Vehicle Appraisal & Insurance Valuation in New Mexico

ACV in New Mexico is the fair market value of the vehicle immediately before the loss. The determination considers the vehicle's year, make, model, trim, mileage, condition, and equipment, as well as comparable vehicles available in the applicable market.

An independent appraisal can examine the available 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.

New Mexico does not establish a universal statutory automobile Right of Appraisal independent of policy provisions. If the applicable policy contains an appraisal clause, that contractual provision governs the availability and procedure of the appraisal process for disputes about the amount of a loss.

A typical 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.

When a dispute arises about the scope or cost of vehicle repairs, an independent appraisal can evaluate repair estimates, photographs, invoices, and repair procedures. Whether the policy's appraisal clause applies to a repair dispute depends on the specific policy language.

New Mexico does not establish automatic diminished-value entitlement independent of applicable law and policy provisions. Whether a specific New Mexico 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 New Mexico.