What is the Insurance Appraisal Clause?

The Appraisal Clause Explained

Most auto insurance policies include an appraisal clause — a dispute resolution mechanism for when you and your insurer disagree on your vehicle's value. Instead of going straight to court, either party can demand an independent appraisal process. It's faster and cheaper than litigation, and it's specifically designed for value disputes on total loss and repair cost disagreements.

Step-by-Step: How to Invoke the Appraisal Clause

1. Review your policy. Find the appraisal clause section (usually under "Settlement of Claims" or "General Provisions"). Confirm the process outlined in your specific policy.
2. Send written notice. Write a formal letter to your insurance company stating you are invoking the appraisal clause under your policy. Name your designated appraiser (an ASCAA-certified professional).
3. The insurer designates their appraiser. The insurance company typically has 20 days to name their appraiser.
4. Both appraisers attempt to agree. Your appraiser and the insurer's appraiser independently evaluate the vehicle and attempt to reach agreement on value.
5. If they can't agree, an umpire decides. The two appraisers select a neutral umpire. Any two of the three (your appraiser, their appraiser, and the umpire) reaching agreement is binding.

Why You Need an ASCAA-Certified Appraiser

Your choice of appraiser determines the outcome. An ASCAA-certified appraiser brings USPAP-compliant methodology, documented training, and professional credentials that command respect from the insurer's appraiser and any umpire. They'll use comprehensive market data — not just one valuation tool — to establish your vehicle's true fair market value.

Timeline and Costs

The appraisal clause process typically resolves in 30–60 days. Each party pays for their own appraiser, and the umpire's fee (if needed) is usually split. The cost of your appraiser is almost always recovered many times over through the increased settlement amount.

See our detailed guide: The Complete Guide to the Auto Insurance Appraisal Clause