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The appraisal clause in an auto policy

Some first-party policies include an appraisal clause for disagreements about the amount of loss. That is a policy process with your own insurer, not a letter you send to another driver's insurer.

Updated September 14, 2026

A third-party diminished value claim is presented to the at-fault driver's insurer. An appraisal clause, when it exists, is language in your own policy. Mixing the two paths is a common source of delay.

This page explains the distinction in process terms. It is not legal advice, it does not tell you whether to invoke a clause, and we do not appoint anyone or negotiate for you.

What the clause usually is

Where a policy includes an appraisal clause, it typically describes a way for the policyholder and their own insurer to pick people who will try to agree on the amount of a covered loss after they already disagree. The details are in the contract. Read the policy, including definitions and any conditions that have to be met first.

It is not the third-party diminished value path

A demand letter to another driver's insurer is not an invocation of your own policy's appraisal clause. If you are claiming against the at-fault driver's coverage, stay on that claim file unless a qualified professional tells you a first-party path applies in your facts and state.

What this product does not do

We do not appoint a representative and we do not communicate with insurers for you. This product is not a licensed appraisal. If you need that kind of help, look for a licensed professional in your state. Our Complete package includes a short pointer in the escalation kit so you remember to read the policy; it is not a filing service.

Questions

Can I use your report inside a policy appraisal process?

You can attach documents you reviewed. Whether they are accepted is up to the people in that process. The report is informational, not a licensed appraisal.

See what your vehicle's accident history may have cost you.

Answer a few questions about your vehicle and repair. You will see your estimate and the factors behind it before you decide whether to pay for anything.

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This is an estimate, not an appraisal or a promise of payment. It's based on the information you entered and general market data. Insurers may dispute or deny claims. Read the full disclaimer.