Florida Vehicle Appraisal Resources

Florida's motor-vehicle claim-settlement requirements are addressed in Florida Statute § 626.9743. When a first-party motor-vehicle total loss is adjusted on the basis of Actual Cash Value or replacement with a vehicle of like kind and quality, the statute identifies several permitted valuation methods.

A cash settlement may be based on the actual cost of purchasing a comparable motor vehicle. Depending on the method used, the valuation may consider two or more comparable vehicles available in the local market area within the preceding 90 days, a generally recognized used-motor-vehicle industry source, or quotations from two or more licensed dealers in the local market area.

The statute also permits other documented settlement methods and methods agreed to by the claimant. When a valuation varies from the specifically described methods, the determination must be supported by documentation, and deductions must be itemized in specific dollar amounts.

Florida Statute § 626.9743(9) addresses sales tax in the context of total-loss and partial-loss settlements. Under that subsection, when sales tax will necessarily be incurred upon replacement of a total loss or repair of a partial loss, an insurer may defer payment of the sales tax unless and until the obligation has actually been incurred. Policyholders should review the current text of § 626.9743 and consult a qualified attorney regarding how this provision applies to a specific claim.

When an insurer uses an electronic database under § 626.9743(5)(a)2, the pertinent portions of the valuation documents generated by the database must be provided to the first-party insured upon request. This disclosure right applies to the database-generated valuation documents; the insured has the right to review the information used and to dispute the valuation.

Florida automobile insurance policies commonly include an appraisal clause — sometimes referred to as the appraisal provision — 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 insurance policy. This is a policy-based right, not a statutory mandate for automobile insurance in Florida.

Florida does not have a statute that mandates an appraisal clause in automobile insurance policies in the same way that some states mandate appraisal provisions in property insurance policies. The availability of appraisal in an automobile insurance claim therefore depends primarily on whether the policy contains an appraisal provision and whether the specific dispute falls within the scope of that provision.

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 then attempt to agree on the amount of the loss. If they cannot agree, they select an umpire. Any two of the three — the two appraisers or one appraiser and the umpire — must agree for the appraisal award to be binding.

Florida courts have addressed the scope of automobile insurance appraisal clauses in various contexts. Generally, appraisal is limited to resolving disputes over the amount of a loss — it does not resolve coverage disputes, liability questions, or other legal issues. Whether a particular dispute is subject to appraisal depends on the policy language and the nature of the dispute.

Questions about whether appraisal is available in a specific claim, and what the appraisal process requires under a particular policy, should be directed to a qualified attorney.

Diminished value refers to the reduction in a vehicle's market value that may result from its accident history, even after repairs are completed. The availability and scope of diminished value claims in Florida depends on the type of claim and the applicable policy language.

Third-party claims: Florida courts have recognized that a vehicle owner may have a claim for diminished value against an at-fault third party under a negligence theory. However, the specific facts, the applicable policy, and the circumstances of the claim affect whether and how diminished value may be recoverable.

First-party claims: Whether diminished value is recoverable under a first-party collision or comprehensive claim depends on the language of the insured's own policy. Many standard automobile insurance policies do not expressly provide for diminished value recovery under first-party coverages. Florida courts have generally held that first-party diminished value claims are governed by the policy language.

Questions about diminished value recovery in a specific claim should be directed to a qualified attorney familiar with Florida insurance law.

No Florida statute specifically establishing licensing requirements for independent vehicle appraisers who participate in automobile insurance appraisal proceedings has been independently verified for this page. This is not a confirmed statement that no such requirement exists — it reflects the limits of the research conducted for this page. Appraiser qualifications in the context of an automobile insurance appraisal are generally governed by the applicable policy language, which typically requires that each appraiser be competent and independent. Persons seeking to participate as an appraiser in Florida appraisal proceedings should verify applicable licensing requirements with the Florida Department of Financial Services or a qualified attorney.

Florida does license public adjusters under Florida Statute § 626.854 et seq. A public adjuster is not the same as an independent vehicle appraiser in the context of an automobile insurance appraisal clause. The roles and regulatory requirements are distinct.

Appraisal expenses — including the cost of each party's appraiser — are typically borne by the party who selected that appraiser. Umpire expenses are typically shared equally between the parties, as specified in the applicable policy.