The appraisal clause, explained

The appraisal clause is a provision found in many auto insurance policies. It's a built-in option for resolving a disagreement about the amount of a loss — for example, how much your totaled vehicle was actually worth.

It applies to a disagreement over value, not over whether something is covered. And it's a first-party remedy — a provision of your own policy with your own insurer.

The appraisal clause generally comes into play when you and your insurer disagree on the amount, and you haven't yet accepted or cashed the settlement or signed a release.

Once you accept the offer, the disagreement is usually considered settled — so timing matters.

The steps vary by policy, but the general pattern is: one side makes a written demand for appraisal; each side names its own competent, independent appraiser; the two appraisers confer to try to agree on a value.

If they can't agree, they select a neutral umpire. A value agreed to by any two of the three is generally binding, and the costs are typically split between the parties.

Claimly provides the independent valuation report, this general educational guide, and an editable letter you can use to invoke the clause. That's the product.

You do the rest: you send the letter, you name your own independent appraiser if it goes to formal appraisal, and you make all the decisions. Unless you separately purchase the Appointed Total Loss Appraiser service, Claimly is not your appraiser, does not join the appraisal panel, does not negotiate, and does not act for you with your insurer. Where that service is purchased, the appointed appraiser's role is limited to the appraisal-clause valuation process described in the service terms.