If your vehicle has been declared a total loss and you believe your insurance company's valuation is too low, you may feel like you've reached an impasse. You have provided documentation, questioned comparable vehicles, or even obtained an independent appraisal, but the insurance company still isn't willing to agree on the value of your vehicle.
Depending on your insurance policy, there may be another option: invoking the appraisal clause.
What Is an Appraisal Clause?
Many automobile insurance policies contain an appraisal provision designed to provide a process for resolving disagreements over the amount of loss.
While the exact language and procedure vary by policy, the process commonly allows both sides to select their own competent appraiser when the insured and insurance company cannot agree on the amount of the loss.
In a typical appraisal process:
- You select an appraiser to represent your valuation position.
- The insurance company selects its own appraiser.
- The two appraisers review the available evidence and attempt to reach an agreement on the amount of loss.
- If they cannot agree, the matter may be submitted to an umpire, subject to the terms of the policy.
- An agreement between the required parties may establish the amount of loss.
The specific process, requirements, expenses, and effect of an appraisal award depend on the language of your insurance policy and applicable law.
When Should You Consider the Appraisal Clause?
Invoking appraisal may be worth exploring when there is a meaningful and legitimate disagreement over the value of your vehicle and ordinary efforts to resolve that disagreement have been unsuccessful.
For example, you may believe the insurance company's valuation:
- Uses vehicles that are not truly comparable to yours;
- Does not properly account for trim, equipment, options, mileage, or condition;
- Relies on questionable or unsupported adjustments;
- Does not accurately reflect your local or relevant vehicle market; or
- Simply does not reflect what your vehicle was reasonably worth immediately before the loss.
An independent appraisal can help identify and document these differences. If the disagreement remains, the appraisal provision may provide a contractual process for addressing the valuation dispute.
Invoking Appraisal Is Different From Simply Getting an Appraisal
This distinction is important.
Hiring an independent appraiser to determine the value of your vehicle does not necessarily mean you have formally invoked the appraisal provision of your insurance policy.
Once the appraisal clause is invoked, your selected appraiser may be expected to communicate with the insurance company's appraiser, exchange valuation evidence, discuss differences in methodology and comparable vehicles, and work toward an agreed amount of loss.
If the two appraisers cannot agree, they may need to select an umpire and proceed to the next stage of the process.
That makes the selection of your appraiser particularly important.
Autopraisal Can Support You Through the Process
At Autopraisal, we provide independent, market-based vehicle valuations designed to determine what your vehicle was actually worth based on its specific characteristics and relevant market evidence.
If you have already received a Total Loss Valuation Appraisal from Autopraisal and decide to pursue the appraisal provision in your policy, we may also be able to serve as your selected appraiser through our Appraisal Clause Support service.
Rather than simply handing you a report and walking away, we can use the research, comparable vehicles, adjustments, and valuation conclusions developed during your appraisal as the foundation for presenting and supporting our opinion of value during the appraisal process.
Our role remains that of an independent vehicle appraiser. We do not provide legal advice, determine insurance coverage, interpret policy provisions for clients, or provide public adjusting services.
Before You Invoke the Appraisal Clause
Before beginning the process, read the appraisal provision in your insurance policy carefully. Appraisal language can differ significantly from one policy to another, including requirements for invoking appraisal, selecting appraisers and an umpire, allocating expenses, and determining how an award is reached.
If you are unsure whether appraisal is available, enforceable, or appropriate for your particular dispute, consider speaking with a qualified attorney or other appropriately licensed professional.
But if the issue is vehicle value, that is where Autopraisal can help.
Don't Settle a Valuation Dispute Without Understanding Your Options
If your vehicle has been declared a total loss and you believe the insurance company's valuation is too low, you do not have to rely solely on the numbers presented to you.
Contact Autopraisal today to discuss your total loss valuation and whether our Appraisal Clause Support service may be appropriate for your situation.
A professional, independent valuation can help you understand what your vehicle was actually worth and provide the evidence needed to support that value.
