The Appraisal Clause: Your Secret Weapon in Any Insurance Dispute
Most Utah auto insurance policies contain a clause that lets you demand an independent appraisal. Insurance companies hope you never find it. Here's how to use it.
What Is the Appraisal Clause?
Buried in the fine print of most Utah auto insurance policies is a provision called the "appraisal clause." It gives you the contractual right to demand an independent appraisal when you disagree with the insurance company's valuation of your vehicle.
This isn't a legal trick or a loophole. It's a standard part of your insurance contract. The insurance company agreed to it when they sold you the policy. And it's one of the most powerful tools available to you — because it takes away the insurer's ability to unilaterally dictate what your car is worth.
Most people never know about it. Insurance adjusters certainly won't mention it. They prefer the "take it or leave it" approach.
How the Appraisal Clause Works — Step by Step
Step 1: Send written notice. Write to your insurance company stating that you're invoking the appraisal clause under your policy. Be specific — reference the clause by section number if you can find it. This is your contractual right. They cannot refuse.
Step 2: Each side hires an appraiser. You hire a USPAP-certified appraiser (that's us — $350 flat fee). The insurance company hires their own. Both appraisers independently evaluate your vehicle's pre-loss value.
Step 3: The appraisers compare findings. If both appraisers agree on a value, that becomes your settlement. Done.
Step 4: If they disagree, an umpire decides. The two appraisers select a neutral third-party umpire. The umpire reviews both appraisals and makes a final, binding decision. Agreement by any two of the three (your appraiser, their appraiser, and the umpire) sets the value.
The entire process typically takes 30-60 days. And because it's binding, the insurance company can't just ignore the result.
When to Invoke the Appraisal Clause
The appraisal clause is most effective when:
- •Total loss disputes: The insurance company's CCC ONE valuation is significantly below market value and they refuse to negotiate after you've submitted a counter-demand
- •Negotiation has stalled: You've submitted an independent appraisal, they've countered with a number that's still unacceptable, and neither side will budge
- •Large value gap: The difference between your appraisal and theirs is substantial enough to justify the process (typically $2,000+)
- •You have strong comparable data: Your appraiser can document local sales that clearly support a higher value
Brad DeBry's advice: "If you can't agree with the adjuster, it doesn't mean they win. Most insurance policies have a process to resolve disagreements. That process should be outlined in your insurance policy."
Important: The appraisal clause typically applies to first-party claims (your own insurance). For third-party claims (the other driver's insurance), the negotiation process is different — but an independent appraisal is still your strongest tool.
Frequently Asked Questions
Does every insurance policy have an appraisal clause?
Most Utah auto policies do, but not all. Check your policy's "Duties After a Loss" or "Settlement of Claims" section. If you can't find it, ask your agent for a copy of the full policy.
Can the insurance company refuse the appraisal clause?
No. If the clause is in your policy, it's a contractual right. They agreed to it when they issued the policy. Refusing would be a breach of contract.
Who pays for the appraisal clause process?
Each side pays for their own appraiser. The umpire's fee is typically split between both parties. Your appraiser fee is $350 flat with Property Damage Pros.
Think You're Owed Money?
Free case review. We'll tell you exactly what your claim is worth.
Call 801-799-9999