Knowledge Center
How the Auto Insurance Appraisal Process Works
A step-by-step educational walkthrough of the appraisal process — from the initial disagreement through the appraisal award.
A Process Defined by the Policy
The auto insurance appraisal process is a structured method for resolving certain disagreements over vehicle value or the amount of a loss. When the parties cannot reach agreement through ordinary claim handling, an applicable appraisal provision may provide a defined path to resolution.
The steps below describe how the process commonly unfolds. Actual procedures, deadlines, and requirements vary by insurance policy and jurisdiction. The applicable policy is always the controlling authority.
The Appraisal Process: Step by Step
A Valuation or Amount-of-Loss Disagreement Exists
The appraisal process typically begins when the insurer and the insured (or another party with applicable rights) cannot agree on the value of a vehicle or the amount of a covered loss. The disagreement must be of the type addressed by the applicable appraisal provision — not every type of insurance dispute qualifies.
The Applicable Appraisal Provision Is Reviewed
Before invoking appraisal, the parties should review the insurance policy to confirm that an appraisal provision exists, that the dispute falls within its scope, and that all procedural requirements are understood. The policy language controls the process.
Appraisal Is Demanded When Available and Appropriate
When the conditions for appraisal are met, a party may invoke the process according to the policy's requirements. Many provisions require a written demand. The demand must comply with any timing, delivery, and content requirements in the policy.
Each Side Selects an Appraiser
Under most appraisal provisions, each party selects its own appraiser. The policy may specify qualifications — such as requiring that appraisers be competent, independent, or disinterested. Each appraiser is responsible for developing an independent professional opinion of the disputed amount.
Documentation and Valuation Evidence Are Reviewed
The appraisers gather and review relevant documentation and valuation evidence. Depending on the nature of the dispute, this may include vehicle information, comparable vehicles, repair estimates, photographs, valuation reports, market data, and other materials relevant to the disputed amount.
The Appraisers Develop Their Respective Opinions
Each appraiser independently analyzes the available evidence and develops a professional opinion of the disputed value or amount of loss. The appraisers may communicate with each other to discuss their findings and the evidence supporting their respective positions.
The Appraisers Communicate and Attempt to Reach Agreement
The appraisers exchange their opinions and attempt to reach agreement on the disputed amount. If they agree, many provisions provide that their agreement resolves the dispute. The policy will specify what constitutes a binding agreement.
If Necessary, Unresolved Differences May Be Submitted to an Umpire
If the appraisers cannot agree on all issues, the applicable provision may call for the selection of a neutral umpire. The appraisers submit the unresolved differences to the umpire, who reviews the evidence and the appraisers' positions and reaches an independent conclusion on the submitted issues.
An Agreement or Appraisal Award Is Reached
Many appraisal provisions provide that an agreement between the two appraisers, or between one appraiser and the umpire, constitutes a binding appraisal award. The exact requirements for a valid award — and its legal effect — depend on the policy language and applicable law.
Procedures and Requirements Vary
The process described above is a general educational overview. Actual procedures, deadlines, qualification requirements, and the legal effect of an award vary significantly by insurance policy and jurisdiction.
Parties involved in an appraisal should review the applicable policy carefully and, when appropriate, seek qualified legal guidance to ensure that their rights and obligations are properly understood.
Educational Disclaimer
A1 Auto Appraisals is an independent vehicle appraisal company and is not a law firm. The information provided on this page is for general educational purposes only and should not be considered legal advice. Insurance policies, appraisal provisions, claim circumstances, and applicable laws vary. Questions concerning legal rights, insurance policy interpretation, or applicable law should be directed to a qualified attorney in the applicable jurisdiction.