Washington State Vehicle Appraisal Resources

Washington State's total-loss vehicle valuation requirements are established by the Washington Office of the Insurance Commissioner (OIC) through the Washington Administrative Code. WAC 284-30-391 through WAC 284-30-407 address the handling of automobile insurance claims, including total-loss settlements.

Under Washington regulations, when a vehicle is declared a total loss, the insurer must determine the Actual Cash Value (ACV) of the vehicle. ACV is generally understood as the fair market value of the vehicle immediately before the loss — the price a willing buyer would pay a willing seller — taking into account the vehicle's year, make, model, trim, mileage, condition, and options.

WAC 284-30-391 addresses total-loss settlements and requires that the settlement include applicable sales tax and applicable fees for transfer of title. Policyholders should review the current text of WAC 284-30-391 at the Washington State Legislature website, as regulatory text is subject to amendment.

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. Washington regulations require that the insurer provide the insured with documentation of the valuation methodology and the comparable vehicles used, upon request.

Washington regulations also establish specific timeframes for acknowledging claims, investigating claims, and making coverage decisions. The OIC has enforcement authority over insurers that violate these regulations.

Washington enacted RCW 48.18.620, titled 'Automobile insurance policies — Appraisal clause.' This statute applies to automobile insurance policies that include qualifying first-party physical-damage coverage issued or renewed effective on or after January 1, 2026. Because it is now 2026, this statute is currently applicable to qualifying policies issued or renewed on or after that date.

Under RCW 48.18.620, qualifying automobile insurance policies must include an appraisal provision that allows either the insurer or the insured to demand appraisal when there is a dispute regarding the Actual Cash Value of the vehicle or the amount of loss. This is a statutory right — not merely a policy-based right — for qualifying policies.

The statute establishes specific procedural requirements for the appraisal process. When appraisal is demanded in writing, each party must select a competent and disinterested appraiser within 10 days of the written demand. Each appraiser must provide a separate written finding of the Actual Cash Value and the amount of loss. The appraisers must exchange their completed appraisals.

If the appraisers cannot agree on the amount of loss, they must select a competent and disinterested umpire. If the appraisers cannot agree on an umpire within 15 days, either party may request that the insurance commissioner appoint one. The agreement of any two of the three — the two appraisers or one appraiser and the umpire — is binding on the amount of loss.

The statute requires that the appraisal be completed within 30 calendar days after the umpire is selected, unless both parties agree in writing to an extension. Each party is responsible for the cost of its own appraiser. The cost of the umpire is shared equally between the parties.

RCW 48.18.620 includes statutory definitions. 'Appraiser' means a person who is not a party to the insurance contract and who is retained to determine the Actual Cash Value or amount of loss. 'Competent' means having the knowledge, skill, and experience necessary to determine the Actual Cash Value or amount of loss. 'Disinterested' means having no financial interest in the outcome of the appraisal other than the appraiser's fee. 'Umpire' means a person who is not a party to the insurance contract and who is selected to resolve disagreements between the appraisers.

The statutory appraisal right under RCW 48.18.620 is distinct from the WAC claim-handling regulations and from any appraisal provision that may appear in a policy. For qualifying policies, the statute establishes a mandatory appraisal right regardless of whether the policy contains an appraisal clause. Questions about whether a specific policy qualifies and how the statute applies should be directed to a qualified attorney.

For automobile insurance policies that do not qualify under RCW 48.18.620 — for example, policies issued or renewed before January 1, 2026 — the availability of appraisal depends on whether the policy contains an appraisal provision and whether the specific dispute falls within the scope of that provision.

Washington 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 — whether under the statute or under policy language — should be directed to a qualified attorney familiar with Washington insurance law.

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

Third-party diminished value: Washington 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 Washington 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. Washington 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 Washington insurance and tort law.

For qualifying policies under RCW 48.18.620, the statute defines the qualifications required of appraisers and umpires: each must be competent and disinterested, as defined in the statute. Washington does not have a separate licensing scheme for independent vehicle appraisers who participate in automobile insurance appraisal proceedings.

Washington does license public adjusters under the Washington Insurance Code (RCW Title 48). A public adjuster is not the same as an independent vehicle appraiser in the context of an automobile insurance appraisal proceeding. The roles and regulatory requirements are distinct.

Under RCW 48.18.620, each party bears the cost of its own appraiser, and the cost of the umpire is shared equally. For policies not subject to the statute, appraisal expense allocation is governed by the applicable policy language.