What is the appraisal clause in an auto policy and how do I use it?
The direct answer
The appraisal clause is a provision in most auto insurance policies that lets either side demand a formal appraisal when you and the insurer disagree about your vehicle's value. You hire an independent appraiser, the insurer hires theirs, and if the two can't agree, a neutral umpire decides. It converts a take-it-or-leave-it offer into a structured process where the insurer has to defend its number.
How to invoke it
Read the "Appraisal" section of your policy (usually in the physical-damage coverage part) and follow its notice requirement — typically a written demand to the insurer stating that you invoke the appraisal provision. Then retain an independent appraiser experienced with total-loss valuations. Each side pays its own appraiser and splits the umpire's fee.
Some states regulate who can act as an appraiser or how the process runs, and a small number of policies omit the clause entirely — so check your policy language and your state's rules first.
When it's worth it
Appraisal makes sense when the gap between the insurer's offer and your evidence-backed value comfortably exceeds the cost of the process. Because appraisal awards frequently land well above first offers (SecondAppraisal clients average $3,648 more: 264 finished consultations that settled at or above the first offer, through Sep 25, 2026, before our fee), a documented gap of even a thousand dollars is often worth pursuing.
Related questions
Does invoking the appraisal clause mean suing my insurer?
No. Appraisal is a contractual dispute-resolution process built into your policy, not a lawsuit. It's typically faster and far cheaper than litigation, and it doesn't prevent you from pursuing other remedies if the process fails.
Who pays for the appraisal?
Under a standard appraisal clause, each side pays its own appraiser and the two sides split the umpire's fee if one is needed. Get fee quotes up front so you can weigh the cost against the gap you're disputing.
Keep going
Free review first
Not sure if your offer is fair?
Your consultation and offer review are free. The Appointed Appraiser Service is $495. It includes the Appraisal Research, our appointment as your appraiser under your insurance policy's appraisal clause, determining the amount of loss with your insurer's appraiser, and the appraisal award letter.
At least $1,000 more, or your fee is waived. This applies once we accept your consultation and serve as your appraiser. The starting point is your insurer's offer on the day we accept. If the appraisal award, or a higher offer your insurer makes instead, is less than $1,000 above it, we waive our $495 Appointed Appraiser Service fee. If an umpire is needed, the umpire's fee is separate. We pre-authorize your card only after we accept your consultation, so there's no upfront payment.
Results vary. See terms.