Delaware Vehicle Appraisal & Insurance Claim Resources

Delaware regulates motor vehicle damage appraisers under Delaware Administrative Code 602. The Code establishes conduct requirements for appraisers, including requirements that appraisers make independent, fair, and impartial appraisals. Individuals and businesses performing motor vehicle damage appraisals in Delaware should confirm compliance with the applicable requirements under Administrative Code 602.

The Delaware Department of Insurance provides guidance on appraiser conduct requirements. Questions about appraiser licensing and conduct requirements in Delaware should be directed to the Delaware Department of Insurance or a qualified attorney.

Delaware Insurance Regulation 901 (Arbitration of Automobile and Homeowners' Insurance Claims) provides an arbitration mechanism for qualifying covered claims. Regulation 901 is not a universal substitute for a policy appraisal clause, and it does not apply to all automobile insurance disputes.

The scope of Regulation 901 is limited to qualifying covered claims as defined in the regulation. Whether a specific automobile insurance dispute qualifies for arbitration under Regulation 901 depends on the nature of the claim, the applicable coverage, and the specific requirements of the regulation. Questions about whether Regulation 901 applies to a specific dispute should be directed to a qualified attorney familiar with Delaware insurance law.

Delaware automobile insurance policies may include an appraisal clause that provides a mechanism for resolving disputes over the amount of a loss. The availability of a policy appraisal clause in a particular claim depends on the language of the applicable policy. This is separate from the arbitration framework under Regulation 901.

Questions about whether a policy appraisal clause or Regulation 901 arbitration applies to a specific Delaware dispute should be directed to a qualified attorney familiar with Delaware insurance law.

FIRST-PARTY DIMINISHED VALUE: In O'Brien v. Progressive Northern Insurance Co., 785 A.2d 281 (Del. 2001), the Delaware Supreme Court addressed first-party diminished value under the specific policy language before it. The court held that the policies' repair/replace language — which limited liability to the lesser of ACV or the amount necessary to repair or replace the vehicle — did not require additional payment for diminution in market value after the vehicles were properly repaired to substantially the same physical, operating, and mechanical condition.

O'Brien should not be read as a blanket prohibition on all Delaware diminished value claims. The holding concerns the specific policy language and first-party coverage at issue in that case. Whether a particular Delaware policy requires payment of first-party diminished value depends on the specific policy language and applicable authority.

THIRD-PARTY DIMINISHED VALUE: Third-party tort damages for diminished value are separate from first-party contractual claims. Questions about third-party diminished value recovery in Delaware should be directed to a qualified attorney familiar with Delaware tort law.

Delaware has no statewide sales tax. However, the absence of a statewide sales tax does not mean that no other title, registration, or ownership-transfer expenses can be relevant to a Delaware total-loss settlement. Applicable title fees, registration fees, and other ownership-transfer costs may still be relevant depending on the applicable policy and regulatory requirements.