Detailed Answer
When an insurer’s diminished value offer falls short, you can invoke the appraisal clause in your Missouri auto insurance policy to secure a fair assessment. The appraisal clause is a contractual tool that lets you and the insurer each hire an independent appraiser to value your vehicle’s diminished value. If the appraisers disagree, they select an umpire, and the decision of any two of the three experts becomes binding.
1. Review Your Policy and Appraisal Clause
Open your declarations page and find the appraisal section. It outlines key details such as time limits, appraisal expenses, and the process for selecting appraisers. Make note of any deadlines to invoke appraisal.
2. Send a Written Demand
Draft a formal letter to your insurer stating that you invoke the appraisal clause to resolve a dispute over diminished value. Include:
- Your policy number and claim number.
- A clear statement: “I hereby invoke the appraisal clause under my policy.”
- A copy of the policy’s appraisal section for reference.
- Your proposed appraiser’s name and credentials.
Send the letter by certified mail with return receipt to the insurer’s claims address. Keep proof of delivery.
3. Appraiser Selection and Exchange
Your insurer must appoint its own appraiser within the time frame specified. Exchange professional credentials and contact information. Each appraiser inspects the vehicle and gathers market data, repair records, and sales comparisons. Under RSMo § 379.200, if either party fails to appoint an appraiser, you may petition the Missouri Department of Commerce & Insurance or file a court motion to compel appraisal.
4. Umpire Appointment
If the two appraisers cannot agree on the diminished value amount, they must choose an impartial umpire. If they cannot agree on an umpire within the time frame, either party can ask the circuit court to appoint one. The umpire joins discussions and helps resolve the valuation.
5. Binding Award
Once two of the three (you, insurer, or umpire) agree on a figure, that award binds both you and the insurer. The insurer must then pay the appraised amount, subject to your policy’s deductible.
Disclaimer
This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney for advice on your specific situation.
Helpful Hints
- Keep all correspondence, appraisals, and inspection reports in one file.
- Review your policy’s deadlines carefully to avoid waiving appraisal rights.
- Choose an appraiser with experience in diminished value claims.
- Be prepared to split appraisal and umpire fees as required by your policy.
- If the insurer delays or ignores your demand, contact the Missouri Department of Commerce & Insurance at insurance.mo.gov.
- Consider consulting an attorney if appraisal does not resolve the dispute or if procedural issues arise.