Car Insurance Appraisal Clause: How to Invoke It
You and your own insurer agree the damage is covered but can't agree on the number. The appraisal clause hands that one question to two appraisers and, if needed, an umpire.
Short answer
Most auto policies let either side demand appraisal in writing when you disagree on the amount of loss, such as the repair cost or a total loss value. Each side hires its own appraiser and pays for them; the two pick an umpire and split that cost; any two of the three set the binding amount. It works only under your own policy and only for the amount, not for whether something is covered.
When appraisal fits, and when it doesn't
| Situation | Appraisal? |
|---|---|
| Your insurer's total loss value is too low (collision or comprehensive claim) | Yes, the most common use |
| Your insurer's repair estimate is lower than the shop's | Yes, if the disagreement is about cost |
| The insurer says the damage isn't covered, or denies the claim | No: that is a coverage dispute. Appeal in writing, complain to your state insurance department, or see a lawyer |
| Claim against the other driver's insurer | No, except in Rhode Island: their policy's clause isn't yours. Use a demand letter, a complaint, or small claims court |
| Diminished value under your own policy | Only if your state and policy allow first-party diminished value; many policies exclude it |
| Dispute about who was at fault | No |
How the clause usually reads
The widely used standard personal auto policy says, in short: if you and the insurer don't agree on the amount of loss, either may demand appraisal; each picks a competent, independent appraiser; the two appraisers pick an umpire; the appraisers state the actual cash value and the amount of loss separately and send any differences to the umpire; a decision agreed by any two is binding; each side pays its own appraiser and shares the umpire's and other appraisal costs equally; and the insurer doesn't give up any rights by agreeing to appraisal.
Insurers write their own versions, and some policies have no appraisal clause at all or make it non-binding. Find the "Appraisal" heading in the physical damage part of your policy (often Part D) before you send anything.
How to invoke it, step by step
- Put your number in writing first: a repair estimate, or comparable cars for sale for a total loss, and ask the adjuster to explain theirs. Many disputes settle here.
- Read the clause for deadlines (some require the demand within a set time after proof of loss) and for how appraisers are chosen.
- Hire an appraiser who has no stake in the result. Ask for a flat fee in writing: a fee that grows with the award can get the appraiser challenged as not independent.
- Send the written demand (below) by email and a trackable method, and log the date in your claim diary.
- The two appraisers compare figures. If they agree, that is the amount. If not, they choose an umpire, and whichever figure the umpire agrees with (or a figure two of them sign) is binding.
- The insurer pays the award under the policy, less your deductible and any amount already paid.
Appraisal demand to copy
[Your name] [Policy number] / [Claim number] [Date] To [insurer name], claims department: We have not been able to agree on the amount of loss on this claim. Your offer is $[their amount]; my estimate is $[your amount], supported by the enclosed [estimate / comparable vehicles / appraisal]. Under the appraisal provision of my policy, I am demanding an appraisal of the amount of loss. My appraiser is [name, company, phone, email]. Please name your appraiser in writing within [number of days in your policy or state law, for example 20] days. This demand is only about the amount of loss. I am not waiving any other rights under the policy or the law. [Signature]
The demand letter generator can also write this for you: choose "Invoke the appraisal clause".
What it costs
- Your appraiser: you pay, under most clauses. Get a written quote before you start; fees vary by appraiser and vehicle.
- The umpire: usually split 50/50, and only needed if the two appraisers can't agree.
- Oregon and Rhode Island make the insurer repay your appraisal costs when the award beats its offer by enough (see the table below).
- Worth it when the gap is clearly larger than the fee. For a gap of a few hundred dollars, a written counter-offer and a complaint to your state insurance department usually cost less.
States with their own appraisal rules
In other states, your policy's wording decides whether appraisal exists and how it works.
| State | Rule | Law |
|---|---|---|
| Texas | Personal auto policies must include an appraisal provision for disputes only about the amount of loss (policies issued or renewed from January 1, 2026). The Texas Department of Insurance sets the timing by rule. | Tex. Ins. Code ch. 1813 (S.B. 458, 2025) |
| Washington | Auto policies with physical damage coverage must include appraisal (issued or renewed from January 1, 2026). Each side names a disinterested appraiser within 10 days of the written demand; if the appraisers can't pick an umpire within 15 days, the Insurance Commissioner names one. Appraisals are due within 30 days. Each side pays its appraiser and half the umpire. | RCW 48.18.620 |
| Oregon | When the policy has an appraisal clause, the appraiser must hold an Oregon vehicle appraiser certificate (or another state's licence), and the insurer must repay your reasonable appraisal costs if the final award is higher than its last offer. | ORS 742.466 |
| Rhode Island | An insured or a claimant can demand independent appraisal of a damaged vehicle. The insurer's appraiser must inspect within 4 business days; the umpire decides within 5 days. If you start it and the award is more than 25% above the insurer's first offer, the insurer pays all your appraisal costs; otherwise the umpire cost is split. | R.I. Gen. Laws § 27-10.4-1 |
| Illinois | From July 1, 2027, auto policies with physical damage coverage must include appraisal, and you can invoke it without the insurer's consent. Until then, it depends on your policy. | 215 ILCS 5/398 (Public Act 104-0767) |
If your policy has no appraisal clause
- Send a written counter-offer with evidence and ask for the valuation report and every deduction in writing.
- File a complaint with your state insurance department; the insurer has to answer it in writing.
- For smaller amounts, small claims court; for an unreasonable refusal to pay, talk to a lawyer about bad faith.
What to do next
Frequently asked questions
Is an appraisal award binding?
Under most clauses, yes, on the amount of loss, once two of the three (the two appraisers, or one appraiser and the umpire) agree. It can usually be challenged only for things like fraud, a biased appraiser or a decision outside the question of amount.
Can the insurer refuse appraisal?
If your policy has the clause and the dispute is about the amount of loss, the insurer generally has to take part. It can argue the dispute is really about coverage. Texas, Washington and, from July 2027, Illinois require the clause in auto policies.
How long does an auto appraisal take?
Often a few weeks. Washington gives each side 10 days to name an appraiser and 30 days to finish; Rhode Island requires the insurer's inspection within 4 business days. Elsewhere the timing is in your policy.
Can I use appraisal against the other driver's insurer?
Generally no, because the clause is a contract between that insurer and its own customer. Rhode Island is the exception: its law gives claimants the right too. Elsewhere, use a demand letter, a complaint to the insurance department or small claims court.