Invoke Your Appraisal Clause & Get Paid What Your Car Is Worth
Insurance companies often undervalue total loss vehicles by thousands. As your independent appraiser, we provide the certified appraisal you need to dispute the offer and increase your settlement using the Appraisal Clause in your policy.
What Is a Total Loss Appraisal and How Does the Appraisal Clause Work?
A total loss appraisal is an independent valuation of a vehicle that has been declared a total loss by an insurance company. When an insurer determines that the cost to repair a damaged vehicle exceeds its actual cash value (ACV), they "total" it and offer the owner a settlement. However, these offers are frequently below the vehicle's true market value.
The Appraisal Clause is a provision found in nearly every auto insurance policy in the United States that gives policyholders the right to dispute the insurer's valuation. When invoked, both the policyholder and the insurer each appoint an independent appraiser. If the two appraisers cannot agree, they select an umpire, and the decision of any two of the three is binding.
National Appraisers LLC serves as your independent appraiser in this process. We prepare a certified appraisal report documenting the vehicle's true market value based on comparable sales, condition, mileage, options, and local market data. Our reports have a 95% success rate in increasing total loss settlements. Call 1-888-967-6488 for a free claim review.
The Insurance "Lowball"
Why Your Offer Is Low
Insurers use third-party valuation reports (like CCC One) that are often biased. They may:
- Select "comparable" vehicles that aren't actually comparable (lower trim, higher mileage).
- Apply unjustified "condition adjustments" to lower your car's value.
- Ignore recent maintenance, new tires, or upgrades you paid for.
What is the Appraisal Clause?
The Appraisal Clause is a provision found in most auto insurance policies that gives you the right to dispute the insurance company's valuation of your vehicle. It's a formal, binding process — and it's a benefit you already pay for in your premium.
"If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. The appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding."
This language, or a close variation, appears in virtually every auto insurance policy in the United States. It is your contractual right.
How the Appraisal Process Works
You Receive a Low Offer
The insurance company totals your vehicle and sends you a settlement offer based on their valuation. In most cases, this offer is significantly below your vehicle's true market value.
Contact Us for a Free Review
Send us your insurance offer, vehicle details, and any supporting documents. We review your case at no cost and tell you if invoking the Appraisal Clause makes sense for your situation.
You Invoke the Appraisal Clause
You send a written demand to your insurance company invoking the Appraisal Clause in your policy. We prepare the demand letter and guide you through every step. This is your contractual right — the insurer must comply.
We Appraise Your Vehicle
As your independent appraiser, we conduct a thorough market analysis using real comparable sales, condition data, and current market trends to determine your vehicle's actual cash value. We prepare a certified appraisal report.
Appraisers Negotiate
Your appraiser (us) and the insurance company's appraiser exchange findings and negotiate. In the vast majority of cases, the two appraisers reach an agreed value — and it's almost always higher than the original offer.
You Get a Higher Settlement
The agreed value is binding. The insurance company must pay the new amount. Our clients typically see increases of $3,000 to $15,000+ over the original offer. The process usually takes 2-4 weeks from start to finish.
What if the appraisers can't agree?
In the rare event (less than 1% of cases) that the two appraisers cannot reach an agreement, they select a neutral umpire. The umpire reviews both appraisals and makes a binding decision. A decision agreed to by any two of the three (your appraiser, their appraiser, or the umpire) is final. This ensures a fair resolution without litigation.
No Upfront Cost
Free case review. We only get paid when you get a higher settlement.
Fast Resolution
Most cases resolve in 2-4 weeks. No lawsuits or lengthy litigation.
Binding Result
The agreed value is legally binding. The insurer must pay the new amount.
95% Success Rate
We increase settlements in 95% of cases we handle. Proven results.
Our Total Loss Services
Whether you're dealing with your own insurance or another driver's, we have the right solution.
Understanding the Total Loss Appraisal Process
When an insurance company declares your vehicle a total loss, they are required to pay you the Actual Cash Value (ACV) of your vehicle immediately before the loss occurred. However, insurance companies routinely undervalue total loss vehicles by using outdated data, ignoring vehicle-specific options and upgrades, and relying on valuation tools that favor the insurer. The result is an offer that can be thousands of dollars below what your vehicle was actually worth.
The Appraisal Clause in your auto insurance policy is the most effective tool to challenge a low total loss offer. By invoking this clause, you hire an independent appraiser who conducts a thorough market analysis using actual comparable sales data from your local area. This analysis accounts for your vehicle's specific mileage, condition, options, and equipment — factors that insurance company valuations often overlook or minimize.
Why Insurance Companies Undervalue Total Loss Vehicles
Insurance companies use proprietary valuation tools such as CCC, Mitchell, and Audatex to generate total loss offers. While these tools can be useful starting points, they are often configured to produce values that favor the insurer. Common issues include using comparable vehicles from distant markets, failing to account for low mileage or premium options, applying excessive condition adjustments, and ignoring recent market trends that have driven vehicle values higher.
An independent total loss appraiser reviews the insurer's valuation line by line, identifies every area where the value has been suppressed, and produces a certified report that documents the true market value. This report becomes the foundation for the appraisal clause process, where a binding settlement is reached between your appraiser and the insurance company's appraiser.
Total Loss Appraisal: Frequently Asked Questions
How do I know if the insurance company's total loss offer is too low?
Compare the offer to similar vehicles for sale in your local market. Search for vehicles with the same year, make, model, trim, mileage, and condition on sites like AutoTrader, Cars.com, and CarGurus. If the asking prices for comparable vehicles are significantly higher than the insurance offer, you likely have grounds to dispute. A professional appraisal provides the definitive answer.
What is the Appraisal Clause and how do I invoke it?
The Appraisal Clause is a provision in your auto insurance policy that gives you the right to dispute the insurer's valuation. To invoke it, you send a formal written demand to your insurance company stating that you disagree with their valuation and are exercising your right to appraisal under the policy. You then hire an independent appraiser to represent your interests in the process.
How much more can I get through the appraisal process?
Results vary depending on the vehicle and the initial offer, but it is common for the appraisal process to increase the settlement by 20% to 50% or more. For higher-value vehicles, the increase can be several thousand dollars. The cost of the appraisal is typically a small fraction of the additional recovery.
Can I use the Appraisal Clause if I was at fault?
Yes. The Appraisal Clause is a provision in your own insurance policy and applies to first-party claims regardless of fault. Whether you caused the accident or not, if your insurance company has declared your vehicle a total loss and you believe their offer is too low, you can invoke the appraisal clause to dispute the valuation.
What if the other driver was at fault? Can I still get a fair total loss settlement?
If the other driver was at fault, you are making a third-party claim against their insurance. While you cannot use your own policy's Appraisal Clause in this situation, you can submit a certified appraisal report as evidence to support a higher valuation. This report serves as a powerful negotiation tool and can be used in demand letters, mediation, or litigation.
How long does the total loss appraisal process take?
The appraisal process typically takes 2 to 4 weeks from the time the appraisal clause is invoked. During this time, the independent appraiser conducts a market analysis, prepares a certified report, and negotiates with the insurance company's appraiser. If the two appraisers cannot agree, an umpire is selected to make a binding decision.
What about my car loan? What if I owe more than the insurance offer?
If you owe more on your loan than the insurance company's offer, you may have a GAP insurance claim. Additionally, the appraisal process can increase the total loss settlement to help close the gap between the offer and your loan balance. Our team can help you navigate both the total loss dispute and any GAP claim.