SecondAppraisal
North Dakota Total Loss Appraisal

North Dakota total-loss appraisal: how the appraisal clause works

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

Get My Free Appraisal ConsultationRead the Total-Loss Guide
North Dakota Total-Loss Threshold
75% of pre-loss value
Appraisal Clause
Available in most policies
Fair Claims Settlement Practices
N.D. Cent. Code §§ 26.1-04-03, 32-03.2-11, 39-05-20.2
Appraiser Licensing
Review appointment requirements
Official source
ndlegis.gov ↗

Key takeaway

N.D. Cent. Code § 26.1-04-03(9) defines unfair claim settlement practices as listed acts done without just cause and with a frequency indicating a general business practice. Item d. is not attempting in good faith to settle claims promptly, fairly, and equitably once liability has become reasonably clear; no item sets a method for valuing a vehicle. In Moore v. American Family Mutual Insurance Co., No. 08-3238 (8th Cir. 2009), the Eighth Circuit, applying North Dakota law, affirmed a jury verdict awarding insureds punitive damages on their bad-faith claim against their own insurer. N.D. Cent. Code § 32-03.2-11(1) allows such damages in an action for breach of an obligation not arising from contract when the defendant is guilty, by clear and convincing evidence, of "oppression, fraud, or malice." Under § 39-05-20.2(1), the owner of a vehicle damaged in excess of 75 percent of its retail value as determined by the NADA official used car guide, excluding glass and hail damage, must send the title to the Department of Transportation within ten days for a salvage certificate of title.

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).
Get My Free Appraisal Consultation

How a total loss works in North Dakota

Insurance carriers in North Dakota use the Total Loss Threshold (TLT) method. When the cost to repair your vehicle reaches 75% 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 North Dakota

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 North Dakota

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 North Dakota rights at a glance

Right 1

Bad-faith claim against your insurer

Applying North Dakota law in Moore v. American Family Mutual Insurance Co., No. 08-3238 (8th Cir. 2009), the Eighth Circuit affirmed a jury's award of actual and punitive damages to insureds on their bad-faith claim after their insurer denied a fire claim. Punitive damages require clear and convincing evidence of "oppression, fraud, or malice" under N.D. Cent. Code § 32-03.2-11.

Right 2

UCSPA standards under N.D. Cent. Code § 26.1-04-03

The UCSPA prohibits, when done without just cause and with a frequency indicating a general business practice, failing to acknowledge claim communications with reasonable promptness, failing to adopt reasonable claim-investigation standards, not attempting in good faith to make prompt, fair, and equitable settlements when liability is reasonably clear, and compelling insureds to sue by offering substantially less than the amounts ultimately recovered. North Dakota does not have a separate closed-list auto-claim regulation, so the UCSPA standards plus the bad-faith claim supply the operative leverage.

Right 3

Salvage-title threshold under N.D. Cent. Code § 39-05-20.2

A vehicle damaged in excess of 75% of its retail value (as determined by the NADA Official Used Car Guide) must be issued a salvage certificate of title. Glass damage and hail damage are excluded from the 75% calculation.

North Dakota Total Loss Framework — N.D. Cent. Code §§ 26.1-04-03, 32-03.2-11, 39-05-20.2

North Dakota's total-loss framework rests on the unfair claim settlement practices in N.D. Cent. Code § 26.1-04-03(9), the salvage-title threshold at N.D. Cent. Code § 39-05-20.2 (damage in excess of 75% of retail value), and an insured's bad-faith claim against its insurer, on which the Eighth Circuit, applying North Dakota law, affirmed actual and punitive damages in Moore v. American Family Mutual Insurance Co., No. 08-3238 (8th Cir. 2009). North Dakota does NOT have a closed-list NAIC-style auto total-loss valuation regulation; the framework operates through the general UCSPA standards plus the bad-faith claim. Punitive damages require clear and convincing evidence of "oppression, fraud, or malice" under N.D. Cent. Code § 32-03.2-11.

North Dakota regulates first-party automobile total losses through the unfair claim settlement practices in N.D. Cent. Code § 26.1-04-03(9) and the salvage-title statute at N.D. Cent. Code § 39-05-20.2. An insured may also sue its insurer for bad faith: applying North Dakota law in Moore v. American Family Mutual Insurance Co., No. 08-3238 (8th Cir. 2009), the Eighth Circuit affirmed a jury's award of actual and punitive damages to insureds on their bad-faith claim against their insurer. N.D. Cent. Code § 26.1-04-03 — Unfair Claim Settlement Practices. The statute defines acts that constitute unfair claim settlement practices when done without just cause and performed with a frequency indicating a general business practice, including: knowingly misrepresenting to claimants pertinent facts or policy provisions relating to coverages at issue; failing to acknowledge with reasonable promptness pertinent communications about claims; failing to adopt and implement reasonable standards for the prompt investigation of claims; failing to affirm or deny coverage of claims within a reasonable time after proof of loss has been completed; not attempting in good faith to effectuate prompt, fair, and equitable settlements when liability is reasonably clear; and compelling insureds to institute suits to recover amounts due by offering substantially less than the amounts ultimately recovered. Punitive damages. Under N.D. Cent. Code § 32-03.2-11, exemplary damages in an action for the breach of an obligation not arising from contract require clear and convincing evidence of "oppression, fraud, or malice"; in Moore, the Eighth Circuit stated that under North Dakota law an insurer that violates its duty of good faith is liable for punitive damages if it meets the section's clear-and-convincing standard. N.D. Cent. Code § 39-05-20.2 — Salvage Title Threshold. The owner of a vehicle damaged in excess of 75% of its retail value, as determined by the NADA official used car guide, must forward the title for a salvage certificate of title.
As of May 21, 2026
Excerpt — full statute at official source.

Common things to look for in North Dakota

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

Scenario

Lump-sum or non-itemized condition deductions

What an owner can ask for

Even though North Dakota has no closed-list claim regulation requiring per-line-item documentation, lump-sum or unsupported condition deductions remain vulnerable: they bear on § 26.1-04-03's good-faith settlement standard. An owner may ask the insurer for the per-line-item documentation in writing.

North Dakota Department of Insurance

If you believe your insurer is acting in bad faith, you can file a complaint with North Dakota Insurance Department — Consumer Assistance at 800-247-0560 — insurance.nd.gov ↗.

Relevant North Dakota precedent

In Moore v. American Family Mutual Insurance Co., No. 08-3238 (8th Cir. 2009), the Eighth Circuit, applying North Dakota law, affirmed a jury verdict for insureds whose fire claim their insurer had denied, including actual and punitive damages on their bad-faith claim. The court noted the North Dakota Supreme Court's view that an insurer's bad-faith breach of its duties to an insured is likely to cause mental anguish, for which juries have wide discretion to award damages. The punitive-damages standard in North Dakota is heightened — N.D. Cent. Code § 32-03.2-11 requires "oppression, fraud, or malice" by clear and convincing evidence. Compensatory damages can include the contract amount, consequential losses, and emotional-distress damages where adequately documented.

How SecondAppraisal helps North Dakota 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.

Frequently asked questions

What is the total-loss threshold in North Dakota?▼
North Dakota's total-loss threshold is 75% of pre-loss actual cash value (ACV) — a Total Loss Threshold (TLT) regime. Once the cost of repair reaches 75% 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 North Dakota?▼
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 North Dakota?▼
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 North Dakota total-loss appraisal take?▼
How long the appraisal takes depends on your insurer's appraiser and, if one is needed, the umpire.

Think your North Dakota 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.

Get My Free Appraisal Consultation