Georgia Vehicle Appraisal Resources

Georgia's automobile insurance regulations address how insurers must handle total-loss vehicle claims. The Georgia Department of Insurance has issued regulations and bulletins governing total-loss settlements under first-party automobile insurance policies.

Under Georgia regulations, when a vehicle is declared a total loss, the insurer must determine the Actual Cash Value (ACV) of the vehicle. ACV is generally understood as the fair market value of the vehicle immediately before the loss — the price a willing buyer would pay a willing seller in the relevant market, taking into account the vehicle's year, make, model, trim, mileage, condition, and options.

Georgia regulations require that total-loss settlements reflect the local market. Insurers may use computerized valuation systems, comparable vehicle searches, or other recognized valuation methods. When a computerized valuation system is used, the insurer must be able to support the valuation with comparable vehicles available in the local market area.

Whether a Georgia total-loss settlement must include sales tax, title fees, or registration fees depends on the applicable regulations and the specific circumstances of the claim. No specific Georgia statute or regulation requiring the inclusion of these fees has been independently verified for this page. Policyholders with questions about what their settlement should include should consult the applicable policy and a qualified attorney.

Georgia automobile insurance policies commonly include an appraisal clause that provides a mechanism for resolving disputes over the amount of a loss. Whether an appraisal clause is available 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 Georgia.

Georgia does not have a statute that mandates an appraisal clause in automobile 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 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.

Georgia courts have addressed the scope of automobile insurance appraisal clauses. Generally, appraisal is limited to resolving disputes over the amount of a loss — it does not resolve coverage disputes or liability questions. 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 should be directed to a qualified attorney familiar with Georgia insurance law.

Georgia has a significant body of case law on diminished value. The Georgia Supreme Court's decision in State Farm Mutual Automobile Insurance Co. v. Mabry, 274 Ga. 498 (2001), is a frequently cited ruling in this area. In Mabry, the court addressed whether an insured's own collision policy covered inherent diminished value — the reduction in a vehicle's market value attributable to its accident history — as part of the insurer's obligation under the policy.

The Mabry decision was based on the specific policy language at issue in that case. The court's analysis turned on the particular terms of the State Farm policy before it. Whether diminished value is recoverable under a different policy depends on the language of that policy. Insurance policies have been revised since Mabry, and the availability of first-party diminished value recovery under a specific policy requires analysis of that policy's current terms. This page does not represent that every Georgia first-party automobile policy automatically provides diminished value coverage.

Third-party diminished value claims — claims against an at-fault third party — are generally recognized under Georgia tort law as part of the damages recoverable for negligent damage to personal property.

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

Georgia does not have a specific statute establishing 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.

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.