Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
When an insurer offers a low diminished value payment after vehicle repairs, you can invoke the appraisal clause in your auto policy. The appraisal clause is a contractual provision designed to resolve disputes over the amount of loss. Although Idaho law does not prescribe a specific appraisal process, policies typically follow the Insurance Services Office (ISO) form. You should find the appraisal clause under a section titled “Appraisal” or “Loss Settlement.”
Under Idaho Code Title 41, Chapter 25—“Insurance Contracts”—insurers may include an appraisal clause that lets either party demand independent valuation of the loss. See Idaho Code Title 41, Ch. 25. Idaho’s Unfair Claims Settlement Practices Act, Idaho Code § 41-2518, prohibits insurers from undervaluing or misrepresenting claims. If an insurer refuses a valid appraisal demand, it may violate Section 41-2518.
Step 1: Locate and Review the Appraisal Clause
Open your auto policy and look for the appraisal provision. Note these key details:
- Time limits to demand appraisal (often 60 days after dispute)
- Requirements for the written demand
- Qualifications for appraisers
Step 2: Serve a Written Demand
Send your insurer a written demand for appraisal by certified mail or another documented method. Your demand should include:
- Policy number and date of loss
- Statement that you invoke the appraisal clause on diminished value
- Request that the insurer appoint an appraiser
- Reference to the policy section you rely on
Step 3: Select Your Appraiser
Within the time frame specified, appoint a qualified appraiser with experience in diminished value assessments. The insurer will appoint its own appraiser. If either side misses the deadline, you may waive the right to appraisal.
Step 4: Appraisers Choose an Umpire
If your appraiser and the insurer’s appraiser cannot agree on diminished value, they must select an impartial umpire. If they cannot agree on an umpire, you or the insurer can request a court to appoint one.
Step 5: Conduct the Valuation
The two appraisers—or appraisers and umpire—exchange information, inspect the vehicle, and review repair invoices. They then submit a written award stating the agreed-upon diminished value.
Step 6: Insurer Must Pay the Award
Once the appraisal award is binding, the insurer must pay that amount, subject to your policy deductible and any other policy limits. If the insurer refuses to honor the award, you may have a claim for bad faith under Idaho Code § 41-2518.
Helpful Hints
- Gather all repair invoices, prior appraisals, and market data on similar vehicles.
- Choose an appraiser with specialty in diminished value assessments.
- Track all deadlines in writing to preserve your appraisal rights.
- Keep clear records of correspondence and delivery receipts.
- Consider a pre-appraisal independent estimate to strengthen your demand.
- If the insurer violates appraisal rules, document the violation for a potential bad faith claim.
- Consult an attorney if the insurer refuses to comply or deadlines are confusing.