The Montana Appraisal Clause Playbook
In Montana, the appraisal clause is the only mechanism that forces a carrier off its first ACV number without filing suit. Montana auto policies include the binding appraisal clause. The governing authority is Mont. Admin. R. 6.6.3001 (Unfair Claims Settlement Practices)., and the resulting award is binding on actual cash value (it does not decide coverage or liability).
Where to send the demand
Montana carriers will accept demands sent to the address on the declarations page; a separate copy to a corporate "appraisal demand" inbox is optional but useful. The Montana DOI (1-800-332-6148) does not adjudicate the appraisal itself, but it logs the file and the carrier knows it.
Umpire selection in Montana
If the two appraisers cannot agree on ACV, they jointly select a neutral umpire — usually a senior independent appraiser, a retired adjuster, or a licensed dealer. In Montana, most umpires are selected by mutual agreement within 7–14 days; if not, either side can petition the local court to appoint one.
Timeline expectations
Plan on 49 days end-to-end. Day 0: certified demand goes out. Day 5–10: appraisers identified. Day 15–25: positions exchanged. Day 25–49: agreement or umpire decision, then a check within two weeks.
Who pays what
Each party absorbs its own appraiser's bill; the umpire bill (when one is named) splits down the middle. The carrier cannot bill you for its appraiser. Auto ACV operates on a contingent structure tied to the lift over the original offer.
Two tactics that move Montana carriers fastest
- Cite the policy section number, not just "the appraisal clause." Most carrier policies number the provision; quoting it tells the adjuster you have read the contract.
- Pull your own comp set before the demand goes out. Knowing what local dealer asking prices actually are means you can immediately push back on the carrier's first appraiser position.
Three pitfalls that void or weaken the clause in Montana
- Forgetting that the appraisal award is binding on ACV only — it does not resolve coverage disputes, salvage retention, or who is at fault.
- Accepting the carrier's first written offer in any form (signed release, electronic acceptance, deposited check). Once accepted, the appraisal clause is waived.
- Letting the carrier choose the umpire unilaterally. Umpire selection is mutual; if the carrier names one without your agreement, refuse and propose three alternatives.
Montana appraisal-clause demand letter (copy-ready)
Replace bracketed fields with your claim details. Send certified mail with return receipt to the claims address on your declarations page. Cites Mont. Admin. R. 6.6.3001 (Unfair Claims Settlement Practices)..
[Date]
[Carrier name]
[Claims address from your declarations page]
Re: Claim No. [your claim number]
Policy No. [your policy number]
Insured: [your name]
Loss date: [date]
Loss location: Billings, MT
To Whom It May Concern:
Pursuant to the appraisal provision of the auto policy referenced
above, and consistent with Mont. Admin. R. 6.6.3001 (Unfair Claims Settlement Practices)., I am hereby invoking the
appraisal clause to determine the actual cash value of my totaled
vehicle.
I have appointed [appraiser name, license, contact] as my appraiser.
Please identify your appraiser within ten (10) business days of receipt
of this letter so that the appraisal may proceed. If the two appraisers
cannot agree, they shall jointly select a competent and disinterested
umpire as the policy provides.
This letter is sent by certified mail with return receipt requested.
All further communications regarding ACV should be in writing.
Sincerely,
[Your name]
[Address, phone, email]This template is a starting point, not legal advice. We'll send a tailored demand on your behalf as part of every Auto ACV engagement in Montana.