What is the appraisal clause in auto insurance?

The appraisal clause is a provision in nearly every standard auto policy that lets either party — you or the insurer — invoke a binding valuation process when you disagree on the actual cash value of a totaled vehicle. Each side hires an appraiser; if those two can't agree, they pick a neutral umpire whose decision is binding.

How much does invoking the appraisal clause cost?

You pay your own appraiser; the insurer pays theirs; the umpire's fee is split 50/50. Independent appraisers typically charge $300–$600. Most clients recover that cost many times over in the higher settlement.

How long does the appraisal clause process take?

Most cases resolve in 2–4 weeks once both appraisers exchange reports. Complex cases that require an umpire can stretch to 6–8 weeks.

Can the insurer refuse to participate in appraisal?

No. If the appraisal clause is in your policy (it is, in 95%+ of US auto policies), the carrier is contractually obligated to participate. Refusing is a bad-faith violation in most states.

Will Auto ACV handle my case end-to-end?

Yes. We prepare the valuation, draft the dispute letter, and represent you in the appraisal-clause process if it gets that far. $1,000 minimum recovery or you pay nothing.

Sample Letter to Invoke the Appraisal Clause

4 min read·Updated March 30, 2025

When to send

After you've received a written total-loss offer and at least one round of negotiation has failed.

What to include

Your name and policy number
Claim number
Date of loss
Vehicle (year, make, model, VIN)
The carrier's stated ACV
Your good-faith ACV with brief justification
Explicit invocation of the appraisal clause
Your appraiser's name, license, and contact info

Sample text

[Your Name]
[Policy Number] | Claim No. [#####]
Date of Loss: [MM/DD/YYYY]
Vehicle: [Year Make Model] | VIN [#####]
Dear [Adjuster Name]:
I am in receipt of your total-loss valuation dated [date], offering an Actual Cash Value of $[amount]. Based on independent market research and comparable listings within a 75-mile radius of [ZIP], I believe the pre-loss ACV is at least $[amount].
Pursuant to the Appraisal provision of my policy, I hereby invoke the appraisal clause to resolve the dispute over the amount of loss. I have retained [Appraiser Name], a competent and disinterested appraiser, whose contact information is below.
Please name your appraiser within the contractual timeframe and instruct your appraiser to coordinate with mine for selection of an umpire.
[Your Appraiser]
[License #]
[Phone] | [Email]
Sincerely,
[Your Name]

How to send it

Certified mail, return receipt requested. Also email a PDF copy to the adjuster and CC the claims supervisor.

Frequently asked questions

Think your offer is too low?

Get an independent appraisal in under 48 hours. $1,000 minimum guarantee or you pay nothing.