Vehicle Appraisal & Insurance Valuation in Massachusetts

M.G.L. c.175 §191A requires that every policy of automobile insurance covering physical damage to a motor vehicle include an appraisal provision. This is a statutory mandate — not merely an optional policy feature — for covered motor-vehicle physical-damage policies within the statute's scope. The appraisal provision required by §191A provides a mechanism for resolving disputes about the amount of a loss.

The appraisal provision required by §191A governs the availability and procedure of the appraisal process for disputes about the amount of a covered loss. Because the statute requires the provision to be included in qualifying policies, the appraisal right in Massachusetts is grounded in both the statutory mandate and the resulting policy provision. The scope and procedure of the appraisal process are governed by the applicable policy provision as required by the statute.

An independent appraisal can provide objective valuation evidence in the context of a Massachusetts automobile claim, whether or not a formal appraisal proceeding under the policy provision has been invoked.

Massachusetts establishes a licensing framework for motor-vehicle damage appraisers under M.G.L. c.26 §8g. Persons who appraise motor-vehicle damage in Massachusetts in connection with insurance claims may be required to hold a license under this framework. The Division of Insurance administers this licensing program.

A1 Auto Appraisals does not represent that it holds a Massachusetts motor-vehicle-damage-appraiser license or that it currently accepts assignments requiring one. Persons seeking appraisal services in Massachusetts should verify applicable licensing requirements with the Massachusetts Division of Insurance.

Massachusetts Division of Insurance guidance addresses ACV and total-loss valuation for automobile physical-damage claims. ACV considerations in Massachusetts include the retail value of a vehicle of like kind and quality, the purchase price, improvements made to the vehicle, prior unrelated damage, and the actual cost of an available comparable vehicle.

An independent appraisal can examine the same evidence — comparable vehicles, market data, condition, mileage, equipment, improvements — 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.

Diminished value treatment in Massachusetts requires careful distinction between first-party physical-damage coverage and third-party liability damages, and between different editions and forms of the Massachusetts automobile policy.

Current Massachusetts Division of Insurance guidance states that no first-party diminished-value coverage exists under the standard Massachusetts automobile policy framework. This means that under the standard policy, a first-party claimant generally cannot recover diminished value from their own insurer for physical damage.

Third-party inherent diminished-value treatment depends on Massachusetts law, the applicable policy form, and current court decisions. The Massachusetts Supreme Judicial Court addressed diminished value in the third-party context in the 2025 Cubberley decision. That decision is relevant to the current state of Massachusetts law on this subject and should be evaluated within its actual holding and scope.

Diminished value treatment in Massachusetts is not a universal rule. Whether a specific claim supports a diminished-value recovery depends on whether the claim is first-party or third-party, the applicable policy form, and current Massachusetts law. Questions about legal entitlement should be directed to a qualified attorney in Massachusetts.