Effect of an Appraisal Clause on Auto Body Repair


An appraisal clause refers to a paragraph in an insurance policy that states that if the auto body shop and the insurance company fail to agree on the repairs cost, either of the parties is allowed to ask for an appraisal.

The business of insurance companies is about protecting the cars of their customers. However, they do not have similar experience and information about car repairs with the auto body shop professionals. An insurance company can misunderstand the full damage extent or the necessary repairs.

Unfortunately, an insurance company can nudge a customer towards low quality auto body repairs while trying to save money.

Requesting for an Appraisal

If your auto insurance policy has an appraisal clause, send your auto insurance company a letter requesting for an appraisal. You will receive a letter from the insurance company if it disagrees with you in terms of the amount you want it to pay.

On receiving the letter, both the auto body shop and the insurance company should find their appraisers. The appraiser of each entity will review the case objectively on the basis of collision facts and assess the damage on the car. They will also review the quality and necessity of repairs to reach a specific amount.

Both appraisers will get a third-party appraiser in case they do not reach an agreeable amount. The third party appraiser will perform an independent appraisal and decide on the amount to be paid by the insurance.

The vehicle owner pays for their appraisal and the insurance company pays for its appraisal. If the appraisers fail to agree, the third party appraiser is paid by the vehicle owner and the insurance company.

How an Auto Body Shop can Help You

It’s important that you take your vehicle for repair at an auto body shop whose professionals focus on ensuring that your vehicle is restored to its pre-crash condition. An ideal auto body shop will be upfront with both the insurance company and the vehicle owner in terms of the cost. It will also be ready for an appraisal if your insurance company attempts to shortchange you.

Therefore, take your vehicle to a reputable and professional auto body shop to ensure that the appraisal clause on your auto insurance won’t affect you negatively. Click Here