Detailed Answer
Diminished value claims seek fair compensation for the loss in a vehicle’s market value after an accident. If your insurer’s offer seems unreasonably low, you can invoke the appraisal clause in your policy to settle the dispute. This process is contractual and enforceable under Virginia law.
1. Review Your Policy’s Appraisal Clause
Locate the appraisal provision in your declarations page or policy booklet. Virginia auto insurance policies often include language stating: “If we and you disagree on the amount of loss, either may demand an appraisal.” Note any deadlines for making that demand—typically 60 days from the date of loss.
2. Confirm Request Deadlines
Virginia’s insurance regulations require timely adherence to policy terms. If you miss the appraisal demand deadline, you may waive your right. Mark the date of loss and calculate any waiting period before you can invoke appraisal.
3. Send a Formal Appraisal Demand
Submit a written demand to your insurer by certified mail, return receipt requested. In your letter, quote the appraisal clause and state your intent to invoke it due to disagreement over the diminished value payment. Keep copies of all correspondence.
4. Choose Your Appraiser
Once the insurer acknowledges your demand, each side selects an independent, qualified appraiser. Look for a professional with credentials from the International Society of Appraisers (ISA) or the American Society of Appraisers (ASA).
5. Appraiser Conference and Umpire Selection
Your appraiser and the insurer’s appraiser will inspect your vehicle and submit separate estimates of the loss in market value. If they cannot agree on a single figure, they must select an impartial umpire to resolve differences.
6. Final Appraisal Award
The amount agreed upon by any two of the three appraisers (yours, the insurer’s, or the umpire) becomes binding on both you and the insurer. Under Virginia’s Unfair Claim Settlement Practices Regulations (14VAC5-200-160), insurers must honor appraisal awards promptly.
Helpful Hints
- Preserve all repair invoices, vehicle valuations, and photographs of damage.
- Document every phone call or email with the insurer regarding diminished value.
- Understand fee responsibilities: you pay your appraiser, the insurer pays theirs, and you typically split the umpire’s fee.
- Track deadlines closely to avoid unintentional waiver of your rights.
- If the insurer refuses to participate in appraisal, consider consulting an attorney to enforce the clause.
Disclaimer: This article provides general information on Virginia insurance practices. It is not legal advice. For specific legal guidance, consult a qualified attorney.