Appraisal Clause in Auto Insurance: How to Invoke It (Step by Step)

What the appraisal clause is

Almost every personal auto policy in the United States contains an "Appraisal" condition. It exists to break a deadlock between you and your insurer about the amount of loss — not coverage, not liability. If the carrier says your totaled SUV is worth $14,200 and you have evidence it's closer to $18,500, the appraisal clause gives you a private, contractual way to settle the dispute without filing suit.

When to invoke it

Invoke after you have:

• A written total-loss offer that you can document is too low (comp listings, dealer quotes, NADA/KBB ranges).
• Tried at least one written rebuttal and gotten a denial or a thin counter.
• A vehicle worth enough that the appraisal cost (usually $400–$800 each side) makes economic sense — typically a $1,000+ gap.

The exact steps

1. Send a written demand. Use certified mail or the carrier's documented portal. Quote the policy section, identify the claim number, and demand appraisal of the amount of loss.
2. Name your appraiser. Within 20 days (varies by policy) you must name a "competent and disinterested" appraiser.
3. Carrier names theirs. They have the same window.
4. The two appraisers select an umpire. If they cannot agree, either party can ask a court to appoint one.
5. Each appraiser submits a value. If they agree, that's the settlement.
6. If they disagree, the umpire decides. The value any two of the three agree on is binding.
7. Carrier pays within the statutory window (commonly 30 days).

Costs

You pay your appraiser. The carrier pays theirs. The umpire fee is split 50/50.

Common pitfalls

• Don't sign a release before invoking — once you sign, you've waived your appraisal rights.
• Don't accept "we don't do appraisal on total losses" — they do, it's in the contract.
• Don't pick your cousin as appraiser. "Disinterested" means no financial stake.