Consumers who do not agree with the settlement amount are urged to dispute it. The auto insurer will request documentation to support the reasons behind the disagreement. The insurer will review the documentation for accuracy and its applicability to the total loss vehicle.
If consumers continue to disagree, an appraisal is warranted. State laws and the terms of the insurance policy determine how the process will resolve the differences. The insurance company hires the appraiser, unless the policyholder hires an independent appraiser to appraise the vehicle.
Both the insurer’s appraiser and the consumer’s appraiser compile reports and attempt to reach an agreement on the valuation of the vehicle before scheduling a formal hearing. When consumers do not hire their own appraiser, they are bound by what the insurer deems is an appropriate payout.