The Right to Appraisal Isn't a Simple Switch
The insurance appraisal clause is a legitimate dispute resolution tool, but it is not a guaranteed remedy — and shops that encourage customers to invoke it without first carefully reviewing the policy language may be setting both themselves and their clients up for a disappointing outcome.
That was the consistent message from three right-to-appraisal veterans during a Collision Hub broadcast. P&L Consultants co-owner Larry Montanez, Vehicle Collision Experts CEO Mark Olson, and Collision Hub CEO Kristen Felder each brought distinct expertise to the discussion, and their collective guidance was clear: the appraisal clause process requires precision and preparation, starting with the policy itself.
The Policy Language Determines Everything
The first and most important step in any potential appraisal clause action is reading the actual policy — not assuming that an appraisal clause exists, and not assuming that it covers vehicle repair disputes.
Felder and Montanez flagged a specific structural issue that many repairers and consumers miss: a policy may contain an appraisal clause that applies to total loss disputes but not to repairable vehicle disagreements. These are often found in different sections of the policy and may have different triggering conditions, procedures, and timelines.
Additionally, Olson noted that comprehensive and collision coverage sections within the same policy may have different appraisal clause language. A consumer who believes their dispute is covered by an appraisal clause may be looking at a section that doesn't apply to their specific situation.
In Virginia, Montanez noted a notable case where a court ruled that an insurer had to extend a policy's total loss appraisal clause to a repairable vehicle dispute. He called it "a big, big decision" — but it also underscores that outcomes can vary significantly by state and policy interpretation.
Know What You're Invoking Before You Invoke It
The appraisal clause process, once initiated, creates obligations for both parties. The consumer must select an appraiser, typically at their own expense. The insurer selects its own. If the two appraisers cannot agree, they must select an umpire — also typically at shared expense.
If those costs are not understood upfront, a consumer who enters the process expecting a quick resolution may end up spending more to resolve the dispute than the value of the disputed items. Felder noted that this outcome can be particularly frustrating when an insurer's designated appraiser declares the vehicle a total loss, pays the customer, and takes possession — a scenario where the consumer "wins" the appraisal process but loses the vehicle.
Montanez also advised that a shop should generally have obtained at least two supplements before a customer invokes the appraisal clause. Felder added that consumers sometimes jump to appraisal before the insurer has even received a first supplement — which means the dispute hasn't been properly exhausted through normal channels, and the appraisal process may not be the right move at that stage.
Right-to-Appraisal Is a Customer Right, Not a Shop Tool
An important distinction raised during the broadcast: the right to appraisal belongs to the policyholder, not the shop. Repairers cannot invoke the appraisal clause on behalf of a customer, and shops that steer customers toward invoking it without fully informing them of the process, costs, and likely outcomes are not acting in the customer's best interest.
Olson emphasized the need for shops to understand what they can and cannot do in the appraisal process. A shop can help a customer understand their rights, provide documentation to support the appraiser's review, and assist in preparation. But the shop is not the party to the insurance contract, and the appraisal process is not a shop remedy.
The Preparation That Makes It Work
For customers who do have a legitimate appraisal dispute and have read the policy carefully, the process can be effective. But it requires documentation — the same thorough documentation that shops should be building throughout every repair process.
A well-supported appraisal case has OEM procedures, line-by-line estimate comparisons, photos, teardown documentation, and clear communication trails showing what was requested and what was declined. Appraisers are evaluating the merits of the dispute; the side with the documentation wins more often than not.
The message from the Collision Hub panel was not that appraisal clauses are ineffective — they are a legitimate and sometimes powerful remedy. The message was that going in without reading the policy, without exhausting supplements, and without understanding the costs and procedural requirements is how shops and consumers get surprised by outcomes that didn't have to go that way.
