What steps are involved in the formal appraisal process if I disagree with my insurer's vehicle damage estimate?

If you disagree with your insurer's damage estimate, you can invoke the formal appraisal process outlined in your auto insurance policy. This process uses independent appraisers to determine the correct amount of the loss. Here are the steps involved in the formal appraisal process: Step 1: Review Your Insurance Policy First, find and read the "Appraisal" clause within your auto policy. Under California Code of Regulations Title 10 Section 2695.8(f), most policies offering collision or comprehensive coverage must include this provision. It details your right to demand an appraisal and the rules that govern the process. Step 2: Make a Formal Written Demand Send a formal letter to your insurance adjuster or claims department stating that you are invoking your right to appraisal to resolve the dispute over the amount of damage. Send this letter via certified mail with a return receipt requested to ensure you have proof of delivery. Step 3: Hire a Competent Appraiser You must select and hire your own independent appraiser. This person must be competent (knowledgeable about vehicle values and repair costs) and disinterested (impartial). You are responsible for paying this appraiser's fees. Your insurer will also hire its own appraiser at its expense. Step 4: Appraisers Attempt to Agree and Select an Umpire The two appraisers will each evaluate the damage and try to agree on a final amount. If they cannot agree, they must select a neutral, competent umpire to act as a tie-breaker. By law, they have 15 calendar days from the date the two appraisers are named to agree upon an umpire. Step 5: The Binding Award is Issued If an umpire is needed, they will review the findings from both appraisers. A decision on the cost of repairs agreed to by any two of the three parties (your appraiser, the insurer’s appraiser, or the umpire) is final and binding on both you and your insurer. The insurer must then pay the agreed-upon amount. Important Considerations: The appraisal process only resolves disputes over the dollar amount of the damage. It cannot be used to settle disagreements about whether your policy covers the loss in the first place. You are responsible for paying for your appraiser and splitting the cost of the umpire with the insurer. Warnings and Limitations: The final award from the appraisal process is binding, meaning you generally cannot appeal it simply because you are unhappy with the result. This process is best reserved for significant disagreements over the vehicle's value, as the associated costs may not be justified for minor disputes. This is general information and does not constitute legal advice. For complex situations or if your insurer is uncooperative, you should consult with a qualified California attorney.