Illinois Vehicle Appraisal Resources

Illinois total-loss vehicle valuation requirements are addressed in the Illinois Insurance Code and regulations of the Illinois Department of Insurance. Illinois Administrative Code Title 50, Part 919 — the Illinois Automobile Insurance Claims Regulations — establishes standards for the handling of automobile insurance claims, including total-loss settlements.

Under Illinois 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 — taking into account the vehicle's year, make, model, trim, mileage, condition, and options.

Whether an Illinois 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 provision of Illinois Administrative Code Title 50, Part 919 or the Illinois Insurance Code 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.

When an insurer uses a computerized valuation system or third-party valuation service, the insurer must be able to support the valuation with comparable vehicles available in the relevant market area. Illinois regulations require that the insurer provide the insured with documentation of the valuation methodology upon request.

Under current Illinois law (as of 2026), Illinois 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 under current law.

Under current Illinois law, there is no 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.

Illinois 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 Illinois insurance law.

IMPORTANT: As of 2026, these statutory requirements are not yet effective. They apply to qualifying policies issued, renewed, or delivered on or after July 1, 2027. The information below describes enacted law that is not yet in effect.

Illinois Public Act 104-0767 enacted 215 ILCS 5/398, titled 'Right to appraisal.' For qualifying automobile insurance policies issued, renewed, or delivered on or after July 1, 2027 that include first-party physical-damage coverage, the statute will require an appraisal provision for disputes over the amount of loss.

Under 215 ILCS 5/398, 'Actual Cash Value' is defined as the fair market value of the vehicle immediately before the loss, and 'amount of loss' means the cost to repair or replace the vehicle, less any applicable deductible. The statute applies to disputes over these amounts under first-party physical-damage claims.

The enacted statute establishes specific procedural requirements. Either party may make a written demand for appraisal. Within 7 business days of the written demand, each party must select a competent and disinterested appraiser and notify the other party of the selection. If the appraisers cannot agree on the amount of loss, they must select a competent and disinterested umpire.

If the appraisers cannot agree on an umpire within 5 business days, either party may petition a court of competent jurisdiction to appoint one. The agreement of any two of the three — the two appraisers or one appraiser and the umpire — constitutes the appraisal award and is binding on the amount of loss. The appraisal award must be completed within 15 business days after the umpire is selected, unless both parties agree to an extension.

Under the enacted statute, each party bears the cost of its own appraiser. The cost of the umpire is divided equally between the parties.

Again: 215 ILCS 5/398 is enacted but is not effective until July 1, 2027. It does not govern claims under policies issued, renewed, or delivered before that date. Policyholders and industry professionals should consult a qualified attorney regarding the statute's applicability to a specific policy or claim.

Diminished value claims in Illinois depend on the type of claim and the applicable policy language. Illinois courts have addressed diminished value in both first-party and third-party contexts.

Third-party diminished value: Illinois courts have recognized that a vehicle owner may recover diminished value from an at-fault third party as part of the damages for negligent damage to personal property, consistent with Illinois tort law principles.

First-party diminished value: 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. Illinois 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 Illinois insurance and tort law.

Illinois 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. When 215 ILCS 5/398 becomes effective on July 1, 2027, qualifying policies will be subject to the statute's requirements for competent and disinterested appraisers.

Illinois does license public adjusters under the Illinois Insurance Code (215 ILCS 5/). 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.

Under current policy-based appraisal provisions, appraisal expenses — including the cost of each party's appraiser — are typically borne by the party who selected that appraiser, and umpire expenses are typically shared equally, as specified in the applicable policy. Under 215 ILCS 5/398 (effective July 1, 2027), each party bears the cost of its own appraiser and the umpire cost is divided equally.