The Montana Appraisal Clause Playbook
In Montana, the appraisal clause is the one mechanism that forces a carrier off its first ACV number without filing suit. Most standard Montana auto policies include a binding appraisal clause — check the Loss Settlement or Conditions section of your policy. The governing authority is Mont. Admin. R. 6.6.3001 (Unfair Claims Settlement Practices).; the resulting award is binding on ACV but does not decide coverage or fault. Montana policyholders in metros like Billings use the clause routinely because the local dealer comp market is dense enough to defend a number against any desk-based valuation.
Where to send the demand
Montana carriers accept demands at 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 they log the file — and the carrier knows that. Mont. Admin. R. 6.6.3001 (Unfair Claims Settlement Practices). is the underlying authority.
Umpire selection in Montana
In Montana, the two appraisers exchange three umpire candidates each, strike, and select. Most files never reach the umpire — both sides settle at the appraiser stage once positions are exchanged. The qualified umpire bench in Billings alone has 8–12 active names at any time.
Timeline expectations
For Montana files we benchmark 49 days as the realistic case and 60 days as the worst case. The 49-day path assumes the carrier names its appraiser within two weeks; when they do not, you escalate to the Montana DOI and the file moves. Billings is the busiest metro for both sides' panel appraisers, so capacity is rarely an issue.
Who pays what
Each party absorbs its own appraiser's bill in Montana; 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.
Three tactics that move Montana carriers fastest
- If the carrier delays naming its appraiser past 14 days, send a follow-up letter referencing the state's unfair claims settlement statute. That single letter often produces a name within 48 hours.
- Demand the auto-condition adjustment back-up. "Typical condition" deductions are software defaults that rarely match the inspector's notes.
- Document the request: send the demand by certified mail, retain the green card, and email a PDF copy to the adjuster the same day. Carriers regularly claim verbal invocations never happened.
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.
- Failing to ask for the comp window stickers. Reports cite trims; comps frequently do not match.
- Picking your own brother-in-law as your appraiser. The carrier will challenge non-independent appraisers, and umpires routinely give those reports little weight.
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
Governing authority: Mont. Admin. R. 6.6.3001 (Unfair Claims Settlement Practices).
Regulator: Montana Department of Insurance (1-800-332-6148)
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. Most standard Montana auto policies include a binding appraisal clause — check the Loss Settlement or Conditions section of your policy.
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.
Per Montana practice, the resulting ACV shall include the statutory
sales tax and title/registration fees that form part of actual cash value
in this state (Montana has no state sales tax, but insurers must include county option tax, title, and registration fees.). Salvage retention, if elected, is
governed by Montana uses a total-loss formula; salvage titles required for totaled vehicles.
This letter is sent by certified mail with return receipt requested. All
further communications regarding ACV should be in writing. A copy of this
letter will be retained for the Montana DOI file at 1-800-332-6148
if the carrier does not acknowledge within ten business days.
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.