Detailed Answer
If your insurer’s diminished value offer in Georgia seems unreasonably low, you can activate the appraisal clause in your auto policy. The appraisal process is a form of arbitration outlined in your contract. Once properly invoked, it forces both you and the insurer to obtain independent damage estimates from qualified appraisers. An umpire resolves any disagreement. The final figure is binding on both parties.
Step 1: Review Your Insurance Policy
Locate the appraisal clause—often under “Loss Settlement” or “Claims Procedures.” Note deadlines, notice requirements, and any language about selecting appraisers and an umpire.
Step 2: Send a Written Demand
Draft a letter to your insurer that includes:
- Policy number and vehicle details.
- A clear statement: “I hereby invoke the appraisal clause of my policy to determine diminished value.”
- Your chosen appraiser’s name, contact information, and credentials.
- Request the insurer name its appraiser within the time frame specified in the policy.
Send this via certified mail and keep the receipt.
Step 3: Appraisers Exchange Reports
Once the insurer appoints its appraiser, both appraisers inspect the vehicle, review repair records, and prepare written reports stating each party’s valuation of diminished value.
Step 4: Select an Umpire if Needed
If the two appraisers cannot agree on a single value, they must appoint an umpire. If they cannot agree on the umpire’s identity, either party may request a Georgia court or an arbitration administrator to select one. See O.C.G.A. § 9-9-2 (Arbitration Agreements).
Step 5: Binding Decision
The umpire reviews both appraisals and chooses a figure. That number becomes the binding diminished value award. The insurer must pay that amount, subject to your policy’s terms.
Timeline: Act quickly. Many policies require notice of appraisal within 60 days of claim denial or low offer.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Helpful Hints
- Document all communications in writing. Written evidence prevents disputes over timing or content.
- Choose an appraiser experienced in diminished value claims. Professional credentials matter.
- Keep repair invoices and photos handy to support your position.
- Review your policy’s deadlines and requirements carefully to avoid waiving rights.
- If the insurer misses a deadline to appoint its appraiser, you may ask a court to enforce appraisal.