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Auto Insurance Appraisal Clause Help

Disagree with your repair estimate or total-loss value? Learn how appraisal works nationwide. Availability depends on your policy and state.

FAQ

What is the appraisal clause?
An appraisal clause is a provision in your auto policy for resolving a disagreement with your own insurer about the amount of loss. Depending on the policy and state, it may apply to a repair-cost or total-loss valuation dispute.

Repair cost or total-loss value?
A repair dispute concerns the amount needed to repair the vehicle. A total-loss dispute concerns its actual cash value before the loss. Appraisal availability and scope vary by policy and state. Diminished value requires a separate review; appraisal does not automatically apply.

How do the appraisers and umpire work?
Typically, each side selects a qualified appraiser. The appraisers evaluate the loss and try to agree. If needed, disputed amounts go to an umpire. Under many clauses, agreement by any two determines the award. Written-demand, selection and timing rules depend on the policy and state.

Is the appraisal clause decision binding?

In most auto insurance policies, the appraisal award is binding on both parties regarding the amount of loss. However, it does not determine coverage issues or legal liability. The binding effect depends on the policy terms and state law.

Why choose Nexus?

Mitch Buhr brings 30+ years in automotive work, collision repair and estimating. Nexus serves as your selected independent appraiser. Send your policy provision, estimate or valuation for review. Scope and fees are explained before engagement. No result is guaranteed.

1 

What Is the Appraisal Clause?

It is a contractual dispute resolution process that:

  • Allows each party to select an appraiser

  • Requires those appraisers to attempt agreement

  • Permits selection of an umpire if needed

  • Results in a binding valuation decision in most policies

2

When It Applies

  • Total loss valuation disputes

  • Repair cost disputes

  • Disagreement over ACV

  • Diminished value disagreements (policy dependent)

3

Why Experience Matters

The appraisal process is technical.

It requires:

  • Understanding valuation methodology

  • Knowing when to escalate

  • Evidence presentation

  • Umpire selection strategy

  • Negotiation discipline

       Improper handling can weaken your position

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