Florida Vehicle Appraisal Resources

Florida's total-loss vehicle valuation requirements are established primarily through Florida Administrative Code Rule 69O-166.031, promulgated by the Florida Department of Financial Services. This rule prescribes how insurers must determine the Actual Cash Value (ACV) of a total-loss vehicle under a first-party automobile insurance claim.

Under Rule 69O-166.031, when a vehicle is declared a total loss, the insurer must determine ACV using one of the following methods: comparable vehicles available in the local market area (the insurer must identify at least two comparable vehicles when available); a computerized valuation system that produces a value reflecting the actual cost to purchase a comparable vehicle in the local market area; or an agreed value between the insurer and the insured.

The rule requires that the valuation reflect the local market area — generally the area within which the insured resides or where the vehicle was principally garaged. Adjustments for mileage, condition, and options are permitted when supported by documentation.

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 a computerized valuation system is used, the insurer must provide the insured with a copy of the valuation report upon request. The insured has the right to review the comparable vehicles 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.

Florida does not have a specific statute that establishes licensing requirements for independent vehicle appraisers who participate in automobile insurance appraisal proceedings. 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.

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.