Vehicle Appraisal & Insurance Valuation in Ohio

Ohio Admin. Code 3901-1-54 is Ohio's primary administrative regulation governing automobile total-loss settlement. The regulation establishes standards for how insurers must determine the value of a total-loss vehicle in applicable first-party physical-damage claims.

Under 3901-1-54, the primary total-loss valuation method is the actual cost to purchase a comparable automobile in the local or proximate market. The regulation addresses the use of comparable vehicles, permitted alternative valuation methods, and the documentation required to support the valuation.

Ohio Admin. Code 3901-1-54 addresses taxes and fees in both settlement methods. Under the replacement-vehicle method (H)(6)(c), the insurer must pay all applicable taxes, license fees, and other fees incident to transfer of evidence of ownership at no cost to the claimant, other than any deductible provided in the policy. Under the cash-settlement method (H)(7)(f), if the claimant purchases a replacement automobile within 30 days of receipt of the cash settlement, the insurer must reimburse the claimant for the applicable sales taxes incurred on that purchase. The reimbursement ceiling is the amount of sales taxes that would have been payable on a vehicle with a market value equal to the cash settlement amount; if the claimant purchases a lower-value vehicle, only the actual applicable sales taxes on that vehicle are reimbursed. The claimant must submit appropriate documentation of the purchase and tax payment within 33 days of receipt of the cash settlement, or the insurer is not required to reimburse. In lieu of reimbursement, the insurer may pay the applicable sales taxes directly to the claimant at the time of the cash settlement. Under (H)(7)(g), when a cash settlement is made, the insurer must provide written notice to the claimant of the right to sales-tax reimbursement simultaneously with the settlement check; this written notice is not required if the insurer elects to pay the taxes directly upfront.

ACV in Ohio is the actual cost to purchase a comparable automobile in the local or proximate market. Ohio's regulated framework requires the use of comparable vehicles, documented adjustments for condition and mileage differences, and itemized support for any deductions.

An independent appraisal can examine the same evidence 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.

Ohio 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.