Third-Party Claim

A First-Party Claim is a claim you file against your own insurance policy (under collision or comprehensive coverage). You pay the deductible but typically have access to the appraisal clause and other policy protections.

An Appraisal Clause is a provision in most US auto insurance policies that lets either you or the insurer demand an independent appraisal when you disagree on the value of a totaled vehicle. When invoked, you and the insurer each select a competent independent appraiser, and typically those two appraisers will agree to a new actual cash value. In the event those two appraisers are unable to agree on a value, the two appraisers can select an Umpire to break ties. Typically, you will split the cost of the third appraiser/umpire with the insurance carrier 50/50. In the event that the two appraisers are unable to agree on an umpire, the insured or the insurance carrier can petition a court with jurisdiction to select one. This rarely happens, but the chance isn't zero. The resulting valuation from any two appraisers and/or the umpire is binding.