The Insurance Appraisal Clause: Your Secret Weapon for Total Loss Disputes

Most people don't know this exists: buried in almost every auto insurance policy is an "appraisal clause" that lets you challenge the insurance company's valuation through an independent process.

What Is the Appraisal Clause?

When you and your insurer can't agree on your vehicle's value, either party can invoke this clause. You hire an appraiser, they hire an appraiser, and if those two disagree, a neutral third party (umpire) breaks the tie.

When Should You Use It?

The appraisal clause makes sense when the gap is significant (generally $1,500+), you have strong evidence, negotiation has stalled, and the amount justifies the cost.

How the Process Works

Step 1: Send written demand for appraisal.
Step 2: Select your appraiser ($250-$500).
Step 3: Insurance company selects their appraiser.
Step 4: Appraisers attempt to agree.
Step 5: If needed, an umpire decides.

Success Rates

Industry data suggests claimant-favorable outcome in 70-80% of appraisals, average increase of $1,800-$3,500, and resolution in 2-6 weeks.

Before Going to Appraisal

Try supervisor escalation, state insurance commissioner complaint, or using a dispute tool like Car Dispute Tool to build a professional case.

The insurance company hopes you don't know about this option. Now you do.