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What Is A Partial Loss Appraisal Clause?

A partial loss appraisal clause refers to the appraisal provision contained within many automobile insurance policies that may be used to resolve disputes involving repairable vehicles.
 

While appraisal is commonly associated with total loss valuation disputes, appraisal may also apply to certain repairable vehicle disputes depending upon:

• Policy language

• State law

• The nature of the disagreement

• Applicable court decisions
   

Not all policies contain appraisal clauses, and not all appraisal clauses are identical.

The availability and scope of appraisal may vary depending upon the policy language and applicable state law.
 

Common Repairable Vehicle Disputes

Many repair disputes begin with a significant difference between the insurance estimate and the repair facility estimate.

Examples include:

OEM Repair Procedure Disputes

The repair facility follows manufacturer repair procedures.

The insurer disagrees with some or all of the recommended operations.
 

Calibration Disputes

Modern vehicles frequently require:

• Pre-repair scans

• Post-repair scans

• Static calibrations

• Dynamic calibrations

• ADAS system verification

Disagreements often arise regarding necessity and reimbursement.
 

Repair Versus Replace Disputes

Should the component be repaired?

Should the component be replaced?

These disagreements frequently involve:

• Structural components

• Aluminum panels

• Advanced materials

• Safety-related components
   

Structural Repair Disputes

Disputes may involve:

• Frame repairs

• Unibody repairs

• Sectioning procedures

• Weld locations

• OEM structural guidelines
   

Supplement Disputes

Additional damage is discovered during repairs.

The insurance company and repair facility cannot agree on the additional repair operations required.
 

Labor Operation Disputes

Common disputes involve:

• Body labor

• Frame labor

• Refinish labor

• Mechanical labor

• Diagnostic operations
   

Can Appraisal Be Used For Repairable Vehicle Disputes?

The answer depends upon the specific policy language and the nature of the dispute.

Many appraisal clauses allow appraisers to determine the amount of loss.

Questions involving pure coverage issues may fall outside the scope of appraisal.
 

However, disputes involving repair costs, repair operations, repair methodology, and the amount necessary to restore a vehicle may be appropriate for appraisal under certain policies.

Each claim should be evaluated individually.
 

Signs That Appraisal May Be Appropriate

You may wish to explore appraisal when:

✓ The insurance estimate and repair estimate differ significantly

✓ The vehicle has remained unrepaired due to a dispute

✓ OEM procedures are being challenged

✓ Multiple supplements have failed to resolve the disagreement

✓ The parties remain far apart despite negotiations

✓ Litigation is being considered solely because of a repair cost dispute
 

How The Appraisal Process Works

Step 1 – Appraisal Is Invoked - The policyholder requests appraisal pursuant to the policy provisions.

Step 2 – Each Side Selects An Appraiser - The policyholder and insurer select independent appraisers.

Step 3 – Vehicle And Documentation Review

The appraisers review:

• Vehicle damage

• Repair estimates

• OEM repair procedures

• Supporting documentation

• Claim file materials

Step 4 – Appraiser Discussions - The appraisers attempt to resolve the disputed issues.

Step 5 – Umpire Selection (If Necessary) - If agreement cannot be reached, an umpire may be selected pursuant to the policy.

Step 6 – Appraisal Award - An appraisal award is issued in accordance with the policy provisions.
 

Why Repair Facilities Contact Cardwell Claim Authority

Repair facilities are experts at repairing vehicles.

Insurance companies are experts at handling claims.

When a disagreement develops, an independent review may help bridge the gap.
 

Cardwell Claim Authority brings more than 26 years of insurance claims experience to the appraisal process.

We understand:

• Collision repair disputes

• Total loss claims

• OEM repair procedures

• Appraisal clause disputes

• Vehicle valuation

• Claim handling practices

• Estimate review

• Repair documentation
   

Our role is not to create a result.

Our role is to review the available evidence and support a defensible conclusion.
 

For Collision Repair Facilities

Many collision repair professionals are familiar with:

• Supplements

• Reinspections

• Desk reviews

• Escalations

Fewer are familiar with appraisal.
 

Understanding when appraisal may be available can provide another tool for resolving difficult repair disputes.

Whether the issue involves calibrations, repair methodology, structural repairs, labor operations, or OEM procedures, appraisal may be worth exploring.
 

Why Cardwell Claim Authority

26 Years Insurance Industry Experience

Independent Analysis

Professional Reporting

Nationwide Service

Transparent Methodology

Carrier And Policyholder Experience
Appraisal Clause Expertise
 

Frequently Asked Questions

Can appraisal be used on a repairable vehicle?

Possibly. The answer depends on the policy language, state law, and nature of the dispute.
 

Does every policy contain an appraisal clause?

No. Policy language varies by insurer and state.
 

Can appraisal resolve calibration disputes?

In some situations, appraisal may be used to address disagreements involving repair operations and repair costs.
 

Can appraisal resolve OEM procedure disputes?

Depending on the policy and circumstances, appraisal may assist in resolving certain repair-related disagreements.
 

Do I need an attorney?

Not necessarily. Appraisal is often intended to provide an alternative dispute resolution process.
 

If you are a vehicle owner, repair facility, attorney, insurance professional, or claims representative facing a repairable vehicle dispute, Cardwell Claim Authority may be able to help evaluate whether appraisal is an available option.

The Cardwell Standard

Objective. Independent. Trusted.

We do not create repair costs.

We do not create value.

We support, document, analyze, and determine the amount of loss based upon evidence, documentation, market data, repair procedures, and professional methodology.

Because the report builds the position.