When dealing with a total loss settlement from a car accident, you may not always agree with your insurance company’s valuation of your vehicle. This is where the appraisal clause in car insurance policies becomes a valuable tool. By invoking this clause, policyholders can dispute the insurer’s assessment of their vehicle’s worth and seek a fair settlement.
What Is the Appraisal Clause?
The appraisal clause is a common feature in car insurance policies, mainly when dealing with comprehensive or collision coverage. It allows policyholders to challenge the insurance company’s valuation of their car if they feel it doesn’t accurately reflect the car’s market value. Essentially, the clause enables both the insurer and the insured to hire independent appraisers who will assess the vehicle and help establish fair market value.
How Does the Appraisal Clause Process Work?
- Dispute Identification: If you believe the insurance company’s valuation is too low, you can initiate the appraisal clause. It’s important to review your policy first to confirm that this clause is included and to understand the exact procedure outlined by your insurer.
- Hiring an Appraiser: Both you and the insurance company will select independent appraisers to evaluate the vehicle’s worth. These appraisers are typically experts in vehicle valuation who will conduct a thorough assessment based on factors like age, condition, mileage, and local market trends.
- Selection of an Umpire: If the two appraisers cannot agree on a value, the appraisal clause may also call for a neutral third-party umpire to make the final determination. Both appraisers usually select this umpire to mediate any disagreements and come to a fair conclusion.
- Resolution: Once the appraisers or umpire determine a fair value, this figure becomes binding, meaning that the insurance company will honor this amount in the settlement. This process not only ensures that you receive a fair valuation but also helps you avoid drawn-out litigation.
Why Use the Appraisal Clause?
The appraisal clause can offer peace of mind and a quicker resolution if you’re facing what seems to be an unjust settlement. Since the process relies on industry experts and independent assessments, it’s typically more transparent and can lead to a valuation closer to your vehicle’s true market value. Moreover, involving third-party appraisers often helps keep the claims process fair and ensures that insurance companies are held accountable.
Final Thoughts and Next Steps
If you’re in a dispute over your car’s valuation and wish to invoke the appraisal clause, finding a reputable third-party appraiser can make a significant difference in your settlement. At Jared’s Auto Appraisal, you’ll find a team of experienced, certified appraisers who specialize in accurate and reliable vehicle assessments.
Whether you’re facing a total loss or diminished value or want to double-check a damage estimate, Jared’s Auto Appraisal is committed to helping clients receive fair compensation with unmatched expertise and professionalism.
Reach out today to discuss your options and learn more about our appraisal clause car insurance support, free claim reviews, and a wide range of vehicle appraisal services.