Colorado Vehicle Appraisal & Insurance Claim Resources

C.R.S. §10-4-639 (Claims Practices for Property Damage) establishes important state-specific rules for motor-vehicle total-loss settlements in Colorado. Under this statute, Colorado requires insurers to pay title fees, sales tax, and applicable transfer and registration fees associated with a motor-vehicle total loss.

C.R.S. §10-4-639 also requires insurers to establish a fair and consistent method for determining total loss, to consider the unique characteristics of the vehicle, to use a credible valuation source, to maintain the valuation methodology, and not to switch between valuation sources merely to obtain the lowest payable amount.

The requirement to pay sales tax and title/transfer/registration fees in connection with a Colorado motor-vehicle total loss is established by C.R.S. §10-4-639 and is not merely a matter of policy language or general practice.

Colorado Division of Insurance Regulation 5-2-15 (3 CCR 702-5) requires insurers to develop and maintain written procedures that will be consistently used when determining the value of a vehicle declared a total loss. Claims files must include the credible source used for valuation by vendor name and the methodology for determining the amount of the loss. The regulation was originally effective August 1, 2012, amended effective November 1, 2018, and remains in effect in the current version of 3 CCR 702-5 (ruleVersionId=12672, eff. 08/19/2026). The §5(A) total-loss valuation text is unchanged across the 2012, 2018, and current versions.

Under Regulation 5-2-15, claims files must document that the valuation considered unique characteristics of the total-loss vehicle, such as classic status, unique finishes, mileage, and special accessories. This documentation requirement applies to all total-loss valuations under private passenger auto insurance policies in Colorado and is confirmed in the current version of the regulation.

Regulation 5-1-14 may remain relevant to broader claims-handling and timing requirements, but it is not the primary total-loss valuation authority. C.R.S. §10-4-639 and Regulation 5-2-15 govern total-loss valuation specifically.

Colorado automobile insurance policies commonly include an appraisal clause that provides a mechanism for resolving disputes over the amount of a loss. The availability of appraisal in a particular claim depends on the language of the applicable policy. No Colorado statute independently mandating an appraisal clause in automobile insurance policies has been independently verified.

Under a typical automobile insurance appraisal clause, when the insurer and the insured disagree on the amount of a loss, either party may demand appraisal. Each party selects a competent, independent appraiser. The two appraisers attempt to agree on the amount of the loss. If they cannot agree, they select an umpire. Any two of the three must agree for the appraisal award to be binding.

Questions about whether appraisal is available in a specific Colorado claim should be directed to a qualified attorney familiar with Colorado insurance law.

Diminished value claims in Colorado depend on the type of claim and the applicable policy language. No Colorado-specific appellate authority on diminished value has been independently verified for this page. Questions about diminished value recovery in a specific Colorado claim should be directed to a qualified attorney familiar with Colorado insurance and tort law.