § 10-3-1115(2). Earlier in the common-law line, Goodson v. American Standard Insurance Co. of Wisconsin, 89 P.3d 409 (Colo. 2004), held that a plaintiff in a tort bad-faith action against an insurer may recover damages for emotional distress without proving substantial property or economic loss. In the auto-claim context specifically, American Family Mutual Insurance Co. v. Allen, 102 P.3d 333 (Colo. 2004), held that the reasonableness of an insurer's investigation of an automobile claim, and of its explanation for denying the claim, did not require expert testimony, and that the unfair claim settlement practices standards, though they create no private right of action, "may be used as valid, but not conclusive, evidence of industry standards."

How SecondAppraisal helps Colorado policyholders

  1. Free appraisal consultation — confirm your offer is below fair market value before you commit.
  2. VIN-decoded option audit so every factory feature is credited.
  3. Accurate and appropriate comparable vehicle research.
  4. Line-by-line audit of the insurer's adjustments.
  5. Once you invoke the appraisal clause, we carry out the appraisal process.

Total-loss help in major Colorado cities

City-specific total-loss guides with local risk factors and your appraisal-clause rights:

DenverDenver total-loss appraisal

Frequently asked questions

What is the total-loss threshold in Colorado?▼
Colorado's total-loss threshold is 100% of pre-loss actual cash value (ACV) — a Total Loss Threshold (TLT) regime. Once the cost of repair reaches 100% of ACV, your insurer is required to declare your vehicle a total loss instead of authorizing repair.
Can I invoke the appraisal clause in a third-party insurance carrier / at-fault insurance carrier claim in Colorado?▼
Generally no — the appraisal clause is part of YOUR policy, not the at-fault driver's. The at-fault driver's insurer can agree to an appraisal, but it doesn't have to. You can also file under your own policy, where its appraisal clause, if it has one, applies, and your insurer can seek your deductible back from the at-fault driver's insurer. In some states, we can serve as your appraiser only under your own policy or if the other driver's insurer agrees. The choice is yours.
What does SecondAppraisal cost in Colorado?▼
Your appraisal consultation is 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. There is no upfront payment: we pre-authorize your card only after we accept your consultation. Our results: $3,648 more than the insurer's first offer, on average, before our fee. From customers across our services whose consultations finished with a settlement on file; past results, not a promise or prediction, and not an average across all total losses.
How long does a Colorado total-loss appraisal take?▼
How long the appraisal takes depends on your insurer's appraiser and, if one is needed, the umpire.

Think your Colorado total-loss offer is low?

Start your free appraisal consultation in 5 minutes. At least $1,000 more than your insurer's offer, or your $495 fee is waived, once we accept your consultation. Our results: $3,648 more than the insurer's first offer, on average, before our fee. From customers across our services whose consultations finished with a settlement on file; past results, not a promise or prediction, and not an average across all total losses.

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