Are you disagreeing with your auto insurer about the cost of repairs, the type of repairs needed or the total loss value the auto insurer has given you?
Then it’s time to invoke the Appraisal Clause! It’s time to call Collision Service Investigators-NC!
What is the Appraisal Clause?
The appraisal clause is found in PART D > COVERAGE FOR DAMAGE TO YOUR AUTO within the North Carolina Personal Auto Policy your auto insurer provided you. The Personal Auto Policy is also a legal contract between you and your auto insurer.
The appraisal clause can be “invoked’ when there is a disagreement in repairing the damages to your vehicle or when you disagree with the value the auto insurer placed on your vehicle when declaring it a total loss. In the LIMIT OF LIABILITY, your auto insurer owes you the “amount necessary to repair or replace the property with other property of like kind and quality.”
When the appraisal clause is “invoked,” you the insured and your auto insurer each hire a competent appraiser to establish the extent of the loss. Each appraiser will appraise the loss; if the two appraisers can reach an agreement then the loss is settled. In the event the two appraisers cannot agree then an umpire is chosen to decide the loss. Only one of the two appraisers has to agree to the umpire’s decision, the loss is then settled.
Appraisal
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 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. Each party will:
- Pay its chosen appraiser; and
- Bear the expenses of the appraisal and umpire equally.
We do not waive any of our rights under this policy by agreeing to an appraisal.
LIMIT OF LIABILITY
Our limit of liability will be the lesser of the:
- Actual cash value of the stolen or damaged property;
- Amount necessary to repair or replace the property with other property of like kind and quality.
This amount does not include any reduction in the value (note: diminished value) of the property after it has been repaired, as compared to its value before it was damaged.
When is the Right Time to Invoke the Appraisal Clause?
Now that you know what an appraisal clause is in your North Carolina Personal Auto Policy, you may wonder when is the right time to invoke the appraisal clause.
The appraisal clause is mainly relevant when you have a disagreement with your auto insurer regarding the repair of your vehicle. This applies particularly if you disagree with the total loss value that your insurer has assigned to your vehicle.
If you are not at fault in an auto accident and disagree with the at-fault party’s insurance company, it may be beneficial to file the claim with your own auto insurer for the repairs. This is also true if your vehicle is deemed a total loss. Your auto insurer will “subrogate,” meaning they will recover the payment from the insurance company of the party at fault. Additionally, your deductible will be refunded. To take advantage of this process, you must have collision insurance. If you do not have collision insurance, you may be left at the mercy of the at-fault party’s insurance company.