What is Appraisal Clause?

The Appraisal Clause is a provision in most auto policies that lets either side ask for an appraisal when they disagree on the amount of a loss, such as a car's value. Each side picks an appraiser, and if they can't agree, an umpire decides. It resolves the value dispute without a lawsuit.

Because the dispute is only about value, total losses through appraisal can settle quickly; most TRUEclaims total losses have settled within 1–2 weeks (past results). Wording and deadlines vary by policy, so read the owner's policy.

See how the referral program works The one-pager, the referral line, the AI assistant and the Appraisal Clause, set up for you.

More terms

Total loss Actual cash value (ACV)Umpire (appraisal)Total Loss Formula Total loss threshold Salvage value Diminished value Comparable vehicle (comp)Fair market value (FMV)Loss of use Property-damage-only claim Referral agreement (between law firms)Demand letter

Updated 2026-11-01. General information, not legal advice; policy wording and state rules vary. TRUEclaims is not a law firm.