Is the appraisal decision binding?

Under most appraisal clauses, an amount agreed to by two of the three parties (the two appraisers, or one appraiser and the umpire) settles the amount of the loss. Check your policy for its exact terms.

Can I use the appraisal clause against the other driver's insurance?

Usually not. The clause is part of your own policy. For third-party claims, an independent appraisal is used as evidence in negotiation.

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What Is the Appraisal Clause in an Auto Insurance Policy?

Many auto insurance policies include an appraisal clause. It gives you and your insurer a way to settle a disagreement over the amount of a loss without going to court. If you and your insurer can't agree on what your totaled vehicle was worth, this clause is often the most direct path forward.

How it usually works

Either you or the insurer makes a written demand for appraisal.
Each side picks its own independent appraiser.
The two appraisers try to agree on the value. If they agree, that amount is generally binding.
If they cannot agree, they select an umpire. A decision agreed to by any two of the three (either appraiser and the umpire) usually settles the amount.

Who pays

Typically each side pays for its own appraiser, and the two sides split the umpire's cost. Your policy language controls the details.

What it covers, and what it doesn't

Appraisal decides the amount of the loss, meaning what the vehicle was worth. It generally does not decide coverage questions, such as whether the loss is covered at all.

Check your own policy

Wording and procedures vary by insurer and by state, and some policies don't include the clause. Read the appraisal section of your policy, or ask your insurer for it in writing. Your state's insurance department can also answer questions about consumer rights in your state.

Third-party claims are different

The appraisal clause is part of your own policy. If you're claiming against the other driver's insurer, you usually can't invoke it, but an independent appraisal still gives you documented evidence to negotiate with.

Think your total loss offer is too low?

Our independent appraisers build a documented valuation from market data, equipment and condition, and stand behind it through negotiation with your insurer.

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Common questions

Is the appraisal decision binding?: Under most appraisal clauses, an amount agreed to by two of the three parties (the two appraisers, or one appraiser and the umpire) settles the amount of the loss. Check your policy for its exact terms.
Can I use the appraisal clause against the other driver's insurance?: Usually not. The clause is part of your own policy. For third-party claims, an independent appraisal is used as evidence in negotiation.

More guides

This guide is general information, not legal advice. Policy terms and consumer rules vary by insurer and state. Check your policy, and contact your state insurance department with questions about your rights.