Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a qualified attorney for guidance on your specific situation.
Detailed Answer
When an insurer issues a low diminished value offer after a covered loss, you can invoke the appraisal clause in your Wyoming auto insurance policy to obtain a fair valuation. The appraisal clause is an alternative dispute resolution mechanism found in most standard personal auto policies. It allows you and the insurer to each select an independent appraiser. If those appraisers disagree on the vehicle’s diminished value, they jointly appoint an umpire. A three-party decision then determines the final amount.
Step 1: Review Your Policy’s Appraisal Clause
Locate the appraisal section—often titled “Appraisal of Loss” or “Appraisal Clause”—in your declarations or conditions. Note any time limits (for example, filing within one year of loss) and requirements for written demand.
Step 2: Send a Written Demand
Draft a letter to your insurance adjuster stating your election to invoke the appraisal clause. Include:
• A reference to your policy number and date of loss.
• A clear statement that you challenge the insurer’s diminished value offer and demand appraisal.
• Your selected appraiser’s name, qualifications, and contact information.
• A copy of the repair estimate and any evidence of diminished value (dealer quotes, market data).
Send this demand by certified mail with return receipt requested. Keep proof of delivery.
Step 3: Insurer’s Appraiser Selection
After your demand, the insurer must appoint its appraiser within the timeframe specified by your policy (commonly 10–30 days). If the insurer fails to do so, you may seek a court order compelling appraisal under Wyoming contract law.
Step 4: Joint Inspection and Appraisal
You and the insurer’s appraisers inspect the vehicle, examine repair records, test-drive if needed, and determine diminished value. If both appraisers agree, that figure binds both sides.
Step 5: Appointing an Umpire
If the two appraisers differ, they select a neutral umpire. All three meet (in person or virtually), review the evidence, and decide on a final diminished value. The decision of any two appraisers or the umpire binds both you and the insurer.
Step 6: Split Fees and Costs
You and the insurer typically split appraisal fees evenly (appraiser fees and umpire charge). Confirm cost-sharing in your policy. Keep records of all expenses.
Enforcement in Wyoming
Wyoming courts recognize and enforce appraisal clauses as written in insurance contracts under basic contract principles (see Wyoming contract law). If the insurer refuses to participate, you can file a petition in district court to compel appraisal and recover appraisal fees and costs.
Helpful Hints
- Act promptly: Note any deadlines in your policy’s appraisal clause.
- Choose a qualified appraiser: Look for someone with diminished value experience and auto industry credentials.
- Document your loss: Gather repair invoices, dealer market quotes, and vehicle condition photos.
- Communicate in writing: Keep all correspondence by certified mail or email with read receipts.
- Understand costs: Be prepared to share appraisal and umpire fees with the insurer.
- Consider legal counsel: If the insurer stalls or denies the process, an attorney can help compel appraisal in court.