Disclaimer
This article is for general informational purposes only and does not constitute legal advice. For advice tailored to your situation, consult a licensed attorney in Utah.
Detailed Answer
If your insurance company offers a diminished value payment that you believe is too low, Utah law lets you trigger the appraisal clause in most auto policies. This clause provides an independent mechanism to settle valuation disputes without going to court.
1. Confirm Your Policy’s Appraisal Clause
Open your auto insurance policy and locate the appraisal provision in the section labeled “Appraisal” or “Loss Settlement.” The clause usually states that if you and the insurer disagree on the vehicle’s post-repair value, each party may hire a qualified appraiser. The two appraisers then select an umpire to settle the dispute.
2. Serve a Written Demand for Appraisal
Utah courts recognize a written demand as the first step to invoke appraisal. Draft a letter stating that you reject the insurer’s diminished value offer and demand appraisal under the policy. Send this demand by certified mail to your claims adjuster or the insurer’s legal department. Keep proof of delivery.
3. Appraiser Appointment and Exchange of Statements
After your demand, you and the insurer each appoint an independent appraiser. Within the timeframe set in your policy (often 20–30 days), exchange written statements of the vehicle’s actual cash value before and after repairs. Include documentation such as repair estimates, market valuations, and photos. If one appraiser refuses or misses the deadline, you can still proceed by asking a court to appoint an appraiser for the non-complying party.
4. Umpire Selection and Appraisal Conference
If your appraiser and the insurer’s appraiser cannot agree on a single value, they must select a neutral umpire. If they cannot agree on an umpire within the policy’s deadline, either party can ask a Utah district court to appoint one. Then, your appraiser, the insurer’s appraiser, and the umpire meet—often by phone—to review evidence and set a final diminished value amount.
5. Final Binding Decision
Under most policies, the decision agreed on by any two of the three participants (your appraiser, the insurer’s appraiser, or the umpire) binds both you and the insurer. The insurer pays that amount, plus any appraisal costs your policy requires it to cover.
Statutory Support: Utah Code A § 31A-21-312 governs appraisal clauses in property and casualty policies. See https://le.utah.gov/xcode/Title31A/Chapter21/31A-21-S312.html for full text.
Helpful Hints
- Review your policy deadlines carefully. Late demands can forfeit your appraisal right.
- Choose an appraiser experienced in diminished value estimates and local vehicle markets.
- Document your vehicle’s condition with dated photos before and after repairs.
- Keep copies of all correspondence, estimates, and invoices you send.
- If the insurer stalls on umpire selection, file a petition in district court for appointment.
- Consider consulting an attorney if the insurer denies appraisal or threatens policy nonrenewal.