Total Loss Guide
Total Loss Appraisal Clause: How to Invoke It
If your own insurer totaled your car and you can't agree on what it was worth, you may not have to accept their number or file a lawsuit. Most auto policies include an appraisal clause — a built-in dispute process that puts the valuation in the hands of independent appraisers. Here's how it works and how to use it.
What the appraisal clause is
The appraisal clause is a provision in your own (first-party) auto policy. When you and the insurer disagree on the amount of a loss, either side can demand appraisal. Each side hires its own independent appraiser. The two appraisers then select an umpire. If the appraisers agree on the value, that settles it; if not, they submit their differences to the umpire, and under typical policy wording an agreement by any two of the three is binding on the amount of the loss.
When it applies — and when it doesn't
- First-party claims: it applies to claims under your own policy, such as collision or comprehensive. It generally isn't available against another driver's insurer.
- Disputes over amount: appraisal decides value — for a total loss, usually the actual cash value. It doesn't decide coverage questions, such as whether the loss is covered at all.
- Policy wording varies: not every policy has the same clause, and some states regulate it. Always read the appraisal section of your own policy.
What it costs
Under typical wording, each side pays its own appraiser and the two sides split the umpire's fee and shared expenses equally. DVHIVE's total loss appraisal is a transparent flat fee — see pricing — and it's backed by our Get Paid or Don't Pay guarantee.
How to Invoke the Appraisal Clause
- 1
Read the appraisal provision in your policy
Find the appraisal section of your auto policy (often in the physical damage or 'Part D' coverage section). Note exactly how it says to invoke appraisal, any time limits, how the umpire is chosen, and how costs are split. Wording varies by insurer and state.
- 2
Confirm the dispute is about the amount
Appraisal resolves disagreements over the value of the loss — such as the actual cash value of your totaled car. It generally does not decide coverage questions like whether the policy applies at all. Make sure your disagreement is about the number.
- 3
Gather your valuation evidence
Request the insurer's full valuation report and collect proof of your car's condition, mileage, options, upgrades, and recent maintenance. A certified independent appraisal showing accurate local comparables is the foundation of your position.
- 4
Send written notice invoking appraisal
Notify the insurer in writing that you are invoking the appraisal clause, and keep a copy with proof of delivery. State that you dispute the amount of the loss and follow any specific requirements your policy sets out.
- 5
Name your independent appraiser
Each side selects its own competent, independent appraiser, usually within a deadline set in the policy. Choose someone experienced in total loss vehicle valuation — DVHIVE can serve as your appraiser.
- 6
The appraisers try to agree — or select an umpire
The two appraisers each value the vehicle and attempt to agree. Under typical policy wording they also select an umpire; if they can't agree on the value, they submit their differences to the umpire.
- 7
Receive the binding award
Under most appraisal clauses, a written agreement signed by any two of the three — the two appraisers, or one appraiser and the umpire — sets the amount of the loss. Check your policy and state law for how binding the award is.
Your appraiser
DVHIVE can be your independent appraiser
When you invoke appraisal, you need an appraiser who knows how total loss valuations are built — and where insurer reports cut corners. Our certified appraisers document accurate local comparables and your vehicle's true condition, and represent your side of the valuation through the process.
Before you invoke appraisal
Appraisal works best when you already have evidence. Start with a quick check of the offer using our free total loss calculator, confirm your car was properly totaled under your state's total loss threshold, and review the full checklist in my car was totaled — what to do next. New to the basics? Read what is a total loss.
If you owe more than the car is worth, check whether gap insurance covers the difference, and if you're thinking of keeping the car, understand salvage title value first. If your car was repaired instead of totaled, your claim is for diminished value — see diminished value vs total loss or try our diminished value calculator. We work with drivers nationwide, and our total loss appraisal service covers every state.
This guide is general information, not legal advice. Appraisal provisions differ between policies and states — read your policy and consider speaking with an attorney about your specific situation.
Frequently Asked Questions
What is the appraisal clause in auto insurance?
It's a provision in many auto policies that gives you and your insurer a way to resolve a disagreement over the amount of a loss without going to court. Each side hires its own appraiser, the two appraisers pick an umpire, and an agreement by any two of the three typically sets the amount. Exact wording varies, so read your own policy.
Can I invoke the appraisal clause on a total loss?
Usually, yes — if you're claiming under your own policy (for example, collision or comprehensive) and the dispute is over the actual cash value. The appraisal clause is a first-party policy provision, so it generally isn't available against the other driver's insurer on a third-party claim.
Who pays for the appraisal process?
Under typical policy wording, each side pays its own appraiser and the umpire's fee and other appraisal expenses are split equally. Some policies or state rules differ, so confirm the cost-sharing terms in your policy before you invoke appraisal.
Is the appraisal clause decision binding?
Most appraisal clauses state that an agreement signed by two of the three participants determines the amount of the loss. How binding that award is — and on what grounds it can be challenged — depends on the policy language and your state's law. Appraisal decides value, not whether the claim is covered.
Is there a deadline to invoke the appraisal clause?
Many policies set time limits, such as a window for each side to name its appraiser after a written demand. Deadlines vary by policy and state, so read your policy's appraisal section carefully and act promptly once you know you disagree with the insurer's valuation.
Ready to dispute your total loss value?
Put a certified independent appraiser on your side. Get paid or you don't pay — or call (888) 597-3282.