What Is the Appraisal Clause—and When Should You Use It?
The appraisal clause is a provision in many auto insurance policies that allows policyholders to resolve disputes with their insurer when they disagree on a vehicle’s valuation, such as during a total loss or diminished value claim. Instead of going to court, both sides hire independent appraisers, and if they don’t agree, a neutral umpire helps determine a binding value. It’s a powerful consumer tool, but should generally be used only when negotiations have stalled, the valuation gap is significant, and strong evidence supports a higher number. The clause helps ensure fairness and accuracy, but it comes with costs—so it’s most effective when you’re confident the insurer’s offer is meaningfully below market value.
State's Department of Insurance Contact Information.
When you need to understand your rights regarding an insurance claim or file a formal complaint you'll need to contact the Department of Insurance (DOI). Each states has their own DOI. For contact information for your states DOI, click below.
Total Loss Threshold vs. Total Loss Formula: How States Decide When a Vehicle Is “Totaled”
This article explains the two systems states use to determine whether a damaged vehicle is a total loss: the Total Loss Threshold (TLT) and the Total Loss Formula (TLF). The TLT uses a fixed percentage—such as 70% or 80% of a vehicle’s pre-loss value—to automatically declare a total loss when repair costs exceed that limit. The TLF, used in many other states, compares repair cost plus salvage value against the vehicle’s Actual Cash Value to decide if it should be totaled. By understanding which method applies in your state, consumers can better evaluate insurance decisions, challenge incorrect valuations, and negotiate more effectively when facing a potential total loss.
Total Loss Offer Review Checklist
This checklist provides a step-by-step guide for reviewing an insurance company’s total loss settlement offer. It helps vehicle owners verify that the insurer’s valuation, repair estimates, deductions, fees, and salvage calculations are accurate, and encourages independent research or appraisals when needed. By following this checklist, consumers can ensure they receive a fair settlement, understand their rights, and make informed decisions before accepting a total loss offer.
Understanding Diminished Value Claims: A Comprehensive Guide.
This article provides a clear and comprehensive overview of diminished value claims, explaining how a vehicle can lose market value even after high-quality repairs and what consumers can do to recover that loss. It breaks down the different types of diminished value, outlines who can file a claim, and highlights how state laws and insurance policies affect eligibility. The guide also explains how insurers calculate diminished value, why independent appraisals often lead to more accurate outcomes, and includes a practical checklist to help vehicle owners prepare, document, and negotiate their claims effectively.
