Vehicle Appraisal & Insurance Valuation in Kentucky

806 KAR 12:095 is Kentucky's primary administrative regulation governing first-party automobile total-loss settlement methodology. The regulation establishes how insurers must determine the value of a total-loss vehicle in applicable first-party physical-damage claims.

Under 806 KAR 12:095, total-loss valuation methods include the use of comparable replacement vehicles available in the local market, dealer quotations, and statistically valid valuation sources. The regulation addresses condition adjustments, enhancement and betterment considerations, and the documentation required to support adjustments.

The regulation addresses applicable taxes, license fees, and transfer fees in the total-loss settlement context. The specific requirements applicable to a given claim are set out in the current 806 KAR 12:095 text.

806 KAR 12:095 includes a mechanism under which, in qualifying circumstances, a claimant may obtain a second independent appraisal. The availability and procedure of this mechanism depend on the specific facts and the current regulatory text.

806 KAR 20:030 became effective February 3, 2026. This regulation addresses additional valuation standards within its applicable regulatory scope. The regulation identifies certain valuation guides — including Kelley Blue Book and J.D. Power/NADA — within its applicable scope.

806 KAR 20:030 became effective February 3, 2026. The valuation guide provisions of this regulation apply within the regulation's specific scope — they identify Kelley Blue Book and J.D. Power/NADA as recognized sources within that scope. The regulation does not establish KBB or NADA as mandatory for every Kentucky insurance valuation; its applicability depends on the specific facts and the regulation's defined scope.

ACV in Kentucky is the fair market value of the vehicle immediately before the loss. Kentucky's regulated valuation framework requires the use of comparable replacement vehicles, local market evidence, and documented adjustments for condition, mileage, and equipment differences.

An independent appraisal can examine the same evidence — comparable vehicles, market data, condition, mileage, equipment — and develop an objective opinion of value. Depending on the evidence, an independent appraisal may produce a value that is higher, lower, or similar to the insurer's valuation.

In addition to the regulatory framework, the applicable insurance policy may contain an appraisal clause. A policy appraisal clause allows each party to select an independent appraiser when there is a disagreement about the amount of a loss. If the appraisers cannot agree, they select an umpire. The appraisal process addresses the amount of the loss — not coverage questions.

For third-party vehicle property damage claims in Kentucky, the applicable measure of damages is governed by Kentucky law and the specific facts of the case. Whether diminished value is recoverable in a third-party claim depends on applicable Kentucky authority and the circumstances of the claim.

First-party physical-damage coverage and third-party liability damages are distinct legal frameworks. Whether a specific Kentucky claim supports a diminished-value recovery depends on the applicable policy, the type of claim, and the facts. Questions about legal entitlement should be directed to a qualified attorney in Kentucky.