New York Vehicle Appraisal Resources

New York's total-loss vehicle valuation requirements are addressed in New York Insurance Law and the regulations of the New York Department of Financial Services (DFS). New York Insurance Regulation 64 (11 NYCRR Part 216) — the Unfair Claims Settlement Practices and Claim Cost Control Measures regulation — establishes standards for the handling of automobile insurance claims, including total-loss settlements.

Under Regulation 64, New York insurers are permitted to use multiple methods to value a total-loss vehicle. According to DFS, permissible approaches may include: recognized valuation publications; market surveys; and quotations for substantially similar vehicles from qualified dealers reasonably convenient to the insured. These methods are identified in Regulation 64 and DFS guidance. No single valuation source is mandatory — the regulation permits the use of these approaches depending on the applicable Regulation 64 provisions and the circumstances of the claim.

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. New York regulations require that the insurer provide the insured with documentation of the valuation methodology upon request.

Whether a New York total-loss settlement must include sales tax, title fees, or registration fees depends on the applicable provisions of Regulation 64 and the specific circumstances of the claim. Policyholders with questions about what their settlement should include should consult the applicable policy, the current text of Regulation 64, and a qualified attorney.

New York's Regulation 64 provides a right of recourse for insureds who disagree with a total-loss settlement offer. This right of recourse is distinct from the insurance policy appraisal clause — they are separate concepts and should not be confused.

According to DFS guidance, for covered total-loss situations under Regulation 64, an insured generally has 35 days from the date of mailing of the settlement check to notify the insurer that they are unable to find a comparable vehicle for the offered amount. The process involves locating a substantially similar vehicle and may require the insurer to address the difference according to Regulation 64.

The right of recourse under Regulation 64 is a regulatory mechanism for challenging a total-loss valuation — it is not the same as invoking the appraisal clause in an automobile insurance policy. Policyholders should review the current text of Regulation 64 and the DFS guidance to understand the specific requirements and timeframes that apply to their claim. Questions about the right of recourse in a specific claim should be directed to a qualified attorney.

New York automobile insurance policies may 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 New York.

New York Insurance Law and related provisions address the content of automobile insurance policies, but do not mandate a specific appraisal clause for automobile insurance. 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.

New York 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 New York insurance law.

New York is a no-fault automobile insurance state. Under New York's No-Fault Law (New York Insurance Law Article 51), each insured's own insurer pays for certain economic losses — primarily medical expenses and lost wages — regardless of fault, up to the required minimum coverage limits.

New York's no-fault system applies to personal injury claims only. It does not apply to property damage claims. Vehicle damage claims — including total-loss and diminished value claims — are handled separately under the applicable property damage coverages or through third-party liability claims. The no-fault system and the property damage system are distinct and should not be confused. Article 51 no-fault law is not authority for property-damage valuation.

The no-fault system affects the availability of certain tort claims for personal injury. It does not eliminate the right to pursue property damage claims, including claims for vehicle damage and diminished value, through the applicable insurance coverages or through third-party liability.

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

Third-party diminished value: New York 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 New York 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. New York 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 New York insurance and tort law.

New York 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.

New York does license public adjusters under the New York Insurance Law. 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.

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.