Important Information for Vehicle Owners: In California, including Hayward, the Appraisal Clause can be invoked by either the vehicle owner or the insurance company when there is a disagreement over the value of a vehicle that has been declared a total loss.
How the Appraisal Clause Works
Either you or the insurance company may demand an appraisal under this provision. Each party selects a competent appraiser, and the appraisers work toward a fair settlement amount. If the appraisers disagree, they select a neutral umpire. Any amount agreed to by two of the three is binding. Each party pays its own appraiser, and the umpire fee is shared.
California Total Loss Valuation Rules
The appraisal, adjustment, and settlement of automobile insurance claims involving total loss disputes in California must follow strict standards. Valuing a total loss claim requires research into comparable vehicles and the use of valid comparable automobile values from accepted computerized valuation services.
A comparable automobile is one of like kind and quality, made by the same manufacturer, of the same or newer model year, of the same model type, of a similar body type, and with options and mileage similar to the insured vehicle. Newer model year automobiles may not be used unless there are not enough comparable automobiles of the same model year to determine value.
In determining the cost of a comparable automobile, the appraiser may use either the asking price or the actual sale price. Differences between the comparable automobile and the insured vehicle are allowed if the appraiser fairly adjusts for those differences.
A comparable automobile must have been available for retail purchase by the general public in the local market area within ninety calendar days of the final settlement offer. If comparable automobiles are not available, or were not available in the local market area during the last ninety days, the appraiser may use the average of two or more quotations from two or more licensed dealers in the local market area. If none of these methods work, the cost of a comparable automobile must be supported by documentation and fully explained by the appraiser.
California Fair Claims Practices
Car owners should also be aware of California’s protections against unfair claims practices by insurance companies. Insurers should not attempt to settle a claim for less than the amount you are entitled to receive, delay claims without reason, fail to provide a prompt explanation for denial or compromise, or request information that is not reasonably required to resolve the dispute.
An insurer should not try to settle a claim with an unreasonably low offer. In determining whether a settlement offer is unreasonably low, the Commissioner may consider any admissible evidence that is offered.
What Is the Typical ROI When You Hire St. Lucie Appraisal for a Total Loss Dispute?
Fees and Contact Information
Additional fees may include $275 for representation in Appraisal Clause negotiations and half of an umpire’s fee if one is necessary. On average, approximately 10% of Appraisal Clause cases go to an umpire.
California Department of Insurance
320 Capitol Mall, Sacramento, CA 95814
800-967-9331
https://www.insurance.ca.gov/01-consumers/101-help/
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REQUEST AN AUTOMOBILE VALUATION APPRAISAL – $275.00 for most cars.
After making your payment, please email the insurance company work sheet to contact@stlucieappraisal.net
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