Rhode Island Vehicle Appraisal Resources

Under R.I. Gen. Laws § 27-10.4-1, when the insurance company and the insured or claimant fail to agree as to the amount of the loss, the insured or claimant has the right to exercise the independent appraisal process outlined in the section. The right to invoke the process belongs to the insured or claimant.

Appraiser selection: The insured or claimant, and the insurer, shall each select their own disinterested Rhode Island licensed appraiser at their own expense. The statute defines a 'disinterested Rhode Island licensed appraiser' as a motor vehicle damage appraiser licensed pursuant to chapter 10.1 of Title 27 who has not performed an appraisal, received payment or compensation of any type from the claimant or insured, or the insurer, in the previous 30 days. An appraiser who does not qualify under this definition may be allowed by mutual agreement of both parties.

Insurer's inspection period: The insurer's chosen appraiser shall inspect the damaged motor vehicle within four business days after the written demand is received, provided the damaged motor vehicle is on the premises of the repair shop when the request is made. If the insurer's appraiser fails to inspect within four business days, the insurer shall forfeit its right to inspect the damaged vehicle prior to repairs, and negotiations shall be limited to labor and the price of parts and shall not, unless objective evidence to the contrary is provided by the insurer, involve disputes as to the existence of damage or the chosen manner of repair. The time limitations may be extended by mutual agreement between the auto body repair shop and the insurer.

If the two appraisers are unable to resolve the dispute, they shall submit to each other their best proposal to resolve the disagreement. If the proposals differ by 15% or less, the amount of the loss shall be the midpoint between them.

If the proposals differ by more than 15%, then within three business days the appraisers shall submit the names of three disinterested Rhode Island licensed appraisers to each other. The appraisers will endeavor to agree on the selection of one of the proposed candidates to act as umpire. In the event the parties are unable to agree on a candidate to act as umpire, the insured or claimant shall choose an independent association for arbitration such as the American Association of Arbitrators or similar association to provide an umpire.

The umpire shall render a decision within five days of appointment. The statute specifies five days — not five business days.

Binding effect: The agreement by the parties, or the umpire's decision, will be binding on the parties, except for supplemental allowances for hidden damage, parts price increases, or any other reasonable charges related to the loss that have not already been paid for.

Cost reimbursement: If the insured or claimant initiates this appraisal provision and the final award exceeds the insurer's original offer by more than 25%, the insurer must reimburse all of the insured or claimant's appraisal costs. If the difference is less than 25%, the parties shall split the cost of the umpire. The statute addresses the 'more than 25%' and 'less than 25%' outcomes; it does not specify treatment of an exact 25% result.

Appraiser compliance: If the appraiser selected by the insurer, insured, or claimant does not comply with the provisions of § 27-9.1-4 and chapter 10.1 of Title 27 or any other applicable Rhode Island law or regulation, their appraisal shall be deemed null and void and excluded from consideration by the umpire.

Neither party shall waive any rights under the applicable insurance policy which are not part of the appraisal process. The insurer shall not engage in any act or practice of intimidation, coercion, threat, or misrepresentation of consumer rights, for or against an insured person, claimant, or entity chosen in this process.

Questions about whether the § 27-10.4-1 procedure applies to a specific claim should be directed to a qualified attorney familiar with Rhode Island insurance law.

Diminished value claims in Rhode Island depend on the type of claim and the applicable policy language. Whether diminished value is recoverable under a first-party claim depends on the specific policy language. Whether it is recoverable from an at-fault third party depends on applicable tort law principles and the specific facts of the claim.

Questions about diminished value recovery in a specific Rhode Island claim should be directed to a qualified attorney familiar with Rhode Island insurance and tort law.

Rhode Island licenses motor vehicle damage appraisers under chapter 10.1 of Title 27. The § 27-10.4-1 appraisal procedure requires that each party's appraiser be a 'disinterested Rhode Island licensed appraiser' as defined in the statute — licensed under chapter 10.1 and not having performed an appraisal or received compensation from the claimant, insured, or insurer in the previous 30 days. An appraiser who does not meet this definition may be used by mutual agreement of both parties.

Questions about appraiser licensing requirements in Rhode Island should be directed to the Rhode Island Department of Business Regulation or a qualified attorney.