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When you and your insurer agree a loss is covered but can't agree on how much it's worth, the appraisal clause is the built-in tie-breaker. Here is how this auto insurance provision works and when to use it.
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The appraisal clause lets you break a value standoff over a total loss. How it works and when to invoke it. $50M+ recovered for clients.
The Quick Takeaways
- It resolves value, not coverage. The appraisal clause settles disputes over the amount of a loss, not whether the claim is covered.
- Either side can invoke it. It is a built-in provision in most auto policies, available to you and to the insurer.
- Two of three decide. Each side hires an appraiser, the two pick an umpire, and a figure agreed to by any two of the three sets the value.
- It is real leverage. In a lowball total-loss or repair-value standoff, it takes "no" off the table.
What the Appraisal Clause Is
Most auto policies contain an appraisal clause: a built-in mechanism for breaking a deadlock when you and the insurer disagree on how much a loss is worth. It exists precisely so a value standoff does not have to end in a stalemate or a lawsuit. Either party can invoke it.
How the Appraisal Process Works
Once invoked, the process is straightforward:
- You hire an independent appraiser, and the insurer hires its own.
- The two appraisers select a neutral umpire.
- The appraisers (and, if needed, the umpire) determine the value. A figure agreed to by any two of the three is binding on the amount of the loss.
It settles the amount, not coverage. Appraisal decides what the loss is worth, not whether it is covered. If the dispute is about coverage rather than value, appraisal is not the tool.
When to Invoke It
The appraisal clause shines in a classic lowball situation: the insurer agrees your car is a total loss (or that a repair is covered), but the actual cash value they offered is too low and they will not budge. Once you have submitted your evidence and hit a wall, invoking appraisal moves the decision to appraisers and an umpire rather than the adjuster.
Before You Invoke It
Appraisal rights, costs, and procedures can vary by policy and by state, so read your policy — or have someone read it for you — before you trigger it. Done at the right moment, with a documented valuation in hand, it is one of the strongest levers a policyholder has. It is also a core step in disputing a total loss offer. If you want to understand the number itself first, our guide to actual cash value explains how the offer is built.
Personal Injury Laws by State — Colorado, Arizona, California & Kansas
Colorado follows a modified comparative negligence system under C.R.S. § 13-21-111, barring recovery if the plaintiff is 50% or more at fault and reducing damages by the plaintiff's fault percentage. Most injury claims: 2 years from the date of injury. Auto collisions: 3 years from the date of crash. Arizona applies pure comparative negligence under A.R.S. § 12-2505, allowing recovery regardless of the plaintiff's fault percentage — even a plaintiff 99% at fault can recover 1% of damages. Arizona's statute of limitations is two years under A.R.S. § 12-542. California also follows pure comparative negligence under CCP § 1431.2, with a two-year filing deadline per CCP § 335.1. Kansas mirrors Colorado's approach with a modified comparative negligence threshold of 50% under K.S.A. § 60-258a, but allows only a two-year filing window under K.S.A. § 60-513. These differences significantly impact case strategy — a plaintiff 55% at fault recovers nothing in Colorado or Kansas but retains a reduced claim in Arizona and California.
Common Questions
What is the appraisal clause in auto insurance?
When should I invoke the appraisal clause?
Does the appraisal clause decide coverage?
Who pays for the appraisal?
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Colorado Crash Reality · 2024
By the Numbers
Behind each of these numbers is a person and a family whose year changed in an instant. We keep them in front of us because understanding how and where Colorado crashes happen is part of building a stronger case — and part of staying safer on the roads you drive every day.
Source: Colorado Department of Transportation (CDOT), 2024; NHTSA, 2024. Figures reflect the most recent full-year data published at the time of writing.
Injury Law at a Glance — CO, CA, AZ & KS
Three things shape almost every injury claim: how long you have to file, how fault is divided, and what the law lets you recover. They differ by state — here is where the four states we practice in stand.
Colorado
This page- Deadline to file
- 3 years
- C.R.S. § 13-80-101 (motor-vehicle injury)
- Fault rule
- Modified (50% bar)
- You can recover only if you were less than 50% at fault; your award is reduced by your share.
- C.R.S. § 13-21-111
- Damage caps
- Non-economic damages capped
- $1.5M for general injury claims accruing on or after Jan. 1, 2025; medical malpractice is capped separately and lower; re-indexed for inflation starting 2028.
- C.R.S. § 13-21-102.5 (HB 24-1472)
California
- Deadline to file
- 2 years
- Cal. Code Civ. Proc. § 335.1
- Fault rule
- Pure comparative
- You can recover even if you were mostly at fault; your award is reduced by your percentage of fault.
- Li v. Yellow Cab Co. (1975)
- Damage caps
- No general cap
- No cap on damages in ordinary injury cases. Medical-malpractice non-economic damages are limited by statute and increase each year.
- Cal. Civ. Code § 3333.2
Arizona
- Deadline to file
- 2 years
- A.R.S. § 12-542
- Fault rule
- Pure comparative
- You can recover even if you were mostly at fault; your award is reduced by your percentage of fault.
- A.R.S. § 12-2505
- Damage caps
- No damage caps
- Damage caps are prohibited by the Arizona Constitution.
- Ariz. Const. art. 2, § 31
Kansas
- Deadline to file
- 2 years
- K.S.A. § 60-513
- Fault rule
- Modified (50% bar)
- You can recover only if you were less than 50% at fault; your award is reduced by your share.
- K.S.A. § 60-258a
- Damage caps
- Injury: no cap
- No cap on non-economic damages in injury cases (Hilburn v. Enerpipe, 2019). Wrongful-death nonpecuniary damages are capped at $250,000.
- K.S.A. § 60-1903 (wrongful death)
General information, not legal advice — and deadlines can be shorter for claims against government entities or in special circumstances. Laws change; confirm the deadline that applies to your case with an attorney before relying on it.